America’s wealthiest families smash income ceiling, middle-class left far behind
By Robert Bridge | RT | December 18, 2014
Despite, or because of, the fallout from the 2007 Great Recession, annual earnings between the richest Americans and everybody else have exploded to record levels. Meanwhile middle- and lower-class wealth growth remains stagnant.
The median wealth for high-income families hit $639,400 last year, a whopping 7 percent jump from three years earlier and seven times greater than middle-class incomes, which stood at $96,500 according to Pew Research Center, citing data from the Federal Reserve.
Middle-class median wealth, which Pew defines as the difference between the value of a household’s total assets and debts, has not advanced since 2010.
The financial chasm now separating the rich and everybody else is the widest since the Fed began tracking earnings 30 years ago, which became even more pronounced following the 2008 global financial crisis.
“The latest data reinforces the larger story of America’s middle-class household wealth stagnation over the past three decades,” Pew said. “The Great Recession destroyed a significant amount of middle-income and lower-income families’ wealth, and the economic ‘recovery’ has yet to be felt for them.”
Pew defines middle-income households – a broad grouping – as those earning between two-thirds of and double the median income, after adjusting for the number of family members living under one roof.
For example, a single individual living alone was ranked as middle income if his/her earnings last year were between $22,000 and $66,000. For a family of four to qualify as middle-income, earnings would have to be between $44,000 and $132,000.
According to this standard, 46 percent of US households last year fell into the middle-income category, while about 33 percent were considered lower income, and 21 percent high income.
Perhaps the most shocking bit of information skimmed from the data is the poor performance of the American middle- and lower-class wealth accumulation over the last 30 years.
For middle-income families, Pew reported “practically no change in wealth over the 30-year period.” The median wealth for the middle class was $94,300 in 1983. That peaked at $158,400 in 2007 and has since fallen back to $96,500.
At the same time, the wealth of lower-income families jumped to a high of $19,100 in 2001, but has since plummeted to $9,300 last year. Median wealth for this group stood at just $11,400 in 1983.
It should perhaps come as no surprise that the wealthiest US families showed the smallest percentage drop of wealth from the outbreak of the 2007 crisis to 2010.
Due in large part to their “disproportionately large stock holdings,” the upper-income class recovered a “substantial part” of losses sustained during the crisis – primarily due to government bailout packages that injected trillions of dollars into the market to shore up the financial system – while lower-income families saw no recovery.
Over the longer period, the average wealth of upper-income families recorded last year was about double what it was in 1983, when it stood at $318,100 to $639,400 in 2013, it reported.
Pew ventured to speculate that the wide wealth disparity between the classes “could help explain why…the majority of Americans are not feeling the impact of the economic recovery, despite an improvement in the unemployment rate, stock market and housing prices.”
In October, just 20 percent of Americans rated the country’s economic conditions as ‘excellent’ or ‘good’, the polling agency said, an increase from the 8 percent who said that four years ago, but far from an optimistic outlook.
READ MORE: Wealth inequality in US not seen since Great Depression – study
Jail employers who exploit migrants, profit from slave labor – Miliband
RT | December 15, 2014
UK employers responsible for flagrant exploitation of migrant workers by violating their rights, paying them paltry wages and offering them poor working conditions, could face jail sentences under a Labour government, Ed Miliband warned on Monday.
During a speech in Norfolk, the Labour leader pledged to introduce a new law to tackle unsatisfactory and inhumane working conditions, which many migrants face in Britain. Legislation change would also help curb wage cuts for local workers, he said.
The proposed law would hold to account those that exploit migrants’ difficult situations. It would focus on criminalizing servitude, slavery, bonded labor, and toughen sentencing for those who force their staff to work under conditions that breach UK requirements. Offenders could face up to 10 years in jail, Miliband said.
To illustrate the acute crisis many migrant workers in Britain face, the Labour chief highlighted a damning case, where immigrants’ human rights were badly violated on British soil.
Some 29 immigrants claimed their wages had been stolen, and they were forced to live in cramped, unsanitary conditions. The immigrants said they were beaten, attacked by dogs and incarcerated in a van for 6 days.
Miliband pledged to clamp down on such rogue employers, particularly those who engage in slave labor or lure workers to Britain under false pretenses.
“This new criminal offence will provide protection to everyone. It will help ensure that when immigrants work here they don’t face exploitation themselves and rogue employers are stopped from undercutting the terms and conditions of everyone else,” he said.
Slave labor in Britain
Earlier this year, the Joseph Rowntree Foundation (JRF) published research that revealed forced labor is a “significant” problem in Britain. The anti-poverty NGO’s report entitled ‘Forced Labour in the UK’ found the phenomenon was largely hidden, but most likely on the increase in Britain.
Drawing from a wide body of evidence, the JRF said the number of those experiencing forced labor in Britain “may run into thousands.” More recent estimates suggest the figure is even higher.
