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Neoliberalism as a Cause of Structural Unemployment in the USA

News  Over 50 and unemployed Recommended Links The problem of inequality Computers eat people Underemployment Eroding Western living standards
The neoliberal myth of human capital Perma Temps Adverse Selection The problem of inequality Productivity Myth and "Rising labor costs" hypocrisy Scapegoating and victimization of poor  
Neoliberalism as a New Form of Corporatism Corporatism Casino Capitalism If Corporations Are People, They Are Psychopaths Toxic Managers Office Stockholm Syndrome Learned helplessness
Unemployment after graduation Fake Employment Statistics Destructiveness of GDP Mania   Financial Sector Induced Systemic Instability

Economics Pseudo Theories

Notes on Republican Economic Policy
John Kenneth Galbraith Invisible Hand Hypothesis Inflation vs. Deflation Lysenkoism Financial Humor Humor  Etc

Unemployment offices, homeless shelters,  hospitals, prisons and casinos. and are the only real growth industries of Obama Administration. In Jan 2010 35 millions, or one in eight Americans, were on food stamps.

Obama's  biggest — and only major — jobs program is the U.S. military


When I was a kid they told us that automation would "free" us from working long hours. What they didn't tell us what that they weren't going to pay us for all this leisure time we'd get.

Mass unemployment is the primary indication of the collapse of a given form of society -- James Burnham


Introduction


"Unemployment" statistics has been the political advertising media for every Administration in modern times

From comment in
The Rise of Invisible Unemployment
 The Atlantic, Nov 9, 2014

 

The institutions of neoliberal capitalism, while promoting an expanded role in the economy for "market forces" (read "financial oligarchy")  simultaneously transform labor relations. The “market” under neoliberalism certainly no longer refers to competition as a form of the production and distribution goods and services. Instead, it means something more along the lines of international financial monopolies protected by collusion between captured vassal state institutions (including neoliberal fifth column domination in the all major branches of government, especially executive and  legislative branches, educational institutions and media) and multinationals, which pay money to sustain this social order. The term “Free markets” under neoliberalism means letting rich people do what they want, not promoting efficient allocation of resources through competition and the price mechanism. The core of the fifth column are local oligarchs and so called "Chicago boys": sons and daughters of local elite who are trained for and indoctrinated for this purpose in Western universities. As aptly noted Neoliberalism – the ideology at the root of all our problems ( The Guardian,  April 15, 2016)

We internalize and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances.

Never mind structural unemployment: if you don't have a job it's because you are unenterprising. Never mind the impossible costs of housing: if your credit card is maxed out, you're feckless and improvident. Never mind that your children no longer have a school playing field: if they get fat, it's your fault. In a world governed by competition, those who fall behind become defined and self-defined as losers.

Under neoliberalism labor relations assumes the form of full domination of labor by capitalists. Unions are officially suppressed and large part of middle class is brainwashed to hate using set of propaganda stories about unions corruption, welfare quinsy, lack of competitiveness in unionized industries (with Detroit as a prime story), etc.  In this sense crushing by Reagan of the strike of air controllers was one of the first manifestation of this dominance. Workers again are downgraded to the role of debt slaves, who should be glad to get subsistence wages. And, for example, wages in Wal-Mart are really on subsistence level, no question about it (Making Change at Wal-Mart » Fact Sheet – Wages):

Wal-Mart jobs are poverty-level jobs.
Wal-Mart's average sale Associate makes $8.81 per hour, according to IBISWorld, an independent market research group. This translates to annual pay of $15,576, based upon Wal-Mart's full-time status of 34 hours per week1. This is significantly below the 2010 Federal Poverty Level of $22,050 for a family of four. The Wall Street Journal reported that the average Wal-Mart cashier makes just $8.48 an hour, far below the $11.22 national average for all cashiers.

This contrasts with the capital-labor compromise that characterized the state capitalism that existed several post-WWII decades and that was crushed by neoliberalism in 1970th. Neoliberalism also brought change in the relation between financial and non-financial capital: financial capital now again like in 1920th plays a dominant role dictating the rules of the game to manufacturing sector and controlling it via banks.

Under neoliberalism the wealthy and their academic servants, see inequality as a noble outcome. University professors of economics form the most corrupt part of intellectual elite – they are nothing more than employees of the financial oligarchy paid to administer intellectual anesthetic to those among debt slaves, who still have enough time to ask what’s going on. They want to further enrich top 1%, shrink middle class making it less secure, and impoverish poor.  That's an officially state goal. Then in 1992, when asked what Iran-Contra was really all about, Bush I replied that it was done for "...the continuous consolidation of money and power into higher, tighter and righter hands."

The upward redistribution of wealth requires high unemployment to weep prols into unconditional obedience.  In other words neoliberalism and high unemployment are twins.

Under the disguise of "free market" Newspeak  neoliberals promote a type of economy which is often called a plantation economy. In this type of the economy all the resources and power are in the hands of a wealthy planter class who then gives preference for easy jobs and the easy life to their loyal toadies. The wealthy elites like cheap labor: it's much easier to  dictate their conditions of employment when unemployment is high.

Keynesian economics values the middle class and does not value unemployment or cheap labor, so it is incompatible with neoliberal ideology and needs to be suppressed.  Neoliberals created the system which richly reward stooges of neoliberalism for their loyalty to the top 1%  bestowing on them an easier life than they otherwise merit. In a meritocracy where individuals receive public goods and services that allow them to compete on a level playing field, many neoliberal academic toadies would be losers who cannot compete.

One of the most important measures of the health of an economy is the following criteria: how many fulfilling, living-wage jobs are created or destroyed (most other economic factors can be distilled to this.). For example, widely used measure of economic growth, GDP is too influenced by financial masturbation and does not distinguish useful activity from harmful or irrelevant. 

Under neoliberalism the elite revived Roman emperor Septimius Severus advice to his sons before he died at Eboracum (York) on  February 4, 211:

"Avoid infighting, pay well the soldiers, and ignore everybody else" . 

So during the Great Recession Congress simply tuned backs to unemployed. With the implicit message you just need to die out folks ;-).

Military budget at the same time was greatly expanded and several unnecessary wars were launched.  Brainwashed American public eats all those neoliberal policies like real lemmings, demonstrating the level of groupthink and lack of critical thinking that is typical for high demand cults. So the myth about highly conscious "proletariat" that Marxists cherished remains a myth. Moreover quite opposite tendencies to creation of "enlightened lower classes" show their ugly face (Chris Hedges America is a Tinderbox naked capitalism):

ictus92, July 21, 2013 at 5:07 pm

To paraphrase Madeline Albright: “What’s the point of creating a totalitarian police state if you’re not going to use it?”

So where is the American totalitarian state going? If you look at the NDAA and the discussion around repealing the Posse Comitatus Act, the key words include quelling “domestic civil unrest”… So what are the “deep government” types anticipating so hysterically?

Well, the financial crisis keeps grinding away and is about to enter another phase of collapse as “quantitative easing” has run its course. Interest rates are rising, posing “technical insolvency” of the Federal Reserve itself. What this means is that time’s up for the 46 million in the Food Stamp Supplemental Program; 56 million getting Social Security retirement or disability benefits; and at least 20 million more needing full time employment. Obviously there’s some overlap, but the total number of people living on the margins of subsistence pushes 30% of the population.

For these, they face an immediate “Final Solution”… not exactly direct extermination, but death by deprivation, illness etc. Can work camps be far off for these tens of millions and the many millions more living paycheck to paycheck? This population and their sympathizers comprise the tinder for “civil unrest”. Hence the corollary to the famous “Collect it all” (communications) is “control it all” (civil disorder following further economic collapse).

Furthermore, prolonged neglect of key infrastructure will lead inevitably to severe food, water and electric power access shortages — another source of civil unrest potential.

Of course, overseas the totalitarian police state eliminates all expression of opposition that can change policies in the quest for “Permanent War” and “full spectrum” military dominance. This ends in global military confrontation… just as the financial crisis of the 30’s gave rise to another World War… only this time around world war will pitch towards thermonuclear war in short order. That’s how totalitarian regimes collapse into catastrophe, dragging the rest of us to an unpleasant demise.

Unfortunately, I don’t think there’s a damn thing any of us can do to arrest this beserk Levithan…

tongorad, July 20, 2013 at 3:21 pm

This is America, not Denmark. In this country, tens of millions of people choose to watch FoxNews not simply because Americans are credulous idiots or at the behest of some right-wing corporate cabal, but because average Americans respect viciousness.

They are attracted to viciousness for a lot of reasons. In part, it reminds them of their bosses, whom they secretly adore. Americans hate themselves for the way they behave in public, always smiling and nodding their heads with accompanying really?s and uh-huhs to show that they’re listening to the other person, never having the guts to say what they really feel. So they vicariously scream and bully others into submission through right-wing surrogate-brutes. Spending time watching Sean Hannity is enough for your average American white male to feel less cowardly than he really is.

The left won’t accept this awful truth about the American soul, a beast that they believe they can fix “if only the people knew the Truth.”

But what if the Truth is that Americans don’t want to know the Truth? What if Americans consciously choose lies over truth when given the chance–and not even very interesting lies, but rather the blandest, dumbest and meanest lies? What if Americans are not a likeable people? The left’s wires short-circuit when confronted with this terrible possibility; the right, on the other hand, warmly embraces Middle America’s rank soul and exploits it to their full advantage. The Republicans know Americans better than the left. They know that it’s not so much Goering’s famous “bigger lie” that works here, but the dumber and meaner the lie, the more the public wants to hear it repeated.”

“We, The Spiteful” by Mark Ames

http://exiledonline.com/we-the-spiteful/

Dave, July 20, 2013 at 8:18 pm

Please consider that the “right” is far more realistic in their assessment of human nature. The “left” wants things to be according to what they think it should be, mostly because of their left wing educators. The majority of humans are not perfectible.

Even Asians, with their highly socialized societies, have behaved very badly towards those outside their country.

This tendency of self-deception of "blue color America" and resonating of Republican Party ideas within "working poor" and lower middle class, two strata of the US society that typically votes against its own economic interests is analyzed in   What's the matter with Kansas  And to fight neoliberal machine is not easy as media dominance is total, and on a new technological level, which does not require silencing of opponents, just ignoring them, approach the level typical for the USSR or Nazi Germany.  And even if some people question the system, like (at the very beginning) Tea Party did, or later "Occupy Wall Street" movement did, they are mercilessly co-opted or crashed by well paid guard labor. The latter is one of the few  types of employment which prospers under neoliberal empire. See  The Rise of Guard Labor (dollarsandsense.org)

The reality is that many rich countries including the USA now face two problems. One is a shortage of jobs, especially middle class jobs.  The other is stagnant (or falling) wages for those outside top 1%.  This is not a temporary problem. Despite all the propaganda smoke this is an immanent feature of neoliberal regimes that now dominate in the USA and most other countries.  Neoliberalism requires high unemployment as a way to keep workers in check and prevent attempts to slow down redistribution of wealth toward the top.

As George Bush Sr . noted in November 1992 neoliberalism is "the continuous consolidation of money and power into higher, tighter and righter hands". The essence is  the consolidation of money and power to the top 0.1% or even 0.01%.  In a very deep sense our new lords from financial and political oligarchy are not that different from feudal aristocracy, may be only less educated, more prone to avoid military service and much more greedy. 

Unlike Keynesian economy which put middle class in the center of society serving a buffer between rich and poor,  under neoliberalism  middle class is no longer needed as a buffer between aristocracy and proles, as repressive power of the state and regime of total surveillance (National Security State) makes an organized opposition practically impossible. The fate of "Occupy Wall Street" movement is nice illustration here.

On the other hand neoliberalism as an ideology, while discredited by event of 2008 still does not have any viable alternative.  Socialism was discredited by collapse of the USSR (which in reality was a neoliberal counterrevolution by Soviet nomenklatura including part of KGB).  Authoritarian versions of state capitalism does not look too attractive, despite being quite effective as was proven by economic progress of "Asian tigers".

Other important factors are also in play. Technology has stripped away the ability for many to hold a job and the trend continues.  In other words automation eats jobs. Outsourcing eats jobs too. Between those two trends almost no job growth left. This is a structural situation, not transitional caused by recession due to aftermath of 2008 financial bubble bust.  In other words jobs that disappeared will never return. And jobs in construction sector and finance were artificial and unsustainable in any case, crisis or no crisis (as in "what can't last forever eventually stops." )

We are in the midst of slow motion employment collapse. Eurozone unemployment recently reached 12%. The US has probably 20% rate of involuntary unemployment now. The official unemployment "rate" is lower, but that is because both 60-65 years old and 20 to 24 year olds are dropping out of the wage force.

Add to this "peak energy" problem and the situation looks really bleak. That's the funny thing about oil and modern civilization -- almost everybody in large western urban centers is dependent on mass produced technology (much of which was invented before we were born) and cheap oil (and generally cheap energy), Those who live in those urban centers no longer have any direct control or ability to produce own food or transportation energy or heating. those three activities are completely outsourced. See Peak Oil Demand is Already a Huge Problem.

Globalization is yet another problem. I was actually surprised by how many jobs large corporations managed to shred during 2008-2013 without negatively affecting  profitability.  The impression is that it is no low limit.  Usual wisdom is that if you shred too much, this labor shortage will bite you in a couple of years. This is no longer the case in the USA. No visible backlash at all.  Even consumption that should be suffering due to destruction of middle class in this process is no suffering much, because it was already mostly top 1% game and, as such, is recession proof. Here is one interesting comment form Krugman column Globalization and Macroeconomics - NYTimes.com

Floxo Australia

The analysis is flawed. The issue is not goods trade - on its own, this is relatively benign. The real problem is the associated capital drain. Owners of capital will transfer productive capital abroad for better returns. This process creates deep structural problems for all developed economies. Here are some basic predictions:

Recessions are difficult to manage and may become protracted. In a downturn, capital formation dries up but the capital drain continues. This erodes the output gap. A fiscal stimulus now has less headroom for expansion. On top of that, an increase in domestic demand may be met by investment in productive capital abroad; the domestic investment response is missing. This may even cause a fall in labor productivity ( UK productivity puzzle?).

In short, globalization IS the problem.

Unemployment and well being

Recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.  As Kathleen Geier noted the impact of unemployment on well-being it’s even worse than you thought

While reading this odd and meandering New York Times op-ed this morning, I stumbled upon a link to a fascinating study from last year on the impact of unemployment on non-monetary well-being. It was conducted by Stanford sociologist Cristobal Young, who discovered that unemployment has an even more catastrophic effect on personal happiness that we thought.

The study produced three major findings. The first is the devastating impact job loss has on personal well-being. Job loss, says Young, “produces a large drop in subjective well-being”:

Job loss into unemployment, however, is a different matter; this brings on deep distress that is greater in magnitude than the effect of changes in family structure, home-ownership or parental status. The distress of job loss is also hard to ameliorate: family income does not help, unemployment insurance appears to do little and even reemployment does not provide a full recovery [italics mine].

The second finding is that while unemployment insurance (UI) is successful as a macroeconomic stabilizer, it doesn’t make unemployed people any happier. UI, says Young:

is not central to their sense of well-being… [Snip] …[ I]t does little to support their identity, sense of purpose or self-regard.

Third, job loss has a strong, lasting negative impact on well-being that may persist for years:

[J]ob loss has consequences that linger even after people return to work. Finding a job, on average, recovers only about two thirds of the initial harm of losing a job. It is not clear how long it takes for the nonpecuniary effect of unemployment to heal.

Other research suggests that what Young refers to as “the scarring effect” of job loss can last from three to five years, or even longer. He also notes that “the more generalized fear of becoming jobless” may persist.

Young’s discussion of these findings stresses the inequality theme. He points out that “recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.” He suggests job-sharing as a way to reduce the concentrated misery of unemployment. That’s a great idea that unfortunately never seems to go anywhere. Employers today seem more interested in squeezing as much labor out of employees as possible for the lowest cost. They’re looking to shrink their payroll rather than expand it. And unfortunately, there are very few public policies that promote job-sharing, let alone do it effectively.

The sheer human misery created by the economic downturn has been stunning. The economic damage is, in some ways, the least of it. Another study shows that the long-term unemployed experience shame, loss of self-respect, and strained relationships with friends and family. They even suffer significantly higher rates of suicide.

Yesterday, Paul Krugman and others discussed the impact of economic inequality vs. unemployment on income. Krugman argued that inequality has had the greater impact, and I agree. Among other things, inequality is also the root cause of the unemployment problem. Special interests which have disproportionate power in our political system prevented more stimulus and inflicted an austerity agenda, which has had a disastrous effect on employment. Enacting an economic equality agenda will be huge political challenge, but it’s the only way I can see of ultimately resetting the priorities of our government so that it starts working on behalf of ordinary Americans again.

Official measures of unemployment

There are two popular unemployment measured U3 (commonly cited as "official unemployment rate", which dramatically understates real unemployment) and U6, which is close to actual unemployment rate as was measured during the Great Depression. U3 is often as low as half of U6 (that's why it sometimes called 50 cents unemployment rate). As The Big Picture note in the entry Unemployment Reporting

Its been pretty obvious for sometime that the Financial Media are doing a disservice to their readers by only reporting U3, given how dramatically it understates Unemployment. Indeed, consumer sentiment reports are at deep negative levels that only occur when Unemployment is much than what U3 has been saying. It is painfully obvious that U3 does not paint an accurate view of the Employment situation.

Here's the experiment I propose: Let's start reporting both, with appropriate descriptions of each. Report U3, add U6, provide monthly and year over year changes. Let the reader see the full picture, via BLS data.

See Table A-12. Alternative measures of labor underutilization

Factors that make the current unemployment structural

I would like to stress it again: many factors point to the fact that the current level of unemployment is mostly structural. In other words jobs eliminated will not be coming back. Among the most important factors we can mention:

  1. Neoliberal ideology, which prevents strong government action and direct employment by government on infrastructure projects like during New Deal. Related to the dominance of neoliberalism the hypertrophy of financial sector lead to games with "Main street" after which high, self-sustainable (aka structural) unemployment for in now a destiny for millions. Making the whole society sick.
     
  2. Outsourcing (which partially is due to much better communication channels available and computerized navigation)
     
  3. Computerization (which directly "eats jobs" much like during industrial revolution in the UK).
     
  4. High price of energy, which serves as strong depressing factor. If I remember correctly, a decade ago price of oil above $100 was considered an equivalent to permanent recession. This is never mentioned today, but still might be as true today as it was ten years ago: with the high price of oil the economic recovery is simply impossible. The only option, the only trajectory for economy is permanent stagnation.
     
  5. Growth of "lumpen-proletariat". Narcoaddicts, alcoholics, single mothers from poor families with just high school diplomas,  people with "generosity-based" high school (considerable part of Afro-Americans) and university diplomas from "diploma mills" (essentially fake diplomas),  various categories of handicapped, people with criminal records (substantial part of Afro-American male population), etc.  

The first three factors changed the distribution of power between labor and capital in favor of capital; and those guys are not inclined to take prisoners, when there is a chance to fatten their pockets.  None of the first three factors will probably be reversed soon, although neoliberal ideology is after 2008 entered a zombie state.

Also computerization and Internet allowed capital and political forces behind it much better organize politically. So like in in previous human history well organized and wealthy minority dictates its will less-organized poor majority.

I think that financial capital might eventually experience some setbacks. This bacchanalia of greed with those hedge fund  which hack financial system left and right  might come to an abrupt end with the rise of the price of oil. Even now price of oil indirectly pressure "masters of the universe".  And remember famous slogan of 2008 "Jump suckers" ;-). It reflects the society attitude to financial oligarchy and as such entail certain dangers of "blowback" for all those derivatives games.

Not under Obama watch as he is essentially a sock puppet of financial oligarchy. But eventually setback for "big finance" can happen. At the end of the day it is oil that is the real convertible currency and when oil production is diminishing or flat,  financial oligarchy will be pushed back. 

Measures taken by political elite to save financial institutions after 2008 collapse means that unemployment is a part of a general political problem with neoliberalism as a social system. Under neoliberal regime the elite can't care less about long term unemployment. National Security State ensures the security of the neoliberal elite. Elections in the USA are a sham as two party system effectively blocks candidates outside the list approved by the current elite.  The latter might even see sharp division of the society into "have" and "have nots"  as a solution of oil depletion problem (Economist's View):

bakho:

Exactly.

Monetary policy does not operate in a vacuum. Monetary policy operates in an economic system that includes fiscal and regulatory tools. It is a mistake to lock the fiscal and regulatory tools in a shed.

Fiscal policy ALWAYS operates in a recession, at least in the form of automatic stabilizers, (UI, etc.) and sometimes in the form of additional stimulus.

The meagre automatic stabilizers currently in place are enough for a mild recession, but are woefully short of what is needed in a recession like the recent one.

The primary objection to fiscal policy manipulations is that fiscal policy is more easily politicized. This overlooks the fact that monetary policy is not only political, but bankers (who constitute a wealthy special interest) have an agenda that tilts monetary policy to their own self interests.

The primary objection to using fiscal stimulus to address our unemployment crisis is POLITICAL. Wealthy special interests want pay less taxes and short term stimulus would interfere with their political agenda to roll back spending and reduce spending as a percent of GDP.

Wealthy special interests have the upper hand at the moment because enough politicians are dependent on their campaign donations. However, this politicalization of fiscal policy, doing too little to address unemployment, is the prime force behind the Fed keeping interest rates low. If enough fiscal stimulus was enacted to quickly return to full employment and inflation at or slightly above the target, the Fed would not have to consider extraordinary measures.

Anyone unhappy about extraordinary monetary measures should be urging Congress to fix unemployment now. This is not what our elites are doing. They are complaining about extraordinary monetary measures AND about additional stimulus. This suggests that these policy elites care nothing about social problems of long term unemployment, are content to have the US become a divided nation between haves and have nots and are content to oversee the creation of an underclass in order to concentrate wealthy upward.

When one is saying that unemployment became a structural problem that means that it is immune to the business cycle. For example, during the last economic expansion (Jan 2002 -Dec 2007), the median US household income dropped by $2,000. In other words many Americans were worse off at the end of an economic cycle as jobs went outsourced to low wage countries due to wage arbitrage... 

Collapse of Casino Capitalism and unemployment

The collapse of “casino capitalism” model in 2008-2009 was so profound that all sectors of the economy became depressed. As securitization mess exploded in the face of their creators as it became clear to everybody that the king is naked. Debt overhand of financial industry is tremendous and it was just socialized, not removed. Essentially it became the problem of the USA government debt. In many ways problems the USA faces now are more serious then the problems the country faced during Great Depression because economic crisis doubles as the crisis of dominant ideology -- the ideology of neoliberalism.  And the Great Recession, despite Economic Cycle Institute premature desire to bury it, is still with us. Five years in the making as of 2013.

Ideology on which FIRE sector dominance was based is now questioned and that creates additional problems both nationally and internationally, much more internationally. Internationally it means a substantial loss of the USA "soft power", the factor that played tremendous role in the decade of 1990-2000.  When other country laugh at the US financial oligarchy tribulations it is difficult to open new markets selling old neoliberalism doctrine. due to debt overhand the US dollar is replaced by currency swaps in national currency for several major trading partners of China such as Brazil and Russia.   First of all that makes the crisis even deeper and analogies between the USSR and the USA more sinister. As with Stalinists in USSR who destroyed the country economically, there is a powerful block of republican dead enders and democratic supporters of financial oligarchy (blue dogs) who  will continue to promote the current neoliberal course with its deification of "free markets" (free as in "free shooting zone"), oblivious to consequences of neoliberal policies which eat the society and protected by the size of their accounts. There is nothing new here. Oligarchic  democracies can commit suicide. Actually none lasted long. And with such a formidable political wrecking crew in action and gridlock in Congress even over minor reforms that became less probable.

For all practical purposes two party system actually works like one-party system: democrats were also captured by FIRE industries to the extent that they should not be considered an independent party, but as a slightly more moderate wing of the Republican Party. Similarly by all accounts Obama is a moderate Republican with the policies to the right of such Republican Presidents as Dwight Eisenhower and Theodore Roosevelt. In a way, Democratic Party perform the role of spoiler: it exists for the sole purpose of attracting disgruntled left-wing electorate away from more radical parties. Republicans play symmetrical role for right wing crazies. None can or want to became the agent of change. In this sense Obama electoral slogan "change we can believe in" was a nasty, cruel joke of political insiders over political outsiders.  Note how unceremoniously Obama dumped labor after his reelection, while courting it during his reelection campaign.

As private sector is still downsizing, and government can't be the employer of last resort due to dominance of neoliberal ideology, the whole situation looks more and more like Japanese lost decade. The only area where government can expand workforce are defense contractors (military keysianism):

Minsky, however, argued for a “bubble-up” approach, sending money to the poor and unskilled first. The government - or what he liked to call “Big Government” - should become the “employer of last resort,” he said, offering a job to anyone who wanted one at a set minimum wage. It would be paid to workers who would supply child care, clean streets, and provide services that would give taxpayers a visible return on their dollars. In being available to everyone, it would be even more ambitious than the New Deal, sharply reducing the welfare rolls by guaranteeing a job for anyone who was able to work. Such a program would not only help the poor and unskilled, he believed, but would put a floor beneath everyone else’s wages too, preventing salaries of more skilled workers from falling too precipitously, and sending benefits up the socioeconomic ladder.

It is important to understand that the USA is not just coping with the largest financial crisis in history, the USA is also going through a major restructuring of the American economy as well as the world economy due to plato in oil extraction. This transformation, which was postponed by two decades due the collapse of the USSR (which gave the USA companies half billion of new consumers and huge area to dollarize and buy assets for pennies on a dollar), will be very long, very painful and very slow. One additional factor that complicates the picture of "peak oil", is that it is  more properly can be called "end of cheap oil", as at higher prices more oil became economically available. So this is  not a peak but long plato.

As GDP is highly correlated with the energy consumption, the side effect of peak oil will probably be stagnant (close to zero after inflation) growth and with it speed up in permanent decline of the standard of living for middle class 

Also complicating the situation is the status of baby boomers which lost significant part of their savings during last two bubble bursts and now need to retire or will be pushed out of workforce. Pensions are already cuts either directly or indirectly (via inflation). For example, defined benefit pensions almost disappeared outside of government job force. After housing crash middle class no longer has a realistic prospect to fund their retirement and need to work longer: that increases competition for jobs. For middle aged professionals who are unemployed now the odds of finding reasonably paid work are low and they create additional competition for young people entering work force from universities. People over 50 now face especially poor job prospects.

At the same time corporate executives became corporate aristocracy (with differences in pay raising from 10-20 to 100-200 more of average corporate salary; this is the differences close to what used to exist in feudal societies). Most corporations are taking a lazy way out of the crisis with relentless cost-cutting.  This is a self-defeating strategy as cost cuttings eventually returns back via supply chain and bite the corporation which performs it. But so far this did not happened.

In addition productive sectors of economy are now under pressure of rampant financial speculation which serves as a huge tax on productive sectors of economy. Financial system is controlled by small number of large firms that permanently shifted their main activity into gambling and hacking of the financial system. There is some justice that computers which fueled all this crazy gambling on the strength of global reserve currency led to outsourcing of IT professionals to the extent that this part of US economy was destroyed and became a shadow of its former self in just ten years (2000-2010).

Another important sign of stagnation is that new college graduates face extremely bad job market which squeezes out anybody without substantial experience so for them it's Catch 22. Only graduates form Ivy League colleges has real prospect to get a job after graduation. Plus those with good family connections. In a way education is no longer a guarantee for better paying job, the same situation what was typical for the USSR and other countries of Eastern block during Brezhnev's stagnation.

There is also an interesting transformation of the quality of the education that also parallel transformation  experienced by the USSR in post-war period, but in especially acute form, three decades before the collapse. Private education became more like subprime lending.  It's quality became fake, as the term "diploma mills" suggests.  This rat rate to the lowest possible quality (quality instead of quality) was the central tendency in Brezhnev's USSR. 

In the USA in addition to devaluation of education caused by low quality "everything passes, everybody graduates, just pay" modus operandi of diploma mills, graduates from lower middle class families are now overloaded with debt, which creates for them really difficult situation and push many of them into low level service jobs like waiting. In other words excessive debt after college make getting into workforce using acquired specialty even more difficult as there is no space for long job search, relocation is more difficult and so on and so forth. 

There is also huge criminal industry that flourished around people desperate attempts to find well paying jobs. Many educational scams like "we will make you an ultrasound technician in six month; 90% of our graduates found jobs that pay over $60K in the first month after graduation"  or " software tester in four month; 100% of our graduates find jobs" are trying to capitalize of people desperate to find job, any job and getting into crushing debt trying to improve their chances in job market. Those criminals are not prosecuted.  For more information see:

The main source on new jobs is service sector and the lion share of new positions are McJobs

The employment growth comes mainly from the service sector which feeds off of consumer spending. It was hit by outsourcing especially in such areas as IT. Manufacturing no longer create jobs – outsourcing and computers eat them and you no longer need more people to make more stuff. 

Peter Dornan at EconoSpeak has the following comment which perhaps looks deeper at why the elite is so indifferent to mass unemployment and growing poverty in the U.S.

“…The process is more complicated: where one sits in society and the kinds of problems one typically has to solve leads to a way of thinking, and this manner of thinking then informs politics.

For centuries, the finance perspective has played a central role in economic theorizing, and there is ordinarily a body of research to support it. What I am proposing is this: economic orthodoxy is regaining control over policy because it reflects the outlook of those who occupy the upper reaches of government and business….”

http://economistsview.typepad.com/economistsview/2010/05/a-political-economy-moment.html

IMHO to get the economy out of this mess, government should concentrate on direct job creation (like was the case with Roosevelt administration), not on propping zombie banks hoping that they will generate credit necessary for creation o new jobs. Growth of credit will not happen and if it will happen it will not generate new jobs: most of it  is pushed into speculation.  Spectacular rise of S&P500 in first half of 2013 is a pretty good illustration of the process.

Long term high unemployment is a disaster for the country and disaster for the people, despite the fact that it is irrelevant for banksters, too busy playing in the huge casino they created. Failure to address this problem directly by Obama administration (which in economic terms is the second Summers-Bush administration making a joke in the slogan "change we can believe in") make Obama a real serial betrayer of people who elected him, the role he seems enjoy playing. 

Additional factors the complicates the picture

There are several additional factors that makes addressing the problem of chronic, structural unemployment even more difficult:

  1. The economic crisis coincides with deep ideological and political crisis.

    One can't solve the current problems the US are facing without the reform of the political system and institutions. Power of lobbyists need to be curtailed. Senate needs to be reformed.  Republican Party probably should be dissolved or temporary prohibited like Communists after the dissolution of the USSR as it is unable to reform. As there is no political will for political changes the crisis is structural and little people have to suffer.
     

  2. Real economy was damaged by excessive growth of  FIRE sector and associated "fictional" economy.  Real economy can't support the current size of FIRE sector and it needs now to downsized. There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). A new economy needs to be created for sustainable recovery because the old, FIRE-based was unsustainable. In 2010 housing probably will decline further. Both commercial and residential construction continues to decline. States continue to cut back budgets creating negative feedback loop. Personal bankruptcies are up, more defaults are on the horizon. The U.S. economy needs to be re-structured, both on the "technical" and inter-sectoral level. That amounts to a collective, system-wide Chapter 11 re-organization. Obama administration has totally failed to sell the public on the validity of "stimulus", however named. Suspicion that this administration is a puppet of big banks had grown sharply. Trying to kick the can down the road will yield Republican Congressional majorities in both houses.
  3. The USA is experiencing the process of separation of workforce into two-tiers, with an elite class of highly paid employees at top companies and a subclass of minimal wage and part time laborers who work for less pay, have less job security and receive fewer benefits.
  4. Foreign wars have substantial financial costs and are an important drag on the USA economy. In the book True Cost of the Iraq Conflict, Joseph Stiglitz was estimated he cost at three trillion dollars of which probably only one trillion was offset by looting of Iraq resources. Afghanistan is about  $2 billion a week, and unless all heroin trade is controlled by CIA there is little that can offset those costs. This is the longest ongoing conflict in U.S. history.  And since Joseph Stiglitz book was written things became worse.

    The disability rates are higher. The cost of caring for the disabled are higher. Almost one out of two people coming back from Iraq and Afghanistan are disabled. This is an unfunded liability of—we calculate now to be almost a trillion dollars, over $900 billion. So, one of the big ways of reducing our deficit is a—is cut back some expenditures....

    With Libya and Syria added to the list, the hidden costs of foreign wars will weight on weakened economics more heavily. Annual cost per soldier oversees is approximately $1 Million per year.
  5. Rent that hypertrophied financial sector  extracts from the rest of the society continues to be a serious drag on the economy. This drag adds to substantial drag caused by foreign wars and military bases as well as huge military industrial complex. While parasites are omnipresent in nature, two large parasites instead of one might spells trouble for the host. Moreover the ascendancy of the financial sector and the decline of manufacturing in the U.S. ("Casino Capitalism" ) has implications similar to consequences of an organized crime running the country.  The creation of tangible products whose utility/quality can be more or less objectively measured were phased out in favor of "financial products," whose utility/quality is much easier to conceal behind legal/technical jargon and junk economics. That created a huge new class of white collar criminals. While Blankfein is out claiming that GS is doing God’s work, the reality is quite different: it became a training ground for new type of ruthless criminals, much more dangerous then bank robbers. Killing of Glass-Steagall by Clinton and leverage obtained by financial sector operating without regulatory limit created prerequisites to the financial panic of 2008. Glass-Steagall enshrined two principles that were abandoned:

    The violation of the second principle directly leads to a regulatory capture in which anything goes and a corresponding observed "need" to accommodate indiscretions, as with the Greenspan/Bernanke put. It perhaps should be identified as THE primary cause, since it left Wall Street with the well-founded (LTCM, Latin America debt crisis, etc. ) and since-proved belief that prudence and capital were quite unnecessary, and that reckless, sociopathic deal making is profitable. Four examples :

  6. Capture of the government and the media by financial sector makes the necessary reforms unlikely. “Failed Regulatory Oversight” is a politically correct term for corruption. The latter was probably the second reason of the current high unemployment . See Toxic Sludge is Good For You: Lies, Damn Lies and the Public Relations Industry by John C. Stauber
  7. Effects of coming CRE crash on unemployment and economy in general might be underestimated of official forecasts.  The occupancy rate is the malls and commercial buildings is still declining. Many strip malls in the country are still are empty. Nice office buildings with signs "for rent" are feature of landscape in 2013. Many buildings, even large well designed buildings with datacenter infrastructure are vacant for years and eventually are demolished.  A full scale commercial real-estate crash can also hurt the economy in a way similar to residential home estate crash. Loans that were made in 2005-2007 were refinanced for three years in 2009-2011. And again in 2012-2013. But eventually they will be coming home to roost.  This also affects the construction  sector.  Only $400 billion of loans came due by the end of 2009, but nearly $2 trillion was refinanced by 2012.  

    The collapse in the U.S. commercial real estate market is fought by the government will maximum force but government resources to fight the crisis are diminishing too. in 2011 state financial crises led to cuts in state budget. In addition, in June 2013 municipal bonds came under fire, making financing more costly.  Commercial debt is approximately one third of the size of the total residential debt and it is concentrated in the same places creating double whammy. In Florida commercial loans, broadly defined, are bigger then residential. Unlike residential real estate, problem with commercial real estate are not solved by growth of population and creation of new families.

    Retail and white-collar positions will be directly impacted by CRE crash. As stores and offices close, mall and office building owners suffer from cuts in cash flow and severely limited prospects for new tenants. Insurance companies, hedge funds and regional banks are heavily invested in CRE and are next in line so some financial jobs will be lost too. Extend and pretend might work but the question is if there is enough liquidity to stretch loans.
     

  8. Computers eat people jobs. Automation and the recent advances in robotic and computers make more and more workers redundant.  The latest victims are cashiers in supermarkets. Manufacturing jobs continue to disappear not only due to outsourcing, but also due to new computerized technologies. The reality is that manufacturing employs a mere 11.5 million workers in the U.S.A., or 9% of the workforce and this percentage will never increase substantially.

    My feeling is that even in corporate IT after drastic cuts that were the standard game for large corporations in 2008-2009, additional cuts are possible. But the situation on the ground is somewhat paradoxical as real cuts runs deeper that you would assume from headcount: a lot of current IT personnel belongs to "untouchable" caste -- wives of somebody higher up in this or linked by the supply chain company, sons of somebody important and so on. I can't give you percentage, but probably 10%-20% of "untouchables" would be an educated guess. So removing of at least 10% of the current IT workforce means removal of 12% or more those who do actual work. 

    Another factor is that cuts in IT are one way street as they stimulate replacing of people with technology and there are still tremendous potential for computerization of many areas including first of all IT itself.

    For example all this cloud initiatives are in disguise politically correct way to move things in the direction of higher automation and outsourcing because under the surface there is not much innovation in those "new" technologies.
     

  9. Oil prices despite coming down in September 2011 are back to $85-$90 level.  That level is putting additional stress on manufacturing, transportation and agriculture. Solid US growth of the past decade and earlier was dependent on two factors:

    With the rising oil all bets for re-inflating the economy (aka kicking the can down the road) are off.
     

  10. Indirect job creation strategies via stimulus to businesses seized to produce meaningful job generation. Reaganomics has put the U.S. economy into a high-unemployment equilibrium when the high-rate of labor unemployment is reinforced by the shortage (or absence) of idle, but useful capital stock due to offshoring and  outsourcing as well as chronically low consumer demand due to high level of debt. Only service sector and financial jobs can be generated with minimum capital infrastructure (for financial jobs internet connection and computer are almost all that needed). Automation of production lead to less and less workers.
     
  11. Confidence is really low.  Businesses have no confidence that customers ever return, therefore are not hiring much and scaling down the production. This chicken-egg-chicken-egg cycle has to be broken, but I am really puzzled how that is going to happen without large government role in the economy, which is big no-no for ideological consideration (the USA preaches neoliberalism as a "civil religion" similarly like USSR and other "communist" countries preached Marxism). Without large government projects employees have no confidence in their jobs, therefore are not consuming much.
     
  12. In the face of growing unemployment the current administration proved to be as incompetent as Bush administration in case of Hurricane Katrina. And that means totally incompetent.

Effects on population

Unemployment is a very harsh condition, that traumatize the workers greatly (Sliding into the Great Depression)

At first the unemployed searched eagerly and diligently for alternative sources of work. But if four months or so passed without successful reemployment, the unemployed tended to become discouraged and distraught.

After eight months of continuous unemployment, the typical unemployed worker still searches for a job, but in a desultory fashion and without much hope.

And within a year of becoming unemployed the worker is out of the labor market for all practical purposes: a job must arrive at his or her door, grab him or her by the scruff of the neck, and through him or her back into the nine-to-five routine if he or she is to be employed again.

The USA as a whole is facing the worst labor market prospects since 1929. In terms of duration of elevated unemployment we already rival the early 80s. But in no way we can expect a steep decline in the rate of unemployment in the way that happened in 1983 when unemployment declined at a brisk 2%. And permanent high unemployment creates economic conditions that feel like the USA brought back slavery. The new reserve army of the unemployed drives wages down, while average productivity continues to rise, as a way to generate surpluses to be channeled into executive bonuses. The whole sectors like IT were decimated by outsourcing. Unfortunately given the current overcapacity and ample supply of qualified job seekers in many occupations, I certainly don't expect labor arrangements and employment conditions to become more favorable.

Looks like 7% unemployment is going to become the "new normal". In any case government statistics is very suspect (see Fake Employment Statistics) and actually unemployment is higher. For example, the declining participation in work force means that actual unemployment rate is higher then reported.

Obama-Bush administration saved banks waiting most of taxpayers money and piling up debt in hopes that they restore credit flow in the economy. But this was a fallacy: banks aren’t lending to prospective home buyers, small businesses and real estate developers because bankers recognize the obvious — many of those loans won’t get repaid. Of course, as bankers refuse to lend, the stagnation becomes a self-fulfilling prophecy. But since society is burdened with too much debt, piling on more debt would not be the solution in any case.

There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). We entered the age of deleveraging. Obama’s “you owe us” message to the banks is the height of naļveté’ and tells us a lot about him. In 2013 our problems are worse than they were in 2007 before the crisis. Peak credit is as dangerous for the economy as peak oil...

Corruption of economic profession

The inability of the economics profession to forecast unemployment in the short, medium, or long run would be downright comical, if not for the human tragedy involved. While the Occam Razor approach suggests incompetence as a culprit, I think it's a manifestation of the corruption of the profession by financial interests (with some "don't rock the boat" variations).  First of all, economists much like elected officials and Wall Street executives have a vested interest in keeping the perception of a robust economy. The employment data announced each month are critical to this perception. That's why government "prints up jobs out of thin air" the same way the Federal Reserve prints money. This is economic propaganda and as such it is not that much different from the over-stated earnings practiced by companies of all striped and colors.

The second problem is that fiscal policy cannot solve the problem of job creation in all circumstances, especially in deleveraging environment. Position of people like The Fed Can Help, But Fiscal Policy Is The Key To Job Creation ) is a step in right direction. But without something like Jobs Corps to get out of the current situation is very difficult. In 1982 SETH S. KING wrote in NYT (PROPOSAL FOR JOB CORPS RECALLS ROOSEVELT PLAN):

Few of this city's recent celebrations of Franklin Delano Roosevelt's 100th birthday have passed without nostalgic references to the Civilian Conservation Corps, that President's cherished vehicle for getting thousands of jobless, hungry youths off the streets and putting them to work refurbishing the nation's parks and forests.

With today's unemployment rate nearing a postwar high and new thousands of young people again unable to find work, Congress is preparing to wrestle with the Reagan Administration for money to start a new youth job training program and reconstitute the Job Corps, the pale copy of the old C.C.C. that emerged in the Carter days.

But there is little in these plans that is likely to reproduce those Depression era pictures of sturdy, bare-chested young men planting trees, building bridges and saving the nation's battered farmlands.

Nor is today's procedure-encumbered Washington, where a year usually elapses between idea and action, likely to duplicate the astonishing start on the C.C.C., which four months after being conceived had been approved by Congress and had more than 300,000 young men being clothed, housed, fed and paid $30 a month while they breathed all that fresh air.

In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate. This is "Back in the USSR" situation. Eight years of Clinton and eight years of Bush administration (see The Economic Consequences of Mr. Bush, by Joseph E. Stiglitz) are as good proof of this as one can ever get. Clinton and Bush regimes (especially Rubin-Greenspan alliance and "vice president from an undisclosed location" activities)  proved to be a real wrecking crew. But that does not mean that government cannot put it weight on easing the unemployment burden. Incentives such a investment tax credit matters. Not tax cuts for the rich, but direct investment credit. direct job creation which is anathema to market fundamentalism would be even better and less costly. Roosevelt administration did it, so why not capitalize on positive experience and develop it further ?

In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate.

In any case socializing losses and privatizing gain (crony capitalism) should be downsized. Insurance for gambling by big banks should be cut.

As long as economists believe their report card is the rise in GDP (GDP Mania), we will remain in a failure mode. A country is not defined by GDP but by the quality of life of its citizens. And quality of life cannot be assessed by a simplistic, one-dimensional metric such as GDP. The key dimensions for well-being are: employment, earnings, wealth, health, infrastructure, and living conditions. In that particular order. With employment as the critical factor: the USA looks like an underdeveloped banana republic by the current measure of unemployment and in many respect has became such.

It looks like high persistent unemployment became the defining feature of this recession. Jobs creation prospect in 2014 look pretty grim -- there is no sector other then government that can absorb redundant workforce and automation in manufacturing makes sure that those who are unemployed right now will stay unemployed in the foreseeable future. Most jobs cut are permanent, not temporary, especially in such sectors as IT (structural shift). As Robert Reich noted:

...The basic assumption that jobs will eventually return when the economy recovers is probably wrong. Some jobs will come back, of course. But the reality that no one wants to talk about is a structural change in the economy that's been going on for years but which the Great Recession has dramatically accelerated.

Under the pressure of this awful recession, many companies have found ways to cut their payrolls for good. They’ve discovered that new software and computer technologies have made workers in Asia and Latin America just about as productive as Americans, and that the Internet allows far more work to be efficiently outsourced abroad.

This means many Americans won’t be rehired unless they’re willing to settle for much lower wages and benefits. Today's official unemployment numbers hide the extent to which Americans are already on this path. Among those with jobs, a large and growing number have had to accept lower pay... Or they've lost higher-paying jobs and are now in a new ones that pays less.

The current crisis also means that financial services and real estate (FIRE) economy, this gigantic casino that the US government was trying to build for the last 25 years is now in trouble and shed workers in vast numbers (although working condition in financial industry are still good or very good depending on your position in the food chain). But the profitability of large banks and can achieved only by oversees expansion and derivatives games with foreign assets. The most profitable essentially converted themselves into hedge funds, getting most profits from trading operations, not from the traditional banking activities.

The simplest and the most obvious solution in the current situation is to cut work week and hours of work (4 days six hours a day). That will put enough people to work to make unemployment bearable and it might slightly help entertainment and hospitality industries which now is suffering more that others. From the other point of view if lower standard of living is inescapable, why not to make the transition smoother and more fun by cutting work hours.

Military Keynesianism no longer works

But that's not enough. The USA needs drastically cut military budget. Military Keynesianism no longer works as expected.  As John Maudin in his e-letter proposed (see Thoughts on the Economy- Problems and Solutions):

Mauldin: Unemployment is likely to continue to rise and last longer than ever before. We have to take care of the basic needs of those who want work but can't find it. Unemployment insurance should be extended to those who are still looking for work past the time for benefits to expire, and some program of local volunteer service should be instituted as the price for getting continued benefits after the primary benefits time period runs out. Not only will this help the community, but it will get the person out into the world where he is more likely to meet someone who can give him a job. But the costs of this program should be revenue-neutral. Something else has to be cut.

Mish: Can we deal with 15 million volunteers? Somehow I doubt it.

Mauldin: We have to re-think our military costs (I can't believe I am writing this!). We now spend almost 50% of the world's total military budget. Maybe we need to understand that we can't fight two wars and support hundreds of bases around the world. If we kill the goose, our ability to fight even one medium-sized war will be diminished. The harsh reality is that everything has to be re-evaluated. As an example, do we really need to be in Korea? If so, why can't Korea pay for much of the cost? They are now a rich nation. There are budgetary fiscal limits to being the policeman for the world.

Mish: Bingo. We can easily slash our military budget by 70% and still be the most powerful nation in the world. Moreover, it is time to declare the war in Iraq and Afghanistan over, pack our bags and leave. Gradually, over the next 5-8 years we should bring home all our troops from literally every county they are stationed.

This chart shows the absurdity of our spending.

Chart courtesy of Global Issues - World Military Spending.

By the way that chart does not include the latest increase in the US military budget. Please consider US lawmakers pass 680-billion-dollar defense budget bill

The US House of Representatives passed a 680-billion-dollar defense authorization bill on Thursday that includes funds to train Afghan security forces and more mine-resistant troop carriers.

Lawmakers defied President Barack Obama's veto threat and approved 560 million dollars to continue work on an alternative engine for the F-35 fighter jet built by General Electric and British manufacturer Rolls-Royce.

The compromise legislation would also raise military pay by 3.4 percent -- half a percentage point higher than Pentagon recommendations -- and assign 6.7 billion dollars for mine-resistant armored vehicles known as MRAPs, which is 1.2 billion dollars more than the administration had proposed.

Nearly $700 billion dollars of "defense" spending. The amount needed for actual defense is 20% of that at most, and more likely 5%. Balancing the budget is easy if you start here.

Mauldin: Glass-Steagall, or some form of it, should be brought back. Banks, which are subject to taxpayer bailouts, should not be in the investment banking and derivatives-creating business. Derivatives, especially credit default swaps, should be on an exchange, and too big to fail must go. Banks have enough risk just making loans. Leverage should be dialed down, and hedge funds selling what amounts to naked call options in any form, derivative or otherwise, should be regulated.

Mish: What we need to do is get rid of the Fed, FDIC, and fractional reserve lending. Regulation has failed every step of the way. Regulation created Fannie Mae, Freddie Mac, and the Fed. Regulation by the SEC anointed Moodys, Fitch, and the S&P as debt rating companies. We do not need more regulation, we need less regulation, a sound currency, and no Fed. Regulation is clearly the problem, yet the cries for still more regulation come from nearly every corner save the Austrian economists.

Mauldin: Let me see, is there any group I have not offended yet? But something like I am suggesting is going to have to be done at some point. There is no way we can continue forever on the current path. At some point, we will hit the wall. The fight between the bug and the windshield always ends in favor of the windshield. The bond market is going to have to see a credible effort to get back to a reasonable deficit, or we risk a very difficult economic environment. The longer we wait, the worse it will be.

Mish: "Is there any group I have not offended yet?" Yes. You failed to offend those on public pension plans. Not to fear, I did that myself in Five Major Pension Problems - One Simple Solution.

Unsolvable Problems


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[Sep 16, 2017] Will Millennials Be Forced Out of Tech Jobs When They Turn 40?

Notable quotes:
"... Karen Panetta, the dean of graduate engineering education at Tufts University and the vice president of communications and public relations at the IEEE-USA, believes the outcome for tech will be Logan's Run -like, where age sets a career limit... ..."
"... It's great to get the new hot shot who just graduated from college, but it's also important to have somebody with 40 years of experience who has seen all of the changes in the industry and can offer a different perspective." ..."
Sep 16, 2017 | it.slashdot.org

(ieeeusa.org)

Posted by EditorDavid on Sunday September 03, 2017 @07:30AM

dcblogs shared an interesting article from IEEE-USA's "Insight" newsletter: Millennials, which date from the 1980s to mid-2000s, are the largest generation. But what will happen to this generation's tech workers as they settle into middle age ?

Will the median age of tech firms rise as the Millennial generation grows older...? The median age range at Google, Facebook, SpaceX, LinkedIn, Amazon, Salesforce, Apple and Adobe, is 29 to 31, according to a study last year by PayScale, which analyzes self-reported data...

Karen Panetta, the dean of graduate engineering education at Tufts University and the vice president of communications and public relations at the IEEE-USA, believes the outcome for tech will be Logan's Run -like, where age sets a career limit...

Tech firms want people with the current skills sets and those "without those skills will be pressured to leave or see minimal career progression," said Panetta... The idea that the tech industry may have an age bias is not scaring the new college grads away. "They see retirement so far off, so they are more interested in how to move up or onto new startup ventures or even business school," said Panetta.

"The reality sets in when they have families and companies downsize and it's not so easy to just pick up and go on to another company," she said. None of this may be a foregone conclusion.

Millennials may see the experience of today's older workers as a cautionary tale, and usher in cultural changes... David Kurtz, a labor relations partner at Constangy, Brooks, Smith & Prophete, suggests tech firms should be sharing age-related date about their workforce, adding "The more of a focus you place on an issue the more attention it gets and the more likely that change can happen.

It's great to get the new hot shot who just graduated from college, but it's also important to have somebody with 40 years of experience who has seen all of the changes in the industry and can offer a different perspective."

[Aug 24, 2017] Sacrificing Smart Asians to Keep the Racial Peace - The Unz Review

Notable quotes:
"... This peace-keeping aspect of affirmative action understood, perhaps we ought to view those smart Asians unfairly rejected from Ivy League schools as sacrificial lambs. ..."
Aug 24, 2017 | www.unz.com

The argument is that admitting academically unqualified blacks to elite schools is, at core, a policy to protect the racial peace and, as such, has nothing to do with racial justice, the putative benefits of diversity or any other standard justification. It is this peace- keeping function that explains why the entire establishment, from mega corporations to the military, endorses constitutionally iffy racial discrimination and why questioning diversity's benefits is the most grievous of all PC sins. Stated in cost-benefit terms, denying a few hundred (even a few thousand) high-SAT scoring Asians an Ivy League diploma and instead forcing them attend Penn State is a cheap price to pay for social peace.

This argument rests on an indisputable reality that nearly all societies contain distinct ethnic or religious groups who must be managed for the sake of collective peace. They typically lack the ability to economically compete, may embrace values that contravene the dominant ethos, or otherwise just refuse to assimilate. What makes management imperative is the possibility of violence either at an individual level, for example, randomly stabbing total strangers, or on a larger scale, riots and insurrections. Thus, in the grand scheme of modern America's potentially explosive race relations, academically accomplished Asians, most of whom are politically quiescent, are expendable, collateral damage in the battle to sustain a shaky status quo.

Examples of such to-be-managed groups abound. Recall our own tribulations with violent Indian tribes well into the 19 th century or what several European nations currently face with Muslims or today's civil war in Burma with the Karen People. Then there's Turkey's enduring conflict with the Kurds and long before the threat of Islamic terrorism, there were Basque separatists (the ETA ), and the Irish Republican Army . In the past 45 years, there have been more than 16,000 terror attacks in Western Europe according to the Global Terrorism Database . At a lower levels add the persistently criminal Gypsies who for 500 years have resisted all efforts to assimilate them. This listing is, of course, only a tiny sampling of distinct indigestible violence-prone groups.

The repertoire of remedies, successful and failed, is also extensive. Our native-American problem has, sad to say, been largely solved by the use of apartheid-like reservations and incapacitating a once war-like people with drugs and alcohol. Elsewhere generous self-rule has done the trick, for example, the Basques in Spain. A particularly effective traditional solution is to promote passivity by encouraging religious acceptance of one's lowly state.

Now to the question at hand: what is to be done regarding American blacks, a group notable for its penchant for violence whose economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs.

To appreciate the value of affirmative action recall the urban riots of the 1960s. They have almost been forgotten but their sheer number during that decade would shock those grown accustomed to today's relative tranquility. A sampling of cities with major riots includes Rochester, NY, New York City, Philadelphia, PA, Los Angeles, CA, Cleveland, OH, Newark, NJ, Detroit, MI, Chicago, IL, Washington, DC and several smaller cities.

The damage from these riots! "uprisings" or "rebellions" according to some!was immense. For example, the Detroit riot of 1967 lasted five days and quelling it required the intervention of the Michigan Army National Guard and both the 82 nd and 101 st Airborne divisions. When it finally ended, the death toll was 43, some 7200 were arrested and more than 2000 buildings destroyed. Alas, much of this devastation remains visible today and should be a reminder of what could happen absent a policy of cooling out black anger.

To correctly understand how racial preferences at elite colleges serves as a cost-effective solution to potential domestic violence, recall the quip by comedian Henny Youngman when asked "How's your wife?" He responded with, "Compared to what?" This logic reflects a hard truth: when confronting a sizable, potentially disruptive population unable or unwilling to assimilate, a perfect solution is beyond reach. Choices are only among the lesser of evils and, to repeat, under current conditions, race-driven affirmative action is conceivably the best of the worst. A hard-headed realist would draw a parallel with how big city merchants survive by paying off the police, building and food inspectors, and the Mafia. Racial preferences are just one more item on the cost-of-doing business list–the Danegeld .

In effect, racial preferences in elite higher education (and beneficiaries includes students, professors and the diversity-managing administrators) separates the top 10% measured in cognitive ability from their more violent down market racial compatriots. While this manufactured caste-like arrangement hardly guarantees racial peace (as the black-on-white crime rate, demonstrates) but it pretty much dampens the possibility of more collective, well-organized related upheavals, the types of disturbances that truly terrify the white establishment. Better to have the handsomely paid Cornel West pontificating about white racism at Princeton where he is a full professor than fulminating at some Ghetto street corner. This status driven divide just reflects human nature. Why would a black Yalie on Wall Street socialize with the bro's left behind in the Hood? This is the strategy of preventing a large-scale, organized rebellion by decapitating its potential leadership. Violence is now just Chicago or Baltimore-style gang-banger intra-racial mayhem or various lone-wolf criminal attacks on whites.

