Posts tagged ‘depressing wages’

WTF Friday

I start with a quote from Eugene Robinson this morning taking on General Kelly and his racism as he cast the Civil War as a failure to compromise. This is from the Mississippi proclamation when leaving the union:

“Our position is thoroughly identified with the institution of slavery — the greatest material interest of the world. Its labor supplies the product which constitutes by far the largest and most important portions of commerce of the earth. These products are peculiar to the climate verging on the tropical regions, and by an imperious law of nature, none but the black race can bear exposure to the tropical sun. These products have become necessities of the world, and a blow at slavery is a blow at commerce and civilization.”

Now Eugene was arguing about the debasement of the Trump White house and how they have reinvented history to their liking, but look at this in a whole new context, the declaration of corporations about how important their existence is and how they view labor in general. You think that is a reach. Remember when Bank of America downgraded Chipotle stock for over paying their employees? Think about how Republicans fight a living wage because it might make our products too expensive. Think about how corporations move jobs off shore to secure slave wages. No reach at all, but it is all justified much like the above in denying the basic humanity of all humans.

President DFF’s appointment of Jerome H. Powell to chair the Federal Reserve was the appointment of a financier and business (lawyer actually) man instead of an economist to the Fed. The DFF hates economists. But here is what you ought to think about. A financier and a business man should be an expert in microeconomics, what is good for a business or corporation at the expense of other business or corporations. An Economist would understand macroeconomics, how the entire economy responds to external and internal stimulus, not what is good for one business, which might be detrimental to others. More importantly, most economist understand the complicated connection between interest rates and monetary policy, In other words, what is good for the whole economy, not just my own profits and how to deal with recession and inflation. This confusion could be a very dangerous thing for the country as it is clear the DFF has no understanding of macroeconomics just as most successful business men do not.

President DFF lashed out after the attack in NYC against the “diversity lottery” for immigrants. He wants everyone merit tested. Now once again, this is a great example of how the DFF’s brain works, or does not work, and that he reacts to the anecdotal without a real examination of the facts. He is the perfect lynch mob leader, clueless and brainless, and quite dangerous. Karen Attiah gives us a look at the merit system and how it has worked for so many and made us a better country, but the reactionary DFF will destroy everything in his path as he reacts as a spoiled 3-year-old who does not like his cookie.

I would just like to say that the Tax Bill that Republicans have brought forward is a jumbled mess. There are two really good analysis of this by Paul Waldman and Catherine Rampell. Now first note that the budget resolution that passed the Senate (all Republicans, no Democrats) that allows this bill to cost no more than $1.5 trillion over the next 10 years is saying we are going to bust the budget by $1.5 trillion over the next ten years. If you are slow, the balance budget folks just said we are going to increase the deficit by $1.5 trillion. Say what? Next note that what they really did was try to give a major giveaway to the rich, some bones and scraps to the middle class, and then there is the math problem, how to keep all that within the $1.5 trillion. Thus the cut to deductions for student loans, home interest deductions, and state and local tax deductions. And as Catherine pointed out this hurts prosperous Blue States who have higher taxes and may make raising taxes for things we need to pay for harder. In a sense, reducing us to broke states.

Oh, and note that the average tax rat corporations pay is 12.6%, less now than what they want to lower the corporate tax rate to, without removing all their loop holes. And that brings me back to Eugene Robinson and the quote from Mississippi. It is the bill of rights of corporations and we are all so screwed. The WTF moment is that all this out there and the solutions are easy, but instead we have a DFF president and a Republican Party running on empty. Happy Friday.