Some 10,000-13,000 victims are thought to be scratching a living in the UK, a review of police sources, the UK Border Force, charities and other bodies revealed in November.
This sobering statistic outweighs last year’s figure by the National Crime Agency’s Human Trafficking Centre, which put the number at 2,744, including 600 children.
“Likely elements within forced labor include low-skill manual and low-paid work; temporary agency work; specific industrial sectors; and certain non-UK migrant workers,” the report stated.
While the JRF’s research acknowledged the criminalization of forced labor in Britain would signal progress, the paper warned it was not a viable substitute for “an effective multi-agency, cross-departmental strategy” that includes measures to address the link between forced labor and human trafficking.
Baseless rhetoric?
While Miliband’s speech in Norfolk addressed social and ethical concerns about immigration in Britain, reports surfaced on Sunday evening that Labour MPs had received a pre-electoral strategy paper saying they should simply “move the conversation on,” should voters express explicit fears about Britain’s border control policies.
Labour aides dismissed the leaked quotes, however, arguing they were taken out of context from a strategic document focusing on how to minimize the threat of Nigel Farage’s Euroskeptic UK Independence Party (UKIP).
But the document leaks, published by the Telegraph, suggested members of the Labour party were instructed not to dispense pamphlets on immigration to all electoral voters, as such a move risked “undermining the broad coalition of support we need to return to government.”
Miliband gave his speech in the Norfolk district of Great Yarmouth. While Labour lost its seat there in 2010, with the constituency now considered a Conservative Party stronghold, it has been identified in recent times as increasingly UKIP-friendly.
In a pre-electoral bid to sway voters to back Labour in 2015, Miliband warned on Monday neither the Tories nor UKIP were prepared to address the underlying causes of immigration.
“They turn a blind eye to exploitation and undercutting because it is part of the low-skill, low-wage, fast-buck economy they think Britain needs to succeed,” he said.
But in light of Sunday’s leaked document, questions have arisen over Labour’s smoke-and-mirrors stance on immigration. Whether Miliband’s pledge is a manifestation of clever electioneering or a solid mandate remains to be seen.
The $7 Million University President
By Lawrence Wittner | CounterPunch | December 15, 2014
In a recent article about Shirley Jackson, the president since 1999 of Rensselaer Polytechnic Institute (RPI)–a private university located in Troy, New York–the Chronicle of Higher Education revealed that, in 2012 (the latest year for which statistics are available), she received over $7 million from that institution. Like many modern campus administrators, President Jackson was also given a large mansion, first class air travel, and a chauffeured luxury car to transport her around the campus.
Thanks to the fact that Jackson also serves on at least five corporate boards, including those of IBM and Marathon Oil, she supplements this income with more than a million dollars a year from these sources.
Despite repeated complaints about Jackson from faculty and students, RPI’s board of trustees has invariably expressed its total confidence in her. Indeed, the board chair recently declared that she is worth every penny of her substantial income. This unwavering support appears to be based not only upon Jackson’s fundraising prowess, but upon the corporate approach that she and the board share.
A key component of this corporate approach is embodied in Jackson’s development and implementation of the Rensselaer Plan, a venture that includes an enormous construction program at a staggering cost. Worried about their institution falling behind rivals in the race to build a high-powered, modern campus, trustees found this university expansion deeply satisfying. But it also meant that RPI ran up its debt to $828 million–over six times its level when Jackson took office. As a result, Moody’s downgraded RPI’s credit rating twice, and describes the financial outlook for RPI as “negative.”
Of course, when operating as a business, there are many ways to pay a top executive’s hefty salary and recoup huge financial losses. As is the practice on other campuses, RPI employs a considerable number of adjunct faculty members–part-timers paid by the course, with pitiful salaries, no benefits, and no guarantee of employment beyond the semester in which they are teaching. One of these adjuncts, Elizabeth Gordon, was paid $4,000 a course–about $10 an hour by her estimates. “Because the pay was so low,” she recalled, “it was like being a volunteer serving the community.” But, as the size of her RPI writing classes grew, she became concerned that the pace of grading, student meetings, and course preparation was undermining her health, which she lacked the insurance to cover. So she quit. Many other adjuncts, however, are still at RPI, scraping by on poverty-level wages and enriching President Jackson.
RPI’s adjuncts once had a voice on campus, as some of them served on RPI’s Faculty Senate. But that came to an end in 2007, when Jackson abolished that entity. From the administration’s standpoint, the abolition of the Senate had the welcome effect of not only depriving adjuncts of their minimal influence, but of crippling the power of regular faculty, as well. The previous year, a faculty vote of no confidence in Jackson’s leadership had been only narrowly defeated. Thus, the administration’s abolition of the Faculty Senate served as a pre-emptive strike. Asked by irate faculty to investigate the situation, the American Association of University Professors condemned the administration’s action as violating the basic principles of shared governance. The administration responded that RPI “has never recognized the role of the AAUP in what we regard as an internal issue.” Ultimately, faculty resistance collapsed, leaving faculty powerlessness and demoralization in its wake.