Co-optation is a staple in the political management repertoire. The Soviet Union adsorbed what they called the "leading edge" into the Party (anyone exceptionally accomplished, from chess grandmasters or world-class athletes) to widen the divide the dominant elite, i.e., the Party, and hoi polloi. Election systems can be organized to guarantee a modicum of power to a handful of potential disruptors and with this position comes ample material benefits (think Maxine Waters). Monarchies have similarly managed potential strife by bestowing honors and titles on commoners. It is no accident that many radicals are routinely accused of "selling out" by their former colleagues in arms. In most instances the accusation is true, and this is by design.

To appreciate the advantages of the racial preferences in higher education consider Henny's "compared to what"? part of his quip. Certainly what successfully worked for quelling potential Native American violence, e.g., forced assimilation in "Indian Schools" or confinement in pathology-breeding reservations, is now totally beyond the pale though, to be sure, some inner-cities dominated by public housing are increasingly coming to resemble pathology-inducing Indian reservations. Even less feasible is some legally mandated homeland of the types advocated by Black Muslims.

I haven't done the math but I would guess that the entire educational racial spoils system is far more cost effective than creating a garrison state or a DDR-like police state where thousands of black trouble-makers were quickly incarcerated. Perhaps affirmative action in general should be viewed as akin to a nuisance tax, probably less than 5% of our GDP.

To be sure, affirmative action at elite universities is only one of today's nostrums to quell potential large scale race-related violence. Other tactics include guaranteeing blacks elected offices, even if this requires turning a blind eye toward election fraud, and quickly surrendering to blacks who demand awards and honors on the basis of skin color. Perhaps a generous welfare system could be added to this keep-the-peace list. Nevertheless, when all added up, the costs would be far lowers than dealing with widespread 1960s style urban violence.

This peace-keeping aspect of affirmative action understood, perhaps we ought to view those smart Asians unfairly rejected from Ivy League schools as sacrificial lambs. Now, given all the billions that have been saved, maybe a totally free ride at lesser schools would be a small price to pay for their dissatisfaction (and they would also be academic stars at such schools). Of course this "Asian only" compensatory scholarship might be illegal under the color blind requirements of 1964 Civil Right Act, but fear not, devious admission officers will figure out a way around the law.

Carlton Meyer > , Website August 16, 2017 at 4:21 am GMT

This 18 second video clip is a great real world summary:

Thomm > , August 16, 2017 at 4:56 am GMT

Interesting take. But risky because :

1) Asians will grow in power, and either force more fairness towards themselves, or return to Asia.
2) WN idiots happy about Asians returning to Asia fail to see that Asians will return only when they control enough of America to manage large parts of it from afar (like the tech industry).
3) 2-3 million top caliber white male Western Expats might just move to Asia, since they may like Asian women more, and want to be free of SJW idiocy. This is all it takes to fill the alleged gap Asia has in creativity, marketing, and sales expertise. Asia effectively decapitates the white West by taking in their best young men and giving them a great life in Asia.
4) America becomes like Brazil with all economic value colonized by Asians and the white expats in Asia with mixed-race children. White trashionalists left behind are swiftly exterminated by blacks, and white women mix with the blacks. America becomes a Brazil minus the fun culture, good weather, and attractive women.

Thomm > , August 16, 2017 at 5:03 am GMT

@Carlton Meyer At first, I was surprised that they listened to him.

After a while, I realized that many negros are stupid enough to think that Hispanics and Asians would like to be in some anti-white alliance with blacks as a senior partner. In reality, they have an even lower opinion of blacks than whites do. US blacks have zero knowledge of the world outside America, so this reality just doesn't register with them.

Diversity Heretic > , August 16, 2017 at 5:12 am GMT

John Derbyshire has made similar arguments–racial preferences are the price for social peace. But, as Steve Sailer has pointed out, we're running out of white and Asian children to buffer black dysfunction and Asians are going to get less and less willing to be "sacrificial lambs" for a black underclass that they did nothing to create and that they despise.

There are other ways to control the black underclass. You can force the talented ones to remain in their community and provide what leadership they can. Black violence can be met with instant retributive counter-violence. (Prior to the 1960s most race riots were white on black.) Whites can enforce white norms on the black community, who will sort-of conform to them as best they are able.

Finally, Rudyard Kipling had a commentary on Danegeld. It applies to paying off dysfunctional domestic minorities just as much to invading enemies.

"We never pay any-one Dane-geld,
No matter how trifling the cost;
For the end of that game is oppression and shame,
And the nation that pays it is lost!"

War for Blair Mountain > , August 16, 2017 at 5:26 am GMT

Robert Weissberg

Could care less about your smart Asians The smart Asians are enthusiastivally voting Whitey into a racial minority on Nov 3 2020 They don't belong on Native Born White American Living and Breeding Space

jim jones > , August 16, 2017 at 5:30 am GMT

@Carlton Meyer This 18 second video clip is a great real world summary:

https://www.youtube.com/watch?v=DHhy2Gk_xik You can just hears someone shouting at the end "Go back to Beijing"

Wally > , August 16, 2017 at 5:32 am GMT

Once you give in, they will keep demanding more & more.

There's always a manufactured excuse.

It's time to say no.

Bro Methylene > , August 16, 2017 at 5:34 am GMT

Please stop trying to confuse Orientals with Indians and other subcontinentals. They are quite distinct.

This reminds me of the sinister (but largely successful) campaign to conflate San Francisco with "Silicon Valley." The two are separate in every way.

Priss Factor > , Website August 16, 2017 at 5:55 am GMT

Hell with those 'smart Asians'. They are among the biggest Proglob a-holes.

Asians have servile genes that seek approval from the power. They are status-freaks.

They make perfect collaborators with the Glob.

Under communism, they made the most conformist commies.

Under Japanese militarism, they made the most mindless military goons who did Nanking.

Under Khmer Rouge, they were biggest looney killers.

Under PC, they make such goody good PC dogs.

If the prevailing culture of US was patriotic and conservatives, Asians would try to conform to that, and that wouldn't be so bad.

But since the prevailing culture is PC, these yellow dogs are among the biggest homomaniacal PC tards.

Hell with them. Yellow dogs voted for Obama and Hillary in high numbers. They despise, hate, and feel contempt for white masses and working class. They are servitors of the empire as Darrell Hamamoto said. He's one of the few good guys.

Just look at that Francis Fukuyama, that slavish dog of Soros. He's so disgusting. And then, you got that brown Asian tard Fareed Zakaria. What a vile lowlife. And that fat Jeer Heet who ran from dirty browns shi ** ing all over the place outdoors to live with white people but bitches about 'white supremacy'. Well, the fact that he ran from his own kind to live with whites must mean his own choice prefers white folks. His immigration choice was 'white supremacism'. After all, he could have moved to black Africa. Why didn't he?

PS. The best way of Affirmative Action is to limit it only to American Indians and Blacks of slave ancestry. That's it.

Also, institutions should OPENLY ADMIT that they do indeed discriminate to better represent the broader population. Fair or not, honesty is a virtue. What is most galling about AA is the lies that says 'we are colorblind and meritocratic but ' No more buts. Yes, there is discrimination but to represent larger population. Okay, just be honest.

Thomm > , August 16, 2017 at 6:21 am GMT

@Bro Methylene

Please stop trying to confuse Orientals with Indians and other subcontinentals. They are quite distinct.

In their original countries they are, but in America they are almost identical in all ways except appearance and diet.

Plus, since SE Asia has always had influence from both, there is a smooth continuum in the US across all of these groups by the time the 2nd generation rolls around.

Thomm > , August 16, 2017 at 6:28 am GMT

@War for Blair Mountain

They don't belong on Native Born White American Living and Breeding Space

Three things wrong with this sentence.

1) I don't think you know that Native Americans (i.e. Siberians) were here first.
2) I will bet anything that all 128 of your GGGGG-GPs are not English settlers who were here in 1776. You are probably some 2nd gen Polack or something who still worries that WASPs look down on you.
3) There is very high variance among whites, and white trashionalists are SOOOO far below the quality threshold of any moderately successful white that they can't claim to speak for all whites. White Trashionalists represent the waste matter that nature wants to purge (which is the process that enables exceptional whites to emerge on the other end of the scale). That is why white women are absolutely doing what nature wants, which is to cut off the White Trashionalists from reproduction. If you care about the white race, you should be glad that white women want nothing to do with you and allow you to complete you wastebasket role.

There.

helena > , August 16, 2017 at 6:33 am GMT

@Carlton Meyer That's hilarious. Anti-ma should replace their flags with placards saying, "Hey, Hey, this is Library!" at all counter-anti-fa demos.

Priss Factor > , Website August 16, 2017 at 6:36 am GMT

Will this really keep the peace?

Obama was one of the beneficiaries of AA along with his wife and their kids. Did that prevent Baltimore and Chicago and etc from blowing up?

In a way, AA and Civil Rights made black communities more volatile. When blacks were more stringently segregated, even smart and sensible blacks lived among blacks and played some kind of 'role model'. They ran businesses and kept in close contact with black folks.

It's like white communities in small towns used to be much better when the George Baileys stayed in them or returned to them and ran things.

But as more and more George Bailies left for the big cities, small towns had fewer top notch role models and leaders and enterprisers. Also, the filth of pop culture and youth degeneracy via TV corrupted the dummies. And then, when globalism took away the industries, there were just people on opioids. At least old timers grew up with family and church. The new generation grew up on Idiocracy.

Anyway, AA will just taken more black talent from black community and mix them with whites, Asians, and etc. Will some of these blacks use their power and privilege to incite black mobs to violence? Some do go radical. But most will just get their goodies and forget the underclass except in some symbolic way. It's like Obama didn't do crap as 'community organizer'. He just stuck close to rich Jews in Hyde Park, and as president, he was serving globo-wars, Wall Street, and homos.
When he finally threw a bone at the blacks in his second term, it lit cities on fire.

Did the black underclass change for the better because they saw Obama as president? No. If anything, it just made them bolder as flashmobs. The way blacks saw it, a bunch of fa ** ogty wussy white people voted for a black guy created by a black man sexually conquering a white woman. They felt contempt for cucky whites, especially as rap culture and sports feature blacks as master race lording over whites. To most underclass blacks, the only culture they know is sports and rap and junk they see on TV. And they are told blacks are magical, sacred, badass, and cool. And whites are either 'evil' if they have any pride or cucky-wucky wussy if they are PC.

The Murrayian Coming-Apart of whites took place already with blacks before. And more AA that takes in smarter blacks will NOT make things better for black underclass. And MORE blacks in elite colleges will just lead to MORE anger issues, esp as they cannot keep up with other students.

Even so, I can understand the logic of trying to win over black cream of crop. Maybe if they are treated nice and feel 'included', they won't become rabble-rousers like Al Sharpton and act more like Obama. Obama's race-baiting with Ferguson was bad but could have been worse with someone like Sharpton.

The Power can try to control a people in two ways. Crush everyone OR give carrots to comprador elites so that sticks can be used on masses. Clinton did this. He brought over black elites, and they worked with him to lock up record number of Negroes to make cities safer. As Clinton was surrounded by Negroes and was called 'first black president' by Toni Morrison, many blacks didn't realize that he was really working to lock up lots of black thugs and restore order.

Smart overlords play divide-and-conquer by offering carrots to collaborator elites and using sticks on masses.
British Imperialists did that. Gandhi would likely have collaborated with Brits if not for the fact that he was called a 'wog' in South Africa and kicked off a train. Suddenly, he found himself as ONE with the poor and powerless 'wogs' in the station. He was made equal with his own kind.

Consider Jews in the 30s and even during WWII. Many Western European Jews became rich and privileged and felt special and put on airs. Many felt closer to gentile elites and felt contempt and disdain for many 'dirty' and 'low' Eastern European Jews. If Hitler had been cleverer and offered carrots to rich Jews, there's a good chance that many of them would have collaborated and worked with the Power to suppress or control lower Jews, esp. of Eastern European background.

But Hitler didn't class-discriminate among Jews. He went after ALL of them. Richest Jew, poorest Jew, it didn't matter. So, even many rich Jews were left destitute if not dead after WWII. And this wakened them up. They once had so much, but they found themselves with NOTHING. And as they made their way to Palestine with poor Eastern European Jewish survivors, they felt a strong sense of ethnic identity. Oppression and Tragedy were the great equalizer. Having lost everything, they found what it really means to be Jewish. WWII and Holocaust had a great traumatic equalizing effect on Jews, something they never forgot since the war, which is why very rich Jews try to do much for even poor Jews in Israel and which is why secular Jews feel a bond with funny-dressed Jewish of religious sects.

For this reason, it would be great for white identity if the New Power were to attack ALL whites and dispossess all of them. Suppose globalism went after not only Deplorables but Clintons, Bushes, Kaineses, Kerrys, Kennedys, and etc. Suppose all of them were dispossessed and humiliated and called 'honkers'. Then, like Gandhi at the train station, they would regain their white identity and identify with white hoi polloi who've lost so much to globalism. They would become leaders of white folks.
But as long as carrots are offered to the white elites, they go with Glob and dump on whites. They join with the GLOB to use sticks on white folks like in Charlottesville where sticks were literally used against patriots who were also demeaned as 'neo-nazis' when most of them weren't.

So, I'm wishing Ivy Leagues will have total NO WHITEY POLICY. It is when the whites elites feel rejected and humiliated by the Glob that they will return to the masses.

Consider current Vietnam. Because Glob offers them bribes and goodies, these Viet-cuck elites are selling their nation to the Glob and even allowing homo 'pride' parades.

White Genocide that attacks ALL whites will have a unifying effect on white elites and white masses. It is when gentiles targeted ALL Jews that all Jews, rich and poor, felt as one.

But the Glob is sneaky. Instead of going for White Genocide that targets top, middle, and bottom, it goes for White Democide while forgoing white aristocide. So, white elites or neo-aristocrats are rewarded with lots of goodies IF they go along like the Romneys, Clintons, Kaines, Bidens, and all those quisling weasels.

jilles dykstra > , August 16, 2017 at 7:00 am GMT

" Now to the question at hand: what is to be done regarding American blacks, a group notable for its penchant for violence whose economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs. "

I read an article, making a learned impression, that on average USA blacks have a lower IQ.
I do suppose that IQ has a cultural component, nevertheless, those in western cultures with a lower IQ can be expected to have less economic success.
A black woman who did seem to understand all this was quoted in the article as that 'blacks should be compensated for this lower IQ'.
One can discuss this morally endless, but even if the principle was accepted, how is it executed, and where is the end ?
For example, people with less than average length are also less successful, are we going to compensate them too ?

Simon in London > , August 16, 2017 at 7:18 am GMT

"economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs"

It only stalled when the Great Society and the uplift programs started. According to The Bell Curve there was basically an instant collapse when LBJ started to wreaking his havoc. Go back to pre-1964 norms and no late-60s riots.

Kyle McKenna > , August 16, 2017 at 7:45 am GMT

We have sacrificed smart white students for three generations to keep the hebraic component around 30% at our highest-ranked colleges and universities, and no one (except the jewish Ron Unz himself) made so much as a peep. And as he copiously documented, whites have suffered far more discrimination than asians have. The difference is, whites are more brainwashed into accepting it.

I hope this doesn't need linking here, but wth

http://www.theamericanconservative.com/articles/the-myth-of-american-meritocracy/

Realist > , August 16, 2017 at 8:04 am GMT

"Sacrificing Smart Asians to Keep the Racial Peace"

It is the sacrificing of smart white students that is the problem. Of all the races whites, on average are more innovative and ambitious.

Tom Welsh > , August 16, 2017 at 9:11 am GMT

"The argument is that admitting academically unqualified blacks to elite schools is, at core, a policy to protect the racial peace "

In simpler language, appeasement.

Tom Welsh > , August 16, 2017 at 9:16 am GMT

@War for Blair Mountain "They don't belong on Native Born White American Living and Breeding Space "

Your statement would be perfectly correct if it read, "White people of European origin don't belong on Native American Living and Breeding Space "

Yet there they are, in immense, pullulating numbers. And now they have the gall to complain that other people – some of whom resemble the few surviving Native Americans far more closely than Whites do – are coming to "their" continent.

Honestly, what is the world coming to when you spend centuries and millions of bullets, bottles of whisky and plague-ridden blankets getting rid of tens of millions of people so you can steal their land – and then more people like you come along and want to settle peaceably alongside you? That's downright un-American.

Maybe you'd be more comfortable if the Asian immigrants behaved more like the European settlers – with fire, sword, malnutrition and pestilence.

Tom Welsh > , August 16, 2017 at 9:24 am GMT

@Diversity Heretic The Kipling quote is stirring and thought-provoking (like most Kipling quotes). But it is not entirely correct.

Consider the kings of France in the 10th century, who were confronted by the apparently insoluble problem of periodic attacks by bands of vicious, warlike, and apparently irresistible Vikings. One king had the bright idea of buying the Northmen off by granting them a very large piece of land in the West of France – right where the invading ships used to start up the Seine towards Paris.

The Northmen settled there, became known as Normans, and held Normandy for the rest of the Middle Ages – in the process absolutely preventing any further attacks eastward towards Paris. The dukes of Normandy held it as a fief from the king, and thus did homage to him as his feudal subordinates.

They did conquer England, Sicily, and a few other places subsequently – but the key fact is that they left the tiny, feeble kingdom of France alone.

https://en.wikipedia.org/wiki/Normans#Settling_of_Normandy

Wizard of Oz > , August 16, 2017 at 9:27 am GMT

Ratioal cost benefit arguments could be applied much more widely to the benefit of America and other First World countries. If otherwise illegal drugs were legalised, whether to be prescribed by doctors or not, it would save enormous amounts of money on law enforcement and, subject to what I proffer next, incarceration.

What is the downside? The advocates of Prohibition weren't wrong about the connection of alcohol and lower productivity. That was then. If, say, 10 per cent of the population were now disqualified from the workforce what would it matter. The potential STEM wizards amongst them (not many) would mostly be nurtured so that it was only the underclass which life in a daze. And a law which made it an offence, effectively one for which the penalty was to be locked up or otherwise deprived of freedom to be a nuisance, to render oneself unfit to perform the expected duties of citizenship would have collateral benefits in locking up the right underclass males.

Logan > , August 16, 2017 at 9:45 am GMT

@Bro Methylene "Orientals," east Asians, or just Asians in American parlance are indeed quite different from south Asians, called "Asians" in the UK,. These are quite different groups.

But the groups of east and south Asians include widely differing peoples. A Korean doesn't have much in common with a Malay, nor a Pathan with a Tamil. Probably not much more than either has in common with the other group or with white Americans.

That they "all look alike" to use does not really mean the do, it just means we aren't used to them.

Was recently watching an interesting Chinese movie and had enormous difficulty keeping the characters straight, because they did indeed all look alike to me. I wonder if Chinese people in China have similar trouble watching old American movies.

Colleen Pater > , August 16, 2017 at 10:19 am GMT

@Carlton Meyer yeah and hispanics are natural conservatives. dont be a cuck once that slant is here long enough he will tumble to the game and get on the anti white bandwagon. and sure asians will eventually out jew the jews just what we need another overlord, only this one a huge percentage or world pop. .

Colleen Pater > , August 16, 2017 at 10:28 am GMT

You know weisberg youre not fooling anyone here peddle that cuck crap elsewhere affirmative action leads to nothing but more affirmative action at this point everyone but white males gets it, and you my jew friend know this so selling it to sucker cucks as the cost of doing business is just more jew shenanigans. There is a much better solution to the problem peoples deport them back where they belong israel africa asia central america.

joeshittheragman > , Website August 16, 2017 at 11:12 am GMT

This is all about nothing now. The only thing White people have to learn anymore is controlled breathing, good position, taking up trigger slack, letting the round go at exactly the right moment – one round, one hit.

Jake > , August 16, 2017 at 11:47 am GMT

When your child tosses a tantrum and tears up his bedroom, and you tell him his mean-spirited, selfish cousins caused it and then you reward him with a trip to Disneyland and extra allowance: then you guarantee more and worse tantrums.

That is what America and America's Liberals, the Elites, have done with blacks and violence.

Astuteobservor II > , August 16, 2017 at 11:58 am GMT

ha, there is another group that is preying on the asian group and it is omitted.

TG > , August 16, 2017 at 12:18 pm GMT

A very interesting post. Really a unique perspective – who cares if it's not fair, if it is necessary to keep the peace?

I do however disagree with one of your points. " whose economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs."

I think you have missed the main event. Over the last half-century the elites of this nation have waged ruthless economic warfare AGAINST poor blacks in this country, to an extent that far dwarfs the benefits of affirmative action (for a typically small number of already privileged blacks).

Up through the 1960′s, blacks were starting to do not so bad. Yes they were in a lot of menial jobs, but many of these were unionized and the pay was pretty good. I mean, if nobody else wants to sweep your floors, and the only guy willing to do it i s black, well, he can ask for a decent deal.

Then our elites fired black workers en masse, replacing them with Mexican immigrants and outsourcing to low-wage countries. Blacks have had their legs cut off with a chainsaw, and the benefits of affirmative action (which nowadays mostly go to Mexicans etc.!) little more than a bandaid.

And before we are too hard on blacks, let me note that whites are also being swept up in the poverty of neoliberal globalization, and they too are starting to show social pathology.

Because in terms of keeping the social peace, there is one fundamental truth more important than all others: there must be some measure of broadly shared prosperity. Without it, even ethnically homogeneous and smart and hard working people like the Japanese or Chinese will tear themselves apart.

Anonymouse > , August 16, 2017 at 12:58 pm GMT

Not New York. Wife & I were living there then and Mayor Lindsay went to Harlem and NYC negroes did not riot after MLK Jr was assassinated.

Jake > , August 16, 2017 at 1:00 pm GMT

Note that there is not a word in this article about what this does to the white working class and how it can be given something in return for allowing Elites to bribe blacks with trillions and trillions of dollars in goodies. Nor is there is there any indication that this process eventually will explode, with too many blacks demanding so much it cannot be paid.

George Weinbaum > , August 16, 2017 at 1:04 pm GMT

Was this written tongue in cheek?
Affirmative action will never end. The bribes will never end. The US made a mistake in the 1960s. We should have contained the riots then let the people in those areas sleep in the burned out rubble. Instead through poverty programs we rewarded bad black behavior.
By filling the Ivy League with blacks we create a new class of Cornell West's for white people to listen to. We enhance the "ethos" of these people.
Eventually, certainly in no more than 40 years, we will run out of sacrifices. What then when whites constitute only 40% of the American population? Look at South Africa today.
We have black college graduates with IQs in the 80s! They want to be listened to. After all, they're college graduates.
I do not believe you have found "a cost-effective solution to potential domestic violence".
You mix in this "top 10%" and they get greater acceptance by whites who are turned left in college.

dearieme > , August 16, 2017 at 1:05 pm GMT

"The argument is that admitting academically unqualified blacks to elite schools is, at core, a policy to protect the racial peace "

IT IS always a temptation to an armed and agile nation
To call upon a neighbour and to say: –
"We invaded you last night – we are quite prepared to fight,
Unless you pay us cash to go away."

And that is called asking for Dane-geld,
And the people who ask it explain
That you've only to pay 'em the Dane-geld
And then you'll get rid of the Dane!

It is always a temptation for a rich and lazy nation,
To puff and look important and to say: –
"Though we know we should defeat you,
we have not the time to meet you.
We will therefore pay you cash to go away."

And that is called paying the Dane-geld;
But we've proved it again and again,
That if once you have paid him the Dane-geld
You never get rid of the Dane.

It is wrong to put temptation in the path of any nation,
For fear they should succumb and go astray;
So when you are requested to pay up or be molested,
You will find it better policy to say: –

"We never pay any-one Dane-geld,
No matter how trifling the cost;
For the end of that game is oppression and shame,
And the nation that plays it is lost!"

anonymous > , Disclaimer August 16, 2017 at 1:19 pm GMT

whose economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs.

The reality of this is become a huge stumbling block. In fact this group has actually been mostly regressing into violence and stupidity, going their own separate way as exemplified by their anti-social music which celebrates values repugnant to the majority. Look at the absurd level of shootings in cities like Chicago. That's not changing anytime soon. They're by far overrepresented in Special Ed, juvenile delinquency, prisons and all other indicators of dysfunction. Their talented tenth isn't very impressive as compared to whites or Asians. Their entire middle class is mostly an artificial creation of affirmative action. The point is that they can only be promoted so far based on their capability. The cost of the subsidy gets greater every year and at some point it'll become too heavy a burden and then it'll be crunch time. After the insanity of the Cultural Revolution the Chinese had to come to their senses. It's time to curtail our own version of it.

Truth > , August 16, 2017 at 1:54 pm GMT

It really is terrible and unfair that an Asian needs to score so much higher than you white oppressors to get into the Ivy league

A Princeton study found that students who identify as Asian need to score 140 points higher on the SAT than whites to have the same chance of admission to private colleges, a difference some have called "the Asian tax."

https://www.nytimes.com/2017/08/02/us/affirmative-action-battle-has-a-new-focus-asian-americans.html

You All Look Like Ants > , August 16, 2017 at 1:57 pm GMT

I think this is brilliant satire.
It is actually an argument that is logically sound. Doesn't mean that it's good or sensible or even workable over the long run.
It's just logically sound. It holds together if one accepts the not-crazy parts its made out of.
I don't believe it's meant to be taken literally, because both the beneficiaries and those who get screwed will grow in their resentment and the system would melt down.
New fields with the word "studies' in them would get added and everyone would know – deep down – why that is so, and Asians would continue to dominate the hard sciences, math and engineering.
Still, as satire, it's so close to the bone that it works beautifully.

helena > , August 16, 2017 at 2:05 pm GMT

@Tom Welsh "Yet there they are, in immense, pullulating numbers. And now they have the gall to complain that other people – some of whom resemble the few surviving Native Americans far more closely than Whites do – are coming to "their" continent."

Agree. The country should be returned to pre-1700 conditions and given over to anyone who wants it.

Rich > , August 16, 2017 at 2:08 pm GMT

@Anonymouse I guess one man's riot is another man's peaceful night. There was a bit of rioting in Brooklyn that night, businesses burned and looted, and a handful of businesses were looted in Harlem. There was a very heavy police presence with Mayor Lindsey that night and blacks were still very segregated in 1968, so I'd guess it was more that show of force that prevented the kind of riots we'd seen earlier and in other cities at that time. Still, there was looting and burning, so New York's blacks don't get off the hook. As a personal note. my older brother and his friends were attacked by a roving band of blacks that night in Queens, but managed to chase them out of our neighborhood.

Thorfinnsson > , August 16, 2017 at 2:12 pm GMT

The costs of BRA may be lower than the costs of 1960s urban riots, though an accurate accounting would be difficult as many costs are not easily tabulated.

Consider, for instance, the costs of excluding higher performing whites and Asians from elite universities. Does this result in permanently lower salaries from them as a result of greater difficulty in joining an elite career track?

What costs do affirmative action impose upon corporations, especially those with offices in metropolitan areas with a lot of blacks? FedEx is famously centralized in Memphis. What's the cost to me as a shipper in having to deal with sluggish black customer service personnel?

The blacks are 15% of the population, so I doubt "garrison state" costs would be terribly high. I am certain that segregation was cheaper than BRA is. The costs of segregation were overlooking some black talent (negligible) and duplication of certain facilities (I suspect this cost is lower than the cost of white flight).

War for Blair Mountain > , August 16, 2017 at 2:18 pm GMT

How did America ever manage to survive when there hardly any Chinese Hindus..Sihks .Koreans in OUR America?

Answer:Very well thank you!!!! ..America 1969=90 percent Native Born White American .places two Alpha Native Born White American Males on the Moon 10 more after this Who the F would be opposed to this?

Answer:Chinese "Americans" Korean "Americans" Hindu "Americans" .Sihk "Americans" .Pakistani "Americans"

Jason Liu > , August 16, 2017 at 2:28 pm GMT

There would still be racial peace if affirmative action was abolished. They'll bitch for a while, but they'll get used it and the dust will settle.

Side note: Affirmation action also disproportionately helps white women into college, and they're the largest group fueling radical leftist identity politics/feminism on campus. In other words, affirmative action is a large contributor to SJWism, the media-academia complex, and the resulting current political climate.

anarchyst > , August 16, 2017 at 3:01 pm GMT

@jilles dykstra The statement "blacks should be compensated for this lower IQ" is no different than the descendents of the so-called jewish "holocaust ™" being compensated in perpetuity by the German government. Now, there are calls by the jewish "holocaust ™" lobby to extend the financial compensation to children, grandchildren and great-grandchildren of these so-called "holocaust ™ survivors, stating the fake concept of "holocaust ™" transference" just another "holocaust ™" scam
Same thing.

bjondo > , August 16, 2017 at 3:15 pm GMT

Smart means what?

More Monsanto, DuPont cancers and degraded foods.
New diseases from medical, biological, genetic research
More spying and censorship and stealing by Harvard, Princeton, Yale, Stanford, high IQ thieves.
All jobs overseas, domestic unemployment, endless wars, by the best and brightest.
Toxic pollution, mental pollution that dwarfs the back yard pollution of tires and old refrigs by "low IQ deplorables (white and black and brown".
Degraded, degrading entertainment and fake news to match fake histories by Phds.
Tech devices that are "wonderful" but life is actually better more meaningful without.

Poupon Marx > , August 16, 2017 at 3:20 pm GMT

[Blacks] "whose economic advancement over the last half-century has largely stalled despite tens of billions and countless government uplift programs." No, Professor, it is Trillions spend over the last 50 years and millions before that. Countless Whites and other non-Negroid people have had to step aside in education, military, government, private industry, to let the lesser person advance and leap frog the accepted virtue-merit path to advancement. AND IT STILL IS NOT ENOUGN FOR BLECKS.

The obvious solution is to separate into uni-racial/ethnic states. For Whites, this would include a separate autocephalous, independent state of Caucasians, Asians, and Hindu. This is the Proto-IndoEuropean Family, related by genes and languages.

jim jones > , August 16, 2017 at 3:28 pm GMT

@Logan I have the same trouble with Korean movies, all the women look the same:

Rdm > , August 16, 2017 at 3:44 pm GMT

@Thomm Interesting take. But risky because :

1) Asians will grow in power, and either force more fairness towards themselves, or return to Asia.
2) WN idiots happy about Asians returning to Asia fail to see that Asians will return only when they control enough of America to manage large parts of it from afar (like the tech industry).
3) 2-3 million top caliber white male Western Expats might just move to Asia, since they may like Asian women more, and want to be free of SJW idiocy. This is all it takes to fill the alleged gap Asia has in creativity, marketing, and sales expertise. Asia effectively decapitates the white West by taking in their best young men and giving them a great life in Asia.
4) America becomes like Brazil...with all economic value colonized by Asians and the white expats in Asia with mixed-race children. White trashionalists left behind are swiftly exterminated by blacks, and white women mix with the blacks. America becomes a Brazil minus the fun culture, good weather, and attractive women. Could agree 1 and 2.

2-3 millions Top caliber White males moving to Asia?

haha, Top caliber White males (American) will stay in America, screw the rest WN, devour all the resources available, not only in America, but from the rest of the world.

This is a real White so-called Top caliber White males enjoying in Philippines.

You can see the typical features of White in Asia

1. Bald
2. Obese
3. Lanky
4. Gold watch
5. Cargo pants
6. Flip flop

You can't get away those Top caliber White males features in Asia.

Greg Bacon > , Website August 16, 2017 at 3:52 pm GMT

I'm guessing the author would be screaming at the top of his lungs if it was Jewish students being told to go to some state university–instead of Harvard–since we have to make room for blacks.

BTW, your comment "..Recall our own tribulations with violent Indian tribes" needs clarification. Maybe the tribes got violent because of the 400 treaties Uncle Sam made with the various tribes, he honored NONE

Abelard Lindsey > , August 16, 2017 at 3:58 pm GMT

I would call it the Diversity Tax.

üeljang > , August 16, 2017 at 4:12 pm GMT

@jim jones A great part of that is because, well, let's say that the place where those actresses have got their work done is the same.

Whites have much greater natural variations in hair and eye color, but skin color among East Asian individuals is more naturally variable (especially when the effect of tanning is considered), and their facial features and somatotypes are also more diverse in my opinion. For example, East Asian populations contain some individuals who have what the Japanese call futae mabuta "double eyelids" and some individuals who have what they call hitoe mabuta "single eyelids," whereas White populations contain only individuals who have "double eyelids." Whether such increased physical variability is positive or negative probably depends on one's viewpoint; in the case of that eyelid polymorphism, the variant that is found in Asians but not in Whites is generally considered neutral or even positive when it occurs in male individuals, but negative when it occurs in female individuals, so plastic surgeons must be overflowing with gratitude for the single eyelid gene.

Alden > , August 16, 2017 at 4:14 pm GMT

@Thorfinnsson The separate school facilities meant a major saving in the costs of school police and security guards, resource teachers, counselors buses and bus drivers, and layers and layers of administrators trying to administer the mess.

Separate schools were a lot cheaper in that the black teachers kept the lid on the violence with physical punishment and the White teachers and students had a civilized environment.

The old sunshine laws kept blacks out of White neighborhoods after dark which greatly reduced black on White crime. In the north, informal neighborhood watches kept black on White crime to a minimum until block by block the blacks conquered the cities.

George Wallace said segregation now, segregation forever. I say sterilization now, problem solved in 80 years.

Asians??? I went to college with the White WASP American young men who were recruited and went to work in Mountain View and Cupertino and the rest of Santa Clara county and invented Silicon Valley.

Not one was Asian or even Jewish. And they invented it and their sons couldn't even get into Stanford because their sons are White American men.

I think the worst thing about affirmative action is that government jobs are about the only well paid secure jobs that still stick to the 40 hour work week. Government is the largest employer in the country. And those jobs are "no Whites need apply".

BTW I read the Protocols years before the Internet. I had to make an appointment to go into a locked section of a research library. I had to show ID. It was brought to me and I had to sit where I could be seen to read it. I had to sign an agreement that I would not copy anything from the protocols.

And there it was, the fourth protocol.
"We shall see to it brothers, that we shall see to it that they appoint only the incompetent and unfit to their government positions. And thus we shall conquer them from within"

Alden > , August 16, 2017 at 4:31 pm GMT

@Thomm Actually, Europeans arrived 20, to 30,000 years ago from Europe and were wiped out by the later arriving Asians.

Beckow > , August 16, 2017 at 4:44 pm GMT

@Thomm Only 4) is remotely possible. And Brazilian women are not that attractive, they are nice looking on postcards, but quite dumpy and weird-looking in person. But that is a matter of personal taste.

The reason 1,2,3 are nonsensical is that geography and resources matter. Asia simply doesn't have them, it is not anywhere as attractive to live in as North America or Europe and never will be. It goes beyond geographic resources, everything from architecture, infrastructure, culture is simply worse in Asia and it would take hundreds of years to change that.

So why the constant 'go to Asia' or 'Asia is the future'? It might be a temporary escape for many desperate, self-hating, white Westerners, a place to safely worship as they give up on it all. Or it could be the endless family links with the Asian women. But that misreads that most of the Asian families are way to clear-headed to exchange what the are trying to escape for the nihilistic dreams of their white partners. They are the least likely to go to Asia, they know it instinctively, they know what they have been trying to escape.

It is possible that the West is on its last legs, and many places are probably gone for good. But Asia is not going to step up and replace it. It is actually much worse that that – we are heading for a dramatic downturn and a loss of comfort and civilization. Thank you Baby Boomers – you are the true end-of-liners of history.

nickels > , August 16, 2017 at 4:52 pm GMT

Except that, of course, as with all forms of appeasement, it isn't working .

Alec Leamas (hard at work) > , August 16, 2017 at 5:04 pm GMT

Bright and talented white kids from non-elite families stuck between the Scylla and Charybdis of Cram-Schooled Study-Asians with no seeming limit to their tolerance for tedium and 90 IQ entitled blacks is 2017 in a nutshell.

Realist > , August 16, 2017 at 5:07 pm GMT

Weissberg is a nutless quisling. The proper way to handle blackmail is to stop it in it's tracks.

Peaceful demonstrations are fine, property destroying riots should be stopped by any means necessary. Blacks would soon stop their dumb shit actions

Liberty Mike > , August 16, 2017 at 5:08 pm GMT

@George Weinbaum That there Cornell West is a learned fellow. I bet his vocabulary is bigger than that of GWB and DJT – combined.

Liberty Mike > , August 16, 2017 at 5:11 pm GMT

@Truth That study was slanted.

Jeff77450 > , August 16, 2017 at 5:17 pm GMT

Said in all seriousness: I genuinely feel sorry for blacks but not because of slavery & Jim Crow. Those were great evils but every group has gone through that. No, I feel sorry for them because their average IQ of 85–yes, it is–combined with their crass thug culture, which emphasizes & rewards all the wrong things, is going to keep them mired in dysfunction for decades to come. Men like Thomas Sowell & Walter Williams have all the information that blacks need to turn themselves around but they won't listen, I guess because the message is take responsibility for yourselves and your families and refuse to accept charity in all its different forms to include AA.

"Thomas Sowell vs Affirmative Action's failures" (~13 minutes): https://www.youtube.com/watch?v=agkye3vlG0Q

MEFOBILLS > , Website August 16, 2017 at 5:34 pm GMT

From the author:

some legally mandated homeland of the types advocated by Black Muslims.

Why not pay people to leave? A law change would convert the money supply from bank money to sovereign money.

AMI's HR2990 would convert the money supply overnight, and nobody would be the wiser.

At that point, new public money could be channeled into funding people to leave. Blacks that don't like it in the U.S. would be given X amount of dollars to settle in an African country of their choice. This public money can be formed as debt free, and could also be directed such that it can only buy American goods. In other words, it can be forced to channel, to then stimulate the American economy.

In this way, the future works, to then get rid of disruptive future elements.

It always boils down to the money system. There is plenty of economic surplus to then fund the removal of indigestible elements.

People automatically assume that the money supply must be private bank credit, as that is the way it always has been. NO IT HAS NOT ALWAYS BEEN THAT WAY.

http://www.sovereignmoney.eu

Astuteobservor II > , August 16, 2017 at 5:41 pm GMT

@Alden source please, that I would like to read. something new.

Rdm > , August 16, 2017 at 5:48 pm GMT

@helena If Whites leave America and go back to their origin, no one, I repeat, NO ONE would complain about that. They'd be singing "God Riddance" song all along.

No one wants to migrate to Ukraine, a white country.
No one wants to migrate to Hungary, a white country.
No one wants to migrate to Austria, a white country.

Everyone wants to migrate to the place where there's an over-bloated sense of job availability. In this case, America offers an ample amount of opportunity.

Let's wait and see how universities in CA populated with merit-based Asian Americans overrule all universities in the US anytime soon.

Name any state in the US that produces more than two universities (in the Top 50 list) in the world.

No state can compete against CA. You wonder why?

segundo > , August 16, 2017 at 6:34 pm GMT

Are you utterly oblivious to the fact that well over 95% of the blacks getting AAed into universities are then being trained/indoctrinated into being future disruptive activists? Activists with credentials, more money and connections. Entirely counterproductive and much of it on the taxpayers' dime. If there is a solution, AA isn't it.

Diversity Heretic > , August 16, 2017 at 7:01 pm GMT

@Rdm Can I count you in on the Calexit movement–followed by the purge of whites? Freed from the burden of those miserable European-origin Americans, the Asian-Negro-Mestizo marvel will be a shining light to the rest of the world!

David > , August 16, 2017 at 7:05 pm GMT

I waited to make this comment until the serious thinkers had been here. Did anyone notice the dame in the picture is giving us the finger? I did a little experiment to see if my hand could assume that position inadvertently and it couldn't. It aptly illustrates the article, either way.

Alec Leamas (hard at work) > , August 16, 2017 at 7:20 pm GMT

@Rdm

Name any state in the US that produces more than two universities (in the Top 50 list) in the world.

No state can compete against CA. You wonder why?

If you took the land mass of CA and imposed it on the U.S. East Coast between Boston and South Carolina, I don't think it'd be a problem to surpass California in any Top 50 University competition.

I'm not sure what your point is here.

The Realist > , Website August 16, 2017 at 8:18 pm GMT

Here's a simpler and more effective solution-KILL ALL NIGGERS NOW. See, not so difficult, was it? Consider it a Phoenix Program for the American Problem. Actually, here's another idea-KILL ALL LIBERALS NOW. That way, good conservative people of different races, sexes, etc., can be saved from the otherwise necessary carnage. Remember, gun control is being able to hit your target.

Mis(ter)Anthrope > , August 16, 2017 at 8:23 pm GMT

The affirmative action game may well serve the interests of the cognitive elite whites, but it has been a disaster for the rest of white America. I have a better solution.

Give the feral negroes what they have been asking for. Pull all law enforcement out of negro hellholes like Detroit and South Chicago and let nature take its course.

Send all Asians and other foreigners who not already citizens back to their homelands. End all immigration except very special cases like the whites being slaughtered in South Africa or the spouse of a white American male citizen.

Thomm > , August 16, 2017 at 8:23 pm GMT

@Rdm I am not referring to guys like in the picture.

I am referring to the very topmost career stars, moving to Asia for the expat life. Some of that is happening, and it could accelerate. Only 2-3 million are needed.

Wally > , Website August 16, 2017 at 8:31 pm GMT

@Kyle McKenna " And as he copiously documented, whites have suffered far more discrimination than asians have. The difference is, whites are more brainwashed into accepting it. "

And that's the function of the fraudulent, impossible '6M Jews, 5M others, gas chambers'.

[MORE]

"The historical mission of our world revolution is to rearrange a new culture of humanity to replace the previous social system. This conversion and re-organization of global society requires two essential steps: firstly, the destruction of the old established order, secondly, design and imposition of the new order. The first stage requires elimination of all frontier borders, nationhood and culture, public policy ethical barriers and social definitions, only then can the destroyed old system elements be replaced by the imposed system elements of our new order.

The first task of our world revolution is Destruction. All social strata and social formations created by traditional society must be annihilated, individual men and women must be uprooted from their ancestral environment, torn out of their native milieus, no tradition of any type shall be permitted to remain as sacrosanct, traditional social norms must only be viewed as a disease to be eradicated, the ruling dictum of the new order is; nothing is good so everything must be criticized and abolished, everything that was, must be gone."

from: 'The Spirit Of Militarism', by Nahum Goldmann
Goldmann was the founder & president of the World Jewish Congress

see the 'holocaust' scam debunked here:

http://codoh.com

No name calling, level playing field debate here:

http://forum.codoh.com

Liberty Mike > , August 16, 2017 at 8:31 pm GMT

@Rdm Almost all white people would rather migrate to Austria, Hungary, and the Ukraine than the following citadels of civilization:

Angola
Botswana
Burundi
Cameroon
Central African Republic
Djibouti
Ethiopia
Equatorial Guinea
Eritrea
Gabon
Ghana
Kenya
Niger
Nigeria
South Africa
Sudan
Swaziland
Tanzania
Uganda
Zambia

You know what? I bet most blacks would as well.

Mis(ter)Anthrope > , August 16, 2017 at 8:32 pm GMT

@Liberty Mike I don't know if anyone else got it, but that is pretty damn funny.

Wally > , August 16, 2017 at 8:40 pm GMT

@Rdm - 45% of California is Federal land.

- Without US taxpayers money CA would be a 3rd world country completely filled with unemployable & dumb illegal immigrants.

- Think about this brief list made possible by the US taxpayers / federal government, money CA would not get and then tens of thousands of CA people would lose their jobs (= lost CA tax revenues):

aerospace contracts, defense contracts, fed gov, software contracts, fed gov airplane orders, bases, ports, money for illegal aliens costs, federal monies for universities, 'affirmative action monies, section 8 housing money, monies for highways, monies for 'mass transportation', monies to fight crime, monies from the EPA for streams & lakes, monies from the Nat. Park Service, monies for healthcare, monies for freeloading welfare recipients, and all this is just the tip of the iceberg

- Not to mention the counties in CA which will not want to be part of the laughable 'Peoples Republic of California'.

- And imagine the 'Peoples Republic of California Army', hilarious.

CA wouldn't last a week without other peoples money.

Calexit? Please, pretty please.

Thomm > , August 16, 2017 at 8:57 pm GMT

@War for Blair Mountain You just want intra-white socialism so you can mooch off of productive whites.

Macumazahn > , August 16, 2017 at 8:58 pm GMT

It's particularly unfortunate that Asians, who can hardly be blamed for the plight of America's Blacks, are the ones from whom the "affirmative action" #groidgeld is extracted.

Rdm > , August 16, 2017 at 9:18 pm GMT

@Diversity Heretic My impression and overall experience from interacting with White Americans is good in general. I have a very distinct view on both White Americans and Europeans. I'd come back later.

I don't recommend purging of Whites in America. Neither do I prohibit immigration of all people. But I do wish "legal" immigration from all parts of the world to this land. But I also understand why people are fed up with White America.

There is a clear distinction between Europeans and White Americans. White Americans born and bred here are usually an admixture of many European origins. They usually hide their Eastern European origin and fervently claim German, French, English whenever possible ! basically those countries that used to be colonial masters in the past.

White Americans are generally daring, optimistic and very open-minded. Usually when you bump into any White Americans born and bred here, you can sense their genuine hospitality.
Europeans, usually fresh White immigrants in this land, tend to carry over their old mentality with a bit of self-righteous attitude to patronize and condescend Americans on the ground that this is a young country.

My former boss was Swiss origin, born in England, and migrated to America. If there's an opportunity cost, he'd regale his English origin. If there's a Swiss opportunity, he'd talk about his ancestry. He'd bash loud, crazy Americans while extoling his European majesty. He became a naturalized American last year for tax purposes so that his American wife can inherit if he kicks the bucket.

Bottom line is, every immigrant to the US, in my honest opinion, is very innocent and genuinely hard working. They have a clear idea of how they like to achieve their dreams here and would like to work hard. It seems after staying here for a while, they all change their true selves to fit into the existing societal structure, i.e., Chris Hemsworth, an Australian purposely trained to speak American English in Red Dawn, can yell "This is our home" while 4th generation Asian Americans will be forced to speak broken English. This is how dreams are shaped in America.

Coming back to purge of Whites, I only wish those self-righteous obese, bald, bottom of the barrel, living on the alms Whites, proclaiming their White skin, will go back to their origin and do something about a coming flood of Muslim in their ancestral country if they're so worried about their heritage.

Rdm > , August 16, 2017 at 9:19 pm GMT

@Alec Leamas (hard at work) My point is, universities in CA are doing well commensurate with hard working students without AA action.

Saxon > , August 16, 2017 at 9:26 pm GMT

@Thomm No, he just wants the street-defecating hangers-on like you to go back and show how awesome you claim you are in your own country by making a success of it rather than milking all of the entitlements and affirmative action and other programs of literal racial advantage given to you by virtue of setting foot in someone else's country.

Rdm > , August 16, 2017 at 9:30 pm GMT

@Wally - 45% of California is Federal land.

- Without US taxpayers money CA would be a 3rd world country completely filled with unemployable & dumb illegal immigrants.

- Think about this brief list made possible by the US taxpayers / federal government, money CA would not get and then tens of thousands of CA people would lose their jobs (= lost CA tax revenues):

aerospace contracts, defense contracts, fed gov, software contracts, fed gov airplane orders, bases, ports, money for illegal aliens costs, federal monies for universities, 'affirmative action monies, section 8 housing money, monies for highways, monies for 'mass transportation', monies to fight crime, monies from the EPA for streams & lakes, monies from the Nat. Park Service, monies for healthcare, monies for freeloading welfare recipients, and all this is just the tip of the iceberg

- Not to mention the counties in CA which will not want to be part of the laughable 'Peoples Republic of California'.

- And imagine the 'Peoples Republic of California Army', hilarious.

CA wouldn't last a week without other peoples money.

Calexit? Please, pretty please. So you're talking about Calexit in AA action?

Let us play along.

If CA is existing solely due to Fed Alms, I can agree it's the tip of the iceberg. But we're talking about Universities, their performance and how AA is affecting well qualified students.

Following on your arguments,

UC Berkeley receives $373 Millions (Federal Sponsorship) in 2016.
Harvard University, on the other hand, receives $656 millions (Federal sponsorship) in 2012.

I'm talking about how Universities climb up in World ranking, based upon their innovations, productivity, research output, etc etc etc. Which to me, is reflective of what kind of students are admitted into the programs. That's my point.

If you want to talk about Calexit, you'd better go and refresh your reading comprehension ability.

Stan d Mute > , August 16, 2017 at 9:36 pm GMT

The thing that is forgotten is that white Americans DO NOT need the Africans in any way whatsoever. There is NOTHING in Detroit that we want – we abandoned it deliberately and have no interest in ever returning.

On the other hand, what do the Africans need from us?

Food. We own and operate all food production.
Medicine. Ditto.
Clean water. Look at Flint.
Sanitation services. Look at anywhere in Africa.
Order.

To put a stop to African behavior from Africans is an idiot's dream. They will never stop being what they are. They simply cannot. So if we cannot expel them, we must control them. When they act up, we cut off their food, medicine, water, and sewer services. Build fences around Detroit and Flint. Siege. After a month or two of the Ethiopian Diet, the Africans in Detroit will be much more compliant.

War for Blair Mountain > , August 16, 2017 at 9:36 pm GMT

@Thomm You just want intra-white socialism so you can mooch off of productive whites. Thomm=the girly boy blatherings of a White Libertarian Cuck

The benefit to the Historic Native Born White American Working Class of being voted into a White Racial Minority in California by Chinese "Americans" Korean "Americans" .Hindu "Americans" Sihk "Americans" and Iranian "Americans"?

Answer:0 . Bring back the Chinese Legal Immigrant Exclusion Act!!!

Two Great pro-White Socialist Labor Leaders:Denis Kearney and Samuel Gompers go read Denis Kearney's Rebel Rousing speeches google Samuel Gompers' Congressional Testimony in favor of the passage of The Chinese Legal Immigrant Exclusion Act

The peril of appeasement > , August 16, 2017 at 9:40 pm GMT

As some have pointed out, the trouble with appeasement is, it never ends. Those who are used to the handouts will always want more. There's the saying parents tend to strengthen the strong and weaken the weak, that's what paternalistic policies like affirmative action and welfare do to a society. It creates a cycle of dependency.

Those who think multiculturalism coupled with identity politics is a good idea need to take a good look at Malaysia, arguably the most multicultural country outside the US. The country is in Southeast Asia, with roughly 30m people, roughly 60% ethnic Malay(100% muslim), 23% Chinese(mostly buddhist or christian), brought in by the British in the 1800s to work the rubber plantations and tin mines, and 7% Indian(mostly Hindu), brought in by the British to work the plantations and civil service.

In 1957 the Brits left and left the power in the hands of the ethnic Malays. The Chinese soon became the most successful and prosperous group and dominated commerce and the professional ranks. In 1969 a major race riot broke out, the largely rural and poor Malays decided to "take back what's theirs", burnt, looted and slaughtered many ethnic Chinese. After the riot the government decided the only way to prevent more riots is to raise the standard of living for the Malays. And they began a massive wealth transfer program through affirmative action that heavily favors ethnic Malays. First, all civil service jobs were given to only ethnic Malays, including the police and military. Then AA was instituted in all local universities where Malays with Cs and Ds in math and science were given preference over Chinese with all A's to all the engineering, medicine and law majors. Today no one in their right mind, not even the rich Malays, want to be treated by a Malay doctor. I know people who were maimed by one of these affirmative actioned Malay "neurosurgeons" who botched a simple routine procedure, and there was no recourse, no one is allowed to sue.

Thanks to their pandering to the Malay majority and outright voting fraud, the ruling party UMNO has never lost an election and is today the longest serving ruling party in modern history. Any dissent was stifled through the sedition act where dissidents are thrown in jail, roughed up, tossed down 14th story buildings before they even go to trial. All media is strictly controlled and censored by the government, who also controls the military, and 100% of the country's oil production, with a large portion of the profit of Petronas going to the coffers of the corrupt Malay government elites, whatever's left is given to hoi polloi Malays in the form of fluff job positions created in civil service, poorly run quasi-government Malay owned companies like Petronas, full scholarships to study abroad for only ethnic Malays, tax free importation of luxury cars for ethnic Malays, and when the government decided to "privatize" any government function like the postal service or telcom, they gave it in the form of a monopoly to a Malay owned company. All government contracts e.g. for infrastructure are only given to Malay owned companies, even as they have zero expertise for the job. The clever Chinese quickly figured out they could just use a Malay partner in name only to get all government contracts.

As opposed to the US where affirmative action favors the minority, in Malaysia AA favors the majority. You know it can't last. The minority can only prop up the majority for so long. Growth today is largely propped up by oil income, and the oil reserve is dwindling. Even Mahathir the former prime minister who started the most blatant racial discrimination policy against the Chinese started chastising the Malays of late, saying they've become too lazy and dependent on government largess.

Yet despite the heavy discrimination, the Chinese continued to thrive thanks to their industriousness and ingenuity, while many rural Malays not connected with the governing elite remain poor ! classic case of strengthening the strong and weakening the weak. According to Forbes, of the top 10 richest men in Malaysia today, 9 are ethnic Chinese, only 1 is an ethnic Malay who was given everything he had. Green with envy, the ethnic Malays demanded more to keep the government in power. So a new law was made – all Chinese owned businesses have to give 30% ownership to an ethnic Malay, just like that.

Needless to say all this racial discrimination resulted in a massive brain drain for the country. many middle class Indians joined the Chinese and emigrated en masse to Australia, NZ, US, Canada, Europe, Singapore, HK, Taiwan, Japan. The ones left are often destitute and poor, heavily discriminated against due to their darker skin, and became criminals. Al Jazeera recently reported that the 7% ethnic Indians in Malaysia commit 70% of the crime.

To see how much this has cost Malaysia ! Singapore split off from Malaysia 2 years after their joint independence from Britain and was left in destitute as they have no natural resources. But Lee Kuan Yew with the help of many Malaysian Chinese who emigrated to Singapore turned it into one of the richest countries in the world in one generation with a nominal per capita GDP of $53k, while Malaysia is firmly stuck at $9.4k, despite being endowed with natural resources from oil to tin and beautiful beaches. The combination of heavy emigration among the Chinese and high birthrate among the muslim Malays encouraged by racialist Mahathir, the Chinese went from 40% of the population in 1957 to 23% today. The Indians went from 11% to 7%.

I fear that I'm seeing the same kind of problem in the US. It's supremely stupid for the whites to want to give up their majority status through open borders. Most Asians like me who immigrated here decades ago did it to get away from the corrupt, dishonest, dog-eat-dog, misogynistic culture of Asia. But when so many are now here, it defeats the purpose. The larger the immigrant group, the longer it takes to assimilate them. Multiculturalism is a failed concept, especially when coupled with identity politics. Affirmative Action does not work, it only creates a toxic cycle of dependency. The US is playing with fire. We need a 20 year moratorium on immigration and assimilate all those already here. Otherwise, I fear the US will turn into another basketcase like Malaysia.

Truth > , August 16, 2017 at 9:42 pm GMT

@Liberty Mike https://www.youtube.com/watch?v=8RrWfNonLDQ

Alden > , August 16, 2017 at 9:43 pm GMT

@Tom Welsh There were only about one million Indians living in what is the United States in 1500. There are now 3 million living in much better conditions than in 1500.

I would be willing to accept non White immigration if the non White immigrants and our government would end affirmative action for non Whites.

Asians are discriminated against in college admissions. But in the job market they have affirmative action aristocratic status over Whites.

Truth > , August 16, 2017 at 9:43 pm GMT

@Liberty Mike The sno percentage is much higher an Ukraine, Hungary and Austria than here.

