The Justice Network
Economy
The Purpose of Spectacular Wealth, According to a Spectacularly Wealthy Guy
The Purpose of Spectacular Wealth, According to a Spectacularly
Wealthy Guy
The New York Times
By ADAM DAVIDSON
May 1, 2012
Ever since the financial crisis started, we’ve heard plenty from the 1 percent. We’ve heard them giving defensive testimony in Congressional hearings or issuing anodyne
statements flanked by lawyers and image consultants. They typically repeat platitudes about investment, risk-taking and job creation with the veiled contempt that the nation doesn’t understand their
contribution. You get the sense that they’re afraid to say what they really believe. What do the superrich say when the cameras aren’t there?
With that in mind, I recently met Edward Conard on 57th Street and Madison Avenue, just outside his office at Bain Capital, the private-equity firm he helped build into
a multibillion-dollar business by buying, fixing up and selling off companies at a profit. Conard, who retired a few years ago at 51, is not merely a member of the 1 percent. He’s a member of the 0.1
percent. His wealth is most likely in the hundreds of millions; he lives in an Upper East Side town house just off Fifth Avenue; and he is one of the largest donors to his old boss and friend, Mitt
Romney.
Unlike his former colleagues, Conard wants to have an open conversation about wealth. He has spent the last four years writing a book that he hopes will forever change
the way we view the superrich’s role in our society. "Unintended Consequences: Why Everything You’ve Been Told About the Economy Is Wrong," to be published in hardcover next month by Portfolio,
aggressively argues that the enormous and growing income inequality in the United States is not a sign that the system is rigged. On the contrary, Conard writes, it is a sign that our economy is
working. And if we had a little more of it, then everyone, particularly the 99 percent, would be better off. This could be the most hated book of the year. Read more here
The last Labor Day? We stopped honoring the workers long ago
The last Labor Day? We stopped honoring the workers
long ago
The Herald News
By E.J. Dionne
September 4, 2011
WASHINGTON — Let’s get it over with and rename the holiday "Capital Day." We may still celebrate Labor Day, but our culture has given up on honoring workers as the real
creators of wealth and their honest toil — the phrase itself seems antique — as worthy of genuine respect.
Imagine a Republican saying this: "Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first
existed. Labor is the superior of capital, and deserves much the higher consideration."
These heretical thoughts would inspire horror among our friends at Fox News or in the tea party. They’d likely label them as Marxist, socialist or Big Labor propaganda.
Too bad for Abraham Lincoln, our first Republican president, who offered those words in his annual message to Congress in 1861. Will President Obama dare say anything like this in his jobs speech
this week? Read more here
Working class needs a rebooting
Steve JobsWorking class needs a rebooting
The Washington Post
by Harold Meyerson
September 4, 2011
(as published in the St. Petersburg Times)
In the short time since he announced he was stepping down as Apple's chief executive, Steve Jobs has been accorded the kind of demigod status that Americans bestow on
the handful of their countrymen who invent, manufacture and market the goods that change their lives for the better. Jobs has been compared to any number of iconic American innovators, but most
tellingly to Thomas Edison and Henry Ford. • "Like Edison," wrote the New Yorker's Ken Auletta, Jobs "accomplished his imaginative feats without the crutch of survey results," because, like Edison,
he was imagining products unlike any that had previously existed. "Like Ford," wrote the New York Times' Joe Nocera, who "built the first automobile the middle class could afford," Jobs brought out
inventions that Americans could buy even as their incomes flat-lined. Read more
here
Harold Meyerson wrote "Until last year, when a wave of
worker suicides and labor unrest forced Foxconn to raise wages and cut hours, the men and women who make the stuff America loves worked 60-hour weeks at roughly 50 cents an hour."
Do the math: 60 hours week x 0.50 cents per hour = $30 a week. THIRTY DOLLARS A WEEK!
Current retail cost of Apple products at Best Buy, at the "Labor Day Sale" prices:
Apple iPad 2, $499.99 to $829.99 depending on features
Apple Mac Pro, $2,305.99 to $3,238.79
Apple iMac, $1,132.99 to $1,894.99
Apple Mac mini, $568.95 to $769.99
Apple MacBook Pro, $1,424.99 to $2,359.99
Apple MacBook Air, $834.99 to $1,614.99
Apple iPhone 4, $599.99 to $799.99 regular price without contract
Apple iPod 4th generation, $204.99 to $364.99
Apple iPod Classic, $236.99
Apple iPod nano 6th generation, $139.99 to $169.99
Apple 27 inch computer monitors, $993.99
Plus tons of accessories and software too numerous to list.
Foxconn workersZero Hedge recently reported that Apple overtook
Exxon as the biggest company in America, now its market cap just hit 75% of the market cap of the entire European bank stock index (that's right: one maker of phones and fads