The Jackson administration, using what union organizers charged were tactics of intimidation, also succeeded in defeating efforts to unionize RPI’s downtrodden campus janitors and cafeteria workers. During one union campaign among janitors, the lead organizer recalled, security guards threw him off campus and the administration fired a janitor on the organizing committee.
In a further effort to cover the administration’s costly priorities, student tuition was raised substantially during the Jackson years. In 2013-14, it reached $45,100–$25,608 above the average tuition at New York’s four-year colleges. Of course, beyond tuition, there are expenses for college fees, room, board, and books, placing RPI’s own estimate of student costs for attendance in 2014-2015 at $64,194. Perhaps to soften the blow to students of this enormous price tag or to signal them about what type of school this is, the RPI web page remarks helpfully that “many of our professors have close ties with top global corporations.”
Having created the very model of an undemocratic, corporate university, President Jackson is appropriately imperious. According to the Chronicle of Higher Education, she has a series of rules that are clear to everyone. These include: 1) Only she is authorized to set the temperature in conference rooms; 2) Cabinet members all rise when she enters the room; 3) If food is served at a meeting, vice presidents clear her plate; and 4) She is always to be publicly introduced as “The Honorable Shirley Ann Jackson.” Falling into rages on occasion, she publicly abuses her staff and frequently remarks: “You know, I could fire you all.” In 2011, RPI’s Student Senate passed a resolution criticizing her “abrasive style,” “top-down leadership,” and the climate of “fear” she had instilled among administrators and staff. It even called upon RPI’s board of trustees to consider Jackson’s removal from office. But, once again, the board merely rallied in her defense.
Perhaps, though, the response of the board of trustees is not surprising. After all, developments at RPI are very much in line with trends at institutions of higher education: inflating administration salaries; exploiting adjunct faculty, regular faculty, and other workers; strengthening administration power; raising tuition to astronomical heights; and, above all, running colleges and universities like modern business enterprises. RPI actually presents us with a glimpse of the future of higher education―a future that we might not like very much.
Lawrence Wittner (http://lawrenceswittner.com) is Professor of History emeritus at SUNY/Albany. His latest book is “What’s Going On at UAardvark?” (Solidarity Press), a satirical novel about campus life.
Gap between rich and poor worst in decades: OECD
Press TV – December 9, 2014
The Organization for Economic Cooperation and Development (OECD) says the gap between rich and poor in most of its member countries has reached its highest level in 30 years.
The organization released a report on Tuesday saying most of its 34 member states have seen a widening inequality gap.
Among its members are both developed and developing nations, including countries from the European Union, the US, Turkey, Mexico and Japan. However, China, Brazil and India are not members of the OECD.
According to the report, the richest 10 percent of people in the OECD area earn 9.5 times the income of the poorest 10 percent. The ratio stood at 7:1 in the 1980s.
The finding also showed that in the couple of decades leading up to the global financial crisis which erupted in 2007, the average household income increased for all OECD member states by around 1.6 percent annually.
However, in recent years, the average household income has stagnated or fell in most OECD member states.
The organization said the expanding inequality gap has negatively affected member states’ economies, with estimates showing that it has slashed more than 10 percentage points off growth in Mexico and New Zealand.
This is while growth rates in the US, UK, Sweden, Finland and Norway would have been more than a fifth higher if there had not been widening inequality.
The organization called for a number of measures to tackle the widening gap, including anti-poverty programs and increased access to high-quality education, training and healthcare.
Dis-Accumulation on a World Scale: Pillage, Plunder and Wealth
By James Petras :: 12.03.2014
Introduction
Over the past 30 years, wealth has grown exponentially and has become increasingly concentrated foremost in the upper .01%, then the .1%, followed by the 1% and the upper 10% – 20%.
The large scale, long-term concentration of wealth has continued through booms and busts of the real economy, the financial and IT crises. Wealth grew despite long-term economic recessions and stagnation, because the so-called recovery programs imposed austerity on 80% of the households while transferring public revenues to the rich.
The so-called ‘crises of capitalism’ have neither reversed nor prevented the emergence of an international class of billionaires who acquire, merge and invest in each other’s activities. The growth of wealth has been accompanied by the pillage of accumulated profits from productive sectors which are stored as wealth not investment capital.
The dispossession of capital and its conversion to private wealth subsequently led to the rapid expansion of the financial and real estate sector. Capital accumulation of profits has been the source of private accumulation of wealth at the expense of wages, salaries, public welfare, and state revenues.