Joe Wong > , August 16, 2017 at 9:45 pm GMT

@Diversity Heretic John Derbyshire has made similar arguments--racial preferences are the price for social peace. But, as Steve Sailer has pointed out, we're running out of white and Asian children to buffer black dysfunction and Asians are going to get less and less willing to be "sacrificial lambs" for a black underclass that they did nothing to create and that they despise.

There are other ways to control the black underclass. You can force the talented ones to remain in their community and provide what leadership they can. Black violence can be met with instant retributive counter-violence. (Prior to the 1960s most race riots were white on black.) Whites can enforce white norms on the black community, who will sort-of conform to them as best they are able.

Finally, Rudyard Kipling had a commentary on Danegeld. It applies to paying off dysfunctional domestic minorities just as much to invading enemies.

"We never pay any-one Dane-geld,
No matter how trifling the cost;
For the end of that game is oppression and shame,
And the nation that pays it is lost!"

admitting academically unqualified blacks to elite schools is, at core, a policy to protect the racial peace and, as such, has nothing to do with racial justice,

The Black are protesting relentlessly and loudly verbally and thru assertive actions about the racial discrimination they have been facing. I have never seen those academically unqualified blacks admitted to the elite schools have stood up using themselves as shiny examples to refute the discrimination allegations the Black made against the White.

While the policy to protect the racial peace by admitting academically unqualified blacks to elite schools failed miserably, the restricting the smart and qualified Asians to elite schools is blatantly racial injustice practice exercised in broad day light with a straight face lie. The strategy is to cause resentment between the minorities so that the White can admitting their academically unqualified ones to elite schools without arousing scrutiny.

Thomm > , August 16, 2017 at 9:50 pm GMT

@Saxon I'm white, you stupid faggot.

I am extremely committed that you White Trashionalists fulfill your duty as wastebaskets of genetic matter.

Excellent whites exist only because the waste produced gets removed in the form of WN wiggers.

Like I said, there is a huge variance within whites. Therefore, you have no business speaking for respectable whites.

Worst of all, you Nationalist-Leftists are un-American.

Alden > , August 16, 2017 at 10:04 pm GMT

@Astuteobservor II Just google solutrean theory Europeans arrived in America 20,000 years ago. Many articles come up including from smithsonian.

The east coast Canadian Indians always had the founding myth they came over the ocean.

There's a book, Across The Atlantic Ice by Dennis Stanford on kindle, Amazon and many book stores.

Priss Factor > , Website August 16, 2017 at 10:05 pm GMT

Here is one 'smart Asian' who is not a Self-Righteous Addict of Proglobalism, but what a clown.

https://www.youtube.com/watch?v=mNrytSEyUoY

Dineshisms are always funny as hell.

Because KKK were Southern Democrats, Democratic Party is forever the KKK party. Never mind Democrats represented a broad swatch of people.
And Dinesh finds some parallels between Old Democrats and Nazi ideology, therefore Democrats are responsible for Nazism. I mean

Doesn't he know that parties change? Democratic Party once used to be working class party. Aint no more.
GOP used to be Party of Lincoln. It is southern party now, and most loyal GOP-ers are Southerns with respect for Confederacy. GOP now wants Southern Neo-Confed votes but don't want Confed memorials. LOL.
Things change.

Jesse Helms and Strom Thurmond came over to the GOP for a reason.

Dinesh seems to be stuck in 'caste' mentality. Because Dems once had KKK on its side, Democratic Party is forever cast or 'casted' as KKK. And now, 'Democrats are real Nazis'.

Actually, the real supremacism in America at the moment seems to be AIPAC-related.

Anyway, there were leftist elements in National Socialism, but its was more right than left.

Why? Because in the hierarchy of ideological priorities, the most important core value was the 'Aryan' Tribe. Socialized medicine was NOT the highest value among Nazis. Core conviction was the ideology of racial identity and unity. Thus, it was more right than left.

Just because National Socialism had some leftist elements doesn't make it a 'leftist' ideology.

Same is true of Soviet Communism. Stalin brought back high culture and classical music. He favored traditionalist aesthetics to experimental or avant-garde ones. And Soviets promoted some degree of Russian nationalism. And even though communists eradicated certain aspects of the past, they also restored respect for classic literature and culture. So, does that mean USSR was 'conservative' or 'rightist'? No, it had some rightist elements but its core ideology was about class egalitarianism, therefore, it was essentially leftist.

Alden > , August 16, 2017 at 10:20 pm GMT

@Joe Wong All the Whites and Asians who are admitted to the top 25 schools are superbly qualified. There are so many applicants every White and Asian is superbly qualified.

The entire point of affirmative action is that Asians and Whites are discriminated against in favor of blacks and Hispanics. Harvard proudly proclaims that is now majority non White.

Don't worry, the Jews decided long ago that you Asian drones would have medicine and tech, Hispanics construction, food, trucking,and cleaning and Hispanics and blacks would share government work and public education.

Whites will gradually disappear and the 110 year old Jewish black coalition will control the Asians and Hispanics through black crime and periodic riots.

Liberty Mike > , August 16, 2017 at 10:22 pm GMT

@Truth Do you think Beavis and Butthead are choosing Angola over Austria?

Alden > , August 16, 2017 at 10:31 pm GMT

@Macumazahn Affirmative action punishes Whites as well and Asians are always free to go back to wherever their parents or grandparents came from.

After 400 years, Whites can't go anywhere.

Alden > , August 16, 2017 at 10:35 pm GMT

@Thomm Do you favor affirmative action?

Joe Wong > , August 16, 2017 at 10:40 pm GMT

@Wally So you are a tough guy, and never give in anything to anyone in your life? It seems the Jews have similar view as yours, the Jews insist that if they give in an inch to those Holocaust deniers, they will keep demanding more & more, at the beginning the Holocaust deniers will demand for the evidence, then they will demand the Jews are at fault, then they will demand the Nazi to be resurrected, then they will demand they can carry out Holocaust against anyone they don't like, Pretty soon they will demand they to be treated like the pigs in the Orwellian's Animal Farm.

Liberty Mike > , August 16, 2017 at 10:44 pm GMT

@Thomm "Un-American" is descriptively flaccid. It means nada, nothing, zero. It is vapid and so empty and such a lame lexeme.

Any word that is hackneyed, lifeless, and so low energy would never be scripted by a White committed to excellence.

F the media > , August 16, 2017 at 10:46 pm GMT

@Priss Factor Hell with those 'smart Asians'. They are among the biggest Proglob a-holes.

Asians have servile genes that seek approval from the power. They are status-freaks.

They make perfect collaborators with the Glob.

Under communism, they made the most conformist commies.

Under Japanese militarism, they made the most mindless military goons who did Nanking.

Under Khmer Rouge, they were biggest looney killers.

Under PC, they make such goody good PC dogs.

If the prevailing culture of US was patriotic and conservatives, Asians would try to conform to that, and that wouldn't be so bad.

But since the prevailing culture is PC, these yellow dogs are among the biggest homomaniacal PC tards.

Hell with them. Yellow dogs voted for Obama and Hillary in high numbers. They despise, hate, and feel contempt for white masses and working class. They are servitors of the empire as Darrell Hamamoto said. He's one of the few good guys.

https://www.youtube.com/watch?v=1bs_BbIBCoY

Just look at that Francis Fukuyama, that slavish dog of Soros. He's so disgusting. And then, you got that brown Asian tard Fareed Zakaria. What a vile lowlife. And that fat Jeer Heet who ran from dirty browns shi**ing all over the place outdoors to live with white people but bitches about 'white supremacy'. Well, the fact that he ran from his own kind to live with whites must mean his own choice prefers white folks. His immigration choice was 'white supremacism'. After all, he could have moved to black Africa. Why didn't he?

PS. The best way of Affirmative Action is to limit it only to American Indians and Blacks of slave ancestry. That's it.

Also, institutions should OPENLY ADMIT that they do indeed discriminate to better represent the broader population. Fair or not, honesty is a virtue. What is most galling about AA is the lies that says 'we are colorblind and meritocratic but...' No more buts. Yes, there is discrimination but to represent larger population. Okay, just be honest. Asia is a big continent and Asians of different ethnicity have very different voting patterns due to their culture and history. Japanese-Americans tend to be the most liberal ethnic group of all Asian groups because of their experience with internment during WWII. Somehow they conveniently forgot that it was a Democrat president who put them in internment, and are now putting the blames squarely on the right for what happened. These Japanese-Americans are drinking the kool-aid big time, but in the 90s I remember a Japanese prime minister got in big trouble for saying America's biggest problem is we have too many blacks and hispanics dragging us down.

Filipinos, Hmongs and other Southeast Asians tend to be poor and rely on government largess to a certain extent, and also benefit from affirmative action at least in the state of CA, they also tend to be liberal.

In this election cycle Indian-Americans have become the most vocal anti-Trumpers. From Indian politicians from WA state like Kshama Sawant, Pramila Jayapal to Indian entertainers like Aziz Ansari, Hasan Minaj, Kumail Nanjani, to Silicon Valley techies like Calexit mastermind VC Shervin Pishevar, Google CEO Sundra Pichai, all are socialist libtards. In my local election, several Indians are running for city council. All are first generation, all Democrats and champions of liberal policies. It's as if they have amnesia(or just lower IQ), not remembering that socialism was why they had to leave the shithole India to begin with. A Korean American is running as a Republican.

There are Chinese idiots like Ted Lieu and other asians who've gone to elite schools therefore drinking the kool-aid and insisted AA is good for Asian Americans, but most Koreans, Vietnamese and Chinese tend to be more conservative and lean Republican. During the Trump campaign Breitbart printed a story about a group of Chinese Americans voicing their support for Trump despite his anti-China rhetoric because they had no intention of seeing the US turned into another socialist shithole like China.

Per the NYT a major reason Asians vote Republican is because of AA. Asians revere education, esp. the Chinese and Koreans, and they see holistic admission is largely bullshit set up by Jews to protect their legacy status while throwing a few bones to under qualified blacks and hispanics. Unfortunately it didn't seem to dampen their desire to immigrate here. Given that there are 4 billion Asians and thanks to open borders, if it weren't for AA all our top 100 schools will be 100% Asian in no time. I suggest we first curtail Asian immigration, limit their number to no more than 10,000 a year, then we can discuss dismantling AA.

Anon > , Disclaimer August 16, 2017 at 10:46 pm GMT

@Wally This is false. See:

https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/#main-findings

California sends far more to Washington than it sends back. Also, there is no correlation between percentage of federal land and dependence on federal funding. If there were, Delaware would be the least dependent state in the US.

Clue: It isn't.

Anon > , Disclaimer August 16, 2017 at 10:46 pm GMT

@Wally This is false. See:

https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/#main-findings

California sends far more to Washington than it sends back. Also, there is no correlation between percentage of federal land and dependence on federal funding. If there were, Maine would be among the least dependent states in the US.

Clue: It isn't.

Astuteobservor II > , August 16, 2017 at 10:47 pm GMT

@Alden https://en.wikipedia.org/wiki/Solutrean_hypothesis

if the wiki is reliable. you shouldn't be telling others like it is a cold hard fact. But still a very interesting read. thanks for bringing it up.

Astuteobservor II > , August 16, 2017 at 10:48 pm GMT

@Alden

But in the job market they have affirmative action aristocratic status over Whites.

that is another bold claim. I know of black quotas, but asian quota???

F the media > , August 16, 2017 at 11:06 pm GMT

@Astuteobservor II The Indian tribe in tech is known to favor Indians in hiring. I've read from other Indian posters elsewhere that Indian managers like to hire Indian underlings because they are easier to bully.

Indian outsourcing firms like Infosys, TCS, Wipro are like 90% Indian, mostly imported directly from India, with token whites as admin or account manager.

THe Realist > , Website August 16, 2017 at 11:13 pm GMT

@Truth See #65 above. You die, too, boy.

F the media > , August 16, 2017 at 11:14 pm GMT

@Carlton Meyer That's pretty funny. The guy's got balls. Probably son of some corrupt Chinese government official used to being treated like an emperor back home, ain't taking no shit from black folks.

I suppose this is what happens when universities clamor to accept foreign students because they are full pay. His tuition dollar is directly subsidizing these affirmative action hacks, who are now preventing him from studying. He has fully paid for his right to tell them to STFU.

Joe Wong > , August 16, 2017 at 11:27 pm GMT

@Beckow Romans did not think Europe was a nice place to live, full of bloodthirsty barbarians, uneducated, smelly, dirty, foul mouth and rogue manner, even nowadays a lot of them cannot use full set of tableware to finish their meal, a single fork will do, it is a litte more civilized than those use fingers only.

After a millennium of dark age of superstition, religious cult suppression, utter poverty medieval serf Europe, it followed by centuries of racial cleanses, complete destruction of war, stealing and hypocrisy on industrial scale, this time not only restricted to Europe the plague flooded the whole planet.

Even nowadays the same plague from Europe and its offshoots in the North America is threatening to exterminate the human beings with a big bang for their blinding racial obligatory. The rest of the world only can hope this plague would stay put in North America and Europe, so the rest world can live in peace and prosperity.

Joe Franklin > , August 16, 2017 at 11:33 pm GMT

Asians receive federal entitlements the same as the other protected class groups of diversity.

Diversity ideology lectures us that Asians are oppressed by Occidentals.

1. Preferential US immigration, citizenship, and asylum policies for Asian people
2. Federal 8a set-aside government contracts for Asian owned businesses
3. Affirmative Action for Asians especially toward obtaining government jobs
4. Government anti-discrimination laws for Asians
4. Government hate speech crime prosecutions in defense of Asians
5. Sanctuary cities for illegal Asians, and other protected class groups of diversity
6. Asian espionage directed at the US is common, and many times goes unprosecuted
7. American trade policy allows mass importation of cheap Asian products built with slave labor
8. Whaling allowance for some Asian ethnic groups
9. Most H1-B visas awarded to Asians

Reg Cęsar > , August 16, 2017 at 11:38 pm GMT

@Thomm

Please stop trying to confuse Orientals with Indians and other subcontinentals. They are quite distinct.

In their original countries they are, but in America they are almost identical in all ways except appearance and diet.

And odor.

Thomm > , August 17, 2017 at 12:10 am GMT

@War for Blair Mountain Thomm=the girly boy blatherings of a White Libertarian Cuck...

The benefit to the Historic Native Born White American Working Class of being voted into a White Racial Minority in California by Chinese "Americans"...Korean "Americans"....Hindu "Americans"...Sihk "Americans"...and Iranian "Americans"?


Answer:0.... Bring back the Chinese Legal Immigrant Exclusion Act!!!


Two Great pro-White Socialist Labor Leaders:Denis Kearney and Samuel Gompers...go read Denis Kearney's Rebel Rousing speeches...google Samuel Gompers' Congressional Testimony in favor of the passage of The Chinese Legal Immigrant Exclusion Act... It is MUCH better to be a libertarian than to be a Nationalist-Leftist. You have effectively admitted that you want intra-white socialism since you can't hack it yourself.

Socialists = untalented losers.

Plus, I guarantee that your ancestors were not in America since 1776. You are just some 2nd-gen Polack or something.

Thomm > , August 17, 2017 at 12:12 am GMT

@Alden

Do you favor affirmative action?

Absolutely not. It is one of the worst things ever devised.

Issac > , August 17, 2017 at 12:12 am GMT

@Thomm Sounds like a Jewish fantasy.

Vinteuil > , August 17, 2017 at 12:14 am GMT

@Priss Factor Here is one 'smart Asian' who is not a Self-Righteous Addict of Proglobalism, but what a clown.

https://www.youtube.com/watch?v=mNrytSEyUoY

Dineshisms are always funny as hell.

Because KKK were Southern Democrats, Democratic Party is forever the KKK party. Never mind Democrats represented a broad swatch of people.
And Dinesh finds some parallels between Old Democrats and Nazi ideology, therefore Democrats are responsible for Nazism. I mean...

Doesn't he know that parties change? Democratic Party once used to be working class party. Aint no more.
GOP used to be Party of Lincoln. It is southern party now, and most loyal GOP-ers are Southerns with respect for Confederacy. GOP now wants Southern Neo-Confed votes but don't want Confed memorials. LOL.
Things change.

Jesse Helms and Strom Thurmond came over to the GOP for a reason.

Dinesh seems to be stuck in 'caste' mentality. Because Dems once had KKK on its side, Democratic Party is forever cast or 'casted' as KKK. And now, 'Democrats are real Nazis'.

Actually, the real supremacism in America at the moment seems to be AIPAC-related.

Anyway, there were leftist elements in National Socialism, but its was more right than left.

Why? Because in the hierarchy of ideological priorities, the most important core value was the 'Aryan' Tribe. Socialized medicine was NOT the highest value among Nazis. Core conviction was the ideology of racial identity and unity. Thus, it was more right than left.

Just because National Socialism had some leftist elements doesn't make it a 'leftist' ideology.

Same is true of Soviet Communism. Stalin brought back high culture and classical music. He favored traditionalist aesthetics to experimental or avant-garde ones. And Soviets promoted some degree of Russian nationalism. And even though communists eradicated certain aspects of the past, they also restored respect for classic literature and culture. So, does that mean USSR was 'conservative' or 'rightist'? No, it had some rightist elements but its core ideology was about class egalitarianism, therefore, it was essentially leftist. "Stalin brought back high culture and classical music. He favored traditionalist aesthetics to experimental or avant-garde ones."

Priss, you haven't the first clue what you're talking about, here. Stalin didn't favor "traditionalist aesthetics" – he favored vulgar pop-crap.

Issac > , August 17, 2017 at 12:15 am GMT

@Joe Wong Ah yes, the whites are well known for their bigotry. That's why they're so mono-racial and China is so diverse. Good point Chang.

Thomm > , August 17, 2017 at 12:15 am GMT

@Joe Franklin Asians receive federal entitlements the same as the other protected class groups of diversity.

Diversity ideology lectures us that Asians are oppressed by Occidentals.


1. Preferential US immigration, citizenship, and asylum policies for Asian people
2. Federal 8a set-aside government contracts for Asian owned businesses
3. Affirmative Action for Asians especially toward obtaining government jobs
4. Government anti-discrimination laws for Asians
4. Government hate speech crime prosecutions in defense of Asians
5. Sanctuary cities for illegal Asians, and other protected class groups of diversity
6. Asian espionage directed at the US is common, and many times goes unprosecuted
7. American trade policy allows mass importation of cheap Asian products built with slave labor
8. Whaling allowance for some Asian ethnic groups
9. Most H1-B visas awarded to Asians That is completely false. You just memorized that from some bogus site.

Section 8a is used more by white women than by Asians, and Asians get excluded from it due to high income. It should be done away with altogether, of course.

Asians face discrimination in University admissions, as the main article describes.

H1-Bs are awarded to Asians because white countries don't produce enough people who qualify.

Plus, Asian SAT scores are consistently higher than whites. That proves that Asian success was not due to AA.

Joe Wong > , August 17, 2017 at 12:15 am GMT

@Alden

the 110 year old Jewish black coalition will control

I am not sure the Muslim and Indian will agree to that, they have a very strong birth rate that can match if not surpass the blacks too.

Saxon > , August 17, 2017 at 12:46 am GMT

@Thomm Green isn't a color that suits you. You're a subcontinental hanger-on who's only able to garner any success in any western country due to an anarcho-tyranny in enforcement against ethnonepotism as well as lavish handouts in the form of all sorts of party favors.

There are very few non-white groups that could do any well on a level playing field with equal enforcement against nepotism, and yours isn't one of them. Your country? Sad!

Ron Unz > , August 17, 2017 at 12:47 am GMT

@Alden

Whites will gradually disappear and the 110 year old Jewish black coalition will control the Asians and Hispanics through black crime and periodic riots.

I don't think this is correct

Since California already has (very roughly) the future demographics you're considering, I think it serves as a good test-case.

The Hispanic and Asian populations have been growing rapidly, and they tend to hold an increasing share of the political power, together with the large white population, though until very recently most of the top offices were still held by (elderly) whites. Whites would have much more political power, except that roughly half of them are still Republicans, and the Republican Party has almost none.

In most of the urban areas, there's relatively little black crime these days since so many of the blacks have been driven away or sent off to prison. I'd also say that major black riots in CA are almost unthinkable since many of the local police forces are heavily Hispanic: they don't particularly like blacks, and might easily shoot the black rioters dead while being backed up by the politicians, and many of the blacks probably recognize this. Admittedly, CA always had a relatively small black population, but that didn't prevent enormous black crime and black riots in the past due to the different demographics.

Meanwhile, Jewish-activists still possess enormous influence over CA politics, but they exert that influence through money and media, just like they do everywhere else in the country.

Astuteobservor II > , August 17, 2017 at 1:03 am GMT

@F the media that is actually true about indians. I have first hand account of a 100+ tech dept getting taken over by indians in just 3 years :/ but that is not a "quota" that is just indians abusing their power once in position of power.

Priss Factor > , August 17, 2017 at 1:26 am GMT

@Vinteuil Priss, you haven't the first clue what you're talking about, here. Stalin didn't favor "traditionalist aesthetics" – he favored vulgar pop-crap.

Right.. Ballet, Prokofiev, Shostakovich, and classic literature. That's some pop crap.
Soviet Culture was about commie Lena Dunhams.

Now, most of Soviet culture was what might be called kitsch or middlebrow stuff, but it was not 'pop crap' as known in the West.

Truth > , August 17, 2017 at 1:35 am GMT

@THe Realist LOL, if you're the one holding the knife, hatchet, billy club or brick, I like my chances.

Thomm > , August 17, 2017 at 1:58 am GMT

@Saxon Green isn't a color that suits you. You're a subcontinental hanger-on who's only able to garner any success in any western country due to an anarcho-tyranny in enforcement against ethnonepotism as well as lavish handouts in the form of all sorts of party favors.

There are very few non-white groups that could do any well on a level playing field with equal enforcement against nepotism, and yours isn't one of them. Your country? Sad! Whatever helps you sleep at night..

Yesterday I was called a Jew. Today, it is Indian. In reality, I am a white American guy.

You white trashionalists can't get your stories straight, can you? Well, WNs are known for having negro IQs.

Asians don't get affirmative action. They outscore whites in the SAT.

But even blacks outscore WNs like you.

Heh heh heh heh

Joe Franklin > , August 17, 2017 at 2:03 am GMT

@Thomm That is completely false. You just memorized that from some bogus site.

Section 8a is used more by white women than by Asians, and Asians get excluded from it due to high income. It should be done away with altogether, of course.

Asians face discrimination in University admissions, as the main article describes.

H1-Bs are awarded to Asians because white countries don't produce enough people who qualify.

Plus, Asian SAT scores are consistently higher than whites. That proves that Asian success was not due to AA. You have reading comprehension problems to have confused Federal 8A government contacts with Section 8 housing.

8A contracts are federal contracts granted to "socially and economically disadvantaged individual(s)."

https://www.sba.gov/contracting/government-contracting-programs/8a-business-development-program/eligibility-requirements/8a-requirements-overview

The business must be majority-owned (51 percent or more) and controlled/managed by socially and economically disadvantaged individual(s).

The individual(s) controlling and managing the firm on a full-time basis must meet the SBA requirement for disadvantage, by proving both social disadvantage and economic disadvantage.

http://sbda.com/sba_8(a) .htm

Definition of Socially and Economically Disadvantaged Individuals

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identities as members of groups without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control.

In the absence of evidence to the contrary, the following individuals are presumed to be socially disadvantaged:

• Black Americans;

• Hispanic Americans (persons with origins from Latin America, South America, Portugal and Spain);

• Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians);


• Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru);

• Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal);

• And members of other groups designated from time to time by the SBA.

Truth > , August 17, 2017 at 2:20 am GMT

@F the media

That's pretty funny. The guy's got balls.

Nah, just some goofy nerd working on his PhD in Library Science.

THIS Kat on the other hand is my N-!

https://www.youtube.com/watch?v=FaTLgw_akhg

Beckow > , August 17, 2017 at 2:25 am GMT

@Joe Wong Romans lived in Europe, get an atlas, Rome is in Europe. I will skip over your silly summaries of European history, we all can do it to any civilization all day. Pointless. Try China. Oh, I forgot, nobody knows much Chinese up and downs because it was mostly inconsequential.

If you call others 'racist' all the time, they might just not take your seriously. Or simply say, fine, if liking one's culture is now 'racism', if it is a white culture, then count me in. The rest of the world is tripping over itself to move – literally to physically move – to Europe and North America. Why do you think that is?

Truth > , August 17, 2017 at 2:33 am GMT

@Ron Unz

I'd also say that major black riots in CA are almost unthinkable since many of the local police forces are heavily Hispanic: they don't particularly like blacks, and might easily shoot the black rioters dead

Oh, would you stop being a make-believe pundit, Ron? That is some commentary you copped from an OJ-era LA Times expose. You've had one conversation with a police officer in your life, and that was over an illegal left term outside the Loma Linda Starbucksand culminated in disturbing the peace when exited your Bentley yelling "DO YOU KNOW WHO I AM?!?!" at the top of your lungs for 4 minutes.

Whenever you've had a nudity-mandatory, eyes-wide-shut, type globalist-soiree at your palatial mansion, the only people you invited were politicians, lawyers, Ivy-league economists, Silicon Valley tech nerds and hookers.

Truth > , August 17, 2017 at 2:35 am GMT

@Priss Factor They had to be into all that tired, boring, 11-century old shit; they didn't have any black people.

Thomm > , August 17, 2017 at 2:37 am GMT

@Joe Franklin We've been over this. 8a is not given to anyone with over $250,000 in assets, as your own link indicates. This means most Asians can't use it anyway (not that they need to).

The whole program should be done away with, of course.

What is funny is that you can't accept that Asians have higher SAT scores than whites, which pretty much proves that they can (and do) outperform without AA. You WN idiots can't come to terms with that.

But Section 8a should be removed just so that WN wiggers don't have anything to hide behind, since Asians don't need it to excel.

War for Blair Mountain > , August 17, 2017 at 2:44 am GMT

@Thomm These untalented Socialists you refer to would include the vast majority of America 1969 90 percent Native Born White America .a White Nation that placed two Alpha Native Born White American Males on the Moon .ten more after that. Seems that Socialism worked just fine.

If you prefer an Asian Majority you can always pack your bags and pick the Asian Nation of your choice.

uman > , August 17, 2017 at 3:09 am GMT

@Ron Unz hmm i don't know that will be the case nationally. Southern cities like Atlanta will not have hispanic or white govt. Same with nyc, no need for blacks in harlem or bronx to leave if government aid continues to pay for rent controlled affordable housing. Same case can be made for most large northern cities like chicago, detroit, boston, philadelphia, DC, etc.

So with future aa population of 14%, that's 60 million blacks in america in 2060 timeframe, although that will have an increasing amount of immigration from africa, which tends to be more educated (at least 1st and 2nd generation).

Asians will be about 8%, so that's a poweful community of 40 million. I see tech and wall street with increasing amount of asian representations.

What i would be interested in seeing if there will any maverick asian billionaires that could disrupt the narrative.

Ronnie > , August 17, 2017 at 3:11 am GMT

This article may tend to take your mind off the real racial injustice at Harvard. In an article "Affirmative Action Battle Has a New Focus: Asian-Americans" in the NY Times, August 3, 2017 ANEMONA HARTOCOLLIS and STEPHANIE SAUL wrote ""The Harvard lawsuit likens attitudes toward Asian-Americans to attitudes toward Jews at Harvard, beginning around 1920, when Jews were a high-achieving minority. In 1918, Jews reached 20 percent of the Harvard freshman class, and the university soon proposed a quota to lower the number of Jewish students."" In my humble opinion this is a misleading statement which implies that the admission of Jews remained below 20% in the years after 1918. In fact Hillel reports that in recent years the admission of jews to Harvard has been around 25% of the class. This means that almost half of the class are white and half of this white group are Jews. That seems like an amazing over-representation of Jews who are only 2% of our population. So, at least as many Jews as Asians are admitted to Harvard. No wonder the Asians are upset. I note that this article does not point out this Jewish bias in admissions at Harvard and neither did the Asians. Is this another manifestation of political correctness? Or is it an egregious example of racism? This problem is the real elephant in the room. This is the Jewish racism that dare not speak its name. Until lately.

Joe Franklin > , August 17, 2017 at 3:38 am GMT

@Thomm Thanks for changing the subject back to 8A contracts, a subject I first brought up.

You ignorantly labeled me a liar and then prattled on about unrelated Section 8 housing.

I've never mentioned anything about SAT scores because they are irrelevant to anything whatsoever that I've posted.

SAT scores are your irrelevant preoccupation, not mine.

I'm just a person that detests government diversity schemes, group entitlements, and federal protected class groups.

Like it or not, Asians are one of many federal protected class groups entitled by law.

I'm not a WN nor did I ever claim to be a WN; just another example of your fevered and imagined conversations with me.

You are fairly stupid to claim that "most Asians" are rich.

You appear to be a grossly ignorant and arrogant dickhead.

Priss Factor > , Website August 17, 2017 at 3:41 am GMT

@Truth Truth, you is so wise and true. You's right. Them Russian dummies didn't have no vibrant black folks to make fun music that could make them wiggle their butts all their night long. So, they grew stale and bored and drank too much vodka, caught fish with penis, and wrestled with bears and didn't have the all the cool stuff like the US has.

All the world needs to be colonized by superior Negroes cuz folks will just die of boredom.
At least if you get killed by Negroes, it's exciting-like.

Ron Unz > , August 17, 2017 at 3:54 am GMT

@uman

hmm i don't know that will be the case nationally. Southern cities like Atlanta will not have hispanic or white govt. Same with nyc, no need for blacks in harlem or bronx to leave if government aid continues to pay for rent controlled affordable housing. Same case can be made for most large northern cities like chicago, detroit, boston, philadelphia, DC, etc.

Well, my California analogy was self-admittedly very rough and approximate given the considerable differences in demographics. But I strongly suspect that such considerations provide a hidden key to some contentious national policies of the last couple of decades, and I've actually written extensively on the subject:

http://www.unz.com/runz/race-and-crime-in-america/#the-hidden-motive-for-heavy-immigration

Thomm > , August 17, 2017 at 4:23 am GMT

@Joe Franklin

You are fairly stupid to claim that "most Asians" are rich.

They have higher household income than whites. Many do not qualify for 8a (not that they needed).

But yes, 8a should be abolished, just like ALL other affirmative action.

SAT scores are your irrelevant preoccupation, not mine.

It is relevant, because it demolishes your retarded belief that Asian success would not have happened without affirmative action.

You really are quite lacking in basic intelligence. A typical white trashionalist.

MarkinLA > , August 17, 2017 at 4:27 am GMT

@Anon I imagine it was far different before the defense wind-downs of the mid 90s. Along with the many cut-backs a lot of defense was moved out of California by the contractors as punishment for California's liberal Congressmen. Companies that merged with California based operation usually consolidated outside California such as when Raytheon swallowed up Hughes Aircraft Companies defense operations and moved R&D to Massachusetts.

dearieme > , August 17, 2017 at 11:02 am GMT

@Liberty Mike I know several white people who would rather live in Botswana than the Ukraine. They have the advantage of having visited . The rest of your list seems pretty sound with the possible exception of Swaziland.

P.S. If you deleted Austria and Hungary and replaced them by Albania and Kosovo you might make your point even stronger.

dearieme > , August 17, 2017 at 11:06 am GMT

@Joe Franklin Good God, how absolutely awful to hale from Portugal, Spain, or Singapore.

Saxon > , August 17, 2017 at 1:30 pm GMT

@Thomm You're non-white and really dumb to boot; you don't understand the ecology of a society. Even the white proles are better than your people's proles because they don't make functional civilizations impossible. If it were possible for a tiny minority to drag the lowers upwards you would be able to haul your lower castes upwards and make your own country work, then the Brahmins would have done it. They can't because the average abilities, intelligence and disposition of the masses is too low of quality in those countries to the point where tourists need to be given explicit warnings about rape and other problems which you will never need when visiting, say, some English village of completely average English people. The "white trash" you decry is probably only slightly below your midwit level of intelligence.

Asians do get affirmative action in employment and promotions in the workplace by the way, just not in education.

Truth > , August 17, 2017 at 2:49 pm GMT

@Priss Factor Alright, you're finally starting to get it.

MarkinLA > , August 17, 2017 at 2:59 pm GMT

@Thomm I seem to remember you telling everybody that Asians DON'T get affirmative action JUST GOOGLE IT without ever offering proof. Of course it never occurred to you that there could never be any documented proof of something like that. There isn't even official documented proof that white males don't get affirmative action. When people claimed and linked to articles indicating Asians are considered disadvantaged by the government, you claimed those people didn't know what they were talking about JUST GOOGLE IT.

I think you made it quite obvious who the idiot is.

Abracadabra > , August 17, 2017 at 3:10 pm GMT

It's time to force our "Golden Dozen" (Ivies, Stanford, MIT, Amherst and Williams) to admit 100% black until the average black income($43k) equals that of average white income($71k).

I'm Asian and I approve of this message.

Azn_bro > , August 17, 2017 at 3:22 pm GMT

@Thomm The worst hate crimes I have personally witnessed were perpetrated by black men. I have also seen more casual racism against Asians from blacks than from whites. This might be different in other parts of the country or world.

Outside of the U.S., East Asians are the least likely to want to engage in some kind of anti-white alliance since all of the West's most embarrassing military defeats have come from East Asians. We have always relied on guns and not white guilt for racial equality.

Abracadabra > , August 17, 2017 at 4:28 pm GMT

@Ronnie In case you haven't noticed, Jews run this country. They dominate the media, academia, Wall Street, Hollywood, Capitol Hill via the DNC and lobbying firms, Silicon Valley. Per the NYT 80% of Jews are self-proclaimed liberals. They are obsessed with dismantling the WASP World Order that in their mind has oppressed them for the last 2000 years. The Ivy League is the pipeline to these 6 sectors that collectively control the country, whoever controls Harvard controls the country. Jews not only make up majority of the elite college faculty (esp. in the social sciences) but are disproportionately benefiting from legacy admission and development cases(admission of the dim witted sons and daughters of the rich and famous like Malia Obama, Jared Kushner, all of Al Gore's kids).

Asians are the next up. Practically all Asians who've gone to the Ivy League or Stanford have voiced their support for affirmative action, many are left wing nuts like the Jews. CA house representative Ted Liu is one such kool-aid drinking Asian libtard, along with the HI judge Derrick Watson and Baltimore judge Theodore Chuang, both of whom blocked Trump's temp. suspension of Muslim refugees, both went to Harvard Law. As an Asian I would be more than happy if the Ivy League simply make themselves off limits to all Asians and turn their schools 100% black. We don't need more Asians to get indoctrinated in their dumb liberal ideology and go down in history as the group next to the Jews and the blacks who destroyed America.

Thomm > , August 17, 2017 at 4:32 pm GMT

@Saxon You're non-white and really dumb to boot; you don't understand the ecology of a society. Even the white proles are better than your people's proles because they don't make functional civilizations impossible. If it were possible for a tiny minority to drag the lowers upwards you would be able to haul your lower castes upwards and make your own country work, then the Brahmins would have done it. They can't because the average abilities, intelligence and disposition of the masses is too low of quality in those countries to the point where tourists need to be given explicit warnings about rape and other problems which you will never need when visiting, say, some English village of completely average English people. The "white trash" you decry is probably only slightly below your midwit level of intelligence.

Asians do get affirmative action in employment and promotions in the workplace by the way, just not in education.

Asians do get affirmative action in employment and promotions in the workplace by the way, just not in education.

No they don't, as this very article explains. Could you BE more of a retard?

Plus, the fact that Asians get higher SAT scores than whites proves that they don't need it. There is a left-wing conspiracy to hide Asian success.

Now, regarding an underachieving WN faggot like you :

Remember that white variance is very high. Excellent whites (like me) exist only because genetic waste master has to be removed from the other end of the process. You and other WNs represent that genetic waste matter, and that is why white women are doing a heroic duty of cutting you off (at least the minority of WNs that are straight. Most are gay, as Jack Donovan has explained). Nature wants the waste matter you comprise of to be expelled.

If you cared about the white race, you would be extremely glad that white women are cutting you off, as that is necessary to get rid of the pollution that you represent.

Heh heh heh heh . it is so much fun to put a WN faggot in its place.

Heh heh heh heh

Thomm > , August 17, 2017 at 4:33 pm GMT

@Azn_bro Yes, what you say is true.

Any real American would be proud of Asian success, as that represents the American Dream that our country was founded on.

Thomm > , August 17, 2017 at 4:36 pm GMT

@MarkinLA No, I talked about 8a even two weeks ago. Good god, you WN really do have negro IQs.

8a benefits Asians the least, and THE WHOLE THING SHOULD BE ABOLISHED ANYWAY. There should be no AA, ever.

8a harms Asians as it taints their otherwise pristine claim to having succeeded without AA. They don't need 8a, most don't qualify for it as they exceed the $250,000 cutoff, and it lets WN faggots claim that 'all of Asian success is due to AA', which is demonstrably false.

Read this slowly, 10 times, so that even a wigger like you can get it.

Thomm > , August 17, 2017 at 4:43 pm GMT

@Abracadabra Heh.. good one.

Don't let these WN faggots get away with claiming all of Asian success is merely due to affirmative action. In reality, Asians don't get affirmative action (other than wrongly being included in the Section 8a code form the 1980s, which ultimately was used by barely 2% of the Asian community).

Remember that among us whites, variance is extremely high. The prettiest woman alongside pretty of ugly fat feminists (who the WN losers still worship). The smartest men, and then these loserish WNs with low IQs and no social skills. White variance is very high.

That is why WNs are so frustrated. They can't get other whites to give them the time of day, and white women are super-committed to shutting out WN loser males from respectable society.

Don't let them claim that Asian success is solely due to affirmative action. Remember, respectable whites hate these WN faggots.

Saxon > , August 17, 2017 at 6:00 pm GMT

@Thomm You're not white, though. You're a rentseeker hanging onto someone else's country and the fact that you write barely literate garbage posts with no substance to them tells all about your intellect and your "high achievement." You're not high quality. You're mediocre at best and probably not even that since your writing is so bad.

Do you even do statistics, though? Whites make up about 70% of the national merit scholars in the US yet aren't in the Ivies at that rate. Harvard for example is maybe only 25% white. Asians are over-represented compared to their merit and jews way over-represented over any merit. Now how does that happen without nepotism? The whole system of any racial favoritism should be scrapped but of course that wouldn't benefit people like you, Thomm.

George Orwell > , August 17, 2017 at 6:41 pm GMT

Whites aren't more innovative and ambitious than Chinese people. You only have to look at the chinless Unite the Right idiots in Charlottesville to dispel any idea that whites are the superior race. The

üeljang > , August 17, 2017 at 6:42 pm GMT

This Thomm character is obviously of East Asian origin. His tedious, repetitive blather about Asians, white women, and "white nationalist faggots" is a telltale sign. One of his type characteristically sounds like he would be so much less distressed if those white males were not white nationalist faggots.

Diversity Heretic > , August 17, 2017 at 7:06 pm GMT

@Tom Welsh An interesting historical argument My reply Land isn't money Arguably the Normans came back in the form of the Plantagenets to contest the French throne in the 100 Years War. But by that time France wasn't nearly so feeble

Giving Negroes land in the form of a North American homeland appeals to me (provided whites get one too) although I know the geography is agonizing Blacks tend not to like this suggestion–they realize how depedent they are on whites That wasn't true of the Normans–quite self-reliant fellows!

Abracadabra > , August 17, 2017 at 7:54 pm GMT

@Thomm I'm not sure what it was that I said that made you think I think all Asian success is due to AA. In fact I think the opposite is true, that Asians succeed in spite of AA, which is set up solely to hinder Asians from joining the club, and as far as I'm concern, it's a club of sell-out globalist libtards that I wouldn't want more Asians to join.

I've worked in tech long enough to know that in tech, no one gives a fudge where you went to school. I am surrounded by deca-millionaires who went to state schools, many aren't even flagship, some didn't even study STEM. Some didn't even go to college or graduate. The only people I know who still care about the Ivy League are 1st generation often FOB China/India trash, and a small number of Jewish kids looking to benefit from legacy admission, most are gay and/or serious libtards.

Abracadabra > , August 17, 2017 at 8:12 pm GMT

You can tell that Jewish achievement has fallen off a cliff as Ron Unz asserted by looking at a certain popular college website. The longest running thread that's been up there for nearly a decade with over a thousand pages and over 18,000 posts is called "Colleges for the Jewish "B" student". The site is crawling with uber liberal Jewish mothers and monitored by a gang of Ivy graduated SJWs who strictly enforce their "safe space", posters who post anything at all that might offend anyone (affirmative action is always a sensitive topic) are either thrown in "jail" i.e. ban from posting for a month, or kicked off altogether. The SJW forum monitors even directly edit user comments as they see fit, first amendment rights be damned. This is the future of all online forums if the left have their way, the kind of censorship that Piers Morgan advocates.

Thomm > , August 17, 2017 at 8:52 pm GMT

@Abracadabra Not *you* , them.

There are plenty of KKK losers on here claiming that Asian success is due to AA. I am saying you should join me in fighting them.

Note the comments above from Saxon, MarkinLA, etc. They are alll White Trashionalists.

Thomm > , August 17, 2017 at 8:55 pm GMT

@Saxon

Asians are over-represented compared to their merit

False. The main article here alone proves otherwise, plus dozens of other research articles.

You just can't stand that Asian success is due to merit. But you have bigger problems, since as a WN, you can't even compete with blacks.

What bugs you the most is that successful white people like me never give WN faggots the time of day. Most tune you idiots out, but I like to remind you that you are waste matter that is being expunged through the natural evolutionary process.

Vinteuil > , August 17, 2017 at 9:46 pm GMT

@Priss Factor Priss, please, please, please try to get this right:

Stalin DID NOT favor Prokofiev, or Shostakovich. He treated them exactly the same way he treated everybody else – like dirt under his feet.

Shostakovich's (admittedly disputed) memoirs are essential reading, here. Please check them out before you say anything more.

Vinteuil > , August 17, 2017 at 9:57 pm GMT

@Thomm " successful white people like me never give WN faggots the time of day "

So you've got a problem with "faggots?"

Thomm > , August 17, 2017 at 11:04 pm GMT

@Vinteuil

So you've got a problem with "faggots?"

Yes, more so if they are leftists (including Nationalist-Leftists like WNs are). But the fact that WNs are disproportionately gay (as Jack Donovan points out) also explains why they tend to look grotesque, and it supports the scientific rationale that they are wastebaskets designed to expedite the removal of genetic waste matter.

White variance in talent/looks/intelligence is high. WN loser males and fat, ugly feminists represent the bottom. In the old days, these two would be married to each other since even the lowest tiers were paired up. Today, thankfully, both are being weeded out.

Astuteobservor II > , August 17, 2017 at 11:12 pm GMT

I just realized something. a commenter like thomm is the perfect counter to some of the others. hahaha.

Pachyderm Pachyderma > , August 17, 2017 at 11:35 pm GMT

@Saxon God! you are stupid, Saxon he isn't a Paki, he is a Chinaman. No wonder the Normans put you guys in thrall!

Pachyderm Pachyderma > , August 18, 2017 at 1:00 am GMT

@Alden Sure you can why not go back to Europe to replace the growing number of Muslims? It can kill two birds with a single shor!

Thomm > , August 18, 2017 at 1:27 am GMT

@Pachyderm Pachyderma Not just that, but some of these 'white nationalists' are just recent immigrants from Poland and Ukraine. They are desperate to take credit for Western Civilization that they did nothing to create. Deep down, they know that during the Cold War, they were not considered 'white' in America.

400 years? i.e. when most of what is now the lower-48 was controlled by a Spanish-speaking government? Yeah Many of these WNs have been here only 30-70 years. That is one category (the domestic WN wiggers are the other)

Both are equally underachieving and loserish.

MarkinLA > , August 18, 2017 at 3:02 am GMT

@Thomm It's too late, everybody knows what I wrote is true and that you are some pathetic millennial libertarian pajama boy. The sad fact is that you can't even man up and admit that you wrote that BS about "Asians don't get affirmative action just google it". See that would have at least have been a sign of maturity, admitting you were wrong.

There is no point reading anything, even once, from a pathetic pajama boy like you.

Thomm > , August 18, 2017 at 3:50 am GMT

@MarkinLA I openly said that I am proud to be libertarian. Remember, talented people can hack in on their own, so they are libertarians.

Untalented losers (like you) want socialism so that you can mooch off of others.

Plus, Asians don't get affirmative action outside of one obscure place (Section 8a) which they often don't qualify for ($250K asset cutoff), don't need, and was never used by more than 2% of the Asian-American community. The fact that Asian SAT scores are higher than whites explains why Asians outperform without AA.

Plus, this very article says that Asians are being held back. A WN faggot like you cannot grasp that even though you are commenting in the comments of this article. Could you be any dumber?

I realize you are not smart enough to grasp these basic concepts, but that is why we all know that white trashionalists have negro IQs.

Now begone; you are getting in the way of your betters.

Heh heh heh heh

Thomm > , August 18, 2017 at 4:03 am GMT

Remember that White variance in brains/looks/talent/character is extremely high. Hence, whites occupy both extremities of human quality.

Hence, the hierarchy of economic productivity is :

Talented whites (including Jews)
Asians (East and South)
Hispanics
Blacks
Untalented whites (aka these WN wastebaskets, and fat femtwats).

That is why :

1) WNs are never given a platform by respectable whites.
2) Bernie Sanders supporters are lily-white, despite his far-left views.
3) WN is a left-wing ideology, as their economic views are left-wing.
4) WNs are unable to even get any white women, as white women have no reason to pollute themselves with this waste matter. Mid-tier white women thus prefer nonwhite men over these WNs, which makes sense based on the hierarchy above.
5) WNs have the IQ of Negros, the poor social skills of an Asian spazoid, etc. They truly combine the worst of all worlds.
6) This is why white unity is impossible; there is no reason for respectable whites to have anything to do with white trashionalists.
7) Genetically, the very fact that superb whites even exists necessitates the production of individuals to act as wastebaskets for removal of genetic waste. WNs are these wastebaskets.
8) The 80s movie 'Twins' was in effect a way to make these wastebaskets feel good, as eventually, the Arnold Schwarzenegger character bonded with the Danny DeVito character. But these two twins effectively represent the sharp bimodal distribution of white quality. Successful whites are personified by the Schwarzenegger character, while WNs by the DeVito character. In reality, these two would never be on friendly terms, as nature produces waste for a reason.

This pretty much all there is to what White Trashionalists really are.

TWS > , August 18, 2017 at 4:38 pm GMT

@Thomm Tiny Duck? You decided to larp under a different handle?

Incontrovertible > , August 18, 2017 at 5:10 pm GMT

Elite colleges are a prime example of left wing hypocrisy. The same people who are constantly calling for an equal society are at the same time perpetuating the most unequal society by clamoring to send their kids to a few elite schools that will ensure their entry to or retain their ranks among the elites. Equality for everyone else, elitism for me and my kids. David Brook's nausea inducing self-hating pablum "How we are ruining America" is a prime example of this hypocrisy.

Another good example of left wing hypocrisy is on "school integration". The same people who condemn "bad schools" for the urban poor and call for more integration are always the first to move into the whitest possible neighborhoods as soon as they have kids. They aren't willing to sacrifice their own kids, they just want other people to sacrifice their children by sending them to bad schools.

If the left didn't have double standards, they'd have no standards at all.

Tradecraft46 > , August 18, 2017 at 10:00 pm GMT

Look, the world is short handed: we need good help or we pay dues.

Affirmative action and the EEOC are not the answer.

When you need help you get help and don't care if they are green [in the color sense or have supernumerary digits.

I don't need agreement with my whimsy, I just need people who will turn to.

Gene Su > , August 19, 2017 at 1:46 am GMT

When I first saw the title of this article, I, being an Asian, was a tad insulted. It smelled like Dr. Weissberg was attempting to create (or at least escalate) racial strife between Asians and blacks. I then read through the article and evaluated the bad and the good.

First the bad: Dr. Weissberg's assertion that Asians are being hurt by the Affirmative Action promotion of blacks is a bit exaggerated. This is because most Asians go into rigorous difficult programs such as engineering, science, and medicine. Most black affirmative action babies go into soft programs such as Black Studies (and whatever else the humanities have degenerated into).

Now the good: I think this is the most true portion of the essay.

Better to have the handsomely paid Cornel West pontificating about white racism at Princeton where he is a full professor than fulminating at some Ghetto street corner. This status driven divide just reflects human nature. Why would a black Yalie on Wall Street socialize with the bro's left behind in the Hood? This is the strategy of preventing a large-scale, organized rebellion by decapitating its potential leadership.

I have once wrote that whites stopped sneering at MLK when Malcolm X and the Black Panthers began taking center stage. They sure became more accommodating of "moderate" blacks. With all of the terrorist attacks going on and with blacks converting to Islam, I don't think we're going to get rid of affirmative action any time soon.

Nicholas Stix > , Website August 19, 2017 at 2:42 am GMT

This is a politically plausible but morally craven plan, if we're in 1960.

Oops.

Priss Factor > , Website August 19, 2017 at 3:28 pm GMT

@Vinteuil Stalin alternated between favoritism and intimidation. The truth is he did have an eye and ear for culture unlike Mao who was a total philistine.

If Stalin really hated artists, he would have killed all of them.

He appreciated them but kept a close eye.

He loved the first IVAN THE TERRIBLE by Eisenstein, but he sensed that the second one was a criticism of him, and Eisenstein came under great stress.

Vinteuil > , August 19, 2017 at 6:31 pm GMT

OK, well, Stalin loved the movies, and may have had an eye for effective cinema. But when it came to music he was, precisely, a total philistine. On this point, I again recommend Shostakovich's disputed *Testimony,* a work unique in its combination of hilarity and horror, both of which come to a head in his account of the competition to write a new national anthem to replace the internationale – pp. 256-64. A must read.

DB Cooper > , August 19, 2017 at 7:41 pm GMT

@Thomm Can you explain why if South Asians has such high economic productivity India is such a sh*thole?

Stebbing Heuer > , Website August 19, 2017 at 8:33 pm GMT

@Rdm That's the second comment here picking on bald guys.

What do you have against the bald?

You do realise that it's not possible to control baldness? It's an outcome of genetics, yes?

You do also realise that there is zero correlation between baldness and the quality of one's character?

Are you really as stupid as you appear to be?

MarkinLA > , August 19, 2017 at 11:29 pm GMT

Is this the Onion?

http://www.truthrevolt.org/news/usc-mascot-traveler-comes-under-fire-having-name-similar-robt-e-lees-horse

I wonder how a Bruin is going to be a symbol of racism?

Thomm > , August 20, 2017 at 3:04 am GMT

@DB Cooper For the same reason North Korea is poorer than South Korea, despite being the same people.
For the same reason the GDR was so much poorer than the FRG, despite the same people.

You probably never even thought about that.

A bad political system takes decades to recover from. Remember that the British also strip-mined India for 200 years..

Come on, these are novice questions

If you think the success of Asian-Americans in general (and Indian-Americans in particular) does not jive with your beliefs, then the burden of explaining what that is, is on you.

Indians happen to be the highest-income group in the US. Also very high are Filipinos and Taiwanese.

https://en.wikipedia.org/wiki/List_of_ethnic_groups_in_the_United_States_by_household_income

Most WNs are far, far below the intellectual level where they can grasp the complexities of issues like this.

Thomm > , August 20, 2017 at 3:11 am GMT

BTW, the economic center of gravity of the world has always been near Asia, except for a 200-year period from 1820-2020.

That the West would cede to Asia is really just a reversion to the historical norm.

WNs are not smart enough to understand maps/charts like this one, but others will find this interesting.

Russ Nieli > , August 20, 2017 at 8:11 am GMT

Bob,

Racial preferences were ended at California public institutions ! including the elite public universities Berkley and UCLA ! by ballot initiative. No black violence ensued. There is little reason to think the black response would be different if the 8 Ivy League universities ended their policies of racial preferences. Blacks would adjust their expectations. Fear of black rioting and the desire to jumpstart the creation of a large and peaceful black middle class may have been important motives for the initial development of racial preference policies in the late 1960s; they are not major reasons for their retention and continued support from white administrators today. Other reasons and motives are operative (including what I call R-word dread).
PS: Cornel West has moved from Princeton to Harvard Divinity School.

Avalanche > , August 20, 2017 at 12:35 pm GMT

"Nevertheless, when all added up, the costs would be far lowers than dealing with widespread 1960s style urban violence."

Except back in the '60′s; the White, Euro-derived people were unwilling to fight back. They felt guilty and half-blamed themselves. Not. Any. More! The costs ! social, mental, emotional, physical; pick your metric! ! have now exceeded the patience of WAY more Americans than the media is letting on.

Did you not see 20- and 30-THOUSAND, mostly White Euro-derived, Americans rallying to candidate ! and now President ! Trump's side? (No, the media carefully clipped the videos to hide those numbers, but there they (we!) were! We're done! We're fed up! "FEEDING" these destructive vermin to keep them from destroying our houses and families (and nation and country!) is no longer acceptable! You "don't let Gremlins eat after midnight"? Well, we did ! and now we're in a war against them.

You think this capitulating in education is preventing 'widespread 1960s-style urban violence? Have you not watched the news? We pretty much already are: ask NYC how many "sliced with a knife" attacks they have there! In JUST Jan. and Feb., there were well more than 500! (Seriously vicious attacks with knives and razor blades ! media mentioned it once for a few days, and then shut up.) Look at the fair in Indianapolis; count up rape statistics; investigate the "knock-out game" ("polar bear hunting" ! guess who's the polar bear?!). (Oh yeah, and: Ferguson, Baltimore, Chicago; look at ANY black-filled ruin of a city ) If (when!) we finally have to (CHOOSE to) deal with this low-grade war ! WHO is better armed, better prepared, SMARTER, and fed up?

"This peace-keeping aspect of affirmative action understood, perhaps we ought to view those smart Asians unfairly rejected from Ivy League schools as sacrificial lambs."

Wait, wait ! these are White schools, built by White Americans FOR White Americans! "Oh, the poor Asians are not getting their 'fair share' cause the blacks are getting way more than their 'fair share'?! The Asians' 'fair share' is GO HOME!! The Asians don't have a 'fair share' in White AMERICAN universities; we LET them come here and study ! and that is a KINDNESS: they don't have a 'fair share' of OUR country! How about: stop giving preferences to every damned race and nationality other than the one that BUILT this country and these universities!

Check your premises!

Avalanche > , August 20, 2017 at 1:08 pm GMT

@War for Blair Mountain Call them what they are: "paperwork Americans"! Having the paperwork does NOT make them Americans, and nothing ever will!

Imagine a virgin land with no inhabitants: if you took all the Chinese "Americans" or all the Pakistani "Americans" or Black "Americans" or Mexican "Americans" (funny, why did you leave those last two out?! Way more of them than the others ) and moved them there, would they ! COULD they ever ! create another America? No, they would create another China, or another Pakistan ! or their own version of the hellholes their forebears (or they themselves) came from. ONLY White, ONLY Euro-derived Americans could recreate an America.

And this goes, also, to answer the grumbling "Native" Americans who were also NOT native, yes? Siberia, Bering land bridge, ever heard of those? Do you not even know your own pre-history?! What "America" was here when it was a sparse population of warring tribes of variously related Indian groups? What did your forebears make of this continent?

Nothing. There would be no "America" where everyone wants to come and benefit by taking; because ONLY the White settlers (not immigrants: SETTLERS!) were able to create America! And as all you non-Americans (AND paperwork "Americans") continue to swamp and change America for your own benefit ! you will be losing the very thing you came here to take (unfair!) advantage of!

Avalanche > , August 20, 2017 at 1:17 pm GMT

@MEFOBILLS

At that point, new public money could be channeled into funding people to leave. Blacks that don't like it in the U.S. would be given X amount of dollars to settle in an African country of their choice.

Chip 'em and ship 'em! Microchip where they CAN'T 'dig it out' to prevent them from ever ever ever returning! And ship 'em out! I'd pay a LOT to have this done!

Avalanche > , August 20, 2017 at 1:22 pm GMT

@Mis(ter)Anthrope

Give the feral negroes what they have been asking for. Pull all law enforcement out of negro hellholes like Detroit and South Chicago and let nature take its course.

They (we!) tried that years ago. The BLACK COPS SUED because they were working in the shittiest places with the shittiest, most violent people ! and "the White cops had it easy."

NOT EVEN the blacks want to be with the blacks ! hence them chasing down every last White person, to inflict their Dis-Verse-City on us!

Avalanche > , August 20, 2017 at 1:43 pm GMT

@The peril of appeasement

The larger the immigrant group, the longer it takes to assimilate them.

Alas, typical "paperwork American" lack of understanding! I wrote this to a (White) American who wants to keep importing everyone ("save the children!") ! and, she insisted, they "could" assimilate. However, here's what 'assimilate" means:

Suppose you and your family decided to move to, say, Cambodia. You go there intending to "get your part of the Cambodian dream," you go there to become Cambodian citizens, to assimilate and join them, not to invade and change them. You want to adopt their ways, to *assimilate.* Yes? This is how you describe legal immigrants to OUR country (The United States.)

How long would it take for you and your children to be (or even just feel) "assimilated"? How long would it take for you to see your descendants as "assimilated" ! AS Cambodians? Years? Decades? Generations? Would you be trying to fit in ! and "become" Cambodians; or would you be trying to not forget your heritage? ("Heritage"?! Like, Cinco de Mayo, which they don't even celebrate IN Mexico? Or Kwanza ! a CIA-invented completely fake holiday!)

More important: since it's their country ! how long until THEY see you as "Cambodians" and not foreigners. I know a man and family who have lived in Italy for over 20 years. To the Italians in the village where they live, they are still "stranieri": strangers. After this long, to the local Italians, they're not just "the Americans who moved here" ! they're " our Americans" ! but they are still seen as 100% not Italian, not local: not "assimilated"!

Would you and your children and grandchildren learn to speak, read, and write Cambodian ! and stop trying to use English for anything much in your new homeland? Would you join their clubs ! would you join their NATIONAL RELIGION!? Does "becoming Cambodian" ! does "assimilating" ! not actually include (trying to) become Cambodian (and, thus, ceasing to be American)? (If that were even possible; and it's not.) "Assimilation" is a stupid hope, not a possible reality.

That is where my friend balked. She said: she and her family are very Christian, and no way at all ever would they drop Christianity and pick up Cambodian Buddhism. So ! how can they EVER "assimilate" when they (quite rightly) REFUSE to assimilate?!

Please stop buying into the lies the destroyers of OUR nation keep selling. There is no such thing as "assimilation"; only economic parasitism, jihadi invasion, and benefiting from the systems set up by OUR forebears for THEIR posterity!

Avalanche > , August 20, 2017 at 1:52 pm GMT

@Priss Factor

Just because National Socialism had some leftist elements doesn't make it a 'leftist' ideology.

Yes. Yes it does. Go watch/listen to: https://www.youtube.com/watch?v=roMLmYnjslc

The official topic being debated is: "Are National Socialists a legitimate element of the Alt-Right?"
Greg Johnson argues, Yes.
Vox Day argues, No.

rec1man > , August 20, 2017 at 9:08 pm GMT

@DB Cooper Socialism and Affirmative Action

In my origin state of Tamil Nadu, the effective anti-brahmin quota is 100% ( de-jure is just 69% )

Sundar Pichai or Indira Nooyi or Vish Anand ( former Chess champ ) or Ramanujam ( late math whiz ), cant get a Tamil Nadu State Gov , Math school teacher job

Also, the US gets a biased selection of Indians in terms of caste, class and education

Of Tamil Speakers in USA, about 50% are Tamil Brahmins, vs just 2% in India

The bottom 40% in terms of IQ, such as Muslims, Untouchables and Forest Tribals, are no more than 10% in the US Indian diaspora

For comparison, Pakistanis and Bangladeshis ( muslim ), perform much much lower

Thomm > , August 20, 2017 at 10:01 pm GMT

@rec1man

For comparison, Pakistanis and Bangladeshis ( muslim ), perform much much lower

This is interesting, as it puts paid to the obsession that WN idiots have with 'whiteness'.

Pakistan is obviously much more Caucasoid than India and certainly Sri Lanka.

Afghanistan is whiter still. Many in Afghanistan would pass for bona-fide white in the US.

Yet Sri Lanka is richer than India, which is richer than Pakistan, which is richer than Afghanistan.

Either Islam is a negative factor that nullifies everything else including genetics, or something else is going on.

What there is no doubt of is that Asia has been the largest economic region of the world by far except for the brief 200-year deviation (1820-2020), as per that map I posted.

UtherWhys > , August 20, 2017 at 10:50 pm GMT

@Thomm Weissberg asks, "Why would a black Yalie on Wall Street socialize with the bro's left behind in the Hood?"

Why focus on the LEFT buttock? His point would be as relevant were he to ask, "Why would a black Yalie on Wall Street socialize with the bro's RIGHT behind in the Hood?" Either way, I smell kinkyness deep within Weissberg's question.

Saintonge235 > , August 21, 2017 at 12:34 am GMT

Not protection money. Imperialism.

"Divide and Rule" said the Romans. Incorporate the potential leaders of those you intend to rule into your hereditary upper class, and the vast majority will stay inert at the least. And many will actively support you. See this post by a black woman: Black Americans: The Organized Left's Expendable Shock Troops .

People like Cornel West are not only NOT rabble-rousing in the 'hood, they're telling blacks to support the people who actively keep them poor. "Affirmative Action" is designed to sabotage its alleged goals. Almost all who 'benefit' from it end up among people whose performance is clearly superior to their own, thus fostering feelings of inferiority, subtly communicating that it doesn't matter what the 'beneficiary' of AA does, they'll always fail. This is no accident.

Without AA, there might still be separation, (consider "ultra-orthodox" Jews), but the separate groups would have to be treated with some respect. Really, viewed amorally, it's a marvelous system for oppressing whites and minorities.

rec1man > , August 21, 2017 at 12:35 am GMT

@Thomm Islam is a negative factor, and the higher IQ castes did not convert to Islam

I have data from California National Merit list, IQ-140 bar

Among Indian Punjabis ;
Jat Sikh peasants = 3 winners ( 75% of Punjabis in USA )
Khatri merchants = 18 winners ( 25% of Punjabis in USA )

Both are extremely caucasoid, both appear heavily among Indian bollywood stars ; genetically very similar, just the evolutionary effect of caste selection for merchant niche vs peasant niche

MarkinLA > , August 21, 2017 at 1:06 am GMT

@Russ Nieli Racial preferences were ended at California public institutions ! including the elite public universities Berkley and UCLA ! by ballot initiative.

But the admissions people immediately started using other dodges like "holistic" admissions policies where they try and figure out if your are a minority from other inferences such as your essay where you indicate "how you have overcome". They also wanted to get rid of the SAT or institute a top X% at each school policy.

Thomm > , August 21, 2017 at 3:19 am GMT

@rec1man I don't know . a lot of the richest Indians in the US are Gujratis who own motels and gas stations. Patels and such..

They were not of some 'high caste' in India; far from it.

Plus, a Tamil who is of 'high caste' is not Caucasoid in the least. Caste does not seem to correlate to economic talent, since business people are the #3 caste out of 4. The richest people in India today are not 'Brahmins'..

Islam is a negative factor, and the higher IQ castes did not convert to Islam

I disagree. Pakistan is 99% Islam, so all castes converted to Islam and/or many of the lighter-skined Pakistanis are Persians and Turks who migrated there..

Afghanistan's religion prior to Islam was Buddhism, not Hinduism

rec1man > , August 21, 2017 at 8:39 am GMT

@Thomm I don't know.... a lot of the richest Indians in the US are Gujratis who own motels and gas stations. Patels and such..

They were not of some 'high caste' in India; far from it.

Plus, a Tamil who is of 'high caste' is not Caucasoid in the least. Caste does not seem to correlate to economic talent, since business people are the #3 caste out of 4. The richest people in India today are not 'Brahmins'..


Islam is a negative factor, and the higher IQ castes did not convert to Islam
I disagree. Pakistan is 99% Islam, so all castes converted to Islam and/or many of the lighter-skined Pakistanis are Persians and Turks who migrated there..

Afghanistan's religion prior to Islam was Buddhism, not Hinduism... Afghanistan was 33% Hindu, 66% buddhist before islam, but in actual practise lots of overlap between Hinduism and Buddhism, and many families had mixed Indic religions

Pakistan was 22% non-muslim in 1947, these 22% were higher caste Hindus and Sikhs – all got driven out in 1947 ; Pakistan is low IQ islamic sludge residue of Punjabi society

I am Tamil speaking, 80% of Tamil brahmins ( 2% ) can be visually distinguished from the 98% Tamil Dravidians ;

vs

Tamil dravidian

Fotosynthesis > , August 21, 2017 at 10:43 am GMT

Thomm you take up too much oxygen in the room insisting on the importance your opinions, the whole conversation is much more interesting when i skip past your stupid WN focused city boy sheltered viewpoint. Big words and that retarded hehehe thing you do would get you wrastled to the ground and your face rubbed in the dirt

Truth > , August 21, 2017 at 2:39 pm GMT

@Fotosynthesis hehehehe

Truth > , August 21, 2017 at 2:54 pm GMT

@rec1man Does anyone want to fill in my comment here in "Miss" Lakshimi?

Thomm > , August 21, 2017 at 3:44 pm GMT

@Fotosynthesis By you and what army?

Remember, WNs represent the absolute bottom of every desirable trait.

Heh heh heh heh

Bill the Kid > , August 21, 2017 at 10:17 pm GMT

@jim jones They look the same because they are all clones of the same body.

Not Another Unz Commenter > , August 21, 2017 at 10:30 pm GMT

@Thomm Why would 'idiot WNs' be happy about the fact that blacks successfully chased asians out of the country, though? That would be a sign that they are gaining a scary degree of power, would it not? Moreover how are white males who want to escape SJW idiocy going to like a country that still actively enforces all sorts of thought control policies of its own? You wannabe libertardian analysts always say silly things like this and it just sounds dumber every time.

Thomm > , August 21, 2017 at 11:13 pm GMT

@Not Another Unz Commenter

Why would 'idiot WNs' be happy about the fact that blacks successfully chased asians out of the country, though? That would be a sign that they are gaining a scary degree of power, would it not?

It would be, but WN retards don't think that far.

You wannabe libertardian analysts always say silly things like this and it just sounds dumber every time.

This is what WNs want, not want I want. It is easy to predict WN opinions.

Plus, being a libertarian is much more desirable than being a WN socialist. Talented people thrive in a libertarian society. WN losers just want to mooch off of successful whites.

JohnMc > , August 22, 2017 at 3:32 pm GMT

"Better to have the handsomely paid Cornel West pontificating about white racism at Princeton where he is a full professor than fulminating at some Ghetto street corner."

Really? All that does is give the man a bigger sanctioned soap box. In the ghetto he might affect a couple of hundred people. Siting in academia he gets a lever than can affect tens of thousands. Not a good trade.

S. B. Woo > , August 22, 2017 at 8:36 pm GMT

Dear Mr. Weissberg.

Truth is often stranger than fictions. The real reason for discriminating against Asian Ams is not to help make the other minority happy. It is to benefit the whites. The Ivy League schools are using the diversity to give the white applicants an advantage of 140 pst in SAT points. Please see below:

In Table 3.5 on p 92 of Princeton Prof. Espenshade's famous book, "No Longer Separate, Not Yet Equal", the following shocking fact was revealed:

Table 3.5 (emphasis added)
Race Admission Preferences at Public & Private Institutions
Measured in ACT & SAT Points, Fall 1997
!!!!!!!!!!!!!!!!!-
Public Institutions Private Institutions
ACT-Point Equivalents SAT-Point Equivalents
Item (out of 36) (out of 1600)
!!!!!!!!!!!!!!!!!!!!!!-
Race
(White) ! –
Black 3.8 310
Hispanics 0.3 130
Asian -3.4 -140

Why are 140 SAT pts. taken away from AsAm applicants? To give the white applicants an advantage of 140 SAT pts. over the historically disadvantaged AsAms by using the nobility of diversity as a cover? This is the reverse of affirmative action. This is a gross abuse of affirmation action. This is outrageous discrimination. If
the purpose is to give the blacks an advantages, why not add more SAT points to blacks and hispanics?

S.B. Woo

Incontrovertible > , August 23, 2017 at 4:30 am GMT

@Avalanche That's an interesting point you brought up, whether anyone can ever really be "assimilated". Even after hundreds of years, blacks and Jews in this country remain very distinct groups. I think for blacks the reason is skin color and culture, while for Jews it is the religion. Both groups have had low out marriage rate until maybe the last couple of decades.

Assimilation is most successful when there's a high intermarriage rate, but intermarriage rate and immigration rate tend to go in opposite directions. The higher the immigration rate, the lower the intermarriage rate.

Hispanics and Asians have been in this country since the 1800s yet you rarely ever meet a hispanic or Asian person who's been here for more than 3 or 4 generations. Why is that? I think it's because many of these earlier groups, due to their small number at the time relative to the population, had intermarried, blended in and disappeared. I would say these earlier immigrants have fully assimilated. The ones who are unassimilated are the new arrivals, those who arrived in large numbers since 2000.

But for some peculiar reason blacks who are mixed with whites often continue to identify as blacks. We see this in Obama, Halle Barry, Vanessa Williams and many other black/white mixes. Black identity is so strong even Indian-black mixed race people call themselves black, like Kamala Harris.

My theory is that most white-hispanic and white-asian marriages are white males with hispanic/asian females. In most cases the white males who married hispanic/asian women are conservatives who prefer women in cultures that are perceived to be more traditional compared to white females who are often selfish and want a divorce at the first sign of personal unhappiness. Many of them then raise their children in full white traditions including as Christians and encourage them to identify themselves as whites.

OTOH, many white-black mix marriages are white female with black male, in many instances these women marry black men because they are liberal nuts who want to raise black children. Jewish women for instance marry black men at a high rate. Many of these women then raise their children as black or biracial children and encourage their children to identify themselves as black.

Education used to be the biggest tool for assimilation, but these days thanks to libtards running amok, our schools are where racial identity is amplified rather than de-emphasized. Now all minority groups are encouraged to take pride in their own cultural identity and eschew mainstream (white) culture. Lured by affirmative action, more and more mixed race hispanic kids are beginning to identify themselves as latino. Thankfully mixed race Asian kids are running in the opposite direction and now mostly identify themselves as white so they are not disadvantaged by AA.

I think assimilation can occur when you have low immigration rate coupled with high intermarriage rate and a smart education system that discourages racial and individual identity and focuses on a single national identity. The biggest reason assimilation is failing now is a combination of high immigration rate, and a failed education system that promotes identity politics and victimhood narrative. The internet and easy air travels back to the homeland also make it much harder to assimilate newcomers. For these reasons I'm in favor of a moratorium on immigration for the next 20 years. All those not yet citizens should be encouraged to return to their home countries. No more green cards, work visas or even student visas should be issued.

Incontrovertible > , August 23, 2017 at 4:36 am GMT

@S. B. Woo That's the argument of mindless Asian SJWs who've been fed the libtard kool-aid. Just look at the numbers you yourself provided. Whites who were turned down still vastly outperformed blacks and hispanics who were given admission, to the tune of 340 points and 130 points respectively. Libtards who came up with AA want everyone to turn against whites, and mindless Asian SJWs like you are parroting them without thinking things through.

So much for "smart Asians".

Truth > , August 24, 2017 at 12:02 am GMT

@Incontrovertible

OTOH, many white-black mix marriages are white female with black male, in many instances these women marry black men because they are liberal nuts who want to raise black children. Jewish women for instance marry black men at a high rate. Many of these women then raise their children as black or biracial children and encourage their children to identify themselves as black.

Yeah, and the rest of them wanted the SCHLONG!

Truth > , August 24, 2017 at 12:03 am GMT

@Incontrovertible That's the argument of mindless Asian SJWs who've been fed the libtard kool-aid. Just look at the numbers you yourself provided. Whites who were turned down still vastly outperformed blacks and hispanics who were given admission, to the tune of 340 points and 130 points respectively. Libtards who came up with AA want everyone to turn against whites, and mindless Asian SJWs like you are parroting them without thinking things through.

So much for "smart Asians". But they still needed a lower score for admittance than Asians

!--file:///f:/Public_html/Skeptics/Political_skeptic/Elite_theory/index.shtml--> !--file:///f:/Public_html/Skeptics/Political_skeptic/Propaganda/index.shtml--> !--file:///f:/Public_html/Skeptics/Financial_skeptic/casino_capitalism.shtml--> !--file:///f:/Public_html/Skeptics/Financial_skeptic/index.shtml--> !--file:///f:/Public_html/Skeptics/Political_skeptic/Elite_theory/Deep_state/Bulletin/deep_state_bulletin2016.shtml--> !--file:///f:/Public_html/Skeptics/Political_skeptic/Corporatism/neofascism.shtml--> !--file:///f:/Public_html/Skeptics/Financial_skeptic/inequality.shtml--> !--file:///f:/Public_html/Skeptics/Political_skeptic/Neoliberalism/Identity_as_wedge_issue/index.shtml--> !--file:///f:/Public_html/Skeptics/Political_skeptic/Two_party_system_as_poliarchy/index.shtml--> !--file:///F:/Public_html/Education/index.shtml-->

[Aug 18, 2017] The Corporate fascist - with grains of salt - USA. The democracy part is fiction, camouflaged via a fools theatre two-party system and ginormous social re-distribution, amongst others.. the Core (PTB) found itself through miscalculation and loss of power subject to a challenger who broke thru the organised/fake elections, to attempt some kind of readjustement - renewal - reset...

Ethnic nationalism rises when the state and the nation experience economic difficulties. Weimar republic is a classic example here.
Notable quotes:
"... That's exactly nationalism, for sure. The work of that wealth creation by the way is done by the all the classes below the rentier class, from working to middle class. The funneling upwards thing is actually theft. ..."
"... The middle class is shrinking and being pushed down closer to rage because the wealth-stealing mechanisms have become bigger and better, and saturated the entire national system, including its electoral politics. This real face of capitalism has driven out the iconic American Dream, which was the essence of upward mobility. ..."
"... Nationalism is an ugly word, but it's easily reached for when there aren't any better words around. In Russia, they already went through what faces the US, and they figured it out. ..."
"... "In our view, faster growth is necessary but not sufficient to restore higher intergenerational income mobility," they wrote. "Evidence suggests that, to increase income mobility, policymakers should focus on raising middle-class and lower-income household incomes." ..."
"... Advocating smoothed-out relations with Russia (for commercial perso reasons, Tillerson, etc. and a need to grade adversaries and accept some into the fold, like Russia, instead of Iran ), a more level playing field, multi-polar world, to actually become more dominant in trade (China etc.) and waste less treasure on supporting enemies, aka proxy stooges, to no purpose (e.g. Muslim brotherhood, Al Q kooks, ISIS) and possibly even Israel ! hmmm. ..."
"... The old guard will do much to get rid of the upstart and his backers (who they are exactly I'd quite like to know?) as all their positions and revenues are at risk ..."
"... The Trump crowd seems at the same time both vulnerable and determined and thus navigating ą vue as the F say, by sight and without a plan An underground internal war which is stalemated, leading to instrumentalising the ppl and creating chaos, scandals, etc. ..."
Aug 18, 2017 | www.moonofalabama.org

Tay | Aug 18, 2017 6:56:05 AM | 82

The US has no problem generating wealth, and has no need to force conflict with China. The US's problem is that that wealth is funneled upwards. Wealth inequality is not a meme. "Shrinking middle class" is a euphemism for downward-mobility of the middle class, an historical incubator for Reaction. And that's what we have here, reactionaries from a middle class background who now are earning less than their parents at menial jobs, or who are unemployed, becoming goons; aping the klan, appropriating nazi icons, blaming the foreigner, the negro, the Jew, the Muslim, for their circumstances. A "trade war" will not help them one iota, it will make their lives worse, and Bannon will go out and say it's the fault of the foreigner and the immigrant, their numbers wool swell. More terror, depper culture wars. I suppose that's nationalism to some people.

Grieved | Aug 18, 2017 9:51:21 AM | 83

@82 Tay

That's exactly nationalism, for sure. The work of that wealth creation by the way is done by the all the classes below the rentier class, from working to middle class. The funneling upwards thing is actually theft.

The middle class is shrinking and being pushed down closer to rage because the wealth-stealing mechanisms have become bigger and better, and saturated the entire national system, including its electoral politics. This real face of capitalism has driven out the iconic American Dream, which was the essence of upward mobility.

Nationalism is an ugly word, but it's easily reached for when there aren't any better words around. In Russia, they already went through what faces the US, and they figured it out.

Since we're looking for the grown-ups, let's turn to Vladimir Putin, always reliable for sanity when direction is lost.

Putin recalled the words of outstanding Soviet Russian scholar Dmitry Likhachev that patriotism drastically differs from nationalism. "Nationalism is hatred of other peoples, while patriotism is love for your motherland," Putin cited his words.

-- Putin reminds that "patriotism drastically differs from nationalism"

somebody | Aug 18, 2017 11:00:25 AM | 86
83
Upward mobility has fallen sharply
"In our view, faster growth is necessary but not sufficient to restore higher intergenerational income mobility," they wrote. "Evidence suggests that, to increase income mobility, policymakers should focus on raising middle-class and lower-income household incomes."

Interventions worth considering include universal preschool and greater access to public universities, increasing the minimum wage, and offering vouchers to help families with kids move from poor neighborhoods into areas with better schools and more resources, they said.

Is there any political party or group in the US that suggests this?

Noirette | Aug 18, 2017 11:56:04 AM | 90
The Corporate "fascist" - with grains of salt - USA. The 'democracy' part is fiction, camouflaged via a fools theatre two-party system and ginormous social re-distribution, amongst others.. the Core (PTB) found itself through miscalculation and loss of power subject to a challenger who broke thru the \organised/ fake elections, to attempt some kind of re-adjustement - renewal - re-set - review...

Advocating smoothed-out relations with Russia (for commercial perso reasons, Tillerson, etc. and a need to grade adversaries and accept some into the fold, like Russia, instead of Iran ), a more level playing field, multi-polar world, to actually become more dominant in trade (China etc.) and waste less treasure on supporting enemies, aka proxy stooges, to no purpose (e.g. Muslim brotherhood, Al Q kooks, ISIS) and possibly even Israel ! hmmm.

Heh, the profits of domination are to be organised, extracted and distributed, differently. One Mafia-type tribe taking over from another! Ivanka will be The Sweet First Woman Prezzie! Style, Heart, Love, Looks! Go!

The old guard will do much to get rid of the upstart and his backers (who they are exactly I'd quite like to know?) as all their positions and revenues are at risk, so they are activating all - anything to attack. The Trump crowd seems at the same time both vulnerable and determined and thus navigating ą vue as the F say, by sight and without a plan An underground internal war which is stalemated, leading to instrumentalising the ppl and creating chaos, scandals, etc.

[Aug 10, 2017] Critical thinking either not taught or discouraged.

Notable quotes:
"... John Gatto has traced the roots of western education back to the Hindu schools in India; teaching docility and obedience. His book, The Underground History of American Education, is superb. ..."
Aug 10, 2017 | www.moonofalabama.org

Bolt | Aug 5, 2017 1:40:54 AM | 50

Only two continents for this one; and yes, critical thinking either not taught or discouraged.

I have found Usaian's particularly lacking in this skill; especially the last 50+ years.

John Gatto has traced the roots of western education back to the Hindu schools in India; teaching docility and obedience. His book, The Underground History of American Education, is superb.

Posted by: V. Arnold | Aug 5, 2017 4:28:14 AM | 53

[Jul 30, 2017] Lack of Hope in America The High Costs of Being Poor in a Rich Land by Carol Graham, Leo Pasvolsky

Notable quotes:
"... By Carol Graham, Leo Pasvolsky Senior at the Brookings Institution and College Park Professor in the School of Public Policy at the University of Maryland. Originally published at VoxEU ..."
"... Despite the long-held belief that high levels of inequality in the US signal future opportunity, a number of studies suggest that this is no longer the reality. This column examines trends in inequality from the perspective of well-being and focuses on non-economic aspects of welfare, including hope. The results reveal stark differences across people, races, and places in the US. Poor minorities – and blacks in particular – are much more hopeful than poor whites, while urban places are more hopeful than are rural ones, as are places with higher levels of diversity. ..."
"... See original post for references ..."
"... Education, incentives, tools, new jobs. ..."
"... I'm close to disgusted by this analysis. It shows either a complete lack of insight into root causes, or a stubborn unwillingness to speak about them. No mention of globalisation, capitalism, financial crises, housing foreclosures, predatory corporations, or corruption of law and justice. Blather about different language used in the two Americas may score points at a sociolinguistics conference, but is otherwise unilluminating. All the framing in terms of people's "willingness to invest in the future" is bogus – it should be about "ability to create futures for themselves". Only the rich have the luxury of investing, for everyone else it's the struggle to stay afloat and perhaps improve their circumstances. ..."
"... Welcome to fear .It's hope, turned inside out ..."
Jul 30, 2017 | www.nakedcapitalism.com

By Carol Graham, Leo Pasvolsky Senior at the Brookings Institution and College Park Professor in the School of Public Policy at the University of Maryland. Originally published at VoxEU

Despite the long-held belief that high levels of inequality in the US signal future opportunity, a number of studies suggest that this is no longer the reality. This column examines trends in inequality from the perspective of well-being and focuses on non-economic aspects of welfare, including hope. The results reveal stark differences across people, races, and places in the US. Poor minorities – and blacks in particular – are much more hopeful than poor whites, while urban places are more hopeful than are rural ones, as are places with higher levels of diversity.

The US is as divided as it has ever been. The simplest marker – which has been a topic of discussion among economists for many years – is the stark increase in inequality of both income and opportunity. A number of studies provide compelling evidence that despite the long-held belief that high levels of inequality in the US signal future opportunity, that is no longer the reality. Chetty et. al. (2017) find that the percentage of children who are able to rise above the income levels of their parents has fallen from 90% for cohorts born in 1940 to 50% for those born in 1980. Yet technical discussions among economists based on metrics such as Gini coefficients do not seem to resonate in public debates.

Divisions in the US go well beyond the income arena, and in ways that are particularly worrisome. In a new book, I document trends in inequality from the perspective of well-being, starting with standard metrics but also exploring how these relate to non-economic aspects of welfare, such as happiness, stress, anger, and, most importantly, hope (Graham 2017).

Hope is an important channel driving people's willingness to invest in the future. My early research on well-being work highlights its particular importance for people with less means, for whom making such investments requires a greater sacrifice of current consumption than it does for the rich (Graham et al. 2004). In addition to widening gaps in opportunity, the prosperity gap in the US has led to rising inequality in beliefs, hopes, and aspirations, with those who are left behind economically the least hopeful and the least likely to invest in their futures.

A Tale of Two Americas

There are, indeed, two Americas. Those at the top of the income distribution (including the top of the middle class) increasingly lead separate lives, with barriers to reaching the upper class being very real, if not explicit (Reeves 2017). Those at the top have high levels of hope for the future and make investments in themselves and in their children's health, education, and knowledge more generally. Those at the bottom have much lower levels of hope and they tend to live day by day, consumed with daily struggles, high levels of stress, and poor health.

There are many markers of the differences across these two Americas, ranging from education levels and job quality to marriage and incarceration rates to life expectancy. Indeed, the starkest evidence of this lack of faith in the future is the marked increase in premature deaths – driven largely but not only by an increase in preventable deaths (such as via suicide and drug over-dose) among middle-aged uneducated whites, as described by Case and Deaton (2017).

There are even differences in the words that these two Americas use. Common words in wealthy America reflect investments in health, knowledge acquisition, and the future: iPads and Baby Bjorns, foam rollers and baby joggers, cameras, and exotic travel destinations such as Machu Picchu. The words that are common in poor America – such as hell, stress, diabetes, guns, video games, and fad diets – reflect short-time horizons, struggles, and lack of hope (Leonhardt 2015).

Based on detailed Gallup data, we find stark differences across people, races, and places in the US. Remarkably, poor minorities – and blacks in particular – are much more hopeful than poor whites. Poor blacks are three times as likely to be a point higher on the ten-point optimism scale than are poor whites, while Hispanics are about one and a half times more likely than poor whites. Poor blacks are also half as likely to experience stress – a significant marker of ill-being – on a daily basis as are poor whites, while poor Hispanics are about two-thirds as likely.

Figure 1 Odds of being on a higher level of optimism, by race group (relative to white), within each income group

Figure 2 Odds of experiencing stress, by race group (relative to white), within each income group

These differences across race have multiple explanations. One important one is that, despite substantial obstacles, minorities have been gradually narrowing the gaps with whites, at least in terms of education and life expectancy gaps. Minorities are also more likely to compare themselves with parents who were worse off than they are, while blue-collar whites are more likely to compare themselves with parents who were better off – a trend that has been increasing over the past decade, as found by Cherlin (2016). By 2016, 26% of non-Hispanic whites reported being worse off than their parents, compared to only 16% and 14% of blacks and Hispanics, respectively. Cherlin also finds that those individuals who report being worse off than their parents are less happy with their lives and less likely to trust others.

Psychological research points to higher levels of resilience among minorities compared to whites. Assari et al. (2016) find that blacks and Hispanics are much less likely to report depression and/or commit suicide in the face of negative shocks than are whites. Our research suggests that there may be an ageing effect. While younger blacks, particularly males, are more likely to be angry than their white counterparts (even though they are still more hopeful), older blacks are significantly less likely to be angry than whites.

More generally, urban places are more hopeful than are rural ones, as are places with higher levels of diversity. In recent research, Sergio Pinto and I find that the same places have healthier behaviours – such as more people who exercise and less who smoke (Graham and Pinto 2017). In contrast, we also find that the places with more respondents who lack hope for the future tend to have higher levels of premature mortality driven by 'deaths of despair', i.e. those driven by suicide and/or drug and alcohol addiction.

These differences are reflected across a range of inter-related trends, which again are more prevalent among uneducated whites. Reported pain, which is a gateway to both opioid addiction and suicide, is higher among whites than among blacks, and highest among rural whites. Reliance on disability insurance links to reported pain due to the injuries associated with many blue-collar jobs. Rates have increased in the past decades from just under 3% of the working age population to almost 5% for men. Premature mortality has increased dramatically for uneducated whites – particularly those in rural areas and small towns – compared to their black and Hispanic counterparts. A recent study finds that civic participation of all kinds is also much lower in rural areas, areas that also tend to have far less access to broadband internet (Kawashi-Ginsberg and Sullivan 2017). These rural–urban trends map remarkably closely, meanwhile, with political divisions, voting patterns, and even alternative sources of news in the US.

The figures below depict rough geographic regularities – via state averages – in the distribution of stress, reported pain, reliance on disability insurance, and premature mortality for poor white respondents (the cohort that is demonstrating the starkest signs of despair). Our econometric analysis discussed above identifies the specific role that lack of hope plays in this vicious circle.

What Can Be Done to Reduce Despair?

Unfortunately, there is no magic bullet for solving widespread desperation and its negative manifestations. It is even more difficult to conceive of solutions in a political cycle that hinges on daily crises and scandals. Not surprisingly, the proposals coming out of the current administration are simply to make across-the-board cuts in social programmes – far from the creative thinking required to make these programmes part of the solution. In the short run, solutions will likely be piecemeal and bottom-up, emanating from communities themselves with support from local level political actors and organisations.

There are, of course, major policy changes that could help over the longer run. Firstly, while deaths of despair are exactly as described, the all too readily available supply of opioids and other addictive drugs is an issue that policy can productively address. Another key policy area, which I highlight in the book, is the need to re-think safety net policies in the US. Food stamps, for example, tend to stigmatise recipients, and the programmes that provide cash assistance for the non-working poor have been shrinking, particularly in Republican states. Given that 15% of prime-age males are out of the labour force – and this is projected to grow to 25% by mid-century – another approach is clearly necessary.

The technological displacement of low-skilled jobs is here to stay – and is an important issue for many countries, well beyond the US. Addressing this issue will require longer-term changes, such as education and incentives that provide the young in economic desserts the tools to move to where the new jobs are. Older displaced/out-of-the-labour-force workers pose more of a challenge. Well-being research offers some lessons, such as the benefits of volunteering, participating in community activities, and other ways of avoiding the isolation and despair that accompanies unemployment.

Finally, restoring hope is not impossible, and as a start entails reaching out to those in distress with positive strategies for the future. Experimental research, such as that by Hall and Shafir (2014) and Haushofer and Fehr (2014), shows that simple interventions that introduce a source of hope to the poor and vulnerable can alter behaviour and lead to better future outcomes. The alternative is for desperation to yield even more support for politicians fostering division, exclusion, and an impossible return to the past. The associated turmoil, as recent elections and events in both the US and the UK demonstrate, is counter-productive for all, and particularly so for the most vulnerable.

See original post for references

allan , July 29, 2017 at 2:52 am

The technological displacement of low-skilled jobs is here to stay – and is an important issue for many countries, well beyond the US. Addressing this issue will require longer-term changes, such as education and incentives that provide the young in economic desserts the tools to move to where the new jobs are.

Education, incentives, tools, new jobs.
That could be cut and pasted from a DNC press release. Coding camps for all!

It seems that even the Even the Liberal Brookings still doesn't get how bad things are,
or how much fundamental restructuring of the economy and society would be needed
to reverse things.

Livius Drusus , July 29, 2017 at 4:18 am

The answers are never things like reforming labor law to make it easier to unionize, renegotiating trade agreements to make them fairer to workers, fixing the trade deficit, true universal health care and perhaps the most obvious answer: have the government hire people directly!

No, it is always learn to code and move to New York or San Francisco. It is getting harder and harder to deny that Thomas Frank was right when he said that modern liberalism is now centered on upper middle-class professionals and their theory of technocratic meritocracy.
These people can't imagine any solutions that don't comport with their own experiences.

The credentialed professionals earned their wealth and status through schooling and moving to one of the large metro areas where professional jobs are plentiful. They assume that everyone must follow the same path that they did because they are convinced that they have merit and others do not. They can't imagine that in some cases staying in your dying town where you at least have family networks might be a more rational option than dropping everything for a chance to "make it" in an alien city with a high cost of living. Why do the "go where the jobs are" narratives always seem to ignore the fact that large cities are becoming so expensive that the lower-paid workers who service the "knowledge workers" at Google and Facebook can't even afford to live there anymore? I guess the reason is that it would reveal the social hourglass nature of the supposedly wonderful liberal big cities.

Also, I want to call attention to the obsessive focus on men not working. Dean Baker has critiqued this meme on his blog.

Americans don't need hope they need good policy. Too much contemporary political and economic analysis focuses on psychological factors. Yes, the misery and hopelessness that comes from unemployment and underemployment are real and likely fuel various social pathologies but there is nothing new or groundbreaking here.

We know from the Great Depression and the aftermath of the collapse of communism in Eastern Europe that economic problems can cause social problems. The key is to find ways to fix these problems but unfortunately the only answers we seem to get are the same ones that we have been hearing for the last 30 years.

RepubAnon , July 29, 2017 at 6:54 pm

I'd suggest that real hope, as opposed to false hope, is the answer. Real hope would result from good policies, false hope is engendered by suggesting that people do things such as learning to code (unless they have an aptitude for it). Even then, telling people that uprooting oneself and moving to a strange city to learn a new skill is hardly a realistic solution. One would need to rebuild one's life (and that of one's family), and still may not find a job at the end of that effort. These types of solutions increase despair, they don't kindle hope.

What really need to happen is a big infrastructure project aimed at getting high-speed Internet connections and decent roads to the rural areas. These would make it possible for businesses to relocate satellite offices to low-cost areas, bringing jobs. People could then either train for those jobs, or get jobs in support sectors such as supermarkets, consumer stores, etc. This would offer a realistic possibility of better times, which would help people regain real hope.

tegnost , July 29, 2017 at 10:50 am

I'm going to have to pile on here as well, flagging volunteerism as an elite perspective that works (possibly) only when all your needs are met and you need something to get you out of the house to connect with people, while telling a poor person they should work for free might not answer any need they have and indeed likely make them feel taken advantage of. Along the same lines a poor artist friend has fielded the suggestion that she donate her artwork to charity for exposure, as the spouse of a wealthy so californian has done, then her work can be sold to support the charity instead of herself, but exposure! (We'll leave aside that the techies just want to take a picture with their iphone 7 and they'll print it out for free)

jrs , July 29, 2017 at 11:55 am

while being around people is often good advice, being around people does not fix the despair of unemployment (really a separate issue than poverty – as one can be poor and employed, unemployed and not poor although that situation clearly can not last).

The despair of unemployment is fear of NOT HAVING AN INCOME period (the present reality and the fear that one won't get a job in the future either), and being around others does not fix that, whether or not one is around fellow unemployed people or people with jobs. Because you can get company from others but no relief from the raw fear about whether one will have an income to pay bills or not, because others can not help one with this. They can merely provide company and emotional support, but that doesn't pay the bills.

Sure if for the older people social security age was lowered so they could now collect a check and then one told them to volunteer with thier free time, maybe they'd be good, but only if that need for an income is met first.

John Wright , July 29, 2017 at 1:30 pm

Volunteerism also has the stigma that a volunteer is of a lower class because they are working for free.

I remember my late mother who was volunteering in her 80's at a charity. This charity also had paid employees. She had volunteered for a few months when one of the paid staffers asked her to get coffee for the staffer.

My mother got the coffee for her. Then my mother quit.. She said the the paid workers did not respect the volunteers' time because the volunteers were willing to work for free..

flora , July 29, 2017 at 6:13 pm

+1.

flora , July 29, 2017 at 6:26 pm

adding: I know of a local worthy charity that got ripped off for 10's of thousands of dollars by a paid worker. No one checked the books because, of course, the paid worker must have been reliable and serious and trust worthy. They were being paid! after all. The IRS showing up on the doorstep because of failure to report and pay taxes finally got the attention of the self-regarding and swanning board that all was not well. Several unpaid volunteers had tried to get the board's attention for a couple of years, to no avail.

flora , July 29, 2017 at 6:44 pm

adding: (why does this remind me of the CalPERS board?)

Arizona Slim , July 29, 2017 at 6:37 pm

On Facebook, there is a group for people like your artist friend. It's called Stop Working for Free and it's growing by leaps and bounds.

Tomonthebeach , July 29, 2017 at 3:30 am

Alas, Washington keeps its head in the sand by relying on unrealistic measures of the cost of living. They do a poor job of correcting for regional differences. As an example, as Dean Baker and others have pointed out, rents for a 1-bedroom apartment in San Francisco exceed mortgage payments on a mansion in Omaha.

As long as Capitol Hill is content to go with the flow, the flow will continue downhill.

MoiAussie , July 29, 2017 at 4:14 am

I'm close to disgusted by this analysis. It shows either a complete lack of insight into root causes, or a stubborn unwillingness to speak about them. No mention of globalisation, capitalism, financial crises, housing foreclosures, predatory corporations, or corruption of law and justice. Blather about different language used in the two Americas may score points at a sociolinguistics conference, but is otherwise unilluminating. All the framing in terms of people's "willingness to invest in the future" is bogus – it should be about "ability to create futures for themselves". Only the rich have the luxury of investing, for everyone else it's the struggle to stay afloat and perhaps improve their circumstances.

It's big on "something needs to change" and "another approach is needed", but offers no new ideas. It seems entirely focused on mitigating the symptoms, such as despair and suicide, rather than identifying and addressing the causes. And it doesn't once question the idea that America is a rich land, as the title would have it, as opposed to a land where the many are ruthlessly and increasingly exploited by the few, a land where public assets are falling apart or being stolen for a song (post offices, anyone?). And the author seems surprised that communities that have long been oppressed and deprived are more resilient than those that have had recent opportunities to forget the lessons of the struggle to survive and prosper.

In the end it reads as just another tacky book promotion exercise with nothing more to offer.

Terry Flynn , July 29, 2017 at 4:45 am

Agreed. Former colleague get all enthused about interventions that are supposed to help the poor to refocus on long-term outcomes (so as to reduce smoking/opioid use/whatever) / invest in the future, blah blah blah. As you say, the despair/lack of hope people have has to be addressed by concrete changes to the system that gives them either a secure job they value, (as well as both decent monetary compensation and other non-monetary support – carers immediately come to mind) or engages them in an activity that gives value to their lives, and ideally society too, if they're too ill to go back into full-time employment. "Concerns about the future" constitute around 20% of quality of life directly (and indirectly have huge effects in terms of magnifying the malign effects of financial/monetary shocks to a person's life).

" Welcome to fear .It's hope, turned inside out ." – Going Postal by Terry Pratchett

Harry , July 29, 2017 at 7:56 am

Ah yes. They're poor because they are stupid. I am always surprised we don't explain the rich as "they're rich because they are ruthless and unprincipled".

MoiAussie , July 29, 2017 at 10:41 am

Blunt people do say that, and so should all. Balzac said much the same 200 years ago, and christ said something to that effect about 2000 years ago.
To be fair, "they're rich because they are ruthless and unprincipled, or were born rich, or both".

jrs , July 29, 2017 at 12:05 pm

+1

bvian , July 29, 2017 at 12:06 pm

The system has always been rigged, maybe it's worse now than 50 years ago, maybe it's better than 100 years ago. Regardless, what changed is a business of talk radio, fox news and grievance politics that profits off of gloom and doom and specifically targets white people and rural folk. If you spend your days listening to people tell you how awful everything is, you are going to lose hope.

Anon , July 29, 2017 at 5:49 pm

Seems to me that people can recognize a hopeless economic situation (their own) without talk radio, Fox, or politics.

Jane , July 29, 2017 at 7:03 am

It isn't hope that is lacking; I've yet to meet anyone who doesn't hope for a better life. What has been lost is the belief that that hope will ever be realized. People no longer believe the life they would like is achievable. When there is nothing to look forward to, nothing to strive for, hope sinks and despair rises. That's why safety nets are so important, they prevent hope from being extinguished and remind people there is a way forward, a way up.

Ironically, the optimism shown by minorities may be an illusion; the result of closing the gap with a sinking white working class rather than of a real rise in their economic
state. The life they hope to achieve by catching up with the white working class is no longer the life they were told they would find.

Clive , July 29, 2017 at 10:16 am

It (the loss of hope) gets to a lot of us ! in different ways. I'm loathed to agree with Yves' assessment that the loss of hope is a ! what's the right word? ! necessity?

But I think Yves is right. Misplaced hope is a seductive toxin. It keeps one from making a realistic assessment of a situation and the most likely range of outcomes when analysed objectively. If you keep, irrationally, hoping for the best, you may well preclude yourself from taking more drastic but necessary steps.

The main way the lack of hope has affected me is that I cannot now happily read anything in modern literary fiction. Once I started noticing a phenomena ! which is a variation on TV houses having unreasonably large rooms or characters having a standard of living not commensurate with their jobs ! whereby the narrative of a novel is established usually in the first chapter or so, but the author has to conjure up some outrageously contrived explanation and scenarios as to how the central characters have the time and resources to participate in whatever story arc they are about to be launched upon.

Is the novel some sort of adventure? The lead characters have to be given a get-out for why they aren't tied to a job which occupies every waking hour either by working long hours or commuting (or both). Is it an urban fantasy genre? Where do the participants get their money from? If they work, what do they do which gives them the energy to pursue the plot line?

If you try to read modern fiction, watch for the sudden, hamfisted, attempts to finesse these issues. I've got cynical and jaundiced at the endless parade of antiques shop owners who can conveniently close up early when a story development needs to take place. The freelance detectives/office workers/journalists who can find themselves mysteriously between assignments but not need to look for work. The poor but honest Peggy Sues who inherit a bit of money from the convenient death of a relative.

Whenever I try to start a new modern fiction book, I brace myself for the inevitable credulity-stretching few paragraphs which have to get clumsily spliced in to achieve an explanatory fudge. I've given up hope (!) of finding one that doesn't have me throwing it in the trash.

Chauncey Gardiner , July 29, 2017 at 11:29 am

Clive,
A little off-topic, but you might try a collection of short stories by Rick Bass. Just a suggestion.

Clive , July 29, 2017 at 11:37 am

Thanks Chauncey ! I've wasted so much time (and money!) trying to find something decent to read. The TV is now so annoying, to the point of unwatchability, I've given up apart from a couple of shows. BBC Radio 4 is down to a similarly small handful of programming that I actually enjoy. And I love to read, I don't like not having a book on the go, but do prefer modern rather than classical literature when it comes to fiction. So anything by way of recommendations from the likeminded folk in the cheap seats down here is like manna from heaven.

Yves Smith Post author , July 29, 2017 at 1:31 pm

If you haven't read it already, the better (not influences by Tolkein and post the 1950s-1960s SF) that is not obsessed with science and gadgetry might appeal to you. They use other worlds as frameworks to put humans or human-like creatures in social situations different than ours and play out the behaviors.

Many readers have said they regard Ursula LeGuin's The Dispossessed as one of the ten most important books every written about politics. Her The Left Hand of Darkness is also a classic. The space opera A Deepness in the Sky by Vernor Vinge is a great book. Readers probably have suggestions outside warhorses like these.

Synoia , July 29, 2017 at 3:33 pm

Yes, the characters on Tolkien have the flexibility to wander off without notice, and seem to only eat once every few chapters.

I'd recommend Cyril Kornbluth's The Syndic as a good description of our current utopia. Prescient almost.

I do not read Science Fiction any more. I do not have the correct optimistic view of the future I once had.

I share Clive's irritation? dislike? of the contrived scenarios which do not account for having to work (including the commute) 11 to 15 hours a day.

I'd point out that fiction in the past generally revolved around the class formerly known as "The Idle Rich."

I suggest for fun read "Diary of a Country Parson" by Woodforde. Pay particular attention to his description of meals.

jsn , July 29, 2017 at 11:51 am

I think it was Shaw who said, "cynicism is a word frequently used to describe accurate perception by people who don't have it."

Dandelion , July 29, 2017 at 11:57 am

Very few American writers deal with class reality. I recommend "American Rust," by Philip Meyer, "The Beans of Egypt, Maine," by Carolyn Chute, and, for the office workers, "And Then We Came To The End," by Joshua Ferris.

jrs , July 29, 2017 at 12:13 pm

i can just imagine reading these and wanting to kill myself though entertainment that provides no escape from reality – ouch.

jrs , July 29, 2017 at 12:08 pm

is it a love affair? where are the fights about money if sharing finances, and even worries about money that cause pain to the relationship even if not?

Rosairo , July 29, 2017 at 2:46 pm

Clive,
I don't know if you have already heard of it but look into The Stockdale Paradox if not.

Heraclitus , July 29, 2017 at 8:53 am

It's ironic that discrimination against both blacks and poor whites was much more overt back in the day. In our Southern cotton mill towns, 'lint head' was a worse deprecation than the n-word (which is not to say that blacks were not at the bottom of the totem pole). Nevertheless, people who grew up working in the cotton mills did, in many cases, move to better lives. They often owned their own homes, and the paternalistic mill owners actually provided recreation facilities, scholarships, and supplemented the pay of local teachers. One woman, who, like many of the workers, came from the mountains to the foothills to work in the mill, said: 'I never saw running water or a toilet until I started working in the mill.'

Blurtman , July 29, 2017 at 9:05 am

These types of studies suffer from a certain amount of GIGO. To base the definition of a group upon European colonization is absurd. There are "Hispanics" of all races. Vanna White is Hispanic. In this day of ancestry.com genomic analysis, a credible study should include at least three determinants of race/ethnicity: self-identification, third-party identification and genomic analysis.

ambrit , July 29, 2017 at 10:54 am

Race and ethnicity are good for only so far in modern sociological analyses. Call me what you will but I see "class" as independent of either. Any version of "True Believer" Meritocracy would see this clearly and act accordingly. Of course, there is no such thing as a "true" version of anything. The Meritocracy we suffer under today is just another 'mongrelized' shibboleth.
"Self identification" should also be broken down into "aspirational" self identification and "cold hard desperational" self realization. The "meet me in St Louis" personal future vision serves the same purpose as "Bread and Circuses" did for the Roman Empires' elites. Well, now, the "Bread" part of that scheme is being short-sightedly whittled away by the Powers. No grand conspiracy is needed to do any of this. Plain old greed and incompetence are all that is required for an adequate explanation.

tony , July 29, 2017 at 11:31 am

'Asian' is even worse. Pakistanis, Japanese and Indonesians have almost nothing in common apart from arbitrary definition of what is a continent.

That being said, neuroticism varies between groups, and it is also a pretty stable variable across a human life. Optimistic people are optimistic in even in adverse circumstances.

Enquiring Mind , July 29, 2017 at 11:44 am

Your mention of Vanna White made me think about when we will all have to buy a vowel instead of using it for free, soon followed by all those consonants. No doubt, there is someone, somewhere, working on monetization of language. Über could even charge extra for the umlaut. /s

WobblyTelomeres , July 29, 2017 at 12:03 pm

Some how, some way, Larry Summers will be nosing about when it happens.

GlassHammer , July 29, 2017 at 10:39 am

"The technological displacement of low-skilled jobs is here to stay – and is an important issue for many countries, well beyond the US. Addressing this issue will require longer-term changes, such as education and incentives that provide the young in economic desserts the tools to move to where the new jobs are. "

Skill development (education) is not a problem/priority when capital has access to a global workforce and ever cheaper labor. You can keep your production process rudimentary and find a workforce willing to work for a pittance. If you happen to need a worker with skills/education you can select a qualified one from any nation on the planet.

Has it dawned on anyone that "access to the global-workforce" is one of the primary reasons that the U.S. has some of the worst schools in the world but has some of the best universities?

Anonim222 , July 29, 2017 at 11:54 am

Best universities. Even that is false now. Your average graduate has a similar level than a high-school student from Asia or Europe. I have taken engineering at university and some mates who when to the US to study as a part of exchange programs said that it was just a joke

It turns out that letting education become another profit center does not produce the best outcomes. But hey no wonder, the leitmotiv of predatory capitalism: the worst possible product at the highest possible price has also been applied to your universities.

Your elites have devastated your country, sold its industrial base, stolen its infraestructures and corroded everything. It's just a matter of time you lose what remains of your global leadership.

Ned , July 29, 2017 at 11:09 am

The "scenes can only be shot in a large rooms, or sets with no back walls creating false illusions of how wage earners live" comment is incredibly astute. Americans watch thousands of hours of TV and movies and subconsciously must compare their living situation to what's portrayed therein.

Besides all mentioned, I would like to add one more never mentioned item; as a former resident of San Francisco, the most phony and enraging thing is that people in movies and TV always get a parking place in front of their destination.

The reality is that drivers in urban areas waste ten, twenty or more minutes searching for legal parking after a long tiring day at work, are raped financially by parking meters, tickets and street sweeping zones.

Yes, I moved to the suburbs. The availability of unlimited safe parking was like regaining vision that I never knew I missed until I could see again.

SerenityNow , July 29, 2017 at 1:32 pm

Parking is not a right-it is street space usually owned (and often freely given) by a municipality. That municipalities wish to manage the use of their space property should surprise no one. No one has the "right" to drive a motor vehicle and be able to temporarily store it wherever they want at little or no cost! The real travesty is that we have spent decades creating a built environment where for many, cars are the ONLY way to get around.

It didn't have to be that way. If you lived in a place where you had to pay the actual cost of motor vehicle operation, but we're also able to easily live without one, you'd never worry about parking again.

Ned , July 29, 2017 at 5:40 pm

The Green Planner flashes his lantern of truth to light the way .
IF effective mass transit were available everywhere, your argument would hold more water. You work the only job you can find and transit is not an option. What are you supposed to do? Starve so that some Tesla or Range Rover driver can get the space that you so graciously left for them?

Let me carry–what I believe is your point of view!over to other things:
Housing and food is not a right either. If people had to pay the true cost of living in structures and raping the earth to eat, the more enlightened of them would realize that it would be better to commit suicide.

jrs , July 29, 2017 at 6:24 pm

the basic problem seems apartments etc. designed without parking spaces, but if they are very old buildings dating back to when the automobile was just coming out then that's the way it was (and of course some of san fran is quite old). Some mid century apartments also seem to have been stupidly designed this way for no particular reason it seems (just stupid).

Yes municipalities should go all in for public transit, and we as citizens should push them too. Build really really good public transit in all major cities (ok it's never going to be a panacea for rural people, but the big cities, it is possible). But individuals make the choices they do in the city spaces we actually have now.

SerenityNow , July 29, 2017 at 6:45 pm

Mass transit is not the only alternative to a car-centered built environment–I never called for mass transit anyway. I am instead suggesting we could have built our areas of habitation so that cars are not the most convenient (most heavily subsidized) travel mode. Driving is cheap and convenient because we've made a lot of decisions to keep it that way. And if you don't think it's cheap, you might be missing how expensive it is in other places.

You're right that we don't pay the true cost of a lot of things, and if we did, all aspects of modern life would be much more inconvenient. But the degree to which we subsidize a lifestyle based on automotive accessibility is especially noxious, and disproportionately affects the disenfranchised. Yes, there's not much we can do about it now. But people believing they have a right to store their large machines on public property (for free) for any length of time doesn't help.

Synoia , July 29, 2017 at 3:45 pm

To live in a City – lose the car. That's obvious to me.

rps , July 29, 2017 at 11:12 am

"He that lives upon Hope will die fasting." Benjamin Franklin. Poor Richard's Almanac

Alejandro , July 29, 2017 at 11:19 am

The possibilities of what could be are crafted in the imagination, and the wretchedness of 'what-is' can be a powerful source of motivation. However, captured imaginations, the target of TINA, where this crafting is stifled and semiotics are displaced with a preference to conjure the mystical through religiose pious fiction, noble lies, magnificent myths etc., and more recently through pseudo-science with "magi-matical" preciseness, disguising class dogma behind an aura of {irrefutable} scientific 'credibility', has a long history hopium without wherewithal seems the road to frustration for the have-nots, yet the toll-gates always seem occupied by the haves.

Then there's gestation v. microwavable expectations , i.e., sowing and reaping v. reaping without sowing with amazon 2day delivery insidious unilateral power of dependency.

rps , July 29, 2017 at 11:24 am

"The rugged face of society, checkered with the extremes of affluence and want, proves that some extraordinary violence has been committed upon it, and calls on justice for redress. The great mass of the poor in all countries are become an hereditary race, and it is next to impossible for them to get out of that state of themselves. It ought also to be observed that this mass increases in all countries that are called civilized. More persons fall annually into it than get out of it." Thomas Paine. Agrarian Justice. 1795

edmondo , July 29, 2017 at 11:39 am

I know that this is an important paper because it has footnotes and if you want someone to take your seriously, you gotta have a lot of footnotes.

For a more mundane view of hope, poverty and despair, you may want to read this guy. Be forewarned, no footnotes.

https://www.thisappalachialife.com/single-post/2017/06/28/Poverty-Privilege-and-the-Dead-American-Dream

https://www.thisappalachialife.com/single-post/2017/05/16/Being-Poor-Aint-Cheap

WobblyTelomeres , July 29, 2017 at 11:56 am

Yves: I wonder about the emphasis on hope

Hope is cheap. Real solutions aren't.

ambrit: No grand conspiracy is needed to do any of this. Plain old greed and incompetence are all that is required for an adequate explanation.

There it is.