The growth of private wealth at the expense of productive investments is a world-wide phenomenon which has been facilitated by an international network of banks, political leaders and ‘regulators’ centered in the United States and England.
The single most important aspect of private wealth accumulation on a world-scale is criminal behavior by the elites in multiple locations and involves the violation of multiple laws and regulations.
The Chain of Illegality: From Exploitation of Labor to the Pillage of the Nation
The original source of private wealth is the exploitation of labor by capital, of which a small percentage of the profits are reinvested in expanding production in the ‘home market’ or overseas. The bulk of the profits are transferred into financial networks which in turn illicitly channel the funds into overseas accounts.
The movements of profits ‘overseas’ takes multiple forms (transfer pricing, phony invoices, etc.) and they are primarily converted to private wealth. These ‘international movements’ of profits are largely composed of mega-thievery or plunder by political and business leaders from ‘developing countries’. According to the Financial Times (17/11/14, p2) “Up to $1 trillion (dollars) is being taken out of developing countries every year through a web of corrupt activities involving anonymous shell companies that typically hide the identity of their true owners”. (my emphasis)
The $1 trillion of stolen profits and revenues from the ‘developing countries’ (Africa, Asia, South America) are part of a “corruption chain” which is organized, managed and facilitated by the major financial institutions in the US and UK. According to a World Bank report in 2011 “70 percent of the biggest corruption cases between 1980 and 2010 involved anonymous shell companies. The US and UK were among the jurisdictions most frequently used to incorporate legal entities that held proceeds of corruption” (Financial Times, 17/11/14, p2.).
This process of “taking out” or pillage of developing countries feeds into rent seeking, conspicuous consumption and other non-productive activity in the ‘developed countries’ or more accurately the imperialist states. The principle beneficiaries of the pillage of ‘developing countries’ by the local elites are their counterparts in the top 1% of the imperial countries, who control, direct and manage the financial, real estate and luxury sectors of their economies.
The very same financial institutions in the imperial countries (and their related accountancy, legal and consultancy arms) facilitate the pillage of trillions from the ‘developed’ countries to offshore sites, via massive tax evasion operations, hoarding wealth instead of investing profits or paying taxes to the public treasury.
Long-term, large scale pillage and tax evasion depends on the central role, at both ends of the world economy, of the financial sector. This results in the ‘imbalance of the economy’ – predominance of finance capital as the final arbiter on how ‘profits’ are disposed.
The extremely narrow membership in the dominant financial sectors means that its growth will result in greater inequalities between classes. A disproportionate share of wealth will accrue to those who pillage the revenues and profits of the productive sector. As a result so-called ‘productive capitalists’ hasten to join and lay claims to membership in the financial sector.
The links between ‘productive’ and ‘fictitious’ capital or financial swindle capital, defy any attempt to find a progressive sector within the dominant classes. But the effort to enter the charmed circle of the dominant financial 1% is fraught with dangers and risks . . . because the financial sector has a very dynamic and super-active capacity for swindles.
The entire process of de-capitalizing the economy is underwritten in the US by the financial elite’s controls over the executive branch of government, especially the ‘regulatory’ and enforcement agencies -Security Exchange Commission, the Treasury and Justice Departments.
Financial institutions facilitate the inflow of trillions of dollars from the kleptocrats in the developing countries as well as the outflow of trillions of dollars by multi-nationals (MNC) to off-shore tax havens. In both instances the banks are key instruments in the process of dis-accumulation of capital by dispossessing nations and treasuries of revenues and productive investments.
The ‘hoarding’ of MNC profits in offshore shell companies does not in any way prevent speculative activity and large scale swindles in the for-ex, equity and real estate markets. On the contrary, the boom in high-end real estate in London, New York and Paris, and the high growth of luxury goods sales, reflects the concentration of wealth in the top .01%, .1% and 1%. They are the beneficiaries of ‘no risk’ pillage of wealth in developing countries, receiving lucrative commissions and fees in laundering the illicit inflows of wealth and outflows by tax dodging multi-nationals.
The Inverted Pyramid of Wealth
A small army of accountants, political fixers, corporate lawyers, publicists, financial scribblers, consultants and real estate promoters make-up the next 15% of the beneficiaries of the pillage economies. Below them are the 30% upper and lower middle classes who experience tenuous affluence subject to the economic shocks, ‘market volatility and risks of downward mobility. Below them, the majority of wage, salaried and small business classes experience declining incomes, downward mobility, rising risks of mortgage foreclosure, job-loss and destitution among the bottom 30%.
Despite wide variations in the class structure between ‘developing’ neo-colonial and developed imperial states, the top 1% across national boundaries has forged economic, personal, educational, and social ties. They attend the same elite schools, own multiple private residences in similar high end neighborhoods, and share private bankers, money launderers and financial advisors. Each elite group has their own national police and military security systems, as well as political influentials who also co-operate and collaborate to ensure impunity and to defend the illegal financial flows for a cut of the wealth.
The investigatory authorities of each developed country tend to specialize in prosecuting rival financial institutions and banks, occasionally levying fines – never imprisonment – for the most egregious swindles that threaten the ‘confidence’ of the defrauded investors.
Yet the basic structure of the pillage economy, continues unaffected – in fact thrives – because the ‘show’ of ‘oversight’ and judicial ‘charges’ neutralizes public indignation and outrage.
The Decisive Role of Dis-Accumulation in the World Economy
While orthodox economists elaborate mathematical models that have no relationship to the operations, agencies and performance of the economy and ignore the real elite actors which operate the economy, Leftist economists similarly operate with theoretical premises about capital and labor, profits and capital accumulation, crises and stagnation, which ignore the centrality of pillage, dis-accumulation, and the dynamic growth of wealth by the international 1%.
The research center, the Capital Financial Integrity Group provides a vast array of data documenting the trillion dollar illicit financial flows which now dominate the world economy.
US MNCs have ‘hoarded’ over $1.5 trillion dollars in overseas shell companies, ‘dead capital’, to avoid taxes and to speculate in stocks, bonds and real estate.
Mexico’s ruling elite organizes massive illicit financial flows, mostly laundered by US banks, ranging from $91 billion in 2007 to $68.5 billion in 2010. The massive increase in illicit financial flows is greatly facilitated by the de-regulation of the economy resulting from the North American Free Trade Agreement (NAFTA). Contrary to most leftist critics the main beneficiaries of NAFTA are not Canadian mine owners or US agro-business or auto manufacturers- it is the US and Canadian financial and real estate money launderers.
From 1960 to 2010 the Brazilian 1% pillaged over $400 billion dollars. These illicit financial flows are laundered in New York, Miami, London, Switzerland and Montevideo. In recent years the rate of pillage has accelerated: between 2000 -2012 illicit financial flows averaged $14.7 billion a year. And, most recently, under the self-styled ‘Worker’s Party” (PT) regime of Dilma Rousseff, $33.7 billion in illicit outflows were laundered annually – 1.5% of the GDP. Much of the pillage is carried out by private and public “entrepreneurs” in the so-called “dynamic” economic sectors of agro-minerals, energy and manufacturing via ‘trade mispricing’, import overpricing and export underpricing invoices.
According to a study published in the Wall Street Journal, (10/15/12), China’s elite’s illicit financial flows top $225 billion a year – 3% of national economic output. China’s 1%, the business-political elite, finance their children’s overseas private education, providing them with half million dollar condos. Illicit flows allow Chinese ‘investors’ to dominate the luxury real estate markets in Toronto, Vancouver, New York and London. They hoard funds in overseas shell companies. The Chinese corporate kleptocrats are the leaders in the drive to deregulate China’s financial markets – to legalize the outflows.
The scale and scope of China’s elite pillage has provoked popular outrage that threatens the entire capitalist structure – provoking a major anti-corruption campaign spearheaded by China’s President Xi Jinping. Thousands of millionaire officials and business people have been jailed, causing a sharp decline in the sales of the world’s luxury manufacturers.
India’s capitalists- as kleptocrats – have long played a major role in de-capitalizing the economy. According to the Financial Times (11/24/14, p3) the Indian elite’s illicit financial flows totaled $343 billion dollars from 2002 to 2011. The Indian Finance Ministry immediately threw up a smoke screen on behalf of the 1%, claiming the Indian elite had only $1.46 billion in Swiss accounts. Most of India’s wealthy have taken to holing their illicit wealth in Dubai, Singapore, the Cayman and Virgin Islands as well as London.
India’s neo-liberal policies eased the illegal outflows. Massive corruption accompanied the privatization of public firms and the allocation of multi-billion dollar assets such as mobile phones, coal fields and energy.
Indonesia, – percentage-wise is the leader in the outflow of illicit flows – fully 23% of annual output. The 1% elite of foreign and domestic capitalists, plunders natural resources, timber, metals, agriculture and dis-accumulates. Profits flow to foreign accounts in Tokyo, Hong Kong, Singapore, Sydney, Los Angeles, London and Amsterdam.
Ethiopia, with per-capita income of $365 dollars, is the site of vast pillage by its ruling elite. From 2000 to 2009, over $11.7 billion dollars in illicit financial flow was laundered mostly by US banks. These outflows enriched the Ethiopian and the US 1% and provoked famine for Ethiopia’s 90%.
Conclusion
The illicit financial flows surpass the capital invested in productive activity. The process of dis-accumulation of capital through relocation is channeled to overseas shell corporations and private bank accounts and beyond into financial holdings and real estate. The accumulation of private wealth exceeds the sums invested in productive activity generating investments and wages. Massive perpetual tax evasion means higher regressive taxes on consumers (VAT) and wage and salaried workers, reductions in social services, and austerity budgets targeting food, family and fuel subsidies.