Bobby Gladd , July 29, 2017 at 4:01 pm

"Hope is dope, and dope is hope." – Vietnam war GI saying.

fco , July 29, 2017 at 11:57 am

Moving to the US from a "third world country" riddled with graft and corruption, it was amazing to see Americans complain so much when they had it so good. That was 45 years ago.

Now, it looks like the US is turning into the country I came from.

Back home ( and yes, it seems I still think of it as home, go figure) religion and its offer of salvation and hope, not to mention the acceptance of your lot in life, was the opiate of the poor. Here in the US, real opioids are readily accessible to those who have lost hope.

What's interesting is that now the jobs have moved over to my country of origin, the middle class has quite improved, whereas in the US, where people always seemed to have it easy, are now the ones that are in desperation.

Who or what to blame off the top of my head, Americans were prone to think they were the center of the world, that they were number one. We, too, in other countries were made to think that. Complacency kills. So does trust in elected officials who cater to multinational corporations and financial behemoths.

William Neil , July 29, 2017 at 12:36 pm

Here is a brief but powerful paper on the correlations between "Deaths of Despair" – the ills of rural Red State America – and voting support for Trump, by counties: http://aese.psu.edu/directory/smm67/Election16.pdf

The very strange thing about the American economy today is that a good portion of the top 20% of the income distribution live in the realm of the two "happy" indicators: the low unemployment rate and low inflation, which is not the reality that 60-70% of the nation is feeling, as expressed both in the Sanders campaign and the election of Trump.

In reality, the upper 20% of the nation are living in, still, the "roaring 1990's" of the Clinton Dreams, while many are experiencing 1929-1932 despair, even if the objective conditions are not as horrific.

If the nation could only cross the Rubicon of intervention into Neoliberal Labor Markets, via a WPA and CCC when the whole economy collapsed, it would help meet those needing work half-way but it won't/can't. The Neoliberal rigidity on what government can and can't do in labor markets is the obstacle, intellectual and practical. That helps explain why we can't get to FDR's Second Bill of Rights from 1944 and "the Right to a Job" or MMT's job guarantee program (as advocated by L. Randall Wray) despite so much of the nation's needed work not being addressed: social, structural and environmental.

These tensions have played out inside the Democratic Party. The Clinton's think tank, the Center for American Progress, has played two notes. In December of 2015 they put out a long policy paper touting Apprenticeship Programs to fill the business cry for the "jobs-skills gap," and it was followed by a number of shorter follow-up policy pieces pushing this direction. Then came the "Ideas" Conference of May 16th, 2017, where they proposed a Marshall Plan-WPA inspired targeted jobs guarantee program for a portion of those needed work, those without a college degree. It didn't take, as the conference speeches an panels on that day clearly showed, and this is how I interpret Senator Schumer's "Better Deal" Op-Ed in the New York Times on July 24th. Apprenticeship programs have won out, and industry is happy to have the public pick up as much of the cost as they can manage to shift.

I don't think this meets the need I see presented in today's posting by Carol Graham, or the one I linked to by Professor Shannon Monnat from Penn State. Hardly.

roxan , July 29, 2017 at 1:31 pm

I come from one of those desolate towns people talk about so much these days. My mother always said the steel mill was a good company because they didn't pay in scrip, and they built decent houses, paved streets, provided the utilities and so on. Eventually, they even built a community center and library. At Christmas, they put on a parade.

That is all gone. The steel mills and mine are not only closed, the mill has mostly been torn down. When I had to go back to care for my mother in 2004 I was shocked–downtown had always been crowded with traffic. Now, I could have slept in Main Street with no danger of being run over. All the stores were empty, or had turned into 'coffee shops' i.e. gambling dens. Even our dignified old bank building was now a coffee shop! At first I thought the coffee fad had reached us, and remarked on that to a neighbor I saw coming out of one. She laughed and said, "I work in there. We just pour whiskey, that's all. It's one-armed bandits, no fit place for women."

I could not buy the most basic things, such as getting a lock installed and a key made, glass for the windows, lumber, or even cement. The house was falling down but I couldn't buy what I needed. We lived in a nice suburban area, but most of the street was abandoned. Next door, I saw a guy who looked like Cletus (in the Simpsons) building an actual camp fire in the front yard! I was going to ask him to clean up the rat infested garbage pile in the driveway, but decided it was best to avoid him.

No one had work. One relative's teenage boy was loading trucks at night for sub-minimum wage and happy to have that. His mother, Linda, was subsisting on her mother's social security. The old lady had a stroke in middle-age, could not move and screamed constantly. She had to be lifted from bed to chair and diapered. Linda had done that since the 1980s, and now had heart trouble herself. She had no earning skills and was trying to hang onto the house. If she put her mother in a home, they would all have been out in the gutter.

Even as an RN, I could only find a few $10 hr jobs, not enough to live on considering the long commute. I had to go back to the East Coast, and send money home to hire aides. I met a lot of absolutely desperate people. One lady, who offered to help with Mom, was taking care of her uncle and father, who both had dementia. My mother was violent, listened to nothing and was difficult to manage. Aides quit as fast as I hired them but I was trying to hang onto our family home which would be lost if I put her in a nursing home.

I did not see anyone sitting around drunk or stoned, and never saw that when I grew up either. I think all those tales about violent, drunken hillbillies are just that–tall tales. Most of the young people I met were going into the service. I found them to be good steady people who did what I asked and felt bad I couldn't pay them more. They were having a very hard time, as there were no jobs one could drive to whatsoever. It is the same throughout the entire Ohio Valley. A wasteland.

The military seems to provide a decent solution but young people shouldn't have to risk dying in order to get an education. My suggestion would be something like the old CCC. Learning skills is not enough. People need to get away from the whole area and learn how to live in 'the world' as Appalachians refer to the larger society. I had more than one young person come up to me and exclaim, "I heard you was out in the WORLD. What's it like?"

Yves Smith Post author , July 29, 2017 at 1:35 pm

This is so sad and it must be terribly stressful for you too.

William Neil , July 29, 2017 at 2:13 pm

Thanks Roxan. I live in a county in Western Maryland which is formally part of the legal jurisdiction of the Appalachian Regional Commission, set up by Congress to bring the 13 state area up to "modern" standards of infrastructure, education and I suppose, "the way the rest of us live." I think the funding averages about $13 million per year per state, hardly making a dent; it does offer loans for creative types with business ideas, including some green ones. And I think the Trump Admin. zeroed out the funding, if not out right reached for the organization's abolition, in their current budget proposals.

But you are right, something much more powerful in terms of outreach and structure is necessary. A new CCC and WPA, yes, but much harder to achieve today, and the mission more complex than the originals, which served mainly all young unemployed men. Today it will be multi-racial, gendered and aged I don't know whether it is good to design it for the ARC needs to take the citizens out of the region

I think the structure and cultural imperatives of work, including the psychological benefits, are the way to go rather than the "guaranteed" annual income so fashionable among parts of the left, and even with some Libertarians like Charles Murray.

For most of the work designs I've been thinking of, additional training will be necessary, it's going to take more than a week of orientation, and flexibility will be crucial. I try to keep the idea alive, difficult for the reasons I put forth in first comment above, to be ready with at least some prototype, pioneer examples, to be ready for the next great economic crisis. But, of course, the crisis is already here in this region (and the urban ghettos for how long now half-a-century or more )

roxan , July 29, 2017 at 7:17 pm

People need self-respect, and that comes from feeling competent. If you feel you can't do anything worthwhile and never will, pretty soon you don't see any point in living.

Yes, a modern WPA or CCC of some sort, would certainly be different. I doubt there is any funding, too. Has anyone ever had the idea of holding town halls to find out what people in these areas think would work?

As for the Democrats, I remember when Kerry came to campaign in 2004. He went to the town across the river, and hardly got out of his stretch limo. I had planned to go see him, but they locked down both towns, and closed the bridge across the Ohio. I saw him on TV, making a speech to what appeared to be a cheering crowd. Later, I read in the paper they had paid a few old union guys to wave signs. He clearly had no interest in us. I was disgusted, remembering how JFK came to our town and and discovered–guess what? Appalachian poverty!

William Neil , July 29, 2017 at 9:39 pm

Yes roxan, I've been trying to get some momentum going for a CCC in our region because it has a strong environmental ethic, working very hard to successfully ban fracking. Trying for three years now.

I must have done a half-dozen postings at the Daily Kos on the topic, but there is just a blank when it comes to alternative thinking about the economy, except for the decentralizing, self-sufficiency, farm to table greens.

The opposition to Trump met to plan with a good turnout in Cumberland in early February, and there were three or four major directions apparent. But by early April, only the feminist caucus was still going, and they're decidedly not interested in the political economy.

Some of the small green businesses who supplied the leadership for the anti-fracking campaign have struck me as being threatened by a program that might pay $15.00 per hour plus benefits – which a CCC/WPA should do because they are competing for cheap labor as well, and find that threatening. They'll never say that openly, but the local organic farmers rely on a program called WWOOF, which is like a hostel arrangement without wages; the young nomads come and work on the organic farms, learn something, get room and board, but no wages. Here at http://wwoof.net/ Is this whole movement a serious hobby or a new economy in the making? It is troubled by all the ancient problems of small scale agriculture: turning a profit and paying wages without turning the workers into a scorned minority, like the migrants.

I think a green CCC with locally designed projects to help farmers with some of their other traditional problems – manure storage and management, fencing to keep livestock out of streams, and so forth, plus all sorts of needed restoration projects (wetlands, contiguous forests, pulling invasives, fencing large areas and culling deer to restore native vegetation ) which also should be designed for what they plant and where, multiple purposes, to combat global warming, could supply a lot of purpose to countless lives.

I'm continually amazed at the resistance; cultural, economic, ideologically, and sad to say, in too many cases, traditional business opposition to a "better deal" for labor, green causes or not. Plus the great American tradition of stigmatizing those who have served time or had addictions, who need the most help, and need purpose in their lives.

I don't know if we'll get there without a major collapse that forces the issue, forces eveyone to face the truth that the private sector can't meet our human needs as currently constituted.

My Congressman, John Delaney, got a written outline from me in a small meeting with him and just one staffer: he was stony faced about it and has never shown any interest. If you know about his plans for "infrastructure" – the terms on which he proposes to bring all that idle American "capital" home, you'll know why.

I've also done presentations in front of the city of Cumberland's Mayor and Council: it's a city in a county with 5,000 derelict structures: collapsing, abandoned, vacant. Lot's of work to handle them and turn some into affordable housing perfect match some sympathy at the council, but they also looked like I was proposing a mission to Neptune. Can't get more basic about the needs in this situation this is a problem in all the old de-industrialized cities, as well as throughout Red rural America as you so dramatically showed us.

Until I hear better proposals, I don't intend to stop pushing it. I also see this as a way to get some more "democracy" into economics, proposing, planning, refining the work that needs to be done another route that at times seems more logical, and ought to be easier, than democratizing the workplace at Target or Home Depot – or Walmart.

I'm sure that if that national, state and local conservation groups got behind this, they could come up with, easily, enough compelling projects to keep everyone at full employment for decades. I've proposed a few myself. Enough for now.

Clive , July 29, 2017 at 3:48 pm

If nothing else, your comment gives me hope that there's still such a thing as human decency ! which you exhibit.

My grandmother lived to be 101 years old and, unlike your mother, enjoyed good health or, perhaps better put not bad health considering her great age. She still lived in the town she was born in and was one of those sorts who never left where they grew up. But my father, even in the late 1970's, read the writing on the wall and moved us around (even becoming expats) before settling in the south / south east (of England).

It's a little shameful ! but honest ! to say that I loathed visits. I made excuses and did the minimum I could get away with. My Dad was the same. Although my grandmother enjoyed the last vestiges of the social safety net we still cling on to here (local county provided sheltered accommodation which had a warden and was fully accessible for someone who might not be that mobile, social workers visiting every couple of weeks, visiting nurses, a doctor who did house calls and care workers twice a day to help with personal care and nutrition) and we didn't need to concern ourselves with that side of her situation, when we visited, we felt like fish out of water.

The metropolitan sophistication and, yes, affluence, of London and the southeast made the grimness, poverty and ingrained loss of hope (there's that word again) depressing to be around. Our self awareness of our newfound snobby elitism made our discomfort even worse. It was no use, or at least not honest and too much cognitive dissonance, to try to pretend that we didn't find the small town mentality hard to take.

But then living with either no, or only poor quality jobs at minimum wage (the town is an subscale inland port, literally the last place you come to at the end of the freeway and after that it is more-or-less you fall into the North Sea) ! well, escaping is nigh on impossible with our dismally low social mobility. And the town can forget about government funded regeneration or benefitting from an industrial policy.

The short version was (both my dad and I tacitly and unspokenly concluded) that it was easier ! for us, being selfish ! to stay away. So I can fully understand the selflessness and sense of duty you've shown. It makes you a better person than I am.

Of course, none of us should have to make these unpalatable choices. There shouldn't be anywhere in our countries where we feel simultaneously alienat ed and alienat ing .

Sue , July 29, 2017 at 2:07 pm

Roxan,

I like how you write. This is a very despairing present and outlook

"Most of the young people I met were going into the service..The military seems to provide a decent solution but young people shouldn't have to risk dying in order to get an education"
A solution from no other choice. Some of the youngsters will understandably make a virtue out of necessity & claim patriotic duty as their calling. The avenues to patriotism & what patriotism is for every patriot are various. Patriotism is another big word.

Synoia , July 29, 2017 at 3:40 pm

The military seems to provide a decent solution but young people shouldn't have to risk dying in order to get an education

Join the Air Force. Only Officers get shot at.

Sue , July 29, 2017 at 4:00 pm

Good suggestion. How many positions are open in the joystick and gps drone division?

Eureka Springs , July 29, 2017 at 8:16 pm

Nor should people should have to murder to get an education.

makedoanmend , July 29, 2017 at 6:51 pm

Strumpet City (both a book and TV series) is a story about how the working class of Dublin, Ireland go on strike for better pay and working conditions. The strike is broken and the Irish story hero is last seen in a British military uniform sailing away from his home and wife to fight for a foreign government in some foreign land. (Although fictionalised, this story is a dramatisation of actual historical events.)

The story was set at the turn of new 20th century. I suppose not all that much has changed at the turn of the new 21st century.

The monied want more and then the poor by necessity set off to fight the impoverished of foreign lands in the name of

Sound of the Suburbs , July 29, 2017 at 2:10 pm

Where did it all go wrong?

The populists, Trump and Brexit are all symptoms of the same underlying problem.

Neo-liberalism was seen as a one size fits all model for the world.

When the neo-liberal model worked everyone was fairly happy with it before 2008.

Then it stopped working and no one seems to know how to get it working like it used to before.

The underlying economics, neoclassical economics, doesn't look at private debt in the economy and so no one was really aware the whole thing was running on easy credit.

The US economists that developed these ideas were missing certain critical information.

Monetary theory has been regressing for one hundred years:

"A lost century in economics: Three theories of banking and the conclusive evidence" Richard A. Werner
http://www.sciencedirect.com/science/article/pii/S1057521915001477

It has never been accurate in their life times and has only ever known by a few.

Milton Freidman started with "fractional reserve theory" and then moved to "financial intermediation theory". His early monetarism didn't work because the "fractional reserve theory" was flawed. "Financial intermediation theory" is even worse but its problems remained hidden until 2008.

The US history of capitalism missed problems in the Old World.

The US was a new country where lots of land remained unclaimed. In the Old World the landed Aristocracy were constantly pushing up wage costs with their rentier ways. The rents of the Aristocracy had to be paid by business in wages reducing their profits.

The Classical Economists of the 19th Century were only too aware of the two sides of capitalism, the productive side where wealth creation takes place and the parasitic side where wealth extraction takes place.

It all disappears in very early neoclassical economics.

The distinction between "earned" income (wealth creation) and "unearned" income (wealth extraction) disappears and the once separate areas of "capital" and "land" are conflated.

The problems with rentier activity in the economy are hidden in economics.

These things disappeared so long ago everyone forgot about them, but a free trade world required a low cost of living to pay internationally competitive wages.

The repeal of the Corn Laws to usher in the era of Laissez-Faire.

The landed aristocracy wanted high corn prices to get more land rent.

The businessmen wanted lower corn prices, to lower the cost of living, for lower, internationally competitive wages.

The conflict between rentier and business interests with free trade.

Cat Burglar , July 29, 2017 at 5:53 pm

I flag the idea "economic desserts [sic}" in the second to last paragraph. A region with no work, nowhere to buy or sell anything, and no assets of significant value? I wonder how you could map it, and how much of the area of the nation would fall into that category.

I've worked in one, a Central Oregon county that almost had to close its road department because of the lack of tax revenue. Tree cutting and mill work disappeared decades ago. Ranching is the core of the economy, but that is less labor-intensive than ever, and dealers of equipment and materials are all in other counties. Starting a family ranch is impossible if you're not already a multimillionaire. For many years the tiny Chevrolet dealer was the largest employer in the county.

Economic desert is an apt descriptor for places like that. The kids have been leaving for generations already ! the author of the article suggests education and training programs that will make it easier for them to leave. No other suggestion. No ideas for regional economic development, for example.

jerry , July 29, 2017 at 5:55 pm

Speaking of lack of hope, it occurs to me that the only way a Bernie/progressive agenda would possibly be adopted by the DNC is if the republicans were doing ok or good from a legislative and presidential standpoint, because then this puts the pressure on the Dems to put forth something that works and change their ways if they want to win back power.

However, since we are witnessing a truly impressive trainwreck and lack of competence on the part of the right, both within the house adopting legislation and within the presidency itself that is doing god knows what on any given day, all the Dems have to do is sit back and watch, and wait for their turn at the booth. As there are only two options in this wonderful system of ours, the American citizens have nowhere else to go come 2018 and 2020.. the slogan "at least we're not them" will be enough – with some "progressive" tidbits thrown in for good measure a la Schumers' latest proposal.

ckimball , July 29, 2017 at 6:19 pm

I had to make myself read this. My mind diverted to word hope and what makes it become an experience. Just to add a little to it.
I resented Obama for selling hope while he was doing it. It seemed a manufactured hope as opposed
to organic hope (such as hope arises in response to something that occurs that does not seem possible).I believe that for most black people the existence of Barack Obama's candidacy and then his victory generated a huge quota of hope. It was palpable to many of us and elicited some unsolicited hope in us too.
I believe this emotional state trumped and trumps the reasons listed in this article. The above was
transformative and perhaps many black people may feel more entitled to express their anger now.
Another example of hope arising from something that occurred that does not seem possible in the short term is same sex marriage. Both of these segments of our population have been injected with hope
unlike the "poor" category which have been inflicted both emotionally and physically with loss and
disillusionment. The erosion of the public domain is an attack on the ideals and property of the working people of this country.

Geophrian , July 29, 2017 at 7:54 pm

For what it's worth, here was my attempt at making a movie about the reality of life in America:

http://www.fraymovie.com

c_heale , July 29, 2017 at 7:59 pm

"Poor blacks are also half as likely to experience stress – a significant marker of ill-being – on a daily basis as are poor whites, while poor Hispanics are about two-thirds as likely."

I'm not sure this piece of research is correct. I haven't checked the reference, but I'm sure I read another piece of research a while back that said that suffering from racism causes a great deal of stress and psychological problems. The whole article appears to be a lot of waffle in my opinion. For example how can you possibly define hope. I once read that if you read a piece of research and you can't think of a way that an experiment can be done to show the results, then the research is invalid. I can't think of any experiment that can measure such an abstract concept as hope (the concept of hope is far more abstract than anger, for example).

DSP , July 29, 2017 at 9:50 pm

For some reason I can no longer reply to the relevant comment.This is an addition to "jane @ 7-03".
One of the most interesting things that has happened over my lifetime has been the almost complete disappearance of the past for the younger and the modern age.The element that I'm referring to is older proverbs and aphorisms,in this case "Hope makes a good breakfast but a poor supper".
I've also been told that each of the "Friends" would have to be earning $130,000 each to live their lifestyle and they wouldn't be loafing about on the sofa doing it.
Does anybody in America earn 130K rather than more or less?

[Jul 17, 2017] The dumbing down of America is going full steam

What is bunch of moron those modern educators are
Notable quotes:
"... Common core math is indeed an abomination. It nearly destroyed my son's interest in math. I'm teaching him old school math. Of course, I am also supplementing his history lessons with alternative analyses and with a more comprehensive range of topics. ..."
"... Another thing – most teachers of common core math at my son's public school do not understand it themselves. I noted errors in homework assignments which only compounded the confusion among the students. ..."
"... One more thing – they are expected to learn from online videos and sloppily prepared study sheets – not a real math book. The school system is trying to make education paperless. This, to me, stunts the critical skills of eye-hand coordination, the ability to express abstract concept visually (e.g. making good sketches of ideas), etc. For example, mechanical drafting skills with the associated ability to visualize have been replaced by learning how to manipulate software. ..."
"... Perhaps these are cost-cutting measures but the results is that the US public education system, from my experience, is in free fall. ..."
Jul 16, 2017 | marknesop.wordpress.com

kirill , July 16, 2017 at 6:05 am

http://www.zerohedge.com/news/2017-07-15/3-examples-show-how-common-core-destroying-math-education-america

The dumbing down of America is going full steam. This "Rube Goldberg math" is something else.

Patient Observer , July 16, 2017 at 7:08 am
Common core math is indeed an abomination. It nearly destroyed my son's interest in math. I'm teaching him old school math. Of course, I am also supplementing his history lessons with alternative analyses and with a more comprehensive range of topics.

Another thing – most teachers of common core math at my son's public school do not understand it themselves. I noted errors in homework assignments which only compounded the confusion among the students.

One more thing – they are expected to learn from online videos and sloppily prepared study sheets – not a real math book. The school system is trying to make education paperless. This, to me, stunts the critical skills of eye-hand coordination, the ability to express abstract concept visually (e.g. making good sketches of ideas), etc. For example, mechanical drafting skills with the associated ability to visualize have been replaced by learning how to manipulate software.

Perhaps these are cost-cutting measures but the results is that the US public education system, from my experience, is in free fall.

Here is a tin-foil hat theory based on the linked article. If Bill Gates is promoting a method of education that stunts learning among the masses while sending his own kids to private school that does not use the same method, could this be a way help to create a society of dysfunctional masses ruled by a well-trained elites?

yalensis , July 16, 2017 at 8:11 am
When it comes to Math, I think the traditional textbook approach is the best. For History and the social sciences, though, I would recommend replacing big textbooks with individual monographs and other study materials focusing on specialized themes.

Reason being: For Math, there is a standard (finite) set of facts and techniques that need to be mastered at the school level; whereas there is no such thing as a "standard" or finite sets of historical facts.

marknesop , July 16, 2017 at 9:57 am
A commenter to the article suggested Microsoft was setting itself up to step seamlessly into public education when the IT bubble bursts.
yalensis , July 16, 2017 at 10:53 am
Somebody else suggested they are trying to prepare kids to become programmers of digital computers (like Bill Gates started out). But that doesn't make any sense either, because digital computers do not use this method to subtract. Instead, they use a method called "2's complement addition".

This YouTube video explains quite clearly how it is done in binary computer registers: https://youtu.be/vfY7bN_3VKw

Matt , July 16, 2017 at 11:16 am
Computers do use binary arithmetic, but for a human to do so, it involves converting from base 10 to base 2 and then subtracting. In order to convert from base 10 to base 2, you have to follow a step-by-step procedure which involves the remainder.

Compare converting from base 10 to 2:

https://mathbits.com/MathBits/CompSci/Introduction/frombase10.htm

to the image given in the ZH article of the new subtraction method being taught:

You can see there is some similarity in the thought process, "carrying" the remainder forward is the main lesson being taught.

https://ads.pubmatic.com/AdServer/js/showad.js#PIX&kdntuid=1&p=156204

marknesop says: July 16, 2017 at 9:55 am
That is just bizarre. One commenter suggested the methods might be geared toward more complex problems where numbers do not represent real things, but concepts; but I just can't see that, either. But then, I've never been good at math and was always afraid of it. Whatever the case, I would have dropped out of school in Grade Three if I'd had to learn this way. It makes math problems ten times more complicated than they need to be, and every time you introduce another step you introduce another possibility of making a mistake.
likbez says:
July 16, 2017 at 9:06 pm Very true ! I am pretty good in math but this is still too much artificially introduced complexity for me too. Still it would be a perfect way to work with roman numbers. And that's BTW why Arabic notation is so much superior.

What a bunch of morons !!!

[Jul 17, 2017] Hallucinating Banks Believe They Are Technology Start-Ups

Notable quotes:
"... And this begs an obvious question: if customers complain about how banks let them down, why are the banks not concentrating on what customers are telling them is wrong with the products and services the banks provide already – rather than spending time and money on creating new supposedly innovative ones? The answer is, of course, that it generates profits for the banks to do things which customers find annoying (high fees, obscure product features and even bank errors which cause the customer to lose and the bank to win). Or else it costs money, such as to train staff and then retain that knowledge in their workforces or to have sufficient numbers of staff available in the first place, to fix the problem. ..."
"... In a digital world filled with choice ..."
"... choice, empathy and ease of use designed into every interaction they have with the bank ..."
"... For one thing, which may not be obvious to those outside the industry, working in finance is usually incredibly boring, frustrating, tedious and slow. While the outsized pay can and does attract intelligent and talented people, some of whom are quite creative, it is just about the worst place for those sorts of people to work. Systems and operations are convoluted and difficult to change because of their complexity. Banks are large bureaucracies with fiefdoms, turf wars, massive egos and driven by the need – in the cause of maximising shareholder value, the alter upon which many business have to sacrifice themselves – to implement the lowest cost solutions. ..."
"... It is not uncommon for the graduates and those recruited from the top performers in science and technology to join banks. They are lured by high pay and the promise of joining the Masters of the Universe. Sadly, they often find that the reality is form-filling, battles with nickel-and-diming accountants and internecine warfare. Boredom, for want of a better word, drives many of them to seek out vanity projects or resume-burnishing novelties such as fintech. ..."
"... There is no greater trojan horse to change an organization than design thinking,¯ said Stephen Gates, head of Citi Design. " Especially with something where there are lawyers, regulators Part of what we had to do was change thinking, not behavior. If it's new behavior on old thinking, we didn't really change anything.¯" ..."
"... lawyers, regulators "¯ ..."
"... Perhaps banking has killed off its most appealing aspects and left its minions filthy rich but with nothing stimulating to do. ..."
"... Automated decisioning has removed a lot of the skill and judgement for banks' credit officers. It has also removed a lot of credit officers! There's virtually no discretion available in retail credit policy and no-one empowered to override standard-model largely FICO derived lending decisions. As you say, a lot of local market knowledge helped banks and their lending teams make credit decisioning much more flexible in the past. ..."
"... It fascinates me how fascinated banks are with big data now. When banks were the first and ultimate big data company – just the data processors were people, not machines. Then they used the machines to streamline processes, seemingly w/o realisation that streamlining processes gets you commoditised (as its eminently copiable). So now banks are struggling to avoid a commoditization while working very very hard at it. ..."
"... I agree with Doctor Duck: the idea that because it's programmed, it's a better bureaucracy has really turned out to be a false promise. Just look at the financial crisis and reverse redlining (ie, predatory loans) was used as a financial weapon against minorities. ..."
"... Aside from racial injustices, it's pretty obvious that "the programming" is there to reify existing class divisions. There's no bureaucratic computer program that seeks to free people from the crushing bonds of class. Max Weber would have a field day. Bureaucratic technology ensures that there's no charisma appearing in the system. ..."
"... "On average", a college degree is an order acceptance and an endurance performance index within that order,thus, it is a cost efficient recruiting tool to exclude online non degree applicants from the very outset ..."
"... If you really want to get disgusted, look up "Learning Analytics". Venture capital is streaming into these startups that are aggressively data mining students. None of it ever passes through an ethics board and much of it violates FERPA, but the Department of Education seems to shrug their collective shoulders about it. Probably because many Dept of Ed personnel end up at those companies as advisors. ..."
"... And don't get me started on those tablets. Google hands out Chromebooks and swears up and down that they don't collect usage data. ..."
"... Well, see, arithmetic and maths and English and composition and Physics and Chemistry change so often that using paper textbooks would leave paper textbook students hopelessly behind students using tablets. OK, tablets cost on the order of 3 times what paper textbooks cost for the same usable time-span. But, hey! It's new! It's now! It's happening! (And also, too, rents.) /s ..."
"... One aspect you didn't cover, that I think may be more important than fighting off regulations (although that plays a role, I'm sure) is that I think execs are looking to get a piece of the silicon valley, techland infinite money-pile. They see Tesla worth more than Ford and they dream of where their stock price (and their stock options!) might go if they were thought of as tech companies instead of boring old banks. ..."
"... And part of it is fear. They are afraid of being the next Sears or local taxi company or whoever getting disrupted by the infinite silicon valley money-pile, either by the startups that can burn billions of dollars buying market share or by the big players who can leverage their entrenched monopoly positions in their core markets to spend billions trying to take over any market they feel like. ..."
"... The issue is that the banks have no incentive to address the 5 issues that you raised. They are a rent seeking cartel that does not care about the well being of the general populace at all. They certainly are not tech start-ups. I get the impression that most people think that tech startups are God, but in reality there are many bad start-ups too. ..."
"... Basically, their money is made screwing the general public over at this point. That's sad to say, but it is not far from the truth. What we need is a public bank and/or larger credit unions that can offer all the financial services of a big bank. ..."
Jul 17, 2017 | www.nakedcapitalism.com

The first paragraph states what may be obvious to those outside the finance industry bubble. Namely that users of financial services mostly do not want or need so-called innovative financial products or any new ways of using finance in their lives. Rather, they want banks to provide simple, easy-to-understand basic financial products that work. According to the copious data available from the Consumer Financial Protection Bureau which I've analysed, retail bank customers' top five sources of complaint are:

  1. Fees.
  2. Poor customer service.
  3. Unpaid checks or other bounced payments.
  4. "Gotcha's" hidden in product Terms and Conditions small print.
  5. Bank errors (which were either not corrected, took a lot of effort to get corrected or the corrections caused other knock-on issues).

I've worked in finance for nearly 30 years. The very first list I ever saw for complaints looked exactly the same as this.

And this begs an obvious question: if customers complain about how banks let them down, why are the banks not concentrating on what customers are telling them is wrong with the products and services the banks provide already – rather than spending time and money on creating new supposedly innovative ones? The answer is, of course, that it generates profits for the banks to do things which customers find annoying (high fees, obscure product features and even bank errors which cause the customer to lose and the bank to win). Or else it costs money, such as to train staff and then retain that knowledge in their workforces or to have sufficient numbers of staff available in the first place, to fix the problem.

Customers, even if we are supposed to be " In a digital world filled with choice " don't need " choice, empathy and ease of use designed into every interaction they have with the bank "¯. We want to not be ripped off and for the banks to act competently in our dealings with them.

It is too much of a stretch to expect that the banks, unprompted or without being cajoled by regulators, will address structural issues around their business culture, executive conduct and outlandish profitability ratio expectations. However, we should expect continued wailing and gnashing of teeth from the banks about "innovation"¯ and the need to be "competitive"¯ in "the marketplace"¯. The latter is a complete and immediately disprovable canard though, because the top 5 banks control nearly half of the market .

So why, then, do the banks keep going, broken-record like, with their claims about the need to innovate?

For one thing, which may not be obvious to those outside the industry, working in finance is usually incredibly boring, frustrating, tedious and slow. While the outsized pay can and does attract intelligent and talented people, some of whom are quite creative, it is just about the worst place for those sorts of people to work. Systems and operations are convoluted and difficult to change because of their complexity. Banks are large bureaucracies with fiefdoms, turf wars, massive egos and driven by the need – in the cause of maximising shareholder value, the alter upon which many business have to sacrifice themselves – to implement the lowest cost solutions.

It is not uncommon for the graduates and those recruited from the top performers in science and technology to join banks. They are lured by high pay and the promise of joining the Masters of the Universe. Sadly, they often find that the reality is form-filling, battles with nickel-and-diming accountants and internecine warfare. Boredom, for want of a better word, drives many of them to seek out vanity projects or resume-burnishing novelties such as fintech.

Lining up alongside a desire to do anything to relieve the monotony push, bank C-level leaderships then adds a pull all of their own. A preoccupation with trying to escape regulatory and legal constraints. For evidence, let's return to the Tearsheet post:

There is no greater trojan horse to change an organization than design thinking,¯ said Stephen Gates, head of Citi Design. " Especially with something where there are lawyers, regulators Part of what we had to do was change thinking, not behavior. If it's new behavior on old thinking, we didn't really change anything.¯" ( emphasis mine)

Superficially, this doesn't sound especially problematic. It could even be construed as plodding old legacy businesses like banks trying to adapt themselves to the modern knowledge economy era. Such superficial analysis would be wrong. Firstly, repeating a cliché of innovation and relying on invisible hands that ceaselessly drive any and all businesses to discard everything they've done historically and start afresh is just that, clichéd.

The notion that everything a business has learned and any intellectual property it possesses has suddenly, somehow, been rendered obsolete by some vague notion of an immense technological development is repeated so often that it's become part of our prevailing culture. But aside from a very small number of breakout products, such as the personal computer, the internet and the smartphone, most products you buy or services you use are only ever incremental improvements on what has preceded them.

The same applies to banking. Without getting too bogged down in the technicalities, a bank's only functions are to intermediate maturities and interest rates on deposits taken and loans made, plus to offer some money transmission services. Within financial services, the only two true innovations in the past 50 years or more which stand up to a scrutinizing of that term are the ATM and the credit card. Changes to how customers are serviced such as the migration from the branch channel to the telephone or the internet have shifted the "where"¯ and the "how"¯ banks interact with their customers, but not the "what"¯ of those interactions.

The line I highlighted in the Tearsheet article gave the game away. The participants who's thinking purportedly needs to change are not the accountants picking through expense reports stripping out costs (which usually means reducing headcount). Nor is it the thinking of executives to reduce their outsized compensation packages. Nor is it in boards who will only look at changes through the lens of a 5-year business case which must pay back within the shortest of short-term timeframes and satisfy outlandish Return on Investment (ROI) targets. These ways of thinking have been with us for at least 20 years or more, but apparently aren't in any danger of approaching a sell-by date.

No, the thinking that needs to change is that of " lawyers, regulators "¯ who are being exhorted to change to embrace the latest design trends and technological innovations. But regulators and lawyers are not and cannot be creative types who spend their time considering new colors for logos and typefaces for websites. Their jobs are to enforce or provide advice and guidance on the laws governing a corporation's products and services or to interpret regulatory frameworks which have been enacted by regulators and lawmakers. Creativity, design thinking and behavior doesn't come into it. Just because a bank wants to label a change as being innovative doesn't ! or shouldn't ! lessen the obligations on a bank's legal team or the regulators to comply with laws or existing regulations.

Gutting regulatory compliance and trying to side-step legal obligations aren't "design thinking". They're the same connivances which would have killed the entire banking industry 10 years ago, had we not all been coerced into bailing it out.

You can't blame the banks for trying it on. They are what they are and will continue to be so until they are forced to change. You can, however, fairly and squarely blame regulators and lawmakers for not pouring a lot of cold water on this craving for technological fervour. Making the banks tackle their long-standing issues as evident in the CFPB's complaint data before they can try anything fancy like fintech would be a start.

Banking industry , Guest Post , Ridiculously obvious scams , Technology and innovation on July 12, 2017 by Clive . About Clive

Survivor of nearly 30 years in a TBTF bank. Also had the privilege of working in Japan, which was great, selling real estate, which was an experience bordering on the psychedelic.

timotheus , July 12, 2017 at 7:09 am

A question from a total outsider: if modern banking is tedious and frustrating, could this be related to the (often-mentioned here) move away from servicing credit needs to algorithm-driven mechanics? If I think of the banker who sat in a front window of his bank on the main square of my home town, he was surely engaged in figuring out who was mortgage-worthy, what businesses might be good bets for loans, etc. It might have had its routine aspects, but it was engaged, integrated into the town's life, and required complex skills including how to say no to the guy who would sit next to your family at church. Perhaps banking has killed off its most appealing aspects and left its minions filthy rich but with nothing stimulating to do.

Clive Post author , July 12, 2017 at 7:42 am

Automated decisioning has removed a lot of the skill and judgement for banks' credit officers. It has also removed a lot of credit officers! There's virtually no discretion available in retail credit policy and no-one empowered to override standard-model largely FICO derived lending decisions. As you say, a lot of local market knowledge helped banks and their lending teams make credit decisioning much more flexible in the past.

I was though more referring here to the technology side of banks ! they are the antithesis of what many attracted to enter the sector think it will be like. There's so many internal bureaucracy hurdles, complexity constraints and cost-focussed management to work with, the people who unwisely buy into the hype the recruitment consultants proffer end up frustrated and disappointed. It is almost inevitable they go looking for glamour projects ! however unworkable they may be like a lot of fintech ! to try to latch onto.

Jim A , July 12, 2017 at 8:20 am

Of course the bad mortgages that were a big part of the RE bubble were approved by poorly thought out algorithms. As were the ratings on the bonds created from them. Algorithms are really only as good as the data that they are based on and the knowledge of the people who write them. And when it is profitable in the short term to ignore the long term, rest assured that somebody will figure out a way to make the algorithms do that.

EricT , July 12, 2017 at 9:19 am

Not algorithms, fraud. Mears, Countrywide and Goldman come to my mind.

Vatch , July 12, 2017 at 9:59 am

Who or what is Mears?

Tinky , July 12, 2017 at 10:20 am

Probably meant "MERS", aka "Mortgage Electronic Registration Systems, Inc."

Though "Mears" is an anagram of "reams", so

Vatch , July 12, 2017 at 12:16 pm

Oh, okay, that makes sense. Thank you.

MERS is the source of much trouble.

vlade , July 12, 2017 at 8:29 am

Amen.

That said, it's an interesting world out there, as banks do vary from country to country (having had experience in a number of them, on both sides of the fence).

Say in NZ, I had a bank manager, and he had some (reasonably) ability to vary the interest rate on my mortgage when I came asking. He could also offer special rates on deposits (over a certain amount).

In the UK, I also had a bank manager. Who wasn't even told by the bank's credit card department my CC application was rejected as I wasn't in the country for long enough, so he kep submitting it in the belief it got lost.. To modify an interest rate on anything was impossible. And, most recently it's even impossible to override the automated lending decision. Hurrah for automation!

It fascinates me how fascinated banks are with big data now. When banks were the first and ultimate big data company – just the data processors were people, not machines. Then they used the machines to streamline processes, seemingly w/o realisation that streamlining processes gets you commoditised (as its eminently copiable). So now banks are struggling to avoid a commoditization while working very very hard at it.

notabanker , July 12, 2017 at 8:50 am

Screams Utility, doesn't it?

programmer3 , July 12, 2017 at 8:43 am

On the flipside, removing personal discretion from credit judgement calls also makes the process more fair – less "redlining," and no denying credit based on personal prejudices (or approving loans for friends and family)

Clive Post author , July 12, 2017 at 8:54 am

That's a valid point ! it was too easy for a friends-and-family bias and even bribery to creep in to human decisions before model-based credit decisions became the norm. The happy-medium was when predefined scoring criteria were used as the foundation for a loan but you could appeal to head/regional offices for an over-ride if you had good extenuating circumstances or other reliable evidence to back you up.

The latter option is now no longer available, for the most part.

Doctor Duck , July 12, 2017 at 9:08 am

Your nick is 'programmer' and you think an algorithm couldn't be written to include a few "red lines"? Hmmm

Harry , July 12, 2017 at 2:46 pm

Exactly what I was thinking

Thuto , July 12, 2017 at 4:35 pm

Exactly, see my comment below

cocomaan , July 12, 2017 at 9:42 am

I agree with Doctor Duck: the idea that because it's programmed, it's a better bureaucracy has really turned out to be a false promise. Just look at the financial crisis and reverse redlining (ie, predatory loans) was used as a financial weapon against minorities.

Aside from racial injustices, it's pretty obvious that "the programming" is there to reify existing class divisions. There's no bureaucratic computer program that seeks to free people from the crushing bonds of class. Max Weber would have a field day. Bureaucratic technology ensures that there's no charisma appearing in the system.

We've created machines in our image, with all our prejudices and all of our assumptions in place, preserved in silicon forever.

Sue , July 12, 2017 at 3:54 pm

cocomaan,
very good points!

Mel , July 12, 2017 at 1:23 pm

Process more objective. The red lines are the ones written into the algorithms. I recall a Ted Rall post about Dayton OH that described them demolishing empty historic buildings to get their occupancy rate up. Banks algos wouldn't grand mortgage funds in areas with high un-occupancy rates. This is death to Jane Jacobs' recommended city environment, where a range of available rents, low-to-high, nourished every kind of development. A new-scale developer, blogging as Granola Shotgun has a lot to say about this ! the linked posts and a lot before.

Scott F , July 12, 2017 at 1:40 pm

Actually, a recent study took a classic psychology evaluation used on humans to detect bias and modified them to apply to so-called Artificial Intelligence and found that the same biases pop-up. The authors conjectured that the training data – compiled by humans – introduced the humans' biases into the system.

https://www.princeton.edu/news/2017/04/18/biased-bots-artificial-intelligence-systems-echo-human-prejudices

David Barrera , July 12, 2017 at 3:43 pm

This reminds me of the statistical gender discrimination algorithms used in the past. Some subindustries considered cost efficient to screen out women for employment because of the probability of maternity leave-apparently there were other "average gender biased considerations too"-. This excluded first, women who did not want to have any kids, and secondly-and independently from that- diverse, able, capable and willing labor participants. Have you ever asked yourself why some jobs which would not require a college degree by any stretch of the imagination screen out electronically the non-college degree applicants? "On average", a college degree is an order acceptance and an endurance performance index within that order,thus, it is a cost efficient recruiting tool to exclude online non degree applicants from the very outset. This way the enterprise leaves out that which the average does not include and which in certain cases could bring terribly needed different approaches to a job .Yet, no one ever said enterprises were democratic, truly inclusive and open to certain changes.

In regards to the financial theme, programmer 3 commented "removing personal discretion approving loans from friends and family". Anyone who worked for a lending company in the past knows it was a matter of policy that no employee could make loans to relatives or friends.

Remember that personal discretion-as opposed to personal arbitrariness-acts within written and unwritten guidelines and rules too. Also, what your stand alone algorithmic dictatorship does to how delinquencies are currently managed by the mortgage industry it just simply has no name.

HotFlash , July 13, 2017 at 2:09 am

"On average", a college degree is an order acceptance and an endurance performance index within that order,thus, it is a cost efficient recruiting tool to exclude online non degree applicants from the very outset

.

These days, a college degree is also a prime indicator of life-controlling debt.

Thuto , July 12, 2017 at 4:34 pm

Not in South Africa, where race is big factor in determining the risk profile of the client. As you can probably guess, the machines have been programmed to grant punitive interest rates to black people

Mrs Smith , July 12, 2017 at 7:49 am

Someone just sent me this link, and it's a perfect example of the above.

Don't miss the "native negroni" complete with "chilled vibes" and "bonus badassness."

[A "nope" gif isn't nearly strong enough to constrain my gag reflex for this stuff.]

https://www.linkedin.com/pulse/time-something-new-james-haycock?trk=v-feed&lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3BT57ItR8S3HRsqyVGECS1vw%3D%3D

Clive Post author , July 12, 2017 at 8:00 am

That is the worst example of this kind of thing I've ever seen! And we've seen plenty here it deserves some kind of award, in the same vein as the anti-Academy Award "Golden Raspberries" does for motion pictures. It might, Clive says hoping, be some sort of parody. Unfortunately, I think it is for real.

Arizona Slim , July 12, 2017 at 8:35 am

And it's all too typical of the bovine manure that gets posted on LinkedIn Pulse. Consider the source.

Stephen Gardner , July 12, 2017 at 9:30 am

But was the gin in the negroni curated by a hipster in tight pants and an ironic mustache? If not I just am not interested. LOL.

John Wright , July 12, 2017 at 9:42 am

To show my disconnect from the modern world, the linkedin article closes with "PI-shaped people"

I had to search for that, first suspecting it meant a person who levers their abilities by 3.14159xxxx

From what I found, there are T-shaped, PI-shaped and Comb-shaped people and the symbol's shape is a sort of expertise indicator.

A T-shaped person has one area of expertise under their generalist/broad knowledge top hat, a PI shaped person has TWO areas of expertise under their generalist/ broad knowledge top, while a comb-shaped person has MULTIPLE expertise areas under their generalist/broad knowledge top.

Do people make a living coming up with this stuff?

NotTimothyGeithner , July 12, 2017 at 12:42 pm

"Do people make a living coming up with this stuff?"

Delta shaped people do.

cocomaan , July 12, 2017 at 12:16 pm

Is this satire? I know if I have to ask that I'm the negative negroni, but this can't be real.

Bill Smith , July 12, 2017 at 8:00 am

From the list, the first one, fees, aren't going away given that the interest margins are so narrow.

I've seen a number of banks partner with one of the non bank fintech's (even pre IPO fintech's) to make the bank fintech savvy. To get their computer driven credit system? It will take a while to see how that works out.

notabanker , July 12, 2017 at 8:37 am

The agile design led stuff reminds me a lot of the TQM programs I went through in the 80's / 90's. Independent thinking within the group, commitment to the group to do the work, rolled out in large scale. We're even moving away from the cube farm to the factory floor, with foosball, xbox's and (sometimes free) coffee for all.

Likewise, the whole spinoff/startup thing was in vogue back in the early 90's when banks were faced with e-commerce, this is just the 2017 version.

Legacy is, and in some ways should be, their issue. Systems of record for fin transactions should have a long shelf life. With that comes people, process, costs and profits, all major drags on change. They won't be able to have it both ways.

fajensen , July 12, 2017 at 9:18 am

Me thinks that this kind of hype reaching banks and even politicians (the Danish government has created a "Disruption-council") is a sign that things are not going so well inside the engine room on the mother ship of the technopocalypse. Governments and Banks are kinda the very last people on earth to discover anything. At All. When they are suddenly "getting the vibe" whatever "the vibe" was about, is absolutely over :).

I think that Silicon Valley is leaking flim-flam merchants and "evangelists" because the money is getting thinner, the sell is becoming harder, easy consulting opportunities are diminishing and fewer are being procured by the real operators (Apple, Google, Facebook, CISCO .) to provide their stunning insights and bold visions for the future. The accountants are ascending, ROI is being scrutinised, exponential growth is levelling off so now there is time to do that.

The visionaries and evangelists still like to be paid (and the travel), so instead of canvassing Silicon Valley harder with work better suited to the actual future, they spread out and seek new markets for the same old stuff, kinda like what happened when Monsanto poured PCB into everything plasticky when the market for oil-filled capacitors was tapped out.

I'd say, in only one-two years, there will be good "SPLAT!" in the .unicorn market.

HotFlash , July 13, 2017 at 2:17 am

Thanks, fajensen, I think you are quite right. Totally looking forward to the Big Splat!

SoCal Rhino , July 12, 2017 at 9:08 am

Keeping score from recent battles among local demi deities, currently turf beats innovation, and in a stunning reversal that may not last, cost cutting prevailed over turf. These battlefields rather than the PowerPoint campaigns being where I observe corporate culture.

vlade , July 12, 2017 at 9:14 am

I'd add one innovation to the list though – smart sweep systems. That is, something that optimises the costs of an account/accounts for a client. That could be just sweeps between saving/checking accounts (not talking US here), to queuing transactions as to minimize costs etc.

But the banks that implemented this found very quickly that it led to a significant drop in client profitability (namely overdraft fees collapsed, interest paid went up), so quietly canned it.

But the story doesnt' end there – the smart ones figured out that optimization doesn't care whether you do max or min, so used the technology to optimise the profit from the client – hence things like applying debits before credits (to take you into overdraft) etc. Forunately, this "innovation" went out too, but it took regulators to get it done.

Clive Post author , July 12, 2017 at 9:22 am

Yes indeedey. My TBTF stopped allowing new sweeps / pooling arrangements which was a great service for customers who wanted to keep money on deposit or even in a market-linked account but didn't want to have to worry about constantly keeping an eye on what was in their current (checking) account to make sure they weren't going to go overdrawn.

Simple to understand, easy to set up for both customers and the bank, worked flawlessly because it was just a nightly batch job with easy-peasy logic ! what was there not to like? Erm unfortunately for the customers, the hit on bank profitability.

flora , July 12, 2017 at 9:19 am

Gaaa. Let me fix a bit of the Tearsheet intro:
"In a digital world filled with choice, banks' customers need choice, empathy and ease of use need sound information, good customer service and accurate accounting designed into every interaction they have with the bank."

I use my bank as a utility, not as an exciting "experience."

Great post.

cocomaan , July 12, 2017 at 9:48 am

Hey Clive, loved this piece. This really caught my attention:

For one thing, which may not be obvious to those outside the industry, working in finance is usually incredibly boring, frustrating, tedious and slow. While the outsized pay can and does attract intelligent and talented people, some of whom are quite creative, it is just about the worst place for those sorts of people to work. Systems and operations are convoluted and difficult to change because of their complexity.

I've worked in higher education and you see the same thing going on right now. Education, to me, is a social process of imparting knowledge. Simple solutions to perennial problems in education are: (1)Smaller class sizes (2) Better pay/benefits for teachers (3) Support systems for parents to help them help their children do well.

But what happens in education? Well the same thing you mention above: technology is thrown at these kids a mile a minute. Suddenly, the solution to problems in the classroom is monitoring grades through centralized systems with their databanks on the cloud, where student's every move is considered and they are flagged technologically for not living up to expectations. There's a huge complex of technological charlatan/consultants infesting higher and primary education at the moment.

Before long, the "boring" solutions are impossible. Why? As you say above, the technology becomes ensnared in itself, taking on its own inertia. Before you know it, you can't afford to change anything for the better because you have several legacy systems running simultaneously and weighing down budgets.

Clive , July 12, 2017 at 12:24 pm

It takes a lot to shock me, nowadays, but I was genuinely taken aback when an educator friend of mine (in our equivalent of K-12) told me she'd been given a tablet with ! from what I could tell, I didn't see it in action ! proprietary software used by the chain academy (charter school as it would be called in the US) where she works which prompted her during lessons to capture certain metrics (numbers of students voluntarily putting their hands up when asked certain previously defined questions in class, time spent on a particular PowerPoint slide ! a PowerPoint slide I thought for cryin' out loud ! which had been similarly predefined and "tagged for follow up" versus the estimated "best practice" time slot for this classroom content, a teacher-subjective "score" for student "engagement" and similar).

As a bit of a data nerd, I was appalled not just by the intrusion into territory where, surely, experienced educators knew best what to do, how to pace lessons, how to make best use of classroom time and so on but ! more importantly ! by the risible quality of the data being gathered. It was what I call pseudo facts, things which sound like they might be telling you something worth knowing but don't actually prove anything.

It all reminded me of those animal behaviour studies, the ones which come to conclusions like "when a cat comes towards you and it has its tail upright, it is engaged with you and wants you to interact with it". Sufficed to say when I tried out the theories on my mother-in-law's cat, I got a scratched top of my hand for my trouble.

cocomaan , July 12, 2017 at 1:09 pm

Love the cat analogy. Glad, or rather not glad, to know that it's reached across the pond.

If you really want to get disgusted, look up "Learning Analytics". Venture capital is streaming into these startups that are aggressively data mining students. None of it ever passes through an ethics board and much of it violates FERPA, but the Department of Education seems to shrug their collective shoulders about it. Probably because many Dept of Ed personnel end up at those companies as advisors.

And don't get me started on those tablets. Google hands out Chromebooks and swears up and down that they don't collect usage data.

flora , July 12, 2017 at 2:05 pm

an aside, and off topic (apologies):

Well, see, arithmetic and maths and English and composition and Physics and Chemistry change so often that using paper textbooks would leave paper textbook students hopelessly behind students using tablets. OK, tablets cost on the order of 3 times what paper textbooks cost for the same usable time-span. But, hey! It's new! It's now! It's happening! (And also, too, rents.) /s

Clive Post author , July 12, 2017 at 2:45 pm

Yeah, it's not like those old fashioned printed text books wouldn't go out of date (unless there was a lot of needless curriculum churn) and not have a useable economic life, even allowing for students' not-too-careful handling, of 5 to 10 years or so. Oh wait a minute

PKMKII , July 12, 2017 at 1:55 pm

Example of what I like to the call the "If you want faster-than-light-speed travel tomorrow, you have to let us commit fraud today" argument. Question is, whose eyes are they trying to pull the wool over? Investors to be wooed by web 2.0 jibberish? The top brass, to justify their continued employment and/or promotions? The public, as a horse and pony show to distract us from the bezzle? Regulators, hoping that the innovation and tech talk will intimidate them from paying attention to the man behind the curtain?

Some Guy , July 12, 2017 at 2:01 pm

Good post Clive, as someone who's been in banking for a few decades now, the current moment is very reminiscent of the late 90's, even down to some of the details.

Was on a call with some senior folks a while back rhapsodizing about how cutting edge neural network models would revolutionize our business, and I turned to a colleague who also been around the block and said, 'yeah we tried all that in the 90's, it didn't really make a difference' (vs. the standard approach of using multiple regression for credit scoring), and he said to me, 'yeah we tried that at my bank too, same result'

One aspect you didn't cover, that I think may be more important than fighting off regulations (although that plays a role, I'm sure) is that I think execs are looking to get a piece of the silicon valley, techland infinite money-pile. They see Tesla worth more than Ford and they dream of where their stock price (and their stock options!) might go if they were thought of as tech companies instead of boring old banks.

And part of it is fear. They are afraid of being the next Sears or local taxi company or whoever getting disrupted by the infinite silicon valley money-pile, either by the startups that can burn billions of dollars buying market share or by the big players who can leverage their entrenched monopoly positions in their core markets to spend billions trying to take over any market they feel like.

DH , July 12, 2017 at 5:36 pm

Wells Fargo tried that where they made account creation essentially click-bait for their workers. It worked for a while until it didn't. It turned out that their account creation approach was just a retread of the 1999 dot.com model, so they really were a tech start-up after all.

Altandmain , July 12, 2017 at 6:29 pm

The issue is that the banks have no incentive to address the 5 issues that you raised. They are a rent seeking cartel that does not care about the well being of the general populace at all. They certainly are not tech start-ups. I get the impression that most people think that tech startups are God, but in reality there are many bad start-ups too.

Basically, their money is made screwing the general public over at this point. That's sad to say, but it is not far from the truth. What we need is a public bank and/or larger credit unions that can offer all the financial services of a big bank.

ScottS , July 12, 2017 at 7:09 pm

From http://m.builtinla.com/2017/06/30/4-la-startups-named-prestigious-fintech-list :

Manhattan Beach-based PeerStreet closed out 2016 with a bang, raising a $15 million Series A anchored by strong growth over the course of the year. The company developed a crowdfunding platform that gives real estate investors access to high-yielding loans, with individual investments starting from as low as $1,000.

What could go wrong?

Colonel Smithers , July 13, 2017 at 6:49 am

Thank you for this post and reader contributions.

Many of the examples cited apply (equally) to my former employer, Barclays. Having been shafted by shysters from Wall Street, the bank jumped into the frying pan of (pseudo-)techies (often from a particular part of the world). My current employer, the German twin of Barclays, is just the same as the blue eagle.

Clive , July 13, 2017 at 6:58 am

Mine too, they must be putting something in the water.

[Jul 16, 2017] There is an older abomination, known as outcomes based education, which was a scheme to destroy the syllabus, while keeping teachers too busy with paperwork (recording outcomes ) to preserve copies of the syllabus or properly teach.