The past thirty years of deregulated capitalism and financial liberalization, is a product of the financial takeover of state regulatory agencies. The signing of free trade agreements has provided the framework for large scale long-term illicit financial flows.
While illicit financial flows have financed some productive activities, the bulk has vastly expanded the financial sector. The absorption of illicit flows by the financial elite has led to greater inequalities of wealth between the 1% – 10% and the rest of the labor force.
Illicit earnings via mega swindles among the largest and most respected US and EU banks, has curtailed the amount of capital which is available for production, profits, wages and taxes. The circuits of illicit capital flows militate against any form of long-term economic development – outside of the wealth absorbing elites which control both the financial and political centers of decision-making.
The growth and ascendancy of financial elites which pillage public treasuries, resources and productive activity, is the result of an eminently political process. The origins of de-regulation, free trade and the promotion of illicit flows are all made possible by state authorities.
First and foremost, finance capital conquered state power – with the cooperation of “productive capital”. The peaceful transition reflected the interlocking directorates between banks and industry, aided and abetted by public officials rotating between government and investment houses.
The entire African continent was pillaged by billionaire rulers, many former nationalist politicians (South Africa), ex-guerilla and ‘liberation leaders’ (Angola, Mozambique, Guinea Bissau), in collaboration with US, EU, Chinese, Russian and Israeli oligarchs. Trillions of dollars were laundered by bankers in London, New York, Zurich, Tel Aviv and Paris. Growth of the commodity sector bolstered Africa’s decade long expanding GDP – and the mega-outflows of illicit earnings.
World-wide, billionaires multiplied profits ‘received’, but wages, salaries, pensions and health coverage declined! Swindles multiplied as outflows accelerated in both directions. The higher the growth in China, India, Indonesia and South Korea the bigger and more pervasive the corruption and outflows of wealth-led by “Communist” neo-liberals in China, Indian “free marketers” and Russian “economic reformers”.
The World Bank’s and IMF’s proposed “economic reforms” ‘freed’ the incipient political kleptocrats of controls and unleashed two-sided illicit financial flows – laundering funds from abroad and establishing trillion dollar offshore tax dodging citadels.
Illicit swindles dwarfed earnings from ‘capital accumulation’. The relations between capital and labor were framed by the organization and policies dictated by the directors and operators of the trillion-dollar financial networks based on the pillage of treasuries and the wealth of nations.
The center of China’s growth is shifting from manufacturing and the exploitation of labor, to real estate and “financial services”, as worker’s demand and secure double-digit increases in wages. The exploiters of labor turned predators of the national treasury. Under the pretext of “stimulating” the construction sector, real estate speculators in tow with Communist Party officials, absconded with over a trillion dollars from 2009 to 2014. According to Jonathan Anderson of the Emerging Advisors Group “over a trillion dollars” has gone missing in China in the past five years (Financial Times, 28/11/14, p 1.).
Factories still produce, agro-business still exports, the paper value of high tech companies has risen into the high billions, but the ruling 1% of the system stands or falls with the illicit financial flows drawn from the pillage of treasuries. To replenish pillaged treasuries, regimes insist on perpetual ‘austerity’ for the 90%: greater pillage for the 1%, less public revenues for health care which results in more epidemics. Less funds for pensions means later retirement– work til you die.
The plunder of the economy is accompanied by unending wars – because war contracts are a major source of illicit financial flows. Plunder oligarchs share with militarists a deep and abiding belief in pillage of countries and destruction of productive resources. The one reinforces the other in an eternal embrace – defied only by insurgents who embrace a moral economy and who proclaim the need for a total change – a new civilization.
Amid soaring fuel bills 25,000 UK pensioners to die this winter from cold weather
Press TV – November 12, 2014
A report says that a pensioner will die from cold weather every seven minutes in Britain this winter, amid soaring fuel bills.
The Age UK charity released the report on Tuesday, saying that, this winter, 25,000 elderly people in England and Wales will die as a result of the cold weather and due to high fuel costs and poorly insulated homes.
The charity also revealed that one in three pensioners, or more than 5 million elderly people, are worried that they will not be able to afford to warm their houses.
Caroline Abrahams, the charity’s director, said a growing number of people in Britain are facing difficulties in heating their homes properly.
“No older person should worry that they could die from the cold in their own home,” said Abrahams, adding, “Fuel poverty is a national scandal which has claimed the lives of too many people – both old and young – for far too long and left many more suffering from preventable illness.”
Abrahams called for a long-term solution to the problem, such as bringing Britain’s housing up to a high energy efficiency standard.
The government responded to the charity’s report by insisting that officials are already doing enough to protect elderly Britons struggling to heat their homes.