Jul 16, 2017 | marknesop.wordpress.com

saskydisc , July 16, 2017 at 7:41 am

There is an older abomination, known as outcomes based education, which was a scheme to destroy the syllabus, while keeping teachers too busy with paperwork (recording "outcomes") to preserve copies of the syllabus or properly teach.

It started in USA, was rejected there, got foisted on South Africa and Australia, got rejected by 2008 in RSA, not sure when in Australia, then got foisted on Canada, although opposition is building.

Seeing that high school teachers can see through it and opposition precedes it, the OBE clowns changed tack!

Now Engineering colleges in North America must follow this tomfoolery if they want to retain accreditation.

[Jul 16, 2017] The dumbing down of America is going full steam

What is bunch of moron those modern educators are
Notable quotes:
"... Common core math is indeed an abomination. It nearly destroyed my son's interest in math. I'm teaching him old school math. Of course, I am also supplementing his history lessons with alternative analyses and with a more comprehensive range of topics. ..."
"... Another thing – most teachers of common core math at my son's public school do not understand it themselves. I noted errors in homework assignments which only compounded the confusion among the students. ..."
"... One more thing – they are expected to learn from online videos and sloppily prepared study sheets – not a real math book. The school system is trying to make education paperless. This, to me, stunts the critical skills of eye-hand coordination, the ability to express abstract concept visually (e.g. making good sketches of ideas), etc. For example, mechanical drafting skills with the associated ability to visualize have been replaced by learning how to manipulate software. ..."
"... Perhaps these are cost-cutting measures but the results is that the US public education system, from my experience, is in free fall. ..."
Jul 16, 2017 | marknesop.wordpress.com

kirill , July 16, 2017 at 6:05 am

http://www.zerohedge.com/news/2017-07-15/3-examples-show-how-common-core-destroying-math-education-america

The dumbing down of America is going full steam. This "Rube Goldberg math" is something else.

Patient Observer , July 16, 2017 at 7:08 am
Common core math is indeed an abomination. It nearly destroyed my son's interest in math. I'm teaching him old school math. Of course, I am also supplementing his history lessons with alternative analyses and with a more comprehensive range of topics.

Another thing – most teachers of common core math at my son's public school do not understand it themselves. I noted errors in homework assignments which only compounded the confusion among the students.

One more thing – they are expected to learn from online videos and sloppily prepared study sheets – not a real math book. The school system is trying to make education paperless. This, to me, stunts the critical skills of eye-hand coordination, the ability to express abstract concept visually (e.g. making good sketches of ideas), etc. For example, mechanical drafting skills with the associated ability to visualize have been replaced by learning how to manipulate software.

Perhaps these are cost-cutting measures but the results is that the US public education system, from my experience, is in free fall.

Here is a tin-foil hat theory based on the linked article. If Bill Gates is promoting a method of education that stunts learning among the masses while sending his own kids to private school that does not use the same method, could this be a way help to create a society of dysfunctional masses ruled by a well-trained elites?

yalensis , July 16, 2017 at 8:11 am
When it comes to Math, I think the traditional textbook approach is the best. For History and the social sciences, though, I would recommend replacing big textbooks with individual monographs and other study materials focusing on specialized themes.

Reason being: For Math, there is a standard (finite) set of facts and techniques that need to be mastered at the school level; whereas there is no such thing as a "standard" or finite sets of historical facts.

marknesop , July 16, 2017 at 9:57 am
A commenter to the article suggested Microsoft was setting itself up to step seamlessly into public education when the IT bubble bursts.
yalensis , July 16, 2017 at 10:53 am
Somebody else suggested they are trying to prepare kids to become programmers of digital computers (like Bill Gates started out). But that doesn't make any sense either, because digital computers do not use this method to subtract. Instead, they use a method called "2's complement addition".

This YouTube video explains quite clearly how it is done in binary computer registers: https://youtu.be/vfY7bN_3VKw

Matt , July 16, 2017 at 11:16 am
Computers do use binary arithmetic, but for a human to do so, it involves converting from base 10 to base 2 and then subtracting. In order to convert from base 10 to base 2, you have to follow a step-by-step procedure which involves the remainder.

Compare converting from base 10 to 2:

https://mathbits.com/MathBits/CompSci/Introduction/frombase10.htm

to the image given in the ZH article of the new subtraction method being taught:

You can see there is some similarity in the thought process, "carrying" the remainder forward is the main lesson being taught.

    • marknesop says: July 16, 2017 at 9:55 am That is just bizarre. One commenter suggested the methods might be geared toward more complex problems where numbers do not represent real things, but concepts; but I just can't see that, either. But then, I've never been good at math and was always afraid of it. Whatever the case, I would have dropped out of school in Grade Three if I'd had to learn this way. It makes math problems ten times more complicated than they need to be, and every time you introduce another step you introduce another possibility of making a mistake. Reply
      • likbez says: July 16, 2017 at 9:06 pm Very true ! I am pretty good in math but this is still too much artificially introduced complexity for me too. Still it would be a perfect way to work with roman numbers. And that's BTW why Arabic notation is so much superior.

        What a bunch of morons !!!

[Jun 28, 2017] The Hoarding of the American Dream by Annie Lowrey

That's about the class of beneficiaries from neoliberalism.
Notable quotes:
"... Dream Hoarders ..."
Jun 16, 2017 | www.theatlantic.com

In a new book, a Brookings scholar argues that the upper-middle class has enriched itself and harmed economic mobility.

There's a certain type of financial confessional that has had a way of going viral in the post-recession era. The University of Chicago law professor complaining his family was barely keeping their heads above water on $250,000 a year . This hypothetical family of three in San Francisco making $200,000, enjoying vacations to Maui, and living hand-to-mouth. This real New York couple making six figures and merely " scraping by ."

In all of these viral posts, denizens of the upper-middle class were attempting to make the case for their middle class-ness. Taxes are expensive. Cities are expensive. Tuition is expensive. Children are expensive. Travel is expensive. Tens of thousands of dollars a month evaporate like cold champagne spilled on a hot lanai, they argue. And the 20 percent are not the one percent.

A great, short book by Richard V. Reeves of the Brookings Institution helps to flesh out why these stories provoke such rage. In Dream Hoarders , released this week, Reeves agrees that the 20 percent are not the one percent: The higher you go up the income or wealth distribution, the bigger the gains made in the past three or four decades. Still, the top quintile of earners-those making more than roughly $112,000 a year-have been big beneficiaries of the country's growth. To make matters worse, this group of Americans engages in a variety of practices that don't just help their families, but harm the other 80 percent of Americans.

"I am not suggesting that the top one percent should be left alone. They need to pay more tax, perhaps much more," Reeves writes. "But if we are serious about narrowing the gap between 'the rich' and everybody else, we need a broader conception of what it means to be rich."

The book traces the way that the upper-middle class has pulled away from the middle class and the poor on five dimensions: income and wealth, educational attainment, family structure, geography, and health and longevity. The top 20 percent of earners might not have seen the kinds of income gains made by the top one percent and America's billionaires. Still, their wage and investment increases have proven sizable. They dominate the country's top colleges, sequester themselves in wealthy neighborhoods with excellent public schools and public services, and enjoy healthy bodies and long lives. "It would be an exaggeration to say that the upper-middle class is full of gluten-avoiding, normal-BMI joggers who are only marginally more likely to smoke a cigarette than to hit their children," Reeves writes. "But it would be just that-an exaggeration, not a fiction."

They then pass those advantages onto their children, with parents placing a "glass floor" under their kids. They ensure they grow up in nice zip codes, provide social connections that make a difference when entering the labor force, help with internships, aid with tuition and home-buying, and schmooze with college admissions officers. All the while, they support policies and practices that protect their economic position and prevent poorer kids from climbing the income ladder: legacy admissions, the preferential tax treatment of investment income, 529 college savings plans, exclusionary zoning, occupational licensing, and restrictions on the immigration of white-collar professionals.

As a result, America is becoming a class-based society, more like fin-de-sičcle England than most would care to admit, Reeves argues. Higher income kids stay up at the sticky top of the income distribution. Lower income kids stay down at the bottom. The one percent have well and truly trounced the 99 percent, but the 20 percent have done their part to immiserate the 80 percent, as well-an arguably more relevant but less recognized class distinction.

Why more relevant? In part because the 20 percent are so much bigger than the one percent. If you are going to raise a considerable amount of new income-tax revenue to finance social programs, as many Democrats want to do, dinging the top one percent won't cut it: They are a lot richer, but a lot fewer in number. And if you are going to provide more opportunities in good neighborhoods, public schools, colleges, internship programs, and labor markets to lower-income families, it is the 20 percent that are going to have to give something up.

Reeves offers a host of policy changes that might make a considerable difference: better access to contraception, increasing building in cities and suburbs, barring legacy admissions to colleges, curbing tax expenditures that benefit families with big homes and capital gains. Still, given the scale of the problem, I wondered whether other, bigger solutions might be necessary as well: a universal child allowance to reduce the poverty rate among kids, as the Century Foundation has proposed , say, or baby bonds to help eliminate the black-white wealth gap fostered by decades of racist and exclusionary government policy, as Darrick Hamilton has suggested. (So often, the upper-middle class insulating and enriching itself at the expense of the working class has meant white families doing so at the expense of black families-a point I thought underplayed in Reeves' telling.)

Yet, as Reeves notes, "sensible policy is not always easy politics." Expanding opportunity and improving fairness would require the upper-middle class to vote for higher taxes, to let others move in, and to share in the wealth. Prying Harvard admission letters and the mortgage interest deductions out of the hands of bureaucrats in Bethesda, sales executives in Minnetonka, and lawyers in Louisville is not going to be easy.

Members of the upper-middle class, as those viral stories show and Reeves writes, love to think of themselves as members of the middle class, not as the rich. They love to think of themselves as hard workers who played fair and won what they deserved, rather than as people who were born on third and think they hit a triple. They hate to hear that the government policies they support as sensible might be torching social mobility and entrenching an elite. That elite is them.

[Jun 26, 2017] How Can A Human Justify Asking To Be Paid $15 To Work Zero Hedge

Jun 26, 2017 | www.zerohedge.com
Authored by Mike Shedlock via MishTalk.com,

McDonald's announced it will replace cashiers in 2,500 stores with self-service kiosks.

The story buzzed across the internet but Business Insider reported McDonald's shoots down fears it is planning to replace cashiers with kiosks .

"McDonald's has repeatedly said that adding kiosks won't result in mass layoffs, but will instead move some cashiers to other parts of the restaurant where it's adding new jobs, such as table service. The burger chain reiterated that position again on Friday."

Is McDonald's denial believable? What would you expect the company to say?

McDonald's has to deny the story or it might have a hiring problem, a morale problem, and other problems.

"Our CEO, Steve Easterbrook, has said on many occasions that self-order kiosks in McDonald's restaurants are not a labor replacement," a spokeswoman told Business Insider. "They provide an opportunity to transition back-of-the-house positions to more customer service roles such as concierges and table service where they are able to truly engage with guests and enhance the dining experience."

Move cashiers to table service? Really?

Yeah, right.

An interesting political rule from the British sitcom "Yes, Minister" is to "never believe anything until it's officially denied".

Will Humans Be Necessary?

When someone can be replaced by a robot, how can the push for $15 be justified?

Psychology Today asks Will Humans Be Necessary?

Will automation kill as many jobs as is feared? A widely cited Oxford University study predicts that 47% of jobs could be automated in the next decade of two. Price Waterhouse pegs the U.S. risk at 38%. McKinsey estimates that 45% of what people are paid for could be automated using existing technology!

No less than Tesla's Elon Musk, Bill Gates, and Stephen Hawking fear the loss of jobs will cause world cataclysm.

Lower-level jobs at risk

Let's start with jobs likely to be eliminated, starting with the present and with those lower-level jobs.

Already, don't you prefer a ATM to a teller, self-checkout to the supermarket checker, drive-through tolls rather than stop for the toll-taker, automated airline check-in rather than waiting for a clerk, shopping on Amazon rather than fighting traffic, parking, and the check-out experience with a live clerk, assuming the store has what you want in your size? Indeed, malls are closing while online retailers led by Amazon are growing.

As minimum wage and mandated benefits rise, fast-food restaurants especially are accelerating use of, for example, order-taking kiosks, which McDonald's is rolling out in 2,500 stores, robotic burger flippers and fry cooks, even pizza, ramen and sushi makers . Even that fail-safe job, barista, is at-risk, Bosch now makes an automated barista . Mid-range restaurants such as Olive Garden, Outback, and Applebee are replacing waiters with tabletop tablets . Will you really miss having your conversation interrupted by a waiter hawking hors de oeuvres and expecting a 15+% tip? If you owned a fast-food franchise, mighn't you be looking to replace people with automated solutions? Can it really be long until there are completely automated fast-food and even mid-range restaurants?

Robots are already being used as security guards. There are humanoid robots that can move heavy boxes, walk in uneven snow, and get up, not annoyed when thrown to the ground. (And won't sue for failure to supervise or an OSHA violation.)

Instead of hiring architects for tens of thousands of dollars, many people are opting to spend just a few hundred bucks to instantly get any of thousands of often award-winning house plans which, if needed, can be inexpensively customized to suit. Far fewer architects needed.

BlackRock, the world's largest fund company has replaced seven of its 53 analysts with AI-driven stock-picking.

The remaining jobs

In such a world, how can a human justify asking to be paid to work?

Four scenarios

The range of scenarios would seem circumscribed by these. How likely do you think each of these are?

  • Continue on the current path: The world continues to slowly make progress, e.g., birth rates declining in developing nations, slowed global warming, more education and health care. Those positives would be mitigated by declining jobs, more concentration of wealth.
  • World socialism.
  • Mass population reduction, for example, by nuclear war, pandemic, or, per Clive Cussler, highly communicable biovirus simultaneously put into the water supply of a half-dozen cruise ships?
  • A world run by machines and the few people they deem worthy.
  • Here is a debate between an optimistic and a pessimist on the future of the world.

    The truth may well be something we can't even envision. After all, he who lives by the crystal ball usually eats broken glass.

    Note that Psychology Today author Marty Nemko did not ask about $15. He wonders if pay for some jobs is worth anything at all.

    saudade -> 2banana , Jun 26, 2017 5:15 AM

    How about just reinstitute slavery and be done with it.

    Erek -> AVmaster , Jun 26, 2017 6:21 AM

    When all the jobs are taken over by machines there won't be anybody with money left to buy or pay for anything at all. WTF then? A world of no work is a world of little or no income. The ones who survive are the ones who know how to provide for themselves without the use of currency (barter, trade, farming, etc ).

    crazzziecanuck -> Erek , Jun 26, 2017 6:59 AM

    Before that happens, these machines will be heavily vandalized. It's all part of the inevitable ISEP problem (It's Someone Else's Problem).

    For one firm to do this, it's understandable, but for an entire sector, they're ripping their face off and everyone else's. But those making the decisions are unwilling or unable to care about even their long-term positions. To start, they largely exist to kick the can down the road until ... you guess it! ... it's ISEP. It's a problem for the next round of overcompensated intellectual-light and morally-bankrupt executives.

    But don't think "the market" is going to fix that. Markets never do. Markets have failures all the time yet people still pretend like they have this inherent magical property. Markets would be fine ... in a human-free world ... because anything a sociopath touches will be turned to sh*t. And power, be it government or "market" will attract these people. Any ideology can work, but only until the sociopaths game the sh*t out of the system and destroy it from the inside.

    Now, the less stupid people in these positions will realize the ISEP problem but know full well the government of the future can be extorted into, effectively, bailing them out somehow. Think of the "mandate" of ObamaCare and realize "thinkers" at the Heritage Institute saw this down the road back in the early 1980s. Right now, I'm starting to wonder if this whole "livable wage" is just a proxy bailout on behalf of large actors like McDonald's (who can no longer expect growth as the incomes and costs at the bottom shrink in the former and explode in the latter). That leadership knows full well that even if they took a leadership position on living wages, they'll be expected to be the only ones. The sociopaths at the other firms will think ... you got it! ... ISEP. Those firms can continue on f**king their employees while a large firm like McDonald's is expected to shoulder the entire burden or drive them into bankruptcy. In either of those cases, the status quo remains across the industry.

    FIRE-HC-E (Financial, Insurance, Real Estate, Healthcare, Education; the major rackets of ourlives) is destroying the markets for not just McDonald's employees, but also markets for other brick-and-mortar companies like Apple or Home Depot. This is why I focus heavily on our poor leadership because the leadership of the industrial sectors as a whole just sat back and watched as the likes of Wall Street slowly eroded the bedrock of the economy.

    Everything is a racket.

    Took Red Pill -> blown income , Jun 26, 2017 7:40 AM

    The author, Mike Shedlock, links to a POS article in Psychology Today, authored by Marty Nemko Ph.D. Did anyone else read that? It says under An optimistic vision "Longer term, it's even possible that we'll be able to accomplish more of what we want by using gene therapy or a chip embedded in our brain -Research to make that happen is already being funded by the federal government." Ah, no thank you!

    Mike also asks " how can the push for $15 be justified? And links to the Psycholgy Today article which say "we may also need a guaranteed basic income paid heavily by successful corporations and wealthy individuals". Which view do you support Mike?

    Psychology Today article also states "What about journalism? Even in major media outlets, many journalism jobs have already been lost to the armies of people willing to write for free. In addition, software such as Quill can replace some human journalists" Maybe in this case, that's not a bad thing.

    NidStyles -> Took Red Pill , Jun 26, 2017 8:05 AM

    More like Shylock....

    If it's being printed commercially, it's probably bullshit.

    [Jun 26, 2017] Why hurting the poor will hurt the economy

    Crocodile tears of WaPO staff... Who fully supported implementation of Washington consensus that robbed the nations in favor of international companies... this was a new mass scale economic rape of the Western countries and it was especially brutal in xUSSR area.
    Mar 11, 2017 | economistsview.typepad.com

    djb : March 11, 2017 at 06:42 AM

    Why hurting the poor will hurt the economy - The Washington Post

    that this topic even needs a special article about it is proof of the sad state of affairs of economics today

    Why trying to help poor countries might actually hurt them - The Washington Post

    Nobel-winning economist Angus Deaton argues against giving aid to poor countries

    It sounds kind of crazy to say that foreign aid often hurts, rather than helps, poor people in poor countries. Yet that is what Angus Deaton, the newest winner of the Nobel Prize in economics , has argued.

    Deaton, an economist at Princeton University who studied poverty in India and South Africa and spent decades working at the World Bank, won his prize for studying how the poor decide to save or spend money. But his ideas about foreign aid are particularly provocative. Deaton argues that, by trying to help poor people in developing countries, the rich world may actually be corrupting those nations' governments and slowing their growth. According to Deaton, and the economists who agree with him, much of the $135 billion that the world's most developed countries spent on official aid in 2014 may not have ended up helping the poor.

    Angus Deaton (LARRY LEVANTI/AFP/Getty Images)

    The idea of wealthier countries giving away aid blossomed in the late 1960s, as the first humanitarian crises reached mass audiences on television. Americans watched through their TV sets as children starved to death in Biafra, an oil-rich area that had seceded from Nigeria and was now being blockaded by the Nigerian government, as Philip Gourevitch recalled in a 2010 story in the New Yorker. Protesters called on the Nixon administration for action so loudly that they ended up galvanizing the largest nonmilitary airlift the world had ever seen. Only a quarter-century after Auschwitz, humanitarian aid seemed to offer the world a new hope for fighting evil without fighting a war.

    There was a strong economic and political argument for helping poor countries, too. In the mid-20th century, economists widely believed that the key to triggering growth -- whether in an already well-off country or one hoping to get richer -- was pumping money into a country's factories, roads and other infrastructure. So in the hopes of spreading the Western model of democracy and market-based economies, the United States and Western European powers encouraged foreign aid to smaller and poorer countries that could fall under the influence of the Soviet Union and China.

    The level of foreign aid distributed around the world soared from the 1960s , peaking at the end of the Cold War, then dipping before rising again. Live Aid music concerts raised public awareness about challenges like starvation in Africa, while the United States launched major, multibillion-dollar aid initiatives . And the World Bank and advocates of aid aggressively seized on research that claimed that foreign aid led to economic development.

    Deaton wasn't the first economist to challenge these assumptions, but over the past two decades his arguments began to receive a great deal of attention. And he made them with perhaps a better understanding of the data than anyone had before. Deaton's skepticism about the benefits of foreign aid grew out of his research, which involved looking in detail at households in the developing world, where he could see the effects of foreign aid intervention.

    "I think his understanding of how the world worked at the micro level made him extremely suspicious of these get-rich-quick schemes that some people peddled at the development level," says Daron Acemoglu, an economist at MIT.

    The data suggested that the claims of the aid community were sometimes not borne out. Even as the level of foreign aid into Africa soared through the 1980s and 1990s, African economies were doing worse than ever, as the chart below, from a paper by economist Bill Easterly of New York University, shows.


    William Easterly, "Can Foreign Aid Buy Growth?"

    The effect wasn't limited to Africa. Many economists were noticing that an influx of foreign aid did not seem to produce economic growth in countries around the world. Rather, lots of foreign aid flowing into a country tended to be correlated with lower economic growth, as this chart from a paper by Arvind Subramanian and Raghuram Rajan shows.

    The countries that receive less aid, those on the left-hand side of the chart, tend to have higher growth -- while those that receive more aid, on the right-hand side, have lower growth.


    Raghuram G. Rajan and Arvind Subramanian, "Aid and Growth: What Does the Cross-Country Evidence Really Show?"

    Why was this happening? The answer wasn't immediately clear, but Deaton and other economists argued that it had to do with how foreign money changed the relationship between a government and its people.

    Think of it this way: In order to have the funding to run a country, a government needs to collect taxes from its people. Since the people ultimately hold the purse strings, they have a certain amount of control over their government. If leaders don't deliver the basic services they promise, the people have the power to cut them off.

    Deaton argued that foreign aid can weaken this relationship, leaving a government less accountable to its people, the congress or parliament, and the courts.

    "My critique of aid has been more to do with countries where they get an enormous amount of aid relative to everything else that goes on in that country," Deaton said in an interview with Wonkblog. "For instance, most governments depend on their people for taxes in order to run themselves and provide services to their people. Governments that get all their money from aid don't have that at all, and I think of that as very corrosive."

    It might seem odd that having more money would not help a poor country. Yet economists have long observed that countries that have an abundance of wealth from natural resources, like oil or diamonds, tend to be more unequal, less developed and more impoverished, as the chart below shows. Countries at the left-hand side of the chart have fewer fuels, ores and metals and higher growth, while those at the right-hand side have more natural resource wealth, yet slower growth. Economists postulate that this "natural resource curse" happens for a variety of reasons, but one is that such wealth can strengthen and corrupt a government.

    curse

    Like revenue from oil or diamonds, wealth from foreign aid can be a corrupting influence on weak governments, "turning what should be beneficial political institutions into toxic ones," Deaton writes in his book "The Great Escape: Health, Wealth, and the Origins of Inequality." This wealth can make governments more despotic, and it can also increase the risk of civil war, since there is less power sharing, as well as a lucrative prize worth fighting for.

    Deaton and his supporters offer dozens of examples of humanitarian aid being used to support despotic regimes and compounding misery, including in Zaire, Rwanda, Ethiopia, Somalia, Biafra, and the Khmer Rouge on the border of Cambodia and Thailand. Citing Africa researcher Alex de Waal, Deaton writes that "aid can only reach the victims of war by paying off the warlords, and sometimes extending the war."

    He also gives plenty of examples in which the United States gives aid "for 'us,' not for 'them'" – to support our strategic allies, our commercial interests or our moral or political beliefs, rather than the interests of the local people.

    The United States gave aid to Ethiopia for decades under then-President Meles Zenawi Asres, because he opposed Islamic fundamentalism and Ethiopia was so poor. Never mind that Asres was "one of the most repressive and autocratic dictators in Africa," Deaton writes. According to Deaton, "the award for sheer creativity" goes to Maaouya Ould Sid'Ahmed Taya, president of Mauritania from 1984 to 2005. Western countries stopped giving aid to Taya after his government became too politically repressive, but he managed to get the taps turned on again by becoming one of the few Arab nations to recognize Israel.

    Some might argue for bypassing corrupt governments altogether and distributing food or funding directly among the people. Deaton acknowledges that, in some cases, this might be worth it to save lives. But one problem with this approach is that it's difficult: To get to the powerless, you often have to go through the powerful. Another issue, is that it undermines what people in developing countries need most -- "an effective government that works with them for today and tomorrow," he writes .

    The old calculus of foreign aid was that poor countries were merely suffering from a lack of money. But these days, many economists question this assumption, arguing that development has more to do with the strength of a country's institutions – political and social systems that are developed through the interplay of a government and its people.

    There are lot of places around the world that lack good roads, clean water and good hospitals, says MIT's Acemoglu: "Why do these places exist? If you look at it, you quickly disabuse yourself of the notion that they exist because it's impossible for the state to provide services there." What these countries need even more than money is effective governance, something that foreign aid can undermine, the thinking goes.

    Some people believe that Deaton's critique of foreign aid goes too far. There are better and worse ways to distribute foreign aid, they say. Some project-based approaches -- such as financing a local business, building a well, or providing uniforms so that girls can go to school -- have been very successful in helping local communities. In the last decade, researchers have tried to integrate these lessons from economists and argue for more effective aid practices.

    Many people believe that the aid community needs more scrutiny to determine which practices have been effective and which have not. Economists such as Abhijit Banerjee and Esther Duflo, for example, argue for creating randomized control trials that allow researchers to carefully examine the development effects of different types of projects -- for example, following microcredit as it is extended to people in poor countries.

    These methods have again led to a swell in optimism in professional circles about foreign aid efforts. And again, Deaton is playing the skeptic.

    While Deaton agrees that many development projects are successful, he's critical of claims that these projects can be replicated elsewhere or on a larger scale. "The trouble is that 'what works' is a highly contingent concept," he said in an interview. "If it works in the highlands of Kenya, there's no reason to believe it will work in India, or that it will work in Princeton, New Jersey."

    The success of a local project, like microfinancing, also depends on numerous other local factors, which are harder for researchers to isolate. Saying that these randomized control trials prove that certain projects cause growth or development is like saying that flour causes cake, Deaton writes in his book. "Flour 'causes' cakes, in the sense that cakes made without flour do worse than cakes made with flour – and we can do any number of experiments to demonstrate it – but flour will not work without a rising agent, eggs, and butter – the helping factors that are needed for the flour to 'cause' the cake."

    Deaton's critiques of foreign aid stem from his natural skepticism of how people use -- and abuse -- economic data to advance their arguments. The science of measuring economic effects is much more important, much harder and more controversial than we usually think, he told The Post.

    Acemoglu said of Deaton: "He's challenging, and he's sharp, and he's extremely critical of things he thinks are shoddy and things that are over-claiming. And I think the foreign aid area, that policy arena, really riled him up because it was so lacking in rigor but also so grandiose in its claims."

    Deaton doesn't argue against all types of foreign aid. In particular, he believes that certain types of health aid – offering vaccinations, or developing cheap and effective drugs to treat malaria, for example -- have been hugely beneficial to developing countries.

    But mostly, he said, the rich world needs to think about "what can we do that would make lives better for millions of poor people around the world without getting into their economies in the way that we're doing by giving huge sums of money to their governments." Overall, he argues that we should focus on doing less harm in the developing world, like selling fewer weapons to despots, or ensuring that developing countries get a fair deal in trade agreements, and aren't harmed by U.S. foreign policy decisions.

    Deaton also believes that our attitude toward foreign aid – that developed countries ought to swoop in and save everyone else – is condescending and suspiciously similar to the ideas of colonialism. The rhetoric of colonialism, too, "was all about helping people, albeit about bringing civilization and enlightenment to people whose humanity was far from fully recognized," he has written.

    Instead, many of the positive things that are happening in Africa – the huge adoption in cell phones over the past decade, for example – are totally homegrown. He points out that, while the world has made huge strides in reducing poverty in recent decades, almost none of this has been due to aid. Most has been due to development in countries like China, which have received very little aid as a proportion of gross domestic product and have "had to work it out for themselves."

    Ultimately, Deaton argues that we should stand aside and let poorer countries develop in their own ways. "Who put us in charge?" he asks.

    Inequality

    [Jun 26, 2017] In Towns Already Hit by Steel Mill Closings, a New Casualty: Retail Jobs

    Jun 26, 2017 | economistsview.typepad.com

    Fred C. Dobbs , June 25, 2017 at 09:03 PM

    In Towns Already Hit by Steel Mill Closings, a New Casualty: Retail Jobs

    https://nyti.ms/2u369Ph
    NYT - RACHEL ABRAMS and ROBERT GEBELOFF - JUNE 25, 2017

    Thousands of workers face unemployment as retailers
    struggle to adapt to online shopping. But even as
    e-commerce grows, it isn't absorbing these workers.

    JOHNSTOWN, Pa. - Dawn Nasewicz comes from a family of steelworkers, with jobs that once dominated the local economy. She found her niche in retail.

    She manages a store, Ooh La La, that sells prom dresses and embroidered jeans at a local mall. But just as the jobs making automobile springs and rail anchors disappeared, local retail jobs are now vanishing.

    "I need my income," said Ms. Nasewicz, who was told that her store will close as early as August. "I'm 53. I have no idea what I'm going to do."

    Ms. Nasewicz is another retail casualty, one of tens of thousands of workers facing unemployment nationwide as the industry struggles to adapt to online shopping.
    Continue reading the main story
    Photo
    A sporting goods store in a Johnstown, Pa., mall is having a going-out-of-business sale. Credit George Etheredge for The New York Times

    Small cities in the Midwest and Northeast are particularly vulnerable. When major industries left town, retail accounted for a growing share of the job market in places like Johnstown, Decatur, Ill., and Saginaw, Mich. Now, the work force is getting hit a second time, and there is little to fall back on.

    Moreover, while stores in these places are shedding jobs because of e-commerce, e-commerce isn't absorbing these workers. Growth in e-commerce jobs like marketing and engineering, while strong, is clustered around larger cities far away. Rural counties and small metropolitan areas account for about 23 percent of traditional American retail employment, but they are home to just 13 percent of e-commerce positions.

    E-commerce has also fostered a boom in other industries, including warehouses. But most of those jobs are being created in larger metropolitan areas, an analysis of Census Bureau business data shows.

    Almost all customer fulfillment centers run by the online shopping behemoth Amazon are in metropolitan areas with more than 250,000 people - close to the bulk of its customers - according to a list of locations compiled by MWPVL International, a logistics consulting firm. An Amazon spokeswoman noted, however, that the company had recently opened warehouses in two distressed cities in larger metropolitan areas, Fall River, Mass., and Joliet, Ill.

    The Johnstown metropolitan area, in western Pennsylvania, has lost 19 percent of its retail jobs since 2001, and the future is uncertain. At least a dozen of Ooh La La's neighbors at the mall have closed, and a "Going out of business" banner hangs across the front of the sporting goods store Gander Mountain.

    "Every time you lose a corner store, every time you lose a restaurant, every time you lose a small clothing store, it detracts from the quality of life, as well as the job loss," said John McGrath, a professor of management at the University of Pittsburgh Johnstown.

    This city is perhaps still best known for a flood that ravaged it nearly 130 years ago. After rebuilding, Johnstown eventually became prosperous from its steel and offered a clear path to the middle class. For generations, people could walk out of high school and into a steady factory job.

    But today, the area bears the marks of a struggling town. Its population has dwindled, and addiction treatment centers and Dollar Generals stand in place of corner grocers and department stores like Glosser Brothers, once owned by the family of Stephen Miller, President Trump's speechwriter and a policy adviser.

    When Mr. Trump spoke about "rusted-out factories scattered like tombstones across the landscape of our nation" in his Inaugural Address, people like Donald Bonk, a local economic development consultant, assumed that Mr. Miller - who grew up in California but spent summers in Johnstown - was writing about the old Bethlehem Steel buildings that still hug long stretches of the Little Conemaugh River.

    The county voted overwhelmingly for Mr. Trump, eight years after it helped to elect Barack Obama. (It also voted for Mitt Romney in 2012, but not by as wide a margin.)

    Here and in similar towns, when the factory jobs left, a greater share of the work force ended up in retail.

    Sometimes that meant big-box retailers like Walmart, which were often blamed for destroying mom-and-pop stores but at least created other jobs for residents. The damage from e-commerce plays out differently. Digital firms may attract customers from small towns, but they are unlikely to employ them.

    Some remaining retailers are straining for solutions. ...

    [Jun 25, 2017] The idea of basic income is incompatible with the neoliberalism

    Notable quotes:
    "... What's needed is not the arbitrary adoption of UBI, but a conversation about what a welfare state is for. In their incendiary book Inventing the Future, the authors Alex Williams and Nick Srnicek argue for UBI but link it to three other demands: collectively controlled automation, a reduction in the working week, and a diminution of the work ethic. Williams and Srnicek believe that without these other provisions, UBI could essentially act as an excuse to get rid of the welfare state. ..."
    "... What's needed is not the arbitrary adoption of UBI, but an entirely different conversation about what a welfare state is for. As David Lammy MP said, after the Grenfell Tower disaster: "This is about whether the welfare state is just about schools and hospitals or whether it is about a safety net." The conversation, in light of UBI, could go even further: it's possible for the welfare state not just to act as a safety net, but as a tool for all of us to do less work and spend more time with our loved ones, pursuing personal interests or engaging in our communities. ..."
    Jun 25, 2017 | economistsview.typepad.com

    Christopher H. June 25, 2017 at 07:01 AM

    https://lanekenworthy.net/2017/06/23/in-work-poverty-in-the-us/

    Lane Kenworthy's article shows how America is already great, with many more people working in poverty than in the UK, Ireland or Australia. Maybe the robots stole better paying jobs? Maybe they need more education and to skill up?

    Christopher H. , June 25, 2017 at 07:02 AM

    https://www.theguardian.com/commentisfree/2017/jun/23/universal-basic-income-ubi-welfare-state?CMP=share_btn_tw

    Love the idea of a universal basic income? Be careful what you wish for

    Ellie Mae O'Hagan

    Friday 23 June 2017 10.36 EDT

    Yes, UBI could be an important part of a radical agenda. But beware: its proponents include neoliberals hostile to the very idea of the welfare state

    For some time now, the radical left has been dipping its toes in the waters of universal basic income (or unconditional basic income, depending on who you talk to). The idea is exactly as it sounds: the government would give every citizen – working or not – a fixed sum of money every week or month, with no strings attached. As time goes on, universal basic income (UBI) has gradually been transitioning from the radical left into the mainstream: it's Green party policy, is picking up steam among SNP and Labour MPs and has been advocated by commentators including this newspaper's very own John Harris.

    Supporters of the idea got a boost this week with the news that the Finnish government has piloted the idea with 2,000 of its citizens with very positive results. Under the scheme, the first of its kind in Europe, participants receive €560 (£473) every month for two years without any requirements to fill in forms or actively seek work. If anyone who receives the payment finds work, their UBI continues. Many participants have reported "decreased stress, greater incentives to find work and more time to pursue business ideas." In March, Ontario in Canada started trialling a similar scheme.

    Given that UBI necessarily promotes universalism and is being pursued by liberal governments rather than overtly rightwing ones, it's tempting to view it as an inherently leftwing conceit. In January, MEPs voted to consider UBI as a solution to the mass unemployment that might result from robots taking over manual jobs.

    From this perspective, UBI could be rolled out as a distinctly rightwing initiative. In fact it does bear some similarity to the government's shambolic universal credit scheme, which replaces a number of benefits with a one-off, lower, monthly payment (though it goes only to people already on certain benefits, of course). In the hands of the right, UBI could easily be seen as a kind of universal credit for all, undermining the entire benefits system and providing justification for paying the poorest a poverty income.

    In fact, can you imagine what UBI would be like if it were rolled out by this government, which only yesterday promised to fight a ruling describing the benefits cap as inflicting "real misery to no good purpose"?

    Despite the fact that the families who brought a case against the government had children too young to qualify for free childcare, the Department for Work and Pensions still perversely insisted that "the benefit cap incentivises work". It's not hard to imagine UBI being administered by the likes of A4e (now sold and renamed PeoplePlus), which carried out back-to-work training for the government, and saw six of its employees receive jail sentences for defrauding the government of £300,000. UBI cannot be a progressive initiative as long as the people with the power to implement it are hostile to the welfare state as a whole.

    What's needed is not the arbitrary adoption of UBI, but a conversation about what a welfare state is for. In their incendiary book Inventing the Future, the authors Alex Williams and Nick Srnicek argue for UBI but link it to three other demands: collectively controlled automation, a reduction in the working week, and a diminution of the work ethic. Williams and Srnicek believe that without these other provisions, UBI could essentially act as an excuse to get rid of the welfare state.

    What's needed is not the arbitrary adoption of UBI, but an entirely different conversation about what a welfare state is for. As David Lammy MP said, after the Grenfell Tower disaster: "This is about whether the welfare state is just about schools and hospitals or whether it is about a safety net." The conversation, in light of UBI, could go even further: it's possible for the welfare state not just to act as a safety net, but as a tool for all of us to do less work and spend more time with our loved ones, pursuing personal interests or engaging in our communities.

    UBI has this revolutionary potential – but not if it is simply parachuted into a political economy that has been pursuing punitive welfare policies for the last 30 years.

    On everything from climate change and overpopulation to yawning inequality and mass automation, modern western economies face unprecedented challenges. These conditions are frightening but they also open up the possibility of the kind of radical policies we haven't seen since the postwar period. UBI could be the start of this debate, but it must not be the end.

    Christopher H. -> Christopher H.... , June 25, 2017 at 07:06 AM
    "In January, MEPs voted to consider UBI as a solution to the mass unemployment that might result from robots taking over manual jobs."

    MEPs stands for Members of the European Parliament.

    Julio -> Christopher H.... , June 25, 2017 at 08:41 AM
    One of the reasons I support UBI is that it refocuses political discussions to some of the fundamental issues, as this article points out.
    libezkova -> Julio ... , June 25, 2017 at 11:21 AM
    > "One of the reasons I support UBI is that it refocuses political discussions to some of the fundamental issues, as this article points out."

    I agree. UBI might probably be the most viable first step of Trump's MAGA. But he betrayed his electorate. Similarly it would be a good step in Obama's "change we can believe in" which never materialized. The level of automation that currently exists makes UBI quite a possibility.

    But...

    The problem is the key idea of neoliberalism is "socialism for rich and feudalism and/or plantation slavery for poor." So neither Republicans, nor Clinton Democrats are interested in UBI. It is anathema for neoliberals.

    [Jun 21, 2017] Neoliberalism and opioids abuse

    Jun 21, 2017 | economistsview.typepad.com

    libezkova, June 21, 2017 at 07:25 PM

    Over 33K people in US died of opiates overdoses in 2015 according to the Centers for Disease Control and Prevention.

    Not only unemployed abuse opioids, but more and more college students and recent graduates are abusing the opioids as well, according to a survey of 1200 college aged adults commissioned the same year by Christie foundation.

    Federal law does not require colleges to report drug death unless they are deemed criminal. But fatal overdoses have been rising at schools nationwide underscoring and horrifying reality of for administrators: in addition to binge drinking and marijuana, they have another crisis firmly entrenched on campus.

    Now losing 30K people in one year is like small scale civil war (like the one they have in Ukraine) and in a way it is: war of wealthy and medical industrial complex against those in difficult circumstances, with dreams crashed and, especially, unemployed.

    https://www.usnews.com/news/news/articles/2016-06-14/opioids-linked-with-deaths-other-than-overdoses-study-says

    == quote ==

    CHICAGO (AP) - Accidental overdoses aren't the only deadly risk from using powerful prescription painkillers - the drugs may also contribute to heart-related deaths and other fatalities, new research suggests.

    Among more than 45,000 patients in the study, those using opioid painkillers had a 64 percent higher risk of dying within six months of starting treatment compared to patients taking other prescription pain medicine. Unintentional overdoses accounted for about 18 percent of the deaths among opioid users, versus 8 percent of the other patients.

    "As bad as people think the problem of opioid use is, it's probably worse," said Wayne Ray, the lead author and a health policy professor at Vanderbilt University's medical school. "They should be a last resort and particular care should be exercised for patients who are at cardiovascular risk."

    His caution echoes recent advice from the Centers for Disease Control and Prevention, trying to stem the nation's opioid epidemic. The problem includes abuse of street drugs like heroin and overuse of prescription opioids such as hydrocodone, codeine and morphine.

    The drugs can slow breathing and can worsen disrupted breathing that occurs with sleep apnea, potentially leading to irregular heartbeats, heart attacks or sudden death, the study authors said.

    In 2014, there were more than 14,000 fatal overdoses linked with the painkillers in the U.S. The study suggests even more have died from causes linked with the drugs, and bolster evidence in previous research linking them with heart problems.

    The study involved more than 45,000 adult Medicaid patients in Tennessee from 1999 to 2012. They were prescribed drugs for chronic pain not caused by cancer but from other ailments including persistent backaches and arthritis.

    Half received long-acting opioids including controlled-release oxycodone, methadone and fentanyl skin patches. Fentanyl has been implicated in the April death of Prince, although whether the singer was using a fentanyl patch, pills or other form of the drug hasn't been publicly revealed.

    Long-acting opioids remain in the body longer. The study authors noted that the body's prolonged exposure to the drugs may increase risks for toxic reactions.

    The remaining study patients had prescriptions for non-opioid drugs sometimes used to treat nerve pain, including gabapentin; or certain antidepressants also used for pain.

    There were 185 deaths among opioid users, versus 87 among other patients. The researchers calculated that for every 145 patients on an opioid drug, there was one excess death versus deaths among those on other painkillers.

    The two groups were similar in age, medical conditions, risks for heart problems and other characteristics that could have contributed to the outcomes.

    The results were published Tuesday in the Journal of the American Medical Association .

    The study involved only Medicaid patients, who include low-income and disabled adults and who are among groups disproportionately affected by opioid abuse.

    Ray noted that the study excluded the sickest patients and those with any evidence of drug abuse. He said similar results would likely be found in other groups.

    Dr. Chad Brummett, director of pain research at the University of Michigan Health System, said the study highlights risks from the drugs in a novel way and underscores why their use should be limited.

    [Jun 17, 2017] The Collapsing Social Contract by Gaius Publius

    Highly recommended!
    Notable quotes:
    "... Until elites stand down and stop the brutal squeeze , expect more after painful more of this. It's what happens when societies come apart. Unless elites (of both parties) stop the push for "profit before people," policies that dominate the whole of the Neoliberal Era , there are only two outcomes for a nation on this track, each worse than the other. There are only two directions for an increasingly chaotic state to go, chaotic collapse or sufficiently militarized "order" to entirely suppress it. ..."
    "... Mes petits sous, mon petit cri de coeur. ..."
    "... But the elite aren't going to stand down, whatever that might mean. The elite aren't really the "elite", they are owners and controllers of certain flows of economic activity. We need to call it what it is and actively organize against it. Publius's essay seems too passive at points, too passive voice. (Yes, it's a cry from the heart in a prophetic mode, and on that level, I'm with it.) ..."
    "... American Psycho ..."
    "... The college students I deal with have internalized a lot of this. In their minds, TINA is reality. Everything balances for the individual on a razor's edge of failure of will or knowledge or hacktivity. It's all personal, almost never collective - it's a failure toward parents or peers or, even more grandly, what success means in America. ..."
    "... unions don't matter in our TINA. Corporations do. ..."
    "... our system promotes specialists and disregards generalists this leads to a population of individualists who can't see the big picture. ..."
    "... That social contract is hard to pin down and define – probably has different meanings to all of us, but you are right, it is breaking down. We no longer feel that our governments are working for us. ..."
    "... Increasing population, decreasing resources, increasingly expensive remaining resources on a per unit basis, unresolved trashing of the environment and an political economy that forces people to do more with less all the time (productivity improvement is mandatory, not optional, to handle the exponential function) much pain will happen even if everyone is equal. ..."
    "... "Social contract:" nice Enlightment construct, out of University by City. Not a real thing, just a very incomplete shorthand to attempt to fiddle the masses and give a name to meta-livability. ..."
    "... Always with the "contract" meme, as if there are no more durable and substantive notions of how humans in small and large groups might organize and interact Or maybe the notion is the best that can be achieved? ..."
    "... JTMcFee, you have provided the most important aspect to this mirage of 'social contract'. The "remedies" clearly available to lawless legislation rest outside the realm of a contract which has never existed. ..."
    "... Unconscionable clauses are now separately initialed in an "I dare you to sue me" shaming gambit. Meanwhile the mythical Social Contract has been atomized into 7 1/2 billion personal contracts with unstated, shifting remedies wholly tied to the depths of pockets. ..."
    "... Here in oh-so-individualistic Chicago, I have been noting the fraying for some time: It isn't just the massacres in the highly segregated black neighborhoods, some of which are now in terminal decline as the inhabitants, justifiably, flee. The typical Chicagoan wanders the streets connected to a phone, so as to avoid eye contact, all the while dressed in what look like castoffs. Meanwhile, Midwesterners, who tend to be heavy, are advertisements for the obesity epidemic: Yet obesity has a metaphorical meaning as the coat of lipids that a person wears to keep the world away. ..."
    "... My middle / upper-middle neighborhood is covered with a layer of upper-middle trash: Think Starbucks cups and artisanal beer bottles. ..."
    "... The class war continues, and the upper class has won. As commenter relstprof notes, any kind of concerted action is now nearly impossible. Instead of the term "social contract," I might substitute "solidarity." Is there solidarity? No, solidarity was destroyed as a policy of the Reagan administration, as well as by fantasies that Americans are individualistic, and here we are, 40 years later, dealing with the rubble of the Obama administration and the Trump administration. ..."
    "... The trash bit has been linked in other countries to how much the general population views the public space/environment as a shared, common good. Thus, streets, parks and public space might be soiled by litter that nobody cares to put away in trash bins properly, while simultaneously the interior of houses/apartments, and attached gardens if any, are kept meticulously clean. ..."
    "... The trash bit has been linked in other countries to how much the general population views the public space/environment as a shared, common good. ..."
    "... There *is* no public space anymore. Every public good, every public space is now fair game for commercial exploitation. ..."
    "... The importance of the end of solidarity – that is, of the almost-murderous impulses by the upper classes to destroy any kind of solidarity. ..."
    "... "Conditions will only deteriorate for anyone not in the "1%", with no sight of improvement or relief." ..."
    "... "Four Futures" ..."
    "... Reminds me of that one quip I saw from a guy who, why he always had to have two pigs to eat up his garbage, said that if he had only one pig, it will eat only when it wants to, but if there were two pigs, each one would eat so the other pig won't get to it first. Our current economic system in a nutshell – pigs eating crap so deny it to others first. "Greed is good". ..."
    "... Don't know that the two avenues Gaius mentioned are the only two roads our society can travel. In support of this view, I recall a visit to a secondary city in Russia for a few weeks in the early 1990s after the collapse of the USSR. Those were difficult times economically and psychologically for ordinary citizens of that country. Alcoholism was rampant, emotional illness and suicide rates among men of working age were high, mortality rates generally were rising sharply, and birth rates were falling. Yet the glue of common culture, sovereign currency, language, community, and thoughtful and educated citizens held despite corrupt political leadership, the rise of an oligarchic class, and the related emergence of organized criminal networks. There was also adequate food, and critical public infrastructure was maintained, keeping in mind this was shortly after the Chernobyl disaster. ..."
    Jun 16, 2017 | www.nakedcapitalism.com
    Yves here. I have been saying for some years that I did not think we would see a revolution, but more and more individuals acting out violently. That's partly the result of how community and social bonds have weakened as a result of neoliberalism but also because the officialdom has effective ways of blocking protests. With the overwhelming majority of people using smartphones, they are constantly surveilled. And the coordinated 17-city paramilitary crackdown on Occupy Wall Street shows how the officialdom moved against non-violent protests. Police have gotten only more military surplus toys since then, and crowd-dispersion technology like sound cannons only continues to advance. The only way a rebellion could succeed would be for it to be truly mass scale (as in over a million people in a single city) or by targeting crucial infrastructure.

    By Gaius Publius , a professional writer living on the West Coast of the United States and frequent contributor to DownWithTyranny, digby, Truthout, and Naked Capitalism. Follow him on Twitter @Gaius_Publius , Tumblr and Facebook . GP article archive here . Originally published at DownWithTyranny

    "[T]he super-rich are absconding with our wealth, and the plague of inequality continues to grow. An analysis of 2016 data found that the poorest five deciles of the world population own about $410 billion in total wealth. As of June 8, 2017 , the world's richest five men owned over $400 billion in wealth. Thus, on average, each man owns nearly as much as 750 million people."
    -Paul Buchheit, Alternet

    "Congressman Steve Scalise, Three Others Shot at Alexandria, Virginia, Baseball Field"
    -NBC News, June 14, 2017

    "4 killed, including gunman, in shooting at UPS facility in San Francisco"
    -ABC7News, June 14, 2017

    "Seriously? Another multiple shooting? So many guns. So many nut-bars. So many angry nut-bars with guns."
    -MarianneW via Twitter

    "We live in a world where "multiple dead" in San Francisco shooting can't cut through the news of another shooting in the same day."
    -SamT via Twitter

    "If the rich are determined to extract the last drop of blood, expect the victims to put up a fuss. And don't expect that fuss to be pretty. I'm not arguing for social war; I'm arguing for justice and peace."
    - Yours truly

    When the social contract breaks from above, it breaks from below as well.

    Until elites stand down and stop the brutal squeeze , expect more after painful more of this. It's what happens when societies come apart. Unless elites (of both parties) stop the push for "profit before people," policies that dominate the whole of the Neoliberal Era , there are only two outcomes for a nation on this track, each worse than the other. There are only two directions for an increasingly chaotic state to go, chaotic collapse or sufficiently militarized "order" to entirely suppress it.

    As with the climate, I'm concerned about the short term for sure - the storm that kills this year, the hurricane that kills the next - but I'm also concerned about the longer term as well. If the beatings from "our betters" won't stop until our acceptance of their "serve the rich" policies improves, the beatings will never stop, and both sides will take up the cudgel.

    Then where will we be?

    America's Most Abundant Manufactured Product May Be Pain

    I look out the window and see more and more homeless people, noticeably more than last year and the year before. And they're noticeably scruffier, less "kemp,"​ if that makes sense to you (it does if you live, as I do, in a community that includes a number of them as neighbors).

    The squeeze hasn't let up, and those getting squeezed out of society have nowhere to drain to but down - physically, economically, emotionally. The Case-Deaton study speaks volumes to this point. The less fortunate economically are already dying of drugs and despair. If people are killing themselves in increasing numbers, isn't it just remotely maybe possible they'll also aim their anger out as well?

    The pot isn't boiling yet - these shootings are random, individualized - but they seem to be piling on top of each other. A hard-boiling, over-flowing pot may not be far behind. That's concerning as well, much moreso than even the random horrid events we recoil at today.

    Many More Ways Than One to Be a Denier

    My comparison above to the climate problem was deliberate. It's not just the occasional storms we see that matter. It's also that, seen over time, those storms are increasing, marking a trend that matters even more. As with climate, the whole can indeed be greater than its parts. There's more than one way in which to be a denier of change.

    These are not just metaphors. The country is already in a pre-revolutionary state ; that's one huge reason people chose Trump over Clinton, and would have chosen Sanders over Trump. The Big Squeeze has to stop, or this will be just the beginning of a long and painful path. We're on a track that nations we have watched - tightly "ordered" states, highly chaotic ones - have trod already. While we look at them in pity, their example stares back at us.

    Mes petits sous, mon petit cri de coeur.

    elstprof , June 16, 2017 at 3:03 am

    But the elite aren't going to stand down, whatever that might mean. The elite aren't really the "elite", they are owners and controllers of certain flows of economic activity. We need to call it what it is and actively organize against it. Publius's essay seems too passive at points, too passive voice. (Yes, it's a cry from the heart in a prophetic mode, and on that level, I'm with it.)

    "If people are killing themselves in increasing numbers, isn't it just remotely maybe possible they'll also aim their anger out as well?"

    Not necessarily. What Lacan called the "Big Other" is quite powerful. We internalize a lot of socio-economic junk from our cultural inheritance, especially as it's been configured over the last 40 years - our values, our body images, our criteria for judgment, our sense of what material well-being consists, etc. Ellis's American Psycho is the great satire of our time, and this time is not quite over yet. Dismemberment reigns.

    The college students I deal with have internalized a lot of this. In their minds, TINA is reality. Everything balances for the individual on a razor's edge of failure of will or knowledge or hacktivity. It's all personal, almost never collective - it's a failure toward parents or peers or, even more grandly, what success means in America.

    The idea that agency could be a collective action of a union for a strike isn't even on the horizon. And at the same time, these same students don't bat an eye at socialism. They're willing to listen.

    But unions don't matter in our TINA. Corporations do.

    Moneta , June 16, 2017 at 8:08 am

    Most of the elite do not understand the money system. They do not understand how different sectors have benefitted from policies and/or subsidies that increased the money flows into these. So they think they deserve their money more than those who toiled in sectors with less support.

    Furthermore, our system promotes specialists and disregards generalists this leads to a population of individualists who can't see the big picture.

    jefemt , June 16, 2017 at 9:45 am

    BAU, TINA, BAU!! BOHICA!!!

    Dead Dog , June 16, 2017 at 3:09 am

    Thank you Gaius, a thoughtful post. That social contract is hard to pin down and define – probably has different meanings to all of us, but you are right, it is breaking down. We no longer feel that our governments are working for us.

    Of tangential interest, Turnbull has just announced another gun amnesty targeting guns that people no longer need and a tightening of some of the ownership laws.

    RWood , June 16, 2017 at 12:24 pm

    So this inheritance matures: http://www.nature.com/news/fight-the-silencing-of-gun-research-1.22139

    willem , June 16, 2017 at 2:20 pm

    One problem is the use of the term "social contract", implying that there is some kind of agreement ( = consensus) on what that is. I don't remember signing any "contract".

    Fiery Hunt , June 16, 2017 at 3:17 am

    I fear for my friends, I fear for my family. They do not know how ravenous the hounds behind nor ahead are. For myself? I imagine myself the same in a Mad Max world. It will be more clear, and perception shattering, to most whose lives allow the ignoring of gradual chokeholds, be them political or economic, but those of us who struggle daily, yearly, decadely with both, will only say Welcome to the party, pals.

    Disturbed Voter , June 16, 2017 at 6:33 am

    Increasing population, decreasing resources, increasingly expensive remaining resources on a per unit basis, unresolved trashing of the environment and an political economy that forces people to do more with less all the time (productivity improvement is mandatory, not optional, to handle the exponential function) much pain will happen even if everyone is equal.

    Each person does what is right in their own eyes, but the net effect is impoverishment and destruction. Life is unfair, indeed. A social contract is a mutual suicide pact, whether you renegotiate it or not. This is Fight Club. The first rule of Fight Club, is we don't speak of Fight Club. Go to the gym, toughen up, while you still can.

    JTMcPhee , June 16, 2017 at 6:44 am

    "Social contract:" nice Enlightment construct, out of University by City. Not a real thing, just a very incomplete shorthand to attempt to fiddle the masses and give a name to meta-livability.

    Always with the "contract" meme, as if there are no more durable and substantive notions of how humans in small and large groups might organize and interact Or maybe the notion is the best that can be achieved? Recalling that as my Contracts professor in law school emphasized over and over, in "contracts" there are no rights in the absence of effective remedies. It being a Boston law school, the notion was echoed in Torts, and in Commercial Paper and Sales and, tellingly, in Constitutional Law and Federal Jurisdiction, and even in Criminal Law and Criminal Procedure. No remedy, no right. What remedies are there in "the system," for the "other halves" of the "social contract," the "have-naught" halves?

    When honest "remedies under law" become nugatory, there's always the recourse to direct action of course with zero guarantee of redress

    sierra7 , June 16, 2017 at 11:22 am

    "What remedies are there in "the system," for the "other halves" of the "social contract," the "have-naught" halves?" Ah yes the ultimate remedy is outright rebellion against the highest authorities .with as you say, " zero guarantee of redress."

    But, history teaches us that that path will be taken ..the streets. It doesn't (didn't) take a genius to see what was coming back in the late 1960's on .regarding the beginnings of the revolt(s) by big money against organized labor. Having been very involved in observing, studying and actually active in certain groups back then, the US was acting out in other countries particularly in the Southern Hemisphere, against any social progression, repressing, arresting (thru its surrogates) torturing, killing any individuals or groups that opposed that infamous theory of "free market capitalism". It had a very definite "creep" effect, northwards to the mainstream US because so many of our major corporations were deeply involved with our covert intelligence operatives and objectives (along with USAID and NED). I used to tell my friends about what was happening and they would look at me as if I was a lunatic. The agency for change would be "organized labor", but now, today that agency has been trashed enough where so many of the young have no clue as to what it all means. The ultimate agenda along with "globalization" is the complete repression of any opposition to the " spread of money markets" around the world". The US intends to lead; whether the US citizenry does is another matter. Hence the streets.

    Kuhio Kane , June 16, 2017 at 12:33 pm

    JTMcFee, you have provided the most important aspect to this mirage of 'social contract'. The "remedies" clearly available to lawless legislation rest outside the realm of a contract which has never existed.

    bdy , June 16, 2017 at 1:32 pm

    The Social Contract, ephemeral, reflects perfectly what contracts have become. Older rulings frequently labeled clauses unconscionable - a tacit recognition that so few of the darn things are actually agreed upon. Rather, a party with resources, options and security imposes the agreement on a party in some form of crisis (nowadays the ever present crisis of paycheck to paycheck living – or worse). Never mind informational asymmetries, necessity drives us into crappy rental agreements and debt promises with eyes wide open. And suddenly we're all agents of the state.

    Unconscionable clauses are now separately initialed in an "I dare you to sue me" shaming gambit. Meanwhile the mythical Social Contract has been atomized into 7 1/2 billion personal contracts with unstated, shifting remedies wholly tied to the depths of pockets.

    Solidarity, of course. Hard when Identity politics lubricate a labor market that insists on specialization, and talented children of privilege somehow manage to navigate the new entrepreneurism while talented others look on in frustration. The resistance insists on being leaderless (fueled in part IMHO by the uncomfortable fact that effective leaders are regularly killed or co-opted). And the overriding message of resistance is negative: "Stop it!"

    But that's where we are. Again, just my opinion: but the pivotal step away from the jackpot is to convince or coerce our wealthiest not to cash in. Stop making and saving so much stinking money, y'all.

    Moneta , June 16, 2017 at 6:54 am

    The pension system is based on profits. Nothing will change until the profits disappear and the top quintile starts falling off the treadmill.

    Susan the other , June 16, 2017 at 1:01 pm

    and there's the Karma bec. even now we see a private banking system synthesizing an economy to maintain asset values and profits and they have the nerve to blame it on social spending. I think Giaus's term 'Denier' is perfect for all those vested practitioners of profit-capitalism at any cost. They've already failed miserably. For the most part they're just too proud to admit it and, naturally, they wanna hang on to "their" money. I don't think it will take a revolution – in fact it would be better if no chaos ensued – just let these arrogant goofballs stew in their own juice a while longer. They are killing themselves.

    roadrider , June 16, 2017 at 8:33 am

    There's a social contract? Who knew?

    Realist , June 16, 2017 at 8:41 am

    When I hear so much impatient and irritable complaint, so much readiness to replace what we have by guardians for us all, those supermen, evoked somewhere from the clouds, whom none have seen and none are ready to name, I lapse into a dream, as it were. I see children playing on the grass; their voices are shrill and discordant as children's are; they are restive and quarrelsome; they cannot agree to any common plan; their play annoys them; it goes poorly. And one says, let us make Jack the master; Jack knows all about it; Jack will tell us what each is to do and we shall all agree. But Jack is like all the rest; Helen is discontented with her part and Henry with his, and soon they fall again into their old state. No, the children must learn to play by themselves; there is no Jack the master. And in the end slowly and with infinite disappointment they do learn a little; they learn to forbear, to reckon with another, accept a little where they wanted much, to live and let live, to yield when they must yield; perhaps, we may hope, not to take all they can. But the condition is that they shall be willing at least to listen to one another, to get the habit of pooling their wishes. Somehow or other they must do this, if the play is to go on; maybe it will not, but there is no Jack, in or out of the box, who can come to straighten the game. -Learned Hand

    DJG , June 16, 2017 at 9:24 am

    Here in oh-so-individualistic Chicago, I have been noting the fraying for some time: It isn't just the massacres in the highly segregated black neighborhoods, some of which are now in terminal decline as the inhabitants, justifiably, flee. The typical Chicagoan wanders the streets connected to a phone, so as to avoid eye contact, all the while dressed in what look like castoffs. Meanwhile, Midwesterners, who tend to be heavy, are advertisements for the obesity epidemic: Yet obesity has a metaphorical meaning as the coat of lipids that a person wears to keep the world away.

    My middle / upper-middle neighborhood is covered with a layer of upper-middle trash: Think Starbucks cups and artisanal beer bottles. Some trash is carefully posed: Cups with straws on windsills, awaiting the Paris Agreement Pixie, who will clean up after these oh-so-earnest environmentalists.

    Meanwhile, I just got a message from my car-share service: They are cutting back on the number of cars on offer. Too much vandalism.

    Are these things caused by pressure from above? Yes, in part: The class war continues, and the upper class has won. As commenter relstprof notes, any kind of concerted action is now nearly impossible. Instead of the term "social contract," I might substitute "solidarity." Is there solidarity? No, solidarity was destroyed as a policy of the Reagan administration, as well as by fantasies that Americans are individualistic, and here we are, 40 years later, dealing with the rubble of the Obama administration and the Trump administration.

    JEHR , June 16, 2017 at 11:17 am

    DJG: My middle / upper-middle neighborhood is covered with a layer of upper-middle trash: Think Starbucks cups and artisanal beer bottles. Some trash is carefully posed: Cups with straws on windsills, awaiting the Paris Agreement Pixie, who will clean up after these oh-so-earnest environmentalists.

    Yes, the trash bit is hard to understand. What does it stand for? Does it mean, We can infinitely disregard our surroundings by throwing away plastic, cardboard, metal and paper and nothing will happen? Does it mean, There is more where that came from! Does it mean, I don't care a fig for the earth? Does it mean, Human beings are stupid and, unlike pigs, mess up their immediate environment and move on? Does it mean, Nothing–that we are just nihilists waiting to die? I am so fed up with the garbage strewn on the roads and in the woods where I live; I used to pick it up and could collect as much as 9 garbage bags of junk in 9 days during a 4 kilometer walk. I don't pick up any more because I am 77 and cannot keep doing it.

    However, I am certain that strewn garbage will surely be the last national flag waving in the breeze as the anthem plays junk music and we all succumb to our terrible future.

    jrs , June 16, 2017 at 1:09 pm

    Related to this, I thought one day of who probably NEVER gets any appreciation but strives to make things nicer, anyone planning or planting the highway strips (government workers maybe although it could be convicts also unfortunately, I'm not sure). Yes highways are ugly, yes they will destroy the world, but some of the planting strips are sometimes genuinely nice. So they add some niceness to the ugly and people still litter of course.

    visitor , June 16, 2017 at 1:04 pm

    The trash bit has been linked in other countries to how much the general population views the public space/environment as a shared, common good. Thus, streets, parks and public space might be soiled by litter that nobody cares to put away in trash bins properly, while simultaneously the interior of houses/apartments, and attached gardens if any, are kept meticulously clean.

    Basically, the world people care about stops outside their dwellings, because they do not feel it is "theirs" or that they participate in its possession in a genuine way. It belongs to the "town administration", or to a "private corporation", or to the "government" - and if they feel they have no say in the ownership, management, regulation and benefits thereof, why should they care? Let the town administration/government/corporation do the clean-up - we already pay enough taxes/fees/tolls, and "they" are always putting up more restrictions on how to use everything, so

    In conclusion: the phenomenon of litter/trash is another manifestation of a fraying social contract.

    Big River Bandido , June 16, 2017 at 1:47 pm

    The trash bit has been linked in other countries to how much the general population views the public space/environment as a shared, common good.

    There *is* no public space anymore. Every public good, every public space is now fair game for commercial exploitation.

    I live in NYC, and just yesterday as I attempted to refill my MetroCard, the machine told me it was expired and I had to replace it. The replacement card doesn't look at all like a MetroCard with the familiar yellow and black graphic saying "MetroCard". Instead? It's an ad. For a fucking insurance company. And so now, every single time that I go somewhere on the subway, I have to see an ad from Empire Blue Cross/Blue Shield.

    visitor , June 16, 2017 at 2:39 pm

    There *is* no public space anymore. Every public good, every public space is now fair game for commercial exploitation.

    And as a result, people no longer care about it - they do not feel it is their commonwealth any longer.

    Did you notice whether the NYC subway got increasingly dirty/littered as the tentacles of privatization reached everywhere? Just curious.

    DJG , June 16, 2017 at 9:37 am

    The importance of the end of solidarity – that is, of the almost-murderous impulses by the upper classes to destroy any kind of solidarity. From Yves's posting of Yanis Varoufakis's analysis of the newest terms of the continuing destruction of Greece:

    With regard to labour market reforms, the Eurogroup welcomes the adopted legislation safeguarding previous reforms on collective bargaining and bringing collective dismissals in line with best EU practices.

    I see! "Safeguarding previous reforms on collective bargaining" refers, of course, to the 2012 removal of the right to collective bargaining and the end to trades union representation for each and every Greek worker. Our government was elected in January 2015 with an express mandate to restore these workers' and trades unions' rights. Prime Minister Tsipras has repeatedly pledged to do so, even after our falling out and my resignation in July 2015. Now, yesterday, his government consented to this piece of Eurogroup triumphalism that celebrates the 'safeguarding' of the 2012 'reforms'. In short, the SYRIZA government has capitulated on this issue too: Workers' and trades' unions' rights will not be restored. And, as if that were not bad enough, "collective dismissals" will be brought "in line with best EU practices". What this means is that the last remaining constraints on corporations, i.e. a restriction on what percentage of workers can be fired each month, is relaxed. Make no mistake: The Eurogroup is telling us that, now that employers are guaranteed the absence of trades unions, and the right to fire more workers, growth enhancement will follow suit! Let's not hold our breath!

    Daniel F. , June 16, 2017 at 10:44 am

    The so-called "Elites"? Stand down? Right. Every year I look up the cardinal topics discussed at the larger economic forums and conferences (mainly Davos and G8), and some variation of "The consequences of rising inequality" is a recurring one. Despite this, nothing ever comes out if them. I imagine they go something like this:

    A wet dream come true, both for an AnCap and a communist conspiracy theorist. I'm by no means either. However, I think capitalism has already failed and can't go on for much longer. Conditions will only deteriorate for anyone not in the "1%", with no sight of improvement or relief.

    I'd very much like to be proven wrong.

    Bobby Gladd , June 16, 2017 at 12:01 pm

    "Conditions will only deteriorate for anyone not in the "1%", with no sight of improvement or relief." Frase's Quadrant Four. Hierarchy + Scarcity = Exterminism (From "Four Futures" )

    Archangel , June 16, 2017 at 11:33 am

    Reminds me of that one quip I saw from a guy who, why he always had to have two pigs to eat up his garbage, said that if he had only one pig, it will eat only when it wants to, but if there were two pigs, each one would eat so the other pig won't get to it first. Our current economic system in a nutshell – pigs eating crap so deny it to others first. "Greed is good".

    oh , June 16, 2017 at 12:10 pm

    Our country is rife with rent seeking pigs who will stoop lower and lower to feed their greed.

    Vatch , June 16, 2017 at 12:37 pm

    In today's Links section there's this: https://www.theguardian.com/inequality/2017/jun/14/tax-evaders-exposed-why-super-rich-are-even-richer-than-we-thought which has relevance for the discussion of the collapsing social contract.

    Chauncey Gardiner , June 16, 2017 at 1:00 pm

    Don't know that the two avenues Gaius mentioned are the only two roads our society can travel. In support of this view, I recall a visit to a secondary city in Russia for a few weeks in the early 1990s after the collapse of the USSR. Those were difficult times economically and psychologically for ordinary citizens of that country. Alcoholism was rampant, emotional illness and suicide rates among men of working age were high, mortality rates generally were rising sharply, and birth rates were falling. Yet the glue of common culture, sovereign currency, language, community, and thoughtful and educated citizens held despite corrupt political leadership, the rise of an oligarchic class, and the related emergence of organized criminal networks. There was also adequate food, and critical public infrastructure was maintained, keeping in mind this was shortly after the Chernobyl disaster.

    Here in the US the New Deal and other legislation helped preserve social order in the 1930s. Yves also raises an important point in her preface that can provide support for the center by those who are able to do so under the current economic framework. That glue is to participate in one's community; whether it is volunteering at a school, the local food bank, community-oriented social clubs, or in a multitude of other ways; regardless of whether your community is a small town or a large city.

    JTMcPhee , June 16, 2017 at 1:21 pm

    " Yet the glue of common culture, sovereign currency, language, community, and thoughtful and educated citizens held despite corrupt political leadership, the rise of an oligarchic class, and the related emergence of organized criminal networks."

    None of which applies to the Imperium, of course. There's glue, all right, but it's the kind that is used for flooring in Roach Motels (TM), and those horrific rat and mouse traps that stick the rodent to a large rectangle of plastic, where they die eventually of exhaustion and dehydration and starvation The rat can gnaw off a leg that's glued down, but then it tips over and gets glued down by the chest or face or butt

    I have to note that several people I know are fastidious about picking up trash other people "throw away." I do it, when I'm up to bending over. I used to be rude about it - one young attractive woman dumped a McDonald's bag and her ashtray out the window of her car at one of our very long Florida traffic lights. I got out of my car, used the mouth of the McDonald's bag to scoop up most of the lipsticked butts, and threw them back into her car. Speaking of mouths, that woman with the artfully painted lips sure had one on her

    [Jun 13, 2017] Education Failure is the New Success

    Jun 13, 2017 | www.unz.com

    Happily, an alternative exists to the billion dollar "don't blame kids" approach, one that has historically proven itself and will cost far less than $16,000 per pupil to impart adequate academic skills. It is simple: pressure laggards to shape up and punish those who disrupt the learning of classmates. Just return to an earlier era when students themselves were held responsible for learning their lessons.

    Junk the Rousseauian fantasy that children naturally have a thirst for acquiring knowledge so "educators" need only let nature take its course. Yes, Homo sapiens relish learning, but youngsters are not innately disposed to sit quietly for long periods and dutifully suffer failure. Learning may be natural; schooling is not. The corollary is that school for the cognitively weak will be the most painful. Thus, for many African Americans cultivating self-esteem is anathema to academic achievement.

    Fortunately, the repertoire to impose this necessary discipline is well-known and requires only modest skill to implement. High-priced rocket science it is not. This is almost forgotten educational world of shame, stigma, humiliation, dunce caps, browbeating even corporal punishment where teachers forcefully exert authority over the little savages who refuse to learn while impeding the progress of others. Further require teachers to impose clear, grammatically correct English to those with slurred speech and reflexively use profanity. If the teacher's efforts fail, the little miscreants can immediately be sent out for discipline to be monitored by a wicked witch. Conceivably, some retired discipline-skilled Nuns from Catholic schools or a retired Marine drill sergeant could offer three-day workshops on how to manage the classroom

    Students can practice sitting still and being quiet for longer and longer times, marching in step when changing classes, mastering polite conversation when addressing authority figures ("Thank you Mr. Smith" not 'hey teach'") memorizing famous orations, and build the habits of punctuality, restraint and patience.

    Anonymous June 13, 2017 at 9:06 am GMT

    Cheapest offer of "Bad Students, Not Bad Schools "
    by Robert Weissberg, used,
    is $ 46.00 + $ 3.99 S&H, is

    https://www.amazon.com/dp/141281345X/?tag=unco037-20

    AngloBerserkerJew , June 13, 2017 at 12:25 pm GMT

    I run a large AP program in a what is euphemistically called a "priority" neighbourhood in a major Canadian city. Although most of our students are East Asian and South Asian and come from outside our catchment area, the majority of the local community is black.

    After twenty years of our program offering completely subsidized AP exams, after-class tutorials, and massive promotion efforts emphasizing the advantages of taking AP directed to our black students, still less that 5% of the population of our AP classes consists of blacks.

    And we have never had a black AP National Scholar. Not one. The local school board would LOVE to see such an event, and I can't imagine it ever happening

    Dr. X , June 13, 2017 at 12:58 pm GMT

    Are you suggesting that our alien, Third-World, clan-based minority populations adopt the values of discipline, accountability, punctuality, and rule-following typical of the majority's beyond-kin, altruistic-based culture from northern Europe in the hope of achieving similar social, academic, technical, and economic outcomes?

    There's an extent to which this does work. Parochial schools with strict discipline policies have always gotten more out of black students than public schools. African students, who do not typically have a race card to play and are products of Euro-colonial school systems, in my experience are nearly always better students than black Americans.

    Imagine a Venn diagram, in which one circle represents cognitive ability (IQ) and the other circle represents discipline and culture. The overlapping area represents "educational achievement." The overall black cognitive ability circle, by itself, will always be smaller than a corresponding white circle, but it is possible to gain more achievement with more structure and discipline. There is a limit to how far you can go with this approach, but you can make some gains.

    Of course, public schools and colleges practically kiss blacks on the ass for misbehavior rather than discipline them. Blacks are fully aware that the black teachers and administrators are incompetent frauds, that liberal whites are easily pushed around or manipulated, that they can always play the "racism" card, and that Afrocentric curricula is pure bullshit and that it was the white man who invented their iPhones, space flight, etc.

    One aspect of the black personality is that blacks respond to, and generally respect, a show a force. You see this in sports, for instance, in prison, and the military. Some of the most competent and useful blacks you will encounter are in the military, where there is a set of expectations, a white chain of command, and punishment for failure.

    Blacks wouldn't necessarily become geniuses if you applied a military structure to education, but you'd see some improvement.

    Agent76 , June 13, 2017 at 1:08 pm GMT

    Jan 23, 2017 Why Good Teachers Want School Choice

    Can every child receive a good education? With school choice and competition, yes. The problem? Powerful teachers unions oppose school choice. Rebecca Friedrichs, a public school teacher who took her case against the teachers union all the way to the Supreme Court, explains why school choice is the right choice.

    https://youtu.be/PnQu8iRiVYU

    Diversity Heretic , June 13, 2017 at 1:22 pm GMT

    @Njguy73 There's no need to racially segregate schools. The solution has already been implemented. It's called having a school district where the housing prices do the discrimination, so the schools don't have to. An awfully expensive solution that consigns white working class children to the tender mercies of the snarling black underclass.

    anon , June 13, 2017 at 1:23 pm GMT

    The plight of black students in black schools became especially dire when the education establishment and the media pulled a slight of hand and started labeling lazy ( a personal fault) students as unmotivated (and therefore the fault of society not motivating them.)

    What hasn't been pointed out is while public schools in poor areas have been failing for decades, Catholic schools located in the same areas have continued to turn out hundred of thousands of literate, well behaved black students.

    The real tragedy is that these very productive ghetto Catholics schools have been closing at an increasing rate despite their successes because of economic problems. Vouchers would help them to stay open,

    THE ACLU however, would make sure that they wouldn't get them.

    Simon in London , June 13, 2017 at 2:49 pm GMT

    I'm always impressed by the quality of my black African postgrad students, who mostly come from lower middle/upper working class backgrounds in cities like Laos. They are clearly decently educated, by methods the exact opposite of what is advocated in the USA – strict discipline, uniforms, regulation, a decent amount of rote memorisation (but not the passivity of the Middle East/South Asia).

    US educationists could learn a lot from Nigeria, or even Jamaica, but are clearly far too arrogant to do so.

    Greg Schofield , June 14, 2017 at 12:13 am GMT

    I am an old Australian teacher, run out of my profession by managers embracing the American system of de-education.

    Your understanding of education is deplorable, and the results of it are horrific, here are a few points that should be carefully considered together.

    [Hide MORE]

    IQ tests are nonsense.

    Testing and teaching are incompatible to one another, less tests and more teaching.

    Primary school is NOT the most important time, a few essential skills, a wide and rambling exposure to general knowledge, and some actual fun will do.

    Primary school should produce a student capable of writing coherent sentences, reading 80-120 words per minute (well written texts only with unusual words), general knowledge of science, the general framework of modern world history, and enough maths to do simple algebra - anything more is a bonus, but not essential to secondary school.

    Secondary school is the secondary level of knowledge - it has nothing much in common with Primary education.

    Secondary school is about the development of concepts in different subjects - and the study of literature (a self-contained concept), is foundational to all the other higher subjects.

    Literature is about concepts, not morals, slogans, good behaviour or anything else. They are complete, honest works supremely well written world view of the author. The quality of literature is it most important feature - the best and only the best.

    The conceptual integrity of literature, not a particular style of language is critical. Literature should not be chosen because it is reverent, but because it is good and great. Confession I hate reading Jane Austin, a girly book of all girly books, but when I finish her work I understand the world were being good is not just a virtue, but an aspiration. For many reasons she was one of the most read authors in the trenches of World War I.

    The quality of text books (books of text not pictures) is ESSENTIAL there is no choice in this, no leeway. They must be coherent, the work of the best minds in the subject, comprehensive, and clearly written - only a true expert can make things simple without also making it stupid.

    Text books of quality do not have to be up-to-date, but they have to be conceptually complete and clear - a good textbook is not necessarily a recent one.

    Textbooks are the last resort, which is the reason they have to be good - it is where the student goes to understand what they do not understand - that is always hard and they need a reliable source material - only the best textbooks will do.

    Textbooks are not teaching material, they are reference material.

    Standard tests are rubbish, written examinations twice a year are best - this is why text books are important - hitting the books is not easy, I say it again, they therefore need to be the very best - not the normal US textbook - which is CRAP.

    The best mark of a substantial work should be the grade, not the average mark - students who learn have to be brave and need to push things - a good student tries and fails long before they try and succeed (the order is sometimes in the reverse).

    A student's progress is marked by their best mark, their highest achievement that counts, all the rest are run-offs. A student can be lazy, a student might rest on their laurels, that does not matter, what they achieved, not how they went about it is what examination should do.

    It does not matter what a teacher is called by students, but that teacher actually knows their area, is enthusiastic about their knowledge, is supported by the school, encouraged to do more and occasionally make mistakes in trying.

    Micro-management, in fact management in general, and good teaching are incompatible.

    School discipline is simple and only breaks down because of mismanagement.

    Heads and deputies are not there to attend meetings, they must be seen, patrol the halls, greet the students and be known.

    Teachers need only have a disruptive student leave the class room and stand in the hall. The deputies need to take them to detention where they sit and do nothing until the next lesson.

    Do not trap students behind files of bad behaviour. Boys especially do stupid things, often and repeatedly, only the mean acts should be recorded in detail.

    Stop trying to get kids to apologise, girls will do it, and the better boys won't.

    Make sure the kids get food, and have fun exercise (competitive sport should be an elective).

    Running education is not hard, the fundamentals have been known for hundreds of years. What exists now has been made, it is a policy of de-education and it is working all too well.

    [Jun 12, 2017] 5 Questions Universities Must Answer after the Duke Divinity Controversy

    If diversity represents sort of "reverse racial discrimination", academic achievements be damned?
    Notable quotes:
    "... is the notion of "diversity" that is being aimed at supposed to replicate among faculty the current demographic breakdown of our country as a whole? ..."
    "... Conversely, if the goal of diversity is compensatory, i.e., seeks to make up for past social injustices and the demographic disequilibrium they have produced, then here too we must be explicit about the point of reference that is to guide our remedial efforts. ..."
    "... is diversity pursued under that principle to amount to a retroactive balancing of sorts, an open-ended institutional "reparation" for past injustices and inequities? ..."
    "... Leaving aside logistical difficulties, to which one may certainly be sympathetic, why exclude any number of other descriptors from our conception of diversity, such as social class, ethnic background, veteran status, political views, religious belief, childhood trauma, aesthetic preferences, dietary philosophy, dance and gardening skills, past struggles with mental disability, etc.? ..."
    "... 'Diversity' was always at best a racket and at worst a knowing stage – a mere stage – in the war to replace Western Civilization. ..."
    Jun 12, 2017 | www.theamericanconservative.com

    The recent controversy surrounding my colleague and friend, Paul Griffiths, Warren Professor of Catholic Theology in the Duke Divinity School (DDS), has been widely covered. Countless op-ed pieces, fueled by Rod Dreher's online publication of internal memos and public emails at The American Conservative , as well as prominent editorials in the Wall Street Journal and the New York Times , have reached many readers.

    ... ... ...

    Unfortunately, that dialogue remains more elusive than ever. Instead, for quite some time now, the word "diversity" has served two distinct and equally problematic purposes: the magical and the litigious. Some university administrators, particularly those less loyal to the job they have than to the one they covet next, have embraced "diversity" as a professional talisman of sorts, a term that, if wielded frequently and with conspicuous reverence, will magically unlock doors higher up on the professional ladder. Conversely, to faculty members craving moral ascendancy over colleagues whose superior achievements they may regard with a mix of dread, inadequacy and envy, there is no more powerful weapon than to charge the target of their resentment with opposition to diversity, which in the present order of opportune allegations ranks just below that of the child molester. To put it in Platonic terms, contemporary academia has been mirroring our country's deteriorating civic discourse by supplanting knowledge with opinion, and by weaponizing our opinions, rather than understanding them as something for which we bear great responsibility.

    1) Is the notion of "diversity" to be understood as a mimetic or compensatory endeavor? That is, is the notion of "diversity" that is being aimed at supposed to replicate among faculty the current demographic breakdown of our country as a whole? Or is the objective to compensate for the extreme dominance of a certain type of faculty-white, Caucasian, male, and (putatively) heterosexual-as it undeniably prevailed well into the 1990s at many institutions of higher learning?

    2) Supposing, then, that higher education understands itself to be committed to a mimetic conception of diversity, then what is to serve as our point of reference? Is diversity, as currently affirmed by institutions of higher education, to be modeled on the overall demographic breakdown of the population in the United States-say, as captured by the most recent national census? Or is the university's conception of diversity aimed at some other norm of proportionate representation of minorities, say, one prevalent in academia as a whole or as endemic to specific disciplines?

    3) Conversely, if the goal of diversity is compensatory, i.e., seeks to make up for past social injustices and the demographic disequilibrium they have produced, then here too we must be explicit about the point of reference that is to guide our remedial efforts. Is the objective to compensate for a historical lack of diversity that for many decades prevailed inside the academy? And, if so, is diversity pursued under that principle to amount to a retroactive balancing of sorts, an open-ended institutional "reparation" for past injustices and inequities? Here it ought to be kept in mind that, to cast the matter in sacramental terms, there can be no atonement without forgiveness. Hence, if diversity is understood as compensation, then not only must past wrongs in this regard be clearly identified, but any institutional acknowledgment of past injustice must also be met by, and conclude with, an act of comprehensive forgiveness. Otherwise, institutions would remain forever caught up in a downward spiral of moral recrimination and self-abasement, respectively.

    4) Assuming that these questions can be openly deliberated and satisfactorily answered (which in the present climate is to assume a great deal indeed), more intractable issues yet will arise. For regardless of whether the modern research university opts for a mimetic or compensatory approach to diversity, it is by definition an inherently selective, elite institution. Thus, one must wonder whether institutions of higher education can balance their highly selective practices of faculty recruitment-practices directly related to the goal of the university as such, viz., advancing knowledge-with a demographically representative notion of "diversity" such as it exists outside of academia?

    5) Finally, we should ask why currently prevailing assumptions and practices concerning "diversity" are conceived in such peculiarly narrow, not to say non-diverse ways. We know that empirical demographic studies, including the national census conducted by the U.S. government every decade or so, rely on many categories and descriptors and, consequently, yield a far more inflected and robust conception of our society's diverse composition. That being so, what justifies higher education's conception of "faculty diversity" being mainly restricted to the categories of race and gender? Leaving aside logistical difficulties, to which one may certainly be sympathetic, why exclude any number of other descriptors from our conception of diversity, such as social class, ethnic background, veteran status, political views, religious belief, childhood trauma, aesthetic preferences, dietary philosophy, dance and gardening skills, past struggles with mental disability, etc.?


    connecticut farmer, says: June 12, 2017 at 8:18 am

    Notwithstanding my agreement with the author, this article is very poorly written and filled with academic jargon, each sentence representing the very antithesis of Churchill's observation that there is nothing more powerful in the English language than a simple, objective sentence.

    G Harvey , says: June 12, 2017 at 10:12 am

    "'Diversity' is turning into idolatrous worship of empty notions"

    The above statement is false because the verb tense is wrong. This is not something new. 'Diversity' was always at best a racket and at worst a knowing stage – a mere stage – in the war to replace Western Civilization.

    Professor Pfau: Did you stand up and defend the Duke lacrosse team and its head coach? Did you condemn colleagues such as Leftist Houston Baker.

    [Jun 12, 2017] How useful is the word inequality ? not much as it is use as a typical sponge word like poor incread of low waged or underpaid

    Mar 31, 2017 | economistsview.typepad.com
    Paine, March 29, 2017 at 02:43 PM
    How useful is the word inequality ? typical sponge word like " poor " when u mean low waged

    Or "middle class " when you mean high waged

    The shares in GDP are zero sum at any one point in time


    If the bottom wage rises fastest with some arrangement of wages
    That ought to look preferred to anyone without any sense of where they'd land

    Paine -> Paine ... , March 29, 2017 at 02:49 PM
    Of course this is if your frame is the individual
    and here's only a wage earning class
    No exploiters allowed M

    But if the exploiters arrive with their rag tag of proprietary types trailing them ?

    Turn to a Class frame ?


    Maximize the share of your class

    Maximally unequal
    Ie class dictatorship


    Equality before the law

    Equality in the voting booth
    These are very different dimensions of social being
    From equality of income

    Income ...another sponge word M

    libezkova -> Paine ... , March 29, 2017 at 07:06 PM
    "like " poor "
    when u mean low waged"

    Distortion of the language is the main tool of neoliberalism.

    the key to neoliberal propaganda.

    Very similar to Bolshevism in this respect.

    [Jun 09, 2017] A big reason Corbyn's a commie is because he wants to abolish tuition to bring the UK back to its communist past of 1997 and give young people the same deal all the people in charge had

    Notable quotes:
    "... Tutition used to be free in the UK. Then they decided that those lazy students needed to have some skin in the game and suddenly tuition was 1000 pounds. Then a few years later it was 9000 pounds and all the college grads there now have US-level student debt. ..."
    "... A big reason Corbyn's a commie is because he wants to abolish tuition to bring the UK back to its communist past of 1997 and give young people the same deal all the people in charge had. ..."
    Jun 09, 2017 | economistsview.typepad.com
    Christopher H., June 09, 2017 at 01:35 PM
    Oh look, Atrios blogged something. I guess he didn't get the memo from PGL and the establishment Democrats.

    http://www.eschatonblog.com/2017/06/the-kids-are-alright.html

    FRIDAY, JUNE 09, 2017

    The Kids Are Alright

    No actual figures, but presumably there was big yute turnout in the UK Everyone will now claim that a non-commie Labour leader like that nice Ed Miliband would OF COURSE have done as well as Joseph Stalin Lenin Marx Corbyn, and in fact BETTER, but that's bullshit.

    That nice Ed Miliband couldn't do in 2015, and I'm not sure who the "unnamed generic normal Labour candidate" would otherwise be. Theresa May's incompetent evil helped, but Corbyn staved off what was supposed to have been a Labour extinction election and while there will still likely be a Tory-led government, it will be pretty fragile. A coalition with a bunch of bigoted religious nutters from Northern Ireland who aren't on board with May's Brexit plans.

    Labour went after The Kids Today and got them to the polls. Wasn't enough to win, but the polling outfit predicting a likely hung parliament was considered to be "insane" even just a few days ago.

    Tutition used to be free in the UK. Then they decided that those lazy students needed to have some skin in the game and suddenly tuition was 1000 pounds. Then a few years later it was 9000 pounds and all the college grads there now have US-level student debt.

    A big reason Corbyn's a commie is because he wants to abolish tuition to bring the UK back to its communist past of 1997 and give young people the same deal all the people in charge had.

    In 2015, Miliband said he'd cut them. To just SIX THOUSAND POUNDS. Maybe if he'd gone all the way...

    by Atrios at 08:30

    [Jun 09, 2017] Trump actions do not match his rhetoric: another bait and switch like in case of Obama ?

    Notable quotes:
    "... Trump actions do not match his rhetoric. His policies give large tax cuts to very wealthy people. He is not pursuing an agenda in favor of less inequality, faster growth or higher employment. Unfortunately, the pursuit of tax cuts for the wealthy will likely make the rest of us poorer. ..."
    "... Yes Trump has proven to be much more stupid and ineffective I thought he would be. Maybe it was the way he vanquished his many competitors in the Republican primary and beat Hillary. ..."
    "... He's been negligent and stupid except apparently with judges. He'd rather play golf and tweet. ..."
    Jun 09, 2017 | economistsview.typepad.com

    jonny bakho , June 09, 2017 at 09:37 AM

    Trump actions do not match his rhetoric. His policies give large tax cuts to very wealthy people. He is not pursuing an agenda in favor of less inequality, faster growth or higher employment. Unfortunately, the pursuit of tax cuts for the wealthy will likely make the rest of us poorer.
    RC AKA Darryl, Ron said in reply to jonny bakho... , June 09, 2017 at 09:45 AM
    "Trump actions do not match his rhetoric..."

    [From his accomplishments as POTUS so far one must wonder whether his socks would match were he left to dress himself.]

    Christopher H. said in reply to RC AKA Darryl, Ron... , June 09, 2017 at 10:08 AM
    Yes Trump has proven to be much more stupid and ineffective I thought he would be. Maybe it was the way he vanquished his many competitors in the Republican primary and beat Hillary.

    He's been negligent and stupid except apparently with judges. He'd rather play golf and tweet.

    RC AKA Darryl, Ron said in reply to Christopher H.... , June 09, 2017 at 10:34 AM
    Agreed. But that still does not make all of his voters racist. Maybe some of them were misled, but the ones that I know were just plain desperate. They did not expect Trump to perform especially well as POTUS. It was enough for them that he was not Hillary.
    Christopher H. said in reply to RC AKA Darryl, Ron... , June 09, 2017 at 10:44 AM
    "But that still does not make all of his voters racist."

    Never said it did. I agree that for many of them the vote was a middle finger at the establishment.

    Corbyn has shown you can do well by running a good campaign which is anti-austerity and about delivering for the average voter.

    [May 31, 2017] In a federal government run like a business ordinary american is a LOSER. They cut you off and leave you behind.

    Notable quotes:
    "... The biggest winner last year was Thomas M. Rutledge of Charter Communications, who pulled down a $98 million pay package, according to the Equilar 200 highest-paid chief executive rankings, conducted for The New York Times. ..."
    "... Mr. Rutledge, 63, stormed to the front of the pack after closing his company's mega-merger, a $65 billion takeover of Time Warner and a smaller competitor. For that, he got a big bump in pay. The year before, his compensation totaled $16.4 million. ..."
    May 31, 2017 | economistsview.typepad.com

    Fred C. Dobbs , May 26, 2017 at 07:21 AM

    As C.E.O. Pay Packages Grow, Top Executives
    Have the President's Ear https://nyti.ms/2r4t6mY
    NYT - MATTHEW GOLDSTEIN - MAY 26, 2017

    Pay packages for America's top executives once again climbed in 2016 after slipping the year before.

    Perhaps the pay surge reflects the times: Stocks are coming off a strong run. Unemployment is low. The economy is percolating.

    And President Trump is not only promising to roll back what he calls excessive business regulations but also listening keenly to what corporate America has to say. Since taking office on Jan. 20, the businessman-turned-politician has met with hundreds of executives, including at least 41 of last year's 200 best-paid C.E.O.s, a New York Times analysis shows.

    The biggest winner last year was Thomas M. Rutledge of Charter Communications, who pulled down a $98 million pay package, according to the Equilar 200 highest-paid chief executive rankings, conducted for The New York Times.

    Mr. Rutledge, 63, stormed to the front of the pack after closing his company's mega-merger, a $65 billion takeover of Time Warner and a smaller competitor.

    For that, he got a big bump in pay. The year before, his compensation totaled $16.4 million.

    This past March, Mr. Rutledge met with Mr. Trump in the Oval Office. The president lavished him with praise for a plan to add 20,000 jobs, although the broad outlines of that initiative had been laid out nearly two years earlier, when the merger was first announced.

    This combination - the gains in pay for chief executives, the president's pledge to deregulate and cut corporate tax rates - sets the stage for perhaps the most consequential moment for corporate governance since the financial crisis of 2008. Rising executive compensation only widens the gap between top executives and most American workers. Mr. Rutledge, for instance, made 2,617 times the average American worker's salary of $37,632, according to figures maintained by the A.F.L.-C.I.O. ...


    (graphic, at the link))

    President Trump Greets the C.E.O.s

    Since Inauguration Day, President Donald J. Trump has met with at least 307 chief executives of American companies, 41 of whom were among the 200 highest-paid C.E.O.s in 2016, as calculated by Equilar, a compensation analysis company.

    anne - , May 26, 2017 at 07:37 AM
    http://cepr.net/blogs/beat-the-press/would-shareholders-in-charter-communications-have-less-money-if-they-paid-their-ceo-10-million-instead-of-98-million

    May 26, 2017

    Would Shareholders in Charter Communications Have Less Money If They Paid Their CEO $10 Million Instead of $98 Million?

    That's the question the board of directors of Charter should be asking, but I suspect they never do. The company scored first in the New York Times's annual compilation * of CEO pay packages, coming in almost $30 million ahead of CBS, which is number 2. Of course if the CEOs earned less than the other top people in the corporate hierarchy would likely get smaller paychecks as well. And, it might be harder for the presidents of universities, foundations, and non-profits to explain the need for seven figure salaries for their work.

    It seems unlikely that directors ever push in a big way for lower pay for CEOs because they have almost no incentive to do so. More than 99 percent of the directors put up for re-election are approved by shareholders. This is because it is very difficult to organize among shareholders to unseat a director. (Think of the difficulty of unseating an incumbent member of Congress and multiple by about 100.)

    As a result, there is no reason to raise unpleasant questions at board meetings. Even though they are supposed to serve shareholders, which means not paying one penny more than necessary to CEOs and top management for their performance (just as CEOs try to pay workers as little as possible), their incentive is to get along with top management. The result is the upward spiral in CEO pay that we have seen in the last four decades.

    A big part of the problem is that asset managers (think Vanguard and Blackrock) routinely support management slates as they vote trillions (literally) of dollars worth of stock held by people in their 401(k)s and IRAs. These asset managers care more about staying on good terms with top management than making sure they aren't overpaid. This creates a structure where ridiculously rich CEOs, who are usually big celebrants of the market, are effectively shielded themselves from market discipline. Isn't that the way markets are supposed to work?

    * https://www.nytimes.com/interactive/2017/05/26/business/highest-paid-ceos.html

    -- Dean Baker

    Fred C. Dobbs - , May 26, 2017 at 07:49 AM
    The Highest-Paid C.E.O.s in 2016

    https://nyti.ms/2r4cpYS

    NYT - JON HUANG and KARL RUSSELL - MAY 26

    Here are 200 of the highest-paid chief executives in American business. The data comes from the Equilar 200 Highest-Paid CEO Rankings, which lists the compensation of the chief executives of 200 public companies with annual revenue of at least $1 billion, that filed proxies by May 1st.

    (graphic at the link)

    pgl - , May 26, 2017 at 08:52 AM
    This list is often seen posted on the bedroom wall of certain young ladies living in Manhattan. And the poor young dudes at the gym cannot figure out why they can't get a date.
    Fred C. Dobbs , May 26, 2017 at 11:20 AM
    The Question Isn't Why Wage Growth Is So Low. It's Why
    It's So High. https://nyti.ms/2r5tRMx via @UpshotNYT
    NYT - NEIL IRWIN - MAY 26, 2017

    One of the economy's biggest mysteries is this: The labor market is the strongest it has been in a decade, yet wages are rising barely faster than inflation.

    For some reason, the booming job market and ultralow unemployment rate, which fell to 4.4 percent in April, haven't led employers to raise pay in a meaningful way. That flies in the face of a basic assumption of how the economy works: A tight labor market is expected to lead to pay increases that in turn fuel broader inflation.

    But the mystery of the missing pay raises may have a surprisingly simple solution, and one that sheds light on the larger economic challenges of our age.

    Consider a simple model for how much the average worker's pay ought to be rising: You could simply add together the productivity growth rate - how rapidly the output generated by each hour of labor is increasing - and the inflation rate, which tells us how quickly prices are rising.

    Over the last 24 months through March, inflation has come in at 1.4 percent a year, and productivity growth at 0.6 percent. Those are very low numbers. And in our supersimple model, you may expect average worker wages to have risen only 2 percent.

    In fact, the average hourly earnings for nonmanagerial private sector workers rose 2.4 percent a year in that period. You may not feel like cheering about that, but it's more than we might have expected, with inflation and productivity so weak. The real mystery, then, isn't why wages are rising so slowly, but why they're rising so fast.

    If anything, the numbers show that workers are capturing more than their share of the spoils from a growing economy. And that, as it happens, is the reverse of a decades-long trend. For most of the last half-century - 84 percent of the time since 1966 - average wages have grown more slowly than would be predicted based on productivity and inflation growth. The rise in the share of employee compensation that takes the form of health benefits instead of wages is a factor, but doesn't explain the whole gap; for long stretches, that gap exceeded 2 percentage points a year.

    That means the labor share of national income was shrinking, or, more plainly, that workers' slice of the economic pie got smaller while the part taken by shareholders and other owners of capital grew. ...

    Paine - , May 26, 2017 at 02:08 PM
    Shoddy
    cm - , May 26, 2017 at 08:43 PM
    If there is an argument being made, I'm not getting it. It's all just wall of text.
    Christopher H. , May 26, 2017 at 01:00 PM
    https://www.wsj.com/articles/rural-america-is-the-new-inner-city-1495817008

    RURAL AMERICA IS THE NEW 'INNER CITY'

    A Wall Street Journal analysis shows that since the 1990s, sparsely populated counties have replaced large cities as America's most troubled areas by key measures of socioeconomic well-being-a decline that's accelerating

    By Janet Adamy and Paul Overberg

    Atthe corner where East North Street meets North Cherry Street in the small Ohio town of Kenton, the Immaculate Conception Church keeps a handwritten record of major ceremonies. Over the last decade, according to these sacramental registries, the church has held twice as many funerals as baptisms.

    In tiny communities like Kenton, an unprecedented shift is under way. Federal and other data show that in 2013, in the majority of sparsely populated U.S. counties, more people died than were born-the first time that's happened since the dawn of universal birth registration in the 1930s.

    ...

    In many cities, falling crime has attracted more middle- and upper-class families while an influx of millennials delaying marriage has helped keep divorce rates low.

    Maria Nelson, a 45-year-old media company manager who came to Washington, D.C., to work after college, had always assumed she would someday move to the suburbs, where she had grown up. A generation of heavy federal spending helped make the nation's capital one of the country's highest-earning urban centers. Its median household income rose to $71,000 a year in 2015, a 51% increase since 1980, adjusted for inflation.

    While Ms. Nelson was able to buy a brick row house in 2002, she said she worries about younger colleagues-let alone anyone moving in from a small town-who face soaring real-estate prices. "The whole area just seems to be out of range for most people now," she said

    In Kenton, Father Young said that despite their mounting troubles, he is optimistic about his parishioners. Some of them tell him they worry about what will happen when they die because they still provide for their adult children.

    He likes to say there is always hope. "They can find a job," he said. "Columbus is close enough."

    updated May 26, 2017

    DeDude , May 26, 2017 at 01:36 PM
    Sorry Kentucky; in a federal government run like a business - you are a LOSER. Time to cut you off and leave you behind. If we are going to WIN so much that we get tired of it, we just cannot carry to load of someone like you.

    https://www.usatoday.com/story/opinion/2017/05/25/donald-trump-should-close-sell-states-like-kentucky-column/101989780/

    [May 24, 2017] Universities serve as finishing schools for the ruling class by Rob Montz

    May 23, 2017

    Originally from: Why Colleges Fold to Students' Anti-Intellectual Hysterics The American Conservative

    Middlebury College just completed its final round of disciplinary hearings for students involved in March's violent disruption of a lecture by Charles Murray, the influential but controversial social scientist.

    The punishments to date have been laughably lax. Guilty students have been presented with non-official "probation" letters that'll vanish upon graduation .

    This toothless response reflects a deeper rot. Middlebury, like many prestigious colleges, has steadily gravitated away from its core educational mission and now serves primarily as a sort of finishing school for the ruling class. Professors and administrators alike are simply expected to shower students with affirmation-and then hand over a degree securing smooth entry into America's elite. College has become four years of expensive fun. This is what parents and students now demand.

    This change-from institutions of learning to institutions of affirming-threatens the nation's future as colleges foster a vicious strain of anti-intellectualism.

    At over $60,000 a year, Middlebury's tuition buys much more than books, lodging, and classes. Students also get a campus-wide square dance , dining halls that host culinary " world tours ," lavish fitness facilities, and an annual winter carnival complete with fireworks, a hot chocolate bar, and snow sculptures.

    The student body is ultra-affluent. Middlebury is among a small handful of schools with more students from the top one percent of the income distribution than those from the bottom 60 percent . And on graduation, newly christened alums are typically funneled right back into their elite enclaves, taking jobs at places like Goldman Sachs, McKinsey, and Amazon .

    ... ... ...

    Rob Montz is a fellow at the Moving Picture Institute. Find his work at: RobMontz.com. Check out his interview with TAC executive editor Pratik Chougule at Fearless Parent Radio: http://fearlessparent.org/free-speech-controversy-us-elite-universities-episode-104/

    [May 20, 2017] Outsourcing higher wage work is more profitable than outsourcing lower wage work

    Notable quotes:
    "... Baker correctly diagnoses the impact of boomers aging, but there is another effect - "knowledge work" and "high skill manufacturing" is more easily outsourced/offshored than work requiring a physical presence. ..."
    "... That's what happened with American IT. ..."
    May 20, 2017 | economistsview.typepad.com
    cm, May 20, 2017 at 04:51 PM
    Baker correctly diagnoses the impact of boomers aging, but there is another effect - "knowledge work" and "high skill manufacturing" is more easily outsourced/offshored than work requiring a physical presence.

    Also outsourcing "higher wage" work is more profitable than outsourcing "lower wage" work - with lower wages also labor cost as a proportion of total cost tends to be lower (not always).

    And outsourcing and geographically relocating work creates other overhead costs that are not much related to the wages of the local work replaced - and those overheads are larger in relation to lower wages than in relation to higher wages.

    libezkova -> cm... May 20, 2017 at 08:34 PM

    "Also outsourcing "higher wage" work is more profitable than outsourcing "lower wage" work"

    That's what happened with American IT.

    [May 19, 2017] What the author inadvertently points out is that capitalism, particularly the so called consumer capitalism that we have is like a board game; only at the beginning anything is possible

    Notable quotes:
    "... What the author inadvertently points out is that capitalism, particularly the so called consumer capitalism that we have is like a board game; It has a beginning when anything is possible. A middle when a broad spectrum of players prosper and there is extra money for infrastructure and public amenities. Then an end where wealth is increasingly concentrated in fewer and fewer hands and the waste stream has taken its toll. ..."
    "... Tell me, when where these good old days, of "true" capitalism? Back when we were enslaving Africans? ..."
    "... workers fail to ..."
    "... Yeah, it's really a pity that author of such a well-written piece confuses GDP with living standards. If that was the case people wouldn't vote for nationalist and populists. ..."
    "... serving their own interests; ..."
    "... In our imperial system, it does not matter to the people whether they vote, or how; it matters, occasionally, to the contestants' position in the power structure, but nothing more than that. ..."
    "... there are rumors that the Federal Liberal Party in Canada is exploring this. ..."
    "... 8) Nothing in this section shall be construed to impose a duty upon: (a) A provider of an electronic store, gateway, marketplace or other means of purchasing or downloading software or applications to review or enforce compliance with this section by those applications or software; or (b) A provider of an interactive computer service to review or enforce compliance with this section by third-party content providers. As used in this paragraph, "interactive computer service" means any information service, system or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such services or systems operated or offered by libraries or educational institutions. (9) This section does not apply to general audience Internet websites, general audience online services, general audience online applications or general audience mobile applications, even if login credentials created for an operator's site, service or application may be used to access those general audience sites, services or applications. ..."
    May 19, 2017 | www.nakedcapitalism.com
    DJG , May 19, 2017 at 10:20 am

    Definitely worth reading and reading again. What popped on first reading is the description of the rise of income in Poland and the stagnation of income in the U S of A. What pops for me on seccond reading is these paragraphs about tax evasion and income inequality: >>

    One reason nothing happens is a culture of tax evasion. There's a folk belief in American business that if you pay full taxes, you're not doing your fiduciary duty, and your board will fire you.

    Apple now has a quarter trillion dollars offshore that it refuses to put into direct productive use in the United States. Apple boasts that its products are designed in California-they will sell you a $300 book called Designed By Apple In California. But they do their damndest to make sure that California never sees a penny of their overseas profits.

    You in the EU are all too familiar with this brand of tax evasion. Google, Amazon, Apple, Microsoft have all been under investigation or in court on charges of evading European taxes.

    Another reason good intentions don't translate is that capitalism, especially venture capital, doesn't work very well when there is vast wealth inequality.

    [Tax evasion isn't just a folk belief: It is taught in U.S. law schools and in business schools, along with union busting.]

    Jef , May 19, 2017 at 10:52 am

    What the author inadvertently points out is that capitalism, particularly the so called consumer capitalism that we have is like a board game; It has a beginning when anything is possible. A middle when a broad spectrum of players prosper and there is extra money for infrastructure and public amenities. Then an end where wealth is increasingly concentrated in fewer and fewer hands and the waste stream has taken its toll.

    diptherio , May 19, 2017 at 11:49 am

    Another reason good intentions don't translate is that capitalism, especially venture capital, doesn't work very well when there is vast wealth inequality.

    The author does not understand that capitalism creates vast wealth inequality: that's the whole point. Inequality is a feature, not a bug, and so trying to save capitalism while eliminating vast wealth inequalities is working at cross-purposes, and only one of those aims can be successful and guess which one it always is?

    justanotherprogressive , May 19, 2017 at 11:56 am

    +100

    Wisdom Seeker , May 19, 2017 at 12:39 pm

    "capitalism creates vast wealth inequality: that's the whole point."

    Not in Adam Smith's world, nor Henry Ford's. True capitalists prosper by creating wealth which improves the lives of everyone around them. Crony capitalists, the ones we have now, strip wealth from others. Witness today's bubble-and-bust cycles rather than the prior widespread economic growth.

    The capitalism you see today is an abomination of the original concept, just as Mnuchin's claim to support "Glass Steagall" is an abomination. And don't get me started on the "Affordable" Care Act, or the "Patriot" act which gutted the Constitution

    P.S. The original author's article is riddled with glaring factual errors, but he has the big picture right: it's time to restore Antitrust Law and apply it to the internet monopolists. And restore privacy rights and and it's a long list. Start fighting now, if you want anything to happen in your lifetime!

    Carla , May 19, 2017 at 2:05 pm

    The author's central thesis strikes me as correct: that Europe provides the only hope for applying any brakes whatsoever to the American tech sector. I hope someone over there is listening, as prospects here seem utterly hopeless.

    MyLessThanPrimeBeef , May 19, 2017 at 2:21 pm

    Freedom means people should have reasonable alternatives, choices on any product, service or ideology. Today's internet experience lacks that freedom aspect quite a bit.

    diptherio , May 19, 2017 at 2:42 pm

    Hokum. The "theory" is that it benefits everyone, but the reality is quite different. Tell me, when where these good old days, of "true" capitalism? Back when we were enslaving Africans? Back when we were hanging Wobblies? Back when we had to put nets around our factories to keep the workers from committing suicide? Please the dictatorship of the proletariat worked out just fine in Marx's theory, too.

    clinical wasteman , May 19, 2017 at 3:00 pm

    Another one for the gallery of glaring factual errors: "capitalists prosper by creating wealth". Unless that was an epic typo for something like: " workers fail to prosper while creating wealth".

    As for "the original concept" of "capitalism", in which district of the astral plane did you find that? Apart from his anthropological sci-fi about the origins of money in "barter", Adam Smith generally tried to write about the real world. Just like Marx, except that Smith was speaking for a different class interest, whose "moral philosopher" imagined himself to be. For that reason, "capital" and "capitalist"(n.) were important concepts for Smith and Marx alike, but "capitalism" - a sort of hybrid implying the social reality and the ideology cheerleading for it at once without ever really distinguishing between the two - is an abstraction that neither had much time for, and one that only really caught on once both were dead.

    Wisdom Seeker , May 19, 2017 at 4:01 pm

    Wasteman – for a start, unlike todays Cronyists, Adam Smith understood that capitalism would not function for the benefit of all unless monopolies were restrained by government:

    "The interest of the dealers [referring to stock owners, manufacturers, and merchants], however, in any particular branch of trade or manufacture, is always in some respects different from, and even opposite to, that of the public. To widen the market and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can serve only to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, and absurd tax upon the rest of their fellow-citizens. (Adam Smith, Wealth of Nations (Amherst, New York: Prometheus Books, 1991), pages 219-220)"

    See here for more details:
    https://machineryofpolitics.wordpress.com/2012/01/04/adam-smith-on-the-crisis-of-capitalism-2/

    Another interesting perspective is from J. K. Galbraith (sorry I lost the source) who pointed out that in an economy with healthy competition, profit margins are lower, but employment and wage income are necessarily higher.

    diptherio , May 19, 2017 at 5:14 pm

    And pray tell, who is it who will restrain the monopolists? Our elected officials, who just so happen to be under the control of those same capitalists? Which is possible due to the vast wealth inequalities that capitalism generates .

    Capitalists, almost without exception, do everything in their power to avoid competition. The idea is to make a profit and competition is antithetical to that.

    Lots of things are good in theory, like three-way relationships. Reality, on the other hand, feels no obligation to correspond with theory.

    Vatch , May 19, 2017 at 3:27 pm

    capitalism creates vast wealth inequality

    Not exactly. Capitalism extends or expands existing inequality. It was the development of agriculture several thousand years ago that broke the approximate egalitarianism of the hunter gatherer lifestyle. Even that had some inequality, but not much. For more information, see the early chapters of The Great Leveler , by Walter Scheidel.

    diptherio , May 19, 2017 at 5:23 pm

    Hence the "vast" part. I'm not so silly as to think that before capitalism there was not wealth inequality. But not the type where a few hundred people control more wealth than a few billion. It would seem to me, on just a gut level based on a little reading, that whereas systems like feudalism were unequal but relatively stable*, i.e. the level of inequality stayed the same generation to generation, capitalism's dynamics have caused inequality to skyrocket, both nationally and globally.

    *Or at least cyclically stable, as with regular debt jubilees in Sumer.

    HBE , May 19, 2017 at 3:11 pm

    "Living standards in Poland in 2010 had more than doubled from 1990." This sentence annoyed me to no end. Yes, the reason that is true is because every capitalist country in the world worked to smash and destroy communism without pause for its entire life and then internal and external oligarchs snatched up everything.