The UK has seen rising energy costs in recent years. A separate report published earlier this year revealed that the prices of domestic energy in the UK rose by 45 percent between 2008 and 2014.
North Carolina still the only state to compensate victims of forced sterilization
By Noel Brinkerhoff and Steve Straehley | AllGov | November 11, 2014
North Carolina has begun to do something no other state in the nation has attempted: Pay victims of forced sterilization.
The state is attempting to right a 20th century wrong when that state and others mandated that tens of thousands of Americans have their reproductive rights stripped from them in the name of public policy.
California only recently passed a law banning the practice after an investigation showed that female inmates in the state prison system continued to be sterilized. That state accounted for about a third of all U.S. forced sterilizations.
Thirty-two states participated in forced sterilizations from early in the century until 1974. These controversial programs left at least 65,000 citizens with their tubes tied, uteri removed or vasa deferentia severed.
“Still others came under the scalpel of private doctors, and this second group makes the calculations difficult—65,000 represents only the number of sterilizations where there was municipal paperwork,” Ted Scheinman reported for Pacific Standard.
People were sterilized under programs inspired by eugenics as a way to “cleanse” society of poverty and those with mental or physical defects, or who had merely been the victims of horrible crimes, like daughters raped by their fathers.
“They did take our God-given right away from us,” said Elaine Riddick, one of the few survivors of the program. “They did tamper, or play with our reproductive rights. These are things you just can’t cover up, or you just can’t let go of. These are things that are going to haunt us for the rest of our lives.”
North Carolina became the first—and still only—state in 2013 to pass legislation that demands financial compensation to sterilization victims. It did specify that victims had to be alive on June 30, 2013 to be compensated, according to The Daily Tarheel.
Checks of $20,000 will be awarded to at least 220 survivors to begin with. At least 768 claims have been filed with the state, but in many of the remaining cases, there is no official paperwork documenting the loss.
So far, no other state has moved to compensate its forced sterilization victims.
To Learn More:
The Price of American Eugenics (by Ted Scheinman, Pacific Standard )
Some U.S. Victims of Forced Sterilization Are About to Be Compensated — But Most Aren’t (by Payton Guion, Vice News )
Forced Sterilization Compensation begins in N.C. (by Corey Risinger, Daily Tarheel )
Decades after Prison Sterilizations Were “Banned,” State Really Does It (by Ken Broder, AllGov California)
North Carolina Agrees to Compensate Sterilized Welfare Recipients (by Noel Brinkerhoff and David Wallechinsky, AllGov )
Wealth inequality in US not seen since Great Depression – study
RT | November 10, 2014
A new study has revealed that 0.01 percent of the population holds more and more of America’s wealth. The share of wealth in the hands of middle class families has tumbled to levels not seen since before the Wall Street Crash in 1929.
A research paper from the London School of Economics shows previous estimates have seriously underestimated the amount of wealth controlled by the very rich in the US. Authors Saez and Gabriel Zuchman, have used a greater variety of sources, including the effect of things like property tax and tax avoidance strategies.
The researchers used the bottom 90 percent of families as a measure of middle class wealth. They found that in the late 1920’s, just before the Wall Street Crash, the bottom 90 percent controlled 16 percent of America’s wealth.
This share rose steadily from the beginning of the great depression until the end of the Second World War, due to a collapse in wealth of the richest households, and continued to rise after World War Two as the middle class wealth grew on a par with national wealth.
The middle class also saw rising rates of home ownership during this period and by the early 1980s the share of wealth owned by the middle class was reckoned at 36 percent, roughly four times what the top 0.1 percent controlled.
But since the early 1980’s the net worth of the US middle class has collapsed, due to a sluggish growth in middle class incomes but mainly because of soaring debt, including mortgages.
Meanwhile the fortunes of the very rich have grown. 16,000 families make up 0.01 percent of households in America, and are worth an average $371 million. They control 11.2 percent of total US wealth, which is a similar share to that seen back in 1916.
But even coming slightly down the spectrum, the top 0.1 percent, consisting of 160,000 families, hasn’t done nearly as well and holds 22 percent of US wealth – a bit less than their 1929 peak. This is the same share as the bottom 90 percent.
The authors also sound the alarm over how these huge fortunes were amassed. Although some young families have grown rich through entrepreneurial activity, such as billionaires like Mark Zuckerberg, many are rich through fortunes they have inherited.
Healthy girl confiscated from parents who smoked pot, given to murderous foster mother
Police State USA | November 5, 2014
ROUND ROCK, TX — A little girl was confiscated from her loving parents because they smoked marijuana, and given away to a foster mother who put her into a coma and killed her. Alexandria “Alex” Hill, age 2, succumbed to her injuries after being “thrown to the ground.”
“We never hurt our daughter. She was never sick, she was never in the hospital, and she never had any issues until she went into state care,” said the girl’s father, Joshua Hill, to KVUE.
Alex was seized by the Texas Department of Family and Protective Service (TDFPS) after her parents were accused of smoking marijuana while the girl slept. She was taken into state custody in November 2012.
Mr. Hill said that she was put into more than one dangerous foster home.
“She would come to visitation with bruises on her, and mold and mildew in her bag,” Mr. Hill told KVUE. “It got to a point where I actually told CPS that they would have to have me arrested because I wouldn’t let her go back.”
The girl’s final home was with Sherill Small, a foster care contractor in Rockdale, Texas. The TDFPS trusted Ms. Small enough to take custody of multiple children displaced by the agency.
On the evening of July 29th, 2013, Mr. Hill got an urgent call to come to the local hospital. When he got there, he found that Alex was in a coma. The girl had suffered traumatic head injuries after being thrown to the ground. She was also bruised on her buttocks, arm, and chin, and had so much hair ripped out that she was “nearly bald.” Alex died 2 days later.
“I was blown away to find out she was in a coma,” Hill told KXAN. “That’s not what you expect, especially when your child is in state custody for ‘safety,’ and now they’re suffering more injuries and more harm than they ever have in their entire life before that.”
Mr. Hill was 4 months away from getting his daughter returned to his custody.
This tragic case illustrates a widespread injustice perpetrated regularly in the United States in the name of child welfare. Healthy, happy children are commonly stolen from loving families who have never once caused them harm. Once in the care of the state, they are traumatized by familial separation, forcibly drugged, and placed into questionable situations with complete strangers.
As was the case for Alex and her family, the state intervention comes without a trial, without a conviction, and without due process for the parents. The state’s accusation of “neglect” (a loosely defined term) can result in armed agents of the state forcibly entering a home to abduct the child — ostensibly for his or her “safety.”
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FOLLOW-UP:
Sherill Small was charged with the murder of Alex Hill. In November 2014, she was convicted and sentenced to life in prison without parole.
Although she claimed that she “does not shake babies,” a jury found the evidence against Mrs. Small to be overwhelming.
Alex’s mother, Mary Sweeney, has chronicled updates on the case on a Facebook page, “Justice 4 Alex Hill.”
The Texas DFPS was not found to be at fault for placing Alex in the home of Sherill Small. After numerous complaints statewide, and ten Texas children killed in state care in 2013, the Office of the Inspector General became involved, and found that the meddling bureaucracy was often dishonest and reckless in its placement of children.
Although new rules imposed in 2014 make it more difficult to be a foster parent, the agency itself remains dangerously powerful and unaccountable when it comes to snatching children. In 2013, over 30,000 children in Texas spent time in foster care — many for absurd reasons such as parents using marijuana. A major overhaul of child welfare agencies is needed in Texas and across the country.
For the Bottom 90% of Americans, Financial Security is Slipping Away
By Noel Brinkerhoff | AllGov | October 23, 2014
No matter how you look at it, the economic picture for most of America is not good.
From too much debt to not enough savings to shrinking incomes, the vast majority of Americans are confronted with erosion of their financial security.
A new economic study (pdf) from the National Bureau of Economic Research paints a bleak outlook for 90% of the country. This great mass once enjoyed a growing share of the nation’s wealth from before the Great Depression until the 1980s, according to researchers Emmanuel Saez and Gabriel Zucman. The share of the wealth for that group peaked at 35% in the mid-1980s. By 2012, that share had dropped to 23%.
Saddled with growing amounts of mortgage, consumer credit and student debt, the 90% has had little in the way of extra money to put into savings, Saez and Zucman wrote. In fact, the savings rate by those in the lower 90% is about zero. By comparison, the top 1% of families put aside about 35% of their income. The authors say that income inequality will increase as long as the middle-class savings rate remains low.
Another report, from the liberal Center for American Progress, offered up another double whammy of fiscal troubles for Americans: declining income and growing expenses. It reported that the median income of all families dropped 8% from 2000 to 2012.
Meanwhile, the costs of sending kids to college and paying for health care and child care have soared. Higher education expenses have represented the biggest increase, jumping 62% from 2000 to 2012. Health care and child care went up 21% and 24%, respectively.
To Learn More:
Exploding Wealth Inequality in the United States (by Emmanuel Saez and Gabriel Zucman, Washington Center for Equitable Growth)
Wealth Inequality in the United States Since 1913: Evidence from Capitalized Income Tax Data (by Emmanuel Saez and Gabriel Zucman, National Bureau of Economic Research) (pdf)
The Middle-Class Squeeze (Center for American Progress)
U.S. Income Inequality Reaches Record Extreme (by Noel Brinkerhoff, AllGov)
Upset about the Richest 1%? The Top .000003% Own $25 Trillion (by David Wallechinsky and Noel Brinkerhoff, AllGov)