    Living standards increased over that period in Poland but so did inequality and poverty. So the country got some shiny new consumer goods (which the author seems enamored by) while the populations poverty rate continues to climb. Thank god for privatization ("Suddenly people had cars, phones, appliances" and suddenly poverty surged as well), and the end of those no good dirty commies, right?

    vlado , May 19, 2017 at 4:02 pm

    Yeah, it's really a pity that author of such a well-written piece confuses GDP with living standards. If that was the case people wouldn't vote for nationalist and populists.

    In any case, despite very good performance of Polish economy, its convergence to West Europe at least in terms of GDP (PPP) is questionable as the cases of Czech Republic and Slovenia show. See the article The convergence dream 25 years on in Bruegel

    visitor , May 19, 2017 at 6:04 pm

    There is a reason why people voted for the populist PiS and ousted the liberals who had made such a great job at bringing Poland into the EU and its "market society".

    justanotherprogressive , May 19, 2017 at 10:23 am

    A long but brilliant article that everyone should take the time to read! I want all the techies in my family to read it because it points out some of the uneasiness even techies feel about the their industry.

    My favorite paragraph (although there were many close seconds):

    "But real problems are messy. Tech culture prefers to solve harder, more abstract problems that haven't been sullied by contact with reality. So they worry about how to give Mars an earth-like climate, rather than how to give Earth an earth-like climate. They debate how to make a morally benevolent God-like AI, rather than figuring out how to put ethical guard rails around the more pedestrian AI they are introducing into every area of people's lives."
    Yep .

    MyLessThanPrimeBeef , May 19, 2017 at 2:28 pm

    That popular vote comment is misleading as well.

    A previous example was given about a hypothetical House vote, where, in yes-districts, voters are split 51-49 yes (assuming that is so lots of times, congress persons vote 'their conscience') and voters in no-districts are 90-10 for no. Yes votes win by one.

    In that case, the popular vote actually is for No.

    And that has nothing to do with slavery.

    It's how the math works in a representative voting system.

    PhilM , May 19, 2017 at 3:32 pm

    Before responding to MLTPB, I'd like to voice my opinion that the OP article is thoughtful and reflects a decent level of awareness of the reality of the world, along with positive solutions that would be achievable in a polity that had the public good as its aim.

    As for MLTPB's opinion on the vote, I beg to differ: it has everything to do with slavery. That's how the numbers work in our system, which is imperial, not representative. It's a bitch when instead of Augustus you get Caligula, but it doesn't change the basic reality of how the system works, and has worked since Ike. In our imperial system, it does not matter to the people whether they vote, or how; it matters, occasionally, to the contestants' position in the power structure, but nothing more than that.

    Here is the reality: the people in any office in our federal government-basically everyone who lives in or around Washington DC-have the same relationship to American people as they have to Russian, Chinese, or Indian people: that of serving their own interests; predation, if you will; animal husbandry, if you prefer. They will act so as to extract the maximum value consistent with not-killing-the-goose-that-lays-the-golden-eggs from every person, wherever they are located, whatever their religion, whatever their nationality, as long as they are powerless, which means everyone who is a private citizen, however rich, or a small business; everyone who is not a Forbes 500 corporation.

    The notion that the federal government is somehow tied to "Americans," or even to the geographical entity now known as the USA, much less to the values expressed in the so-called "founding documents," is a child's bedtime story.

    It's amusing that it took the election of Trump to bring this realization about; but really, that is why some of us actually voted for Trump: to rub the idiots' noses in the reality of their political environment. (Not me, mind you; because I do not bother to vote: when I want something done, I write a check, like any experienced consumer of government services.)

    There is a cure, but it is not changing the election mechanism so the choice of president results from the popular vote totals in a population of 300 million. No, it means changing it so there are 1000 presidents and 100,000 representatives and 1000 supreme courts, and 1000 republics. Those are the numbers that would achieve representative government the way it was designed to function by people who knew. Alternatively, you could reduce federal taxation to 1/10th of its current level, and assign all other taxation to the township, with a population limit of 20,000. Now you would have something that is no longer imperial.

    But since most people since the dawn of history have lived under organizations that are imperial with perfect happiness, the appropriate course of action is not to struggle in futility for change, which would almost certainly do more harm than good, and result in an outcome that would just use up the world's resources more swiftly in the chaos of consumption and war. The optimum course is to watch reruns of amusing sitcoms and eat good food; to gratify the animal pleasures and such pleasures of the mind as remain to aging bodies mistreated by pharmaceuticals; and to die as quickly and painlessly as the authorities permit.

    MyLessThanPrimeBeef , May 19, 2017 at 5:37 pm

    In our imperial system, it does not matter to the people whether they vote, or how; it matters, occasionally, to the contestants' position in the power structure, but nothing more than that.

    In that case, the popular vote question is not a question anymore (with the current 1 president, instead of 1,000 setup), as you point out here:

    There is a cure, but it is not changing the election mechanism so the choice of president results from the popular vote totals in a population of 300 million.

    I have mentioned before that Rome had, at one time, 2 or 4 co-emperors. You suggest 1,000 presidents, as a solution. That's nothing to do with slavery, except in the sense that we're all serfs or slaves. It about making one's voice heard within a smaller group, having someone representing you along with fewer constituents.

    The inherent problem of having representatives vote, versus direct voting, is still here, as in the example given above. The math scales up and down.

    Thomas Williams , May 19, 2017 at 11:04 am

    Nice piece: Two things to note
    – The Clintons, Bush & Obama presided over this mess and aided in it's creation but the albatross of abuse is being hung on Trump.
    – He shares an enormous egotistical blind spot common to tech workers. He wants unionization and strength for tech workers but seems to advocate for a globalized work force. More than anything else, foreign workers are responsible for wage suppression in the US. Is he saying 'Tech workers are special and should be pampered but others should work for $1.85 per day"?
    – The above points are not germaine to his central theme, which is important and well written. But it does raise questions about his values.

    Knot Galt , May 19, 2017 at 2:13 pm

    Agreed. Trump = Chucklehead and the shadow in T.S. Eliot's poem

    Jacobite_In_Training , May 19, 2017 at 11:11 am

    " Boycotts won't work, since opting out of a site like Google means opting out of much of modern life ."

    Good .Opt out of modern life. Now. Get as far away from it as you possibly can. You'll be the better person for it. There was a time I felt 'modern life' was the place to be .Now the older me realizes 'modern life' is a sham, an illusion, and a trap.

    A very cleverly designed trap, and one in which the cattle to be slaughtered all believe they are choosing their own destiny even as they are herded inexorably closer to the slaughterhouse.

    Amusingly, although my younger naive and idealistic self had a significant part to play in the great tech revolutions and evolutions through the 90's and early 2000's (for which I will be eternally regretful and ashamed, given how the creations we labored on have been whored out by the pimps in the oligarchy and government) I was also incredibly lucky to have grown up on a farm and learned how to use a hoe, a hand powered washing machine, how to gather eggs and grow things.

    Real things, things that can feed people. But more importantly .how to grow things like spirit and independence that do not rely on any flow of electrons to come to glorious fruition.

    I also so much better understand what that prophet Edward Abbey was trying to warn us about all those decades ago .

    " Growth for the sake of growth is the ideology of the cancer cell "

    Tom , May 19, 2017 at 11:27 am

    Indeed. The promise of technology has devolved into Clickbait Nation - where millions mindlessly click on endless deceptive headlines like rats pushing levers in a giant Skinner box.

    justanotherprogressive , May 19, 2017 at 11:55 am

    Is "opting out" really an option? Are we willing to opt out out of modern medicine too?
    Whether we like it or not, we aren't opting out of using the internet, so we aren't opting out of anything this author talked about .

    Sooooo ..wouldn't a better idea be to learn as much as we can about this technology and get involved in its decision making, so that we can control it and make it work for rather than against us?

    Jacobite_In_Training , May 19, 2017 at 12:13 pm

    I've had that debate before, people typically starting with the 'well, you are posting using the Internet so you aren't really opting out of anything', but thats a simplistic approach, and the process of opting out is a matter of degrees – it is never a binary on/off.

    One can continue 'opting out' of aspects of society, and technology, to as extreme a position as you wish .even back to the stone age, should you choose. (sort of the ultimate boycott)

    Tradeoffs are inherent to the process, no argument there .just be aware that the experience of opting out is itself liberating. You realize all these shiny objects, and expensive things, and
    complicated processes that you have been raised to think of as critical necessities that cannot ever EVER be parted with .may not be so critical as you think.

    Sometimes the tradeoffs will be negative, more often – in my experience – (once you have solved the problems presented by improvising/adapting/overcoming) you will find the 'tradeoffs' are a net positive.

    You are, of course, a creature with free will and free to do what you choose . opt in, opt out .as you will. :)

    Thuto , May 19, 2017 at 12:59 pm

    Agreed, there are several gradations to this whole opting out thing. I for one am completely absent from any social media platform and feel no loss whatsoever because of this. It takes a committed group of independent thinkers to deconstruct and debunk this whole narrative that you're either "all-in" with these internet platforms or you opt out and life passes you by as you're consigned to an existence of irrelevance and ignorance about the world around you.

    MoiAussie , May 19, 2017 at 1:05 pm

    Perhaps it would be more accurate to say that you are very selective about the social media in which you participate.

    Thuto , May 19, 2017 at 1:50 pm

    If by social media we are talking facebook, instagram et al, then I have never participated in any of those. To be sure, this is not meant to sound like I take a dim view on those who do, the point is the narrative is typically framed, at least in my part of the world, as an all-in/opt-out binary in which participation in social media platforms is a prime determinant in who "remains relevant" and who doesn't

    Vatch , May 19, 2017 at 3:29 pm

    I don't have a MyFace account.

    I love saying that!

    justanotherprogressive , May 19, 2017 at 1:21 pm

    I'm not sure what you think you are opting out of. If you are on the internet, then you have to have a carrier – Verizon, Comcast, etc. Do you think their data collection systems are different than what Google, Facebook, or any other social media does?

    jrs , May 19, 2017 at 1:54 pm

    and least they aren't funding trips to mars? :)

    jrs , May 19, 2017 at 1:51 pm

    Yea I think the truly open minded probably try many of the internet platforms just to see what they are like and then delete their accounts (this does not need to entail posting one's entire private life there needless to say). Not a lot of open mindedness out there really though, it's all extremes: rigid abstinence from it all, or hopeless addiction to it.

    I mean I understand a priori rejection of the majority of what capitalism produces (except if it's necessary to life then well), but it is a pretty uninformed position from which to criticize (as is being addicted to it really).

    PKMKII , May 19, 2017 at 2:46 pm

    Even if you opt out personally, you're still going to be interacting with a lot of people, businesses, governments, etc., that are dependent on the Five Horsemen. Pay cash at the local business, but travel down the supply chain that brought the goods there and you'll run into someone using cloud storage, social media, consumer surveillance data, etc.

    Wisdom Seeker , May 19, 2017 at 1:01 pm

    Regarding "get involved in its decision making" –

    Ordinary folks have really only two ways to do this. One is in their consumer choices. Avoid or boycott companies that abuse their customers – hit them in their wallets. The other is in their voting and political participation push privacy rights, antitrust enforcement, etc. higher on the political agenda.

    It's entirely possible to be comfortably social without "social media". Personally, I boycott Facebook, Twitter, and (as much as possible) Google and Ebay. Google is tough because they have infiltrated the schools with Google Classroom (which has value, but do we really want an internet advertising company to be gathering data on our children?). Microsoft is tough because of the Office monopoly, but just because I have to use it at work doesn't mean I need to pay them any money anywhere else in my life There are also ways to buy online without using Amazon.

    lyman alpha blob , May 19, 2017 at 1:58 pm

    There are other search engines, browsers, email services, etc. besides those operated by the giants. DuckDuckGo, protonmail, and the Opera browser (with free built-in VPN!) work well for me.

    The problem is, if these other services ever do get popular enough, the tech giants will either block them by getting their stooges appointed to Federal agencies and regulating them out of existence, or buy them.

    I've been running from ISP acquisitions for years, as the little guys get bought out I have to find an even littler one. Luckily I've found a local ISP, GWI, that I've used for years now. They actually came out against the new regulations that would allow them to gather and sell their customers' data. Such anathema will probably wind up with their CEO publicly flayed for going against all that is good and holy according to the Five Horsemen.

    Mel , May 19, 2017 at 1:26 pm

    There are two sides to opting out.
    When net neutrality is gone, then capital and market concentration will transform the internet into what cable TV is now, and nobody will need it much.
    Contrariwise the big tech companies are taking over the implementation of major social functions:
    – if you can't vote without the internet
    – if you can't spend your money without the internet
    – if you can't contact your friends without the internet
    – if you can't get news without the internet - this has already happened - just look at us all here.
    – if you can't join a political party without liking it on your Facebook page and following it on Twitter - there are rumors that the Federal Liberal Party in Canada is exploring this.
    As I said somewhere else, all this would amount to an uncontracted and unspecified public/private partnership (various ones, actually) and all entered into unexamined. Time to examine them while they're still easy to change.

    HotFlash , May 19, 2017 at 5:58 pm

    there are rumors that the Federal Liberal Party in Canada is exploring this.

    Interesting. Are they going to get us all free internet? If not, I think they will find a big surprise.

    jrs , May 19, 2017 at 1:45 pm

    To assume that workers in ANY Industry (including tech where we know the big players have rigged the labor market against tech workers) have more power than consumers seems pretty unrealistic to me. Of course consumer power is one dollar one vote and hardly democratic but at least consumers do have options and some power. The employee role is a powerless one in the U.S..

    Kris Alman , May 19, 2017 at 11:40 am

    We can either continue on the knowledge economy road, where our personal data is commodified. Or we could fight for a knowledge society, where we collectively access knowledge while protecting our identity and privacy. I vote for the latter.

    Google would plant a chip in every child if they could. Short of that, they have insinuated themselves in public schools, hoping that every kid in America will consummate their relationship with this giant after they graduate from k-12. See this NY Times article from last weekend: How Google Took Over the Classroom

    It's hard to mitigate their reach. In a landmark student privacy law passed in California (with an even weaker version passed in my state of Oregon), they built in what I call a Google exemption clause.

    ( 8) Nothing in this section shall be construed to impose a duty upon:
    (a) A provider of an electronic store, gateway, marketplace or other means of purchasing or downloading software or applications to review or enforce compliance with this section by those applications or software; or
    (b) A provider of an interactive computer service to review or enforce compliance with this section by third-party content providers. As used in this paragraph, "interactive computer service" means any information service, system or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such services or systems operated or offered by libraries or educational institutions.
    (9) This section does not apply to general audience Internet websites, general audience online services, general audience online applications or general audience mobile applications, even if login credentials created for an operator's site, service or application may be used to access those general audience sites, services or applications.

    The Campaign for a Commercial-Free Child and the Parent Coalition for Student Privacy (a group with which I have worked) just put out a Parent Toolkit for Student Privacy .

    Patient Privacy Rights has an upcoming international summit that is free. Stream it! See: https://patientprivacyrights.org/health-privacy-summit/

    MyLessThanPrimeBeef , May 19, 2017 at 2:07 pm

    We can either continue on the knowledge economy road, where our personal data is commodified. Or we could fight for a knowledge society, where we collectively access knowledge while protecting our identity and privacy. I vote for the latter.

    When I am not accessing knowledge, I would still prefer to remain private.

    For example, what videos I access for entertainment should private. It's not knowledge I access, just something to pass time.

    That those activities should b protected as well.

    Privacy-protected-society is probably a broader term than knowledge society.

    MyLessThanPrimeBeef , May 19, 2017 at 2:09 pm

    And the Google exemption clause reads like a Facebook exemption clause as well (or Amazon or Warner Cable exemption clause).

    [May 18, 2017] Toward a Jobs Guarantee at the Center for American Progress by Lambert Strether

    Notable quotes:
    "... By Lambert Strether of Corrente ..."
    "... The Financial Times ..."
    "... customer ..."
    May 17, 2017 | www.nakedcapitalism.com
    Posted on May 17, 2017 By Lambert Strether of Corrente

    I had another topic lined up today, but this ( hat tip alert reader ChrisAtRU ) is so remarkable - and so necessary to frame contextualize immediately - I thought I should bring it your attention, dear readers. The headline is "Toward a Marshall Plan for America ," the authors are a gaggle of CAP luminaries with Neera Tanden leading and Rey Teixeira trailing, and the "Marshall Plan" indeed includes something called a "Jobs Guarantee." Of course, I trust Clinton operatives like Tanden, and Third Way types like Teixeira, about as far as I can throw a concert grand piano. Nevertheless, one sign of an idea whose time has come is that sleazy opportunists and has-beens try to get out in front of it to seize credit[1] and stay relevant. So, modified rapture.

    In this brief post, I'm going to look at the political context that drove CAP - taking Tanden, Teixeira, and the gaggle as a proxy for CAP - to consider a Jobs Guarantee (JG), briefly describe the nature and purpose of a JG, and conclude with some thoughts on how Tanden, Teixeira would screw the JG up, like the good liberals they are.

    Political Context for CAP's JG

    Let's begin with the photo of Prairie du Chien, WI at the top of CAP's JG article. Here it is:

    I went to Google Maps Street View, found Stark's Sports Shop (and Liquor Store), and took a quick look round town. Things don't look too bad, which is to say things look pretty much like they do in my own home town, in the fly-over state of Maine; many local businesses. The street lamps make my back teeth itch a little, because along with bike paths to attract professionals, they're one of those panaceas to "bring back downtown," but as it turns out Prairie du Chien has marketed itself to summer tourists quite successfully as " the oldest Euro-American settlement established on the Upper Mississippi River," so those lamps are legit! (Of course, Prairie du Chien, like so much of flyover country, is fighting an opioid problem , but that doesn't show up in Street View, or affect the tourists in any way.)

    More to the point, Crawford County WI, in which Prairie du Chien is located, was one of the counties that went for Obama, twice, and then flipped to Trump ( 50.1% Trump, 44.6% Clinton ), handing Trump the election, although the CAP authors don't mention this. AP has a good round-up of interviews with Prairie du Chien residents , from which I'll extract the salient points. On "flipping," both from Obama (since he didn't deliver) and away from Trump (if he doesn't deliver):

    In 2012, [Lydia Holt] voted for Barack Obama because he promised her change, but she feels that change hasn't reached her here. So last year she chose a presidential candidate unlike any she'd ever seen, the billionaire businessman who promised to help America, and people like her, win again. Many of her neighbors did, too .

    In this corner of middle America, in this one, small slice of the nation that sent Trump to Washington, they are watching and they are waiting, their hopes pinned on his promised economic renaissance. And if four years from now the change he pledged hasn't found them here, the people of Crawford County said they might change again to someone else.

    "[T]hings aren't going the way we want them here," she said, "so we needed to go in another direction."

    And the issues:

    [Holt] tugged 13 envelopes from a cabinet above the stove, each one labeled with a different debt: the house payment, the student loans, the vacuum cleaner she bought on credit.

    Lydia Holt and her husband tuck money into these envelopes with each paycheck to whittle away at what they owe. They both earn about $10 an hour and, with two kids, there are usually some they can't fill. She did the math; at this rate, they'll be paying these same bills for 87 years.

    Kramer said she's glad the Affordable Care Act has helped millions get insurance, but it hasn't helped her he and her husband were stunned to find premiums over $1,000 a month. Her daughter recently moved into their house with her five children, so there's no money to spare. They opted to pay the penalty of $2,000, and pray they don't get sick until Trump, she hopes, keeps his promise to replace the law with something better.

    Among them is a woman who works for $10.50 an hour in a sewing factory, who still admires Obama, bristles at Trump's bluster, but can't afford health insurance. And the dairy farmer who thinks Trump is a jerk - "somebody needs to get some Gorilla Glue and glue his lips shut" - but has watched his profits plummet and was willing to take the risk.

    And of course jobs (as seen in this video, "Inside the Minds and Homes of Voters in Prairie du Chien, WI," made by students at the University of Wisconsin-Milwaukee).

    So that's Prairie du Chien, Wisconsin. CAP frames the electoral context this way:

    While the election was decided by a small number of votes overall, there was a significant shift of votes in counties in critical Electoral College states, including Iowa, Michigan, Ohio, Pennsylvania, and Wisconsin.

    (I could have told them that. In fact, I did! ) And the reasons for the shift:

    What was going on in these heavily white working-class counties that might explain support for Trump? Without diminishing the importance of cultural and racial influences, it is clear to us that lingering [sic] economic pressures among important voting blocs helped to create a larger opening for Trump's victory.

    We do not yet know the exact reasons for the drop in turnout among young people and black voters. But with President Obama not on the ticket to drive voter enthusiasm, it is quite possible that lingering job and wage pressures in more urban areas with lots of young people, and in areas with large populations of African-Americans, yielded similar, if distinct, economic anxiety in ways that may have depressed voter turnout among base progressives. The combined effect of economic anxiety may have been to drive white noncollege voters toward Trump and to drive down voter engagement and participation among base progressives.

    Either way, issues related to lost jobs, low wages, high costs, and diminished mobility played a critical role in setting the stage for a narrow populist victory for Trump.

    (I could have told them that, too. In fact, I did! ) Note the lingering "Obama Coalition" / identity politics brain damage that casually assumes "base progressives" equate to African-Americans and youth. Nevertheless, mild kudos to CAP for fighting through to the concept that "economic pressures among important voting blocs helped to create a larger opening for Trump's victory." The CAP paper then goes on to recommend a JG as an answer to such "economic pressures."[2]

    Nature and Purpose of a JG

    Here's the how and why of a JG (though I wrote it up, I had the help of practioners):

    How would the JG work from the perspective of a working person (not an owner?) Or from the perspective of the millions of permanently disemployed? The MMT Primer :

    If you are involuntarily unemployed today (or are stuck with a part-time job when you really want to work full time) you only have three choices:

    Employ yourself (create your own business-something that usually goes up in recessions although most of these businesses fail) Convince an employer to hire you, adding to the firm's workforce Convince an employer to replace an existing worker, hiring you

    The second option requires that the firm's employment is below optimum-it must not currently have the number of workers desired to produce the amount of output the firm thinks it can sell. …

    If the firm is in equilibrium, then, producing what it believes it can sell, it will hire you only on the conditions stated in the third case-to replace an existing worker. Perhaps you promise to work harder, or better, or at a lower wage. But, obviously, that just shifts the unemployment to someone else.

    It is the "dogs and bones" problem: if you bury 9 bones and send 10 dogs out to go bone-hunting you know at least one dog will come back "empty mouthed". You can take that dog and teach her lots of new tricks in bone-finding, but if you bury only 9 bones, again, some unlucky dog comes back without a bone.

    The only solution is to provide a 10 th bone. That is what the JG does: it ensures a bone for every dog that wants to hunt.

    It expands the options to include:

      There is a "residual" employer who will always provide a job to anyone who shows up ready and willing to work.

    It expands choice. If you want to work and exhaust the first 3 alternatives listed above, there is a 4 th : the JG.

    It expands choice without reducing other choices. You can still try the first 3 alternatives. You can take advantage of all the safety net alternatives provided. Or you can choose to do nothing. It is up to you.

    If I were one of the millions of people permanently disemployed, I would welcome that additional choice. It's certainly far more humane than any policy on offer by either party. And the JG is in the great tradition of programs the New Deal sponsored, like the CCC, the WPA, Federal Writers' Project , and the Federal Art Project . So what's not to like? ( Here's a list of other JGs). Like the New Deal, but not temporary!

    Intuitively: What the JG does is set a baseline[3] for the entire package offered to workers, and employers have to offer a better package, or not get the workers they need. When I came up here to Maine I'd quit my job voluntarily and so wasn't eligible for unemployment. Then the economy crashed, and I had no work (except for blogging) for two years. There were no jobs to be had. I would have screamed with joy for a program even remotely like this, and I don't even have dependents to take care of. It may be objected that the political process won't deliver an offer as good as the Primer suggests. Well, don't mourn. Organize. It may be objected that a reform like the JG merely reinforces the power of the 0.01%. If so, I'm not sure I'm willing to throw the currently disemployed under the bus because "worse is better," regardless. Anyhow, does "democratic control over the living wage" really sound all that squillionaire-friendly to you? Aren't they doing everything in their power to fight anything that sounds like that? The JG sounds like the slogan Lincoln ran on, to me: "Vote yourself a farm!" [3]

    So, what does the JG for the economy? MMT was put together by economists; from an economists perspective, what is it good for? Why did they do that? The Primer once more:

    some supporters emphasize that a program with a uniform basic wage[4] also helps to promote economic and price stability.

    The JG/ELR program will act as an automatic stabilizer as employment in the program grows in recession and shrinks in economic expansion, counteracting private sector employment fluctuations. The federal government budget will become more counter-cyclical because its spending on the ELR program will likewise grow in recession and fall in expansion.

    Furthermore, the uniform basic wage will reduce both inflationary pressure in a boom and deflationary pressure in a bust. In a boom, private employers can recruit from the program's pool of workers, paying a mark-up over the program wage. The pool acts like a "reserve army" of the employed, dampening wage pressures as private employment grows. In recession, workers down-sized by private employers can work at the JG/ELR wage, which puts a floor to how low wages and income can fall.

    Finally, research indicates that those without work would prefer to have it :

    Research by Pavlina Tcherneva and Rania Antonopoulos indicates that when asked, most people want to work. Studying how job guarantees affect women in poor countries, they find the programs are popular largely because they recognize-and more fairly distribute and ­compensate-all the child- and elder care that is now often performed by women for free (out of love or duty), off the books, or not at all.

    Enough of this crap jobs at crap wages malarky!

    And here's the how and why of a JG, as described by CAP :

    We propose today a new jobs guarantee, and we further expect a robust[3] agenda to be developed by the commission.

    The low wages and low employment rates for those without college degrees only exist because of a failure of imagination. There is no shortage of important work that needs to be done in our country. There are not nearly enough home care workers to aid the aged and disabled. Many working families with children under the age of 5 need access to affordable child care. Schools need teachers' aides, and cities need EMTs. And there is no shortage of people who could do this work. What has been missing is policy that can mobilize people.

    To solve this problem, we propose a large-scale, permanent program of public employment and infrastructure investment-similar to the Works Progress Administration (WPA) during the Great Depression but modernized for the 21st century. It will increase employment and wages for those without a college degree while providing needed services that are currently out of reach for lower-income households and cash-strapped state and local governments. Furthermore, some individuals may be hired into paying public jobs in which their primary duty will be to complete intensive, full-time training for high-growth, in-demand occupations. These "public apprenticeships" could include rotations with public and private entities to gain on-the-ground experience and lead to guaranteed private-sector employment upon successful completion of training.

    Such an expanded public employment program could, for example, have a target of maintaining the employment rate for prime-age workers without a bachelor's degree at the 2000 level of 79 percent. Currently, this would require the creation of 4.4 million jobs. At a living wage-which we can approximate as $15 per hour plus the cost of contributions to Social Security and Medicare via payroll taxes-the direct cost of each job would be approximately $36,000 annually. Thus, a rough estimate of the costs of this employment program would be about $158 billion in the current year. This is approximately one-quarter of Trump's proposed tax cut for the wealthy on an annual basis.

    With tis background, let's look at how liberals would screw the JG up.

    How a CAP JG Would Go Wrong

    Before getting into a little policy detail, I'll examine a few cultural/framing issues. After all, CAP does want the program's intended recipients to accept it with good grace, no? Let me introduce the over-riding concern, from Joan C. Williams in The Financial Times : "They don't want compassion. They want respect" :

    Williams warns that Republican errors alone won't give Democrats back the WWC.

    Or any part of the WC; as even CAP recognizes, although WWC disproportionately voted Trump, and non-WWC disproportionately stayed home.

    While [Williams] agrees that the Democrats have mobilised their base since Trump's election, she has "one simple message" for the party: it needs to show the WWC respect, "in a tone suitable for grown-ups". Democrats must say: "We regret that we have disrespected you, we now hear you." She asks: "Is this so hard? Although the risk is that the response will be, 'Oh, those poor little white people with their opioid epidemics, let's open our hearts in compassion to them.' That's going to infuriate them. They don't want compassion, they want respect."

    To show respect, it would really behoove liberals to deep-six the phrase "economic anxiety," along with "economic frustrations," "economic concerns," "economic grievances," and "lingering economic pressures."[4] All these phrases make successful class warfare a psychological condition, no doubt to be treated by a professional (who by definition is not anxious, not frustrated, has no grievances, and certainly no economic pressures, because of their hourly rate (or possibly their government contract).

    To show respect, it would also behoove liberals to deep-six the concept that markets come first; people who sell their labor power by the hour tend to be sensitive about such things. Take, for a tiny example, the caption beneath the image of Prairie du Chein. Let me quote it:

    A customer crosses the street while leaving a shop along the main business district in Prairie du Chien, Wisconsin, January 2017.

    Really? A customer ? Does the human figure have to be a customer ? Why?

    Along the same lines, drop the "affordable" crap; ObamaCare should have ruined that branding already; what seems like it's affordable to CAP writers in the Beltway probably isn't affordable at all to somebody making $10 an hour. Anyhow, if something like childcare or for that matter #MedicareForAll ought to be a universal direct material benefit, then deliver it!

    To show respect, abandon the "Marshall Plan" framing immediately. Because it means the "winners" are going to graciously help the "losers," right? And prudentially, liberals don't really want to get the working class asking themselves who conducted a war against them, and why, right?

    To show respect, make the JG a truly universal benefit, a real guarantee, and don't turn it into an ObamaCare-like Rube Goldberg device of means-testing, worthiness detection, gatekeeping, and various complex forms of insult and degradation, like narrow networks. This passage from CAP has me concerned:

    Such an expanded public employment program could, for example, have a target of maintaining the employment rate for prime-age workers without a bachelor's degree at the 2000 level of 79 percent.

    That 'target" language sounds to me very much like the "dogs and bones" problem. Suppose currently we have 6 bones and 10 dogs. The "target" is 7 bones. Suppose we meet it? There are still 3 dogs without bones! Some guarantee! The JG should be simple: A job for everyone who wants one. None of this targeting or slicing and dicing demographics. The JG isn't supposed to be an employment guarantee for macro-economists (who basically have one anyone).

    To show respect, make the JG set the baseline for wages (and working conditions). This passage from CAP has me concerned:

    Second, because it would employ people to provide services that are currently needed but unaffordable, it would not compete with existing private-sector employment.

    This language seems a bit slippery to me. If Walmart is paying $10.00 an hour, is the JG really going to pay $9.50?

    Finally, you will notice that the CAP JG is shorn of any macro-economic implications. Note, for example, that replacing our current cruel system of regulating the economy by throwing people out of work isn't mentioned. Note also that CAP also accepts the false notion that Federal taxes pay for Federal spending. That puts CAP in the austerity box, meaning that the JG might be cut back just when it is most needed, not least by working people.

    Conclusion

    I do want to congratulate CAP, and without irony, for this passage:

    [The JG] would provide the dignity of work, the value of which is significant. When useful work is not available, there are large negative consequences, ranging from depression, to a decline in family stability, to "deaths of [sic] despair."

    It's good to see the Case-Deaton study penetrating the liberal hive mind. Took long enough. Oh, and this makes the JG a moral issue, too. The pallid language of "economic anxiety" should be reformulated to reflect this, as should the program itself.

    NOTES

    [1] The JG originally comes from the MMT community; here is a high-level summary . Oddly, or not, there's no footnote crediting MMTers. Interestingly, Stephanie Kelton, who hails from the University of Missouri at Kansas City's MMT-friendly economics department, before Sanders brought her onto the staff at the Senate Budget committee, was not able to persuade Sanders of the correctness and/or political utility of MMT generally or the JG in particular.

    [2] I guess those famous Democrat 2016 post mortems will never be published, eh? This will have to do for a poor substitute. Or maybe the Democrats just want us to read Shattered .

    [3] In my view, "robust" is a bullshit tell. Back when I was a hotshot consultant, the operational definition of "robust" was "contained in a very large three-ring binder."

    [4] Dear God. Are these people demented? Nobody who is actually under "economic pressure" would use these words. And so far as I can tell, "lingering" means permanent.

    About Lambert Strether

    Readers, I have had a correspondent characterize my views as realistic cynical. Let me briefly explain them. I believe in universal programs that provide concrete material benefits, especially to the working class. Medicare for All is the prime example, but tuition-free college and a Post Office Bank also fall under this heading. So do a Jobs Guarantee and a Debt Jubilee. Clearly, neither liberal Democrats nor conservative Republicans can deliver on such programs, because the two are different flavors of neoliberalism ("Because markets"). I don't much care about the "ism" that delivers the benefits, although whichever one does have to put common humanity first, as opposed to markets. Could be a second FDR saving capitalism, democratic socialism leashing and collaring it, or communism razing it. I don't much care, as long as the benefits are delivered. To me, the key issue - and this is why Medicare for All is always first with me - is the tens of thousands of excess "deaths from despair," as described by the Case-Deaton study, and other recent studies. That enormous body count makes Medicare for All, at the very least, a moral and strategic imperative. And that level of suffering and organic damage makes the concerns of identity politics - even the worthy fight to help the refugees Bush, Obama, and Clinton's wars created - bright shiny objects by comparison. Hence my frustration with the news flow - currently in my view the swirling intersection of two, separate Shock Doctrine campaigns, one by the Administration, and the other by out-of-power liberals and their allies in the State and in the press - a news flow that constantly forces me to focus on matters that I regard as of secondary importance to the excess deaths. What kind of political economy is it that halts or even reverses the increases in life expectancy that civilized societies have achieved? I am also very hopeful that the continuing destruction of both party establishments will open the space for voices supporting programs similar to those I have listed; let's call such voices "the left." Volatility creates opportunity, especially if the Democrat establishment, which puts markets first and opposes all such programs, isn't allowed to get back into the saddle. Eyes on the prize! I love the tactical level, and secretly love even the horse race, since I've been blogging about it daily for fourteen years, but everything I write has this perspective at the back of it.

    ChrisAtRU , May 17, 2017 at 1:38 pm

    Thank you! Thank you! Thank you!

    Clive , May 17, 2017 at 2:37 pm

    No, thank you!

    Dead Dog , May 17, 2017 at 4:40 pm

    Yes, a great essay. And thank you commentariat.
    Of course, there is a potential conflict from those who want a basic income, but don't want to work. Such a position frames such people badly, but a basic income remains an essential part of a JG world IMO.
    The JG would provide incentive if you didn't lose the safety net and could add to it by working in a JG program.
    Most here in this place accept that a sovereign government can pay for programs which are not funded by taxes (or debt) and the JG and basic income concepts could be a way to test this in a controlled way.
    The main reason I think that politicians continue to have blinkers (LA LA, CAN'T HEAR YOU) with respect to MMT is that they are scared witless of a government with unlimited spending powers. That's why we can't have nice things.

    jrs , May 17, 2017 at 5:26 pm

    don't want to work, hmm I don't even know if I could work in a job without a decent amount of slack (A.D.D. mind may not be capable of it or something and often not for lack of trying, though I do a decent amount of unpaid work in my precious leisure time). Or at least not the full 40 hours, so if the job guarantee bosses are slave drivers, I don't know, I'd probably be fired from my job guaranteed job period.

    But what if a job was aligned with one's interest? Don't know, never experienced that.

    But all that aside and never even mind unemployment, given how horrible the job circumstances are that I see many people caught in (and I definitely don't mean having slack – that's a good thing, I mean verbal ABUSE, I mean working endless hours of unpaid overtime etc.), any alternative would seem good.

    nycTerrierist , May 17, 2017 at 6:19 pm

    +1!

    PKMKII , May 17, 2017 at 1:55 pm

    The "target" language also makes me worry that they're defining optimal employment by the inflation-obsessed standards of Chicago-school economists, thus coming up short in the name of protecting the investor class.

    Minor quibble: Does Maine constitute flyover country? Usually that term means the parts of the country that the well-to-do "fly over" from east coast cities to west coast ones, with perhaps an exception for Chicago. You wouldn't fly over Maine for any of those routes. Not to mention, Maine is a popular vacationing/summer home state for rich New Englanders, so it doesn't exactly have an "other" status for them the way rural Wisconsin would.

    Huey Long , May 17, 2017 at 4:22 pm

    I think Maine is legit flyover country as flying over Maine was once mandatory on the transatlantic route in order to Gander Airport in Newfoundland. I know, I know, it's a bit of a stretch but I'm trying here!

    As for Maine's other status, you're spot on about "down east" (coastal) Maine and some of the lakes being popular with the landed gentry, but the interior of the state is sparsely populated, poor, white, and marginalized. Many of the paper mills have gone belly-up and the economy in many places consists of picking potatoes or cutting down trees.

    Knifecatcher , May 17, 2017 at 5:06 pm

    I used to do a lot of business travel to Nova Scotia. Hard to get there from the US without flying over Maine. But I think Lambert meant flyover in the pejorative "why would you live here when you could be an artisanal pickle maker in Brooklyn" sense.

    Peham , May 17, 2017 at 2:17 pm

    Thanks much! A JG as you describe plus nationalizing all our current rentier industries ought to just about do the trick.

    Sutter Cane , May 17, 2017 at 2:24 pm

    Are you still guaranteed a job if you happen to make any negative comments about Neera Tanden? (Asking for Matt Bruenig)

    nihil obstet , May 17, 2017 at 6:50 pm

    Matt Bruenig had other issues with the article: More Job Guarantee Muddle . While he points out that the jobs suggested in the article should be permanent rather than temporary jobs, I go on with my own little sense of discomfort that they all involve putting the otherwise jobless in charge of caring for the helpless. I don't find that a good idea. I've spent enough time both working with and volunteering in human service organizations to have observed that it's not really appropriate work for a lot of people, even for many good-hearted volunteers. It really dampens my enthusiasm for a JG that I have yet to see an argument for it that doesn't invoke child and elderly care as just great jobs that the jobless can be put to doing.

    Just another quibble with this post. I first heard of a job guarantee and heard arguments for it in the U.S. civilian society from Michael Harrington in the early 1980s (guaranteed jobs have been a feature of the state capitalist societies that call themselves socialist throughout the 20th c.), so I don't find it particularly odd when the MMT community isn't mentioned as originating the idea. In fact, I tend to respond with "Hey, MMTers, learn some history."

    jrs , May 17, 2017 at 7:06 pm

    good points.

    Susan the other , May 17, 2017 at 2:47 pm

    Thanks for this article Lambert. Why should we trust CAP to handle this when they have done nothing toward this end in their entire history. In fact, in undeniable fact, if we don't do something about demand in this country we will have no economy left at all. For these guys to even approach a JG you know they are panicked. Nobody goes over this fact because it turns them all into instant hypocrites. I spent yesterday listening to some MMTers on U-Tube, Wray and some others. They all clearly and succinctly explain the systemic reasons for JG. Not nonsense. In fact, MMT approaches a JG as the opposite of nonsense on so many levels. As you have pointed out – these CAP people are a little late to reality. And their dear leader Obama is first in line for the blame, followed closely by Bill Clinton and his balance-the-budget cabal of bankster idiots. And etc. And these JG jobs could be just the jobs we need to turn global warming around. It could be the best spent money ever. It is a very straight-forward calculation.

    Sue , May 17, 2017 at 2:57 pm

    Dispel ambiguity. Call it LWUJG, Living Wage Universal Job Guarantee

    Sandler , May 17, 2017 at 3:20 pm

    I don't know how you even bother. America is so far away from this intellectually and culturally, there is no chance. Right now the "jobs guarantee" is get arrested for something bogus and be sentenced to prison to do forced labor for outsourcing corporations (yes this is real). Look where the GOP stands on basic issues which were settled long ago in Europe, they are in the Stone age. The Dems are right wing everywhere else.

    With US institutions usually run horribly how do you expect this to be well run? Is the VA a shining example? I certainly would not have hope for this at the federal level.

    Murph , May 17, 2017 at 3:43 pm

    I feel the same way often but I've got to allow myself some hope once in a while. This development is at least turn in the right direction for the moment, nothing else. There's nothing wrong with being (aprehensively) pleased about that.

    Sandler , May 17, 2017 at 5:29 pm

    I'd like to get a basic unemployment welfare scheme going first. We don't even have that! We have an "insurance" program which requires you to first have held a job which paid enough for long enough, and then get fired, not quit. And it only pays for six months. Again, this was settled in other rich countries a long time ago.

    Darius , May 17, 2017 at 6:38 pm

    Swing for the fences, ladies or gentlemen. Throw incremental change overboard, along with Hillary, Tim Kaine and Neera.

    Disturbed Voter , May 17, 2017 at 6:03 pm

    There is a job guarantee in Castro's Cuba. So wonderful, people are swimming from Miami to Havana ever day.

    Though you have it exactly right in the US the job guarantee is to be a felon on a privatized prison farm usually called a "plantation". I am looking forward to my neighbors finally being put to work. At least it is only building a Presidential Library for Obama, not a pyramid for Pharaoh.

    witters , May 17, 2017 at 6:40 pm

    "There is a job guarantee in Castro's Cuba. So wonderful, people are swimming from Miami to Havana ever day."

    That is why Cuba will never last! It will die in minutes, without any outside help!

    Mind you, here's a thought. Maybe the one's who didn't want to work, left for Florida!

    diptherio , May 17, 2017 at 3:49 pm

    My prediction: by the time this makes it through Congress, it will be a guarantee for no more than 15 hours per week at slightly below the minimum wage and you'll only be able to be in the program for nine months, total during your lifetime. Or am I being overly cynical?

    Maybe we need to update that old saw: "First they ignore you, then they laugh at you, then they co-opt your idea and strip the soul out of it, then you kinda win but not really, but hey that's progress, right?"

    Even though I'm cynical, I'm with Lambert in being for just about anything that makes us bottom-20%ers lives better, even if it is highly flawed. Heck, I'd even be for a BIG on that basis, even if Yves is right about the negative side-effects of that policy.

    Huey Long , May 17, 2017 at 4:29 pm

    they co-opt your idea and strip the soul out of it, then you kinda win but not really, but hey that's progress, right?"

    SPOT ON!!!

    This is EXACTLY what Bismark did in 1883 with his Staatssozialismus (state socialism) reforms.

    Disturbed Voter , May 17, 2017 at 6:03 pm

    In 1883, Germany still had hope it was only 12 years old!

    Jeff , May 17, 2017 at 3:50 pm

    If I understood correctly, Norway is running such a program since many years.
    Basically, when you are out of a job, you get unemployment benefits (a low but decent salary, health care and other modern facilities unheard of is the US) – which last forever .
    On the other hand, any public institution can call you in to help a hand: washing dishes at the school kitchen one day, waiting on the elderly the other day, helping out in the local library wherever hands are needed but not available.
    So it is not really a JG, but you are guaranteed to help out your local community, and you are guaranteed a minimal income. That seems close enough to me.

    Fred1 , May 17, 2017 at 4:27 pm

    This is just positioning to defend against a challenger from the left who is promoting a genuine JG.

    See we agree about a JG, I'm for it too and here is my 9 point proposal on my website.

    robnume , May 17, 2017 at 5:56 pm

    Thanks, Lambert, for a very interesting post. I combed through CAP's panel of "experts." I was not impressed.
    I'm going to start my own think tank. Gonna call it CRAP: Center for Real American Progress.

    lyle , May 17, 2017 at 7:18 pm

    Of course in the north in the winter you could go back to shoveling snow with snow shovels (no machines allowed) and ban use by public employees of riding lawnmowers in the summer in favor of powered walk behind mowers. From what I have read this is what china did on the 3 gorges dam, partly making the project a jobs project by doing things in a human intensive way. (of course you could go back to the hand push non powered reel mower but then you have to worry about folks and heart attacks. (Or use those in their 20s for this. Growing up in MI and In this is how we mowed the yard. (in the 1950s and 1960) and for snow shoveling, my dad got a snow blower when I went off to college.
    Now if you really want a low productivity way of cutting grass get one of the hand grass trimmers and set to work cutting it by that, it would employ a lot of folks and not have the exertion problem of a push mower (Again I used these in the 1960s in MI before we had the string trimmers and edgers etc. (also recall the old hand powered lawn edgers.)

    craazyboy , May 17, 2017 at 8:19 pm

    I'm partial to John Cleese Silly Walks. It would be creative and artistic. We need more art.

    Samuel Conner , May 17, 2017 at 9:46 pm

    It sounds like the CAP JG proposal is "top down" in that the "palette" of jobs to be funded is decided by the same agency (or an agency at the same level of government) as the fund disbursement authority, or is specified in the law itself.

    IIRC, the JG concept proposed in the MMT primer would devolve the decision of "how to usefully employ willing underutilized workers" to local level. Funding would still be Federal. There would be some kind of "request for proposals/peer review" process to decide which locally-wanted projects would receive JG dollars (presumably in order to be a guarantee, enough projects would be approved for every locality to employ the available under-utilized willing workforce. If a locality only proposed one project, that would be funded)

    It that right, Lambert? Is "top down" another way that centrists could screw up a JG? And might the "local devolution" aspect of the NEP/MMT Primer concept appeal to folks on the right?

    washunate , May 18, 2017 at 12:13 am

    Great write up. I obviously have a long-running disagreement on the policy prescription of JG, but I do find it interesting talking about how groups like CAP present it outside the specific confines of MMT (and, apparently, without even tipping the hat to them ?).

    One concrete bit of info I would love to know is how they estimate 4.4 million workers for take-up. First, it's a hilarious instance of false precision. Second, it's remarkably low. $15/hr is approximately the median wage. Tens of millions of workers would sign up, both from the ranks of the crap jobs and from the ranks of those out of the labor force.

    [May 16, 2017] Mohamed El-Erian: We get signals that the system is under enormous stress

    Notable quotes:
    "... "The minute you to start talking about the inequality of opportunity, you fuel the politics of anger. The politics of anger have a tendency to produce improbable results. The major risk is that we don't know how much we've strained the underlying system. But what we do know is we are getting signals that suggest it's under enormous stress, which means the probability of either a policy mistake or market accident goes up." ..."
    "... Third, pockets of extreme indebtedness must be addressed, a lesson he learned working with the IMF in Latin America in the 1980s. "When you have a debt overhang, it's like a black cloud," he argues. "It sucks oxygen out of the system. You cannot grow of it: whether it's Greece or student loans in the US, you need to deal with debt overhangs." The process of debt forgiveness is hard, he concedes, because some people are unfairly rewarded – "but the alternatives are worse." ..."
    May 16, 2017 | www.theguardian.com

    Leading economist and investor believes world leaders, and global capitalism, have reached fork in road between equality and chaos

    This is the nub of El-Erian's analysis of why the developed world is approaching a fork in the road. The inequality generated by the current low-growth climate has three elements: inequality of wealth, income and opportunity. The last of the three – manifested in high youth unemployment in many eurozone countries, for example – is the most explosive element.

    "The minute you to start talking about the inequality of opportunity, you fuel the politics of anger. The politics of anger have a tendency to produce improbable results. The major risk is that we don't know how much we've strained the underlying system. But what we do know is we are getting signals that suggest it's under enormous stress, which means the probability of either a policy mistake or market accident goes up."

    ... ... ...

    How do we take the high, benign road? El-Erian has a four-point plan.

    First, "we need to get back to investing in things that promote economic growth, infrastructure, a more pro-growth tax system for the US, serious labour retooling ... If you're in Europe, youth employment is an issue you've really got to think about very seriously."

    Second, countries that can afford to do so must "exploit the fiscal space," meaning borrowing to invest or cutting taxes. He puts the US and Germany unambiguously in that category "and to a certain extent the UK".

    Third, pockets of extreme indebtedness must be addressed, a lesson he learned working with the IMF in Latin America in the 1980s. "When you have a debt overhang, it's like a black cloud," he argues. "It sucks oxygen out of the system. You cannot grow of it: whether it's Greece or student loans in the US, you need to deal with debt overhangs." The process of debt forgiveness is hard, he concedes, because some people are unfairly rewarded – "but the alternatives are worse."

    Fourth, regional and global governance needs repair. He compares the eurozone to a stool with one-and-a-half legs instead of four. The complete leg is monetary union, the half is banking union. The missing legs are fiscal integration, meaning a common budget, and political harmonisation. No wonder the eurozone is unstable, he says: "You can do three legs, you can't do one and half."

    To return to El-Erian's core T-junction analogy, none of the required manoeuvres sound easy. "You don't need a big bang," he replies. "If you want to take the good turn you have to see some progress on some of these elements. If you don't, then we take the other turn." He ascribes equal probabilities – "it's a political judgment."

    What's an investor to do? El-Erian says his own approach, which he admits is hard for the average person to copy, is framed like a bar-bell. At one end, he's invested in high-risk startups where you don't need all to succeed. At the other, he's in cash and cash-like investments. In the middle, he'll invest in public markets only tactically.

    The bottom line: "I'm risk off."

    [May 12, 2017] How Financialization and the New Economy Hurt Science and Engineering Grads

    Notable quotes:
    "... Weinstein argues that the GUI agenda (inspired by Reaganomics) sought to prevent these salary increases. He contends that the legislation that enabled this oversupply was the Immigration Act of 1990 that expanded the H-1B nonimmigrant visa program and instituted employment-based immigration preferences. ..."
    "... As I show in my book Sustainable Prosperity in the New Economy? , the beginning of the end of CWOC was the transformation of IBM, the world's leading computer company, from OEBM to NEBM from 1990 to 1994. In 1990, with 374,000 employees, IBM still bragged about its adherence to the CWOC norm (calling it "lifelong employment"), claiming that the company had not laid off anyone involuntarily since 1921. By 1994 IBM had 220,000 employees, and, with senior executives under CEO Louis Gerstner themselves getting fired for not laying off employees fast enough, CWOC was history. Over the course of the 1990s and into the 2000s, other major Old Economy companies followed IBM's example, throwing out of work older employees, many of them highly educated and with accumulated experience that had previously been highly valued by the companies. ..."
    "... The salaries of S&E employees tended to increase with years of experience with the company, with a defined-benefit pension (based on years of service and highest salary levels) in retirement. These types of secure employment relations, and the high and rising pay levels associated with them, were the norm among established high-tech companies in the mid-1980s, but, as exemplified by IBM's transformation, started to become undone in the early 1990s, and were virtually extinct a decade later, as Old Economy companies either made the transition to the NEBM, or disappeared.8 The culprit in the weakening in the demand for, and earnings of, S&E PhDs from the early 1990s was the demise of CWOC-a phenomenon that Weinstein (and Teitelbaum) entirely ignore. ..."
    "... As exemplified by IBM in the 1990s and beyond, a company's stock price could be raised by laying off expensive older workers and using the resultant "free" cash flow (as the purveyors of MSV called it) to do stock buybacks. 12 ..."
    "... "But the company is "returning" capital to shareholders who never gave the company anything in the first place; the only time in its history that Apple has ever raised funds on the public stock market was $97 million in its 1980 IPO." ..."
    "... During that period, the only job market for native PhD STEM students became the American Defense and Intelligence agencies, because they required security clearances and US Citizenship. I found myself driven in those directions too. ..."
    "... Technology for the most part is just increasing complexity and increasing complexity has diminishing returns. With energy becoming less available, we probably need a lot less complexity. ..."
    "... I wouldn't say that there is a lack of R&D - it just isn't done in-house any more. Gone are the Bell Labs and the Xerox PARCs; welcome to the brave new world of university partnerships and non-profit R&D shops (most famous: the Southwest Research Institute). ..."
    "... Basically the rich are waging class war. That's the problem no matter how you slice and dice this one. This whole "New Economy" has been one big war on wages. I mean look at the collusion too between Google, Apple, and Intel to keep wages low. ..."
    "... Basically it comes down to, the rich are really greedy. The issue right now for the rich is that they are desperate to keep the looting from happening, while people are increasingly aware that the system is against them. Bernie Sanders got a lot of support in the Valley and while it is a very Democratic leaning area, I cannot imagine that Trump's anti-H1B and L1B stance would have been opposed by the average employee. I think that the rich are not going to concede anything and that there needs to be some sort of solidarity union amongst all workers. ..."
    "... Is there a single person here who has worked on Wall Street (writ large) who can convince us that his job or his company had an overall positive effect on the US and/or world economy over five years, ten years, or twenty-five years? ..."
    "... Its not just PhDs. I know several Engineers who advise their children to do something else. It's just not worth the amount of effort that is required to be put into it and there is no future hope of a turn around. As bad as it is for graduates today, it's only going to get worse. ..."
    "... They're catching up with us arts and humanities majors. Sad! ..."
    "... I am a civil engineer and one of my daughters is studying to become a structural engineer. I would not have advised her to go into engineering because of the problem with the H-1B visas. ..."
    "... But who am I to advise? Who can know the future? The world is just changing too fast now to really be able to advise our children on what careers to take. Besides, one of the advantages of studying engineering as you can work anywhere in the world. ..."
    "... Post WWII labor overplayed its hand by the 1970's. Corporations and their decided they had had it. Corps and management proceeded to change the rules of the game on everything -- courts, trade, taxation and regulation. These countermeasures have had disastrous long term consequences. Corporations now run the country in a fascist manner. Government capture has created myriad problems beyond financialization, only one tool in the corporate quiver. Oligopolies across most to all industries comes to mind. Rail, air, health insurance, banking, defense, telecom, entertainment . ..."
    "... Not sure about the labor part overplaying their hand. They just wanted an even wage and productivity rise. It is capital IMO that has overplayed its hand and the rise of neoliberal economics which has led to declines in public R&D spending. There isn't anything like the Space Race anymore. ..."
    "... Frankly, labour underplayed its hand. At one point it had capital by the throat, and should have finished it off then. If peace is not an option, you should utterly and permanently destroy your enemy. ..."
    "... Labor did NOT overplay its hand after WW2 - Taft-Hartley was a HUGE smack-down to labor after the privations of the Depression followed by the war effort. The decent wages during the post-war period were part of a concerted effort to convince workers that they didn't need unions and to be complacent. ..."
    "... Labor leadership certainly became corrupt from all the money sloshing around without global competition due to war devastation of Europe and Japan, the Cold War, and the death throes of colonialism, but this was not due to "overplaying" their hand. ..."
    "... Contrary to popular belief, in aggregate U.S. corporations fund the stock market, not vice versa. Note that almost all of the buybacks in the decade 1976-1985 occurred in 1984 and 1985 after in November 1982 the U.S. Securities and Exchange Commission adopted Rule 10b-18 that gave license to massive buybacks, in essence legalizing systemic stock-price manipulation and the looting of the U.S. business corporation. ..."
    "... Actually though, watching the train wreck that is the outlook for the youngest generation today, provides some grim amusement. For instance noting that the "bubble-driven" economy composed of companies desperate to prevent their stock becoming "badly diluted" by having fire sales on capitol and expertise that probably took their predecessors decades to build can really only have one outcome. Depression, misery, socialism. Maybe we skip the Mao route this time, maybe not. ..."
    "... Gregory Peck: "The Robber Barons of old at least left something tangible in their wake - a coal mine, a railroad, banks. THIS MAN LEAVES NOTHING. HE CREATES NOTHING. HE BUILDS NOTHING. HE RUNS NOTHING. And in his wake lies nothing but a blizzard of paper to cover the pain. Oh, if he said, "I know how to run your business better than you," that would be something worth talking about. But he's not saying that. He's saying, "I'm going to kill you because at this particular moment in time, you're worth more dead than alive." https://www.youtube.com/watch?v=xJRhrow3Jws ..."
    "... IBM. Poster child of everything wrong at the executive-level and the shareholder-level. ..."
    "... Yes, the IBM reference is interesting.The author gives an ordinal lead to IBM as a mover from the OEBM to NEBM. I ask myself if, from a mere one large corporation managing perspective, this was IBM's 11th hour response to the by then devastating rise of its competitors like Apple & Microsoft. ..."
    "... Also the irony that it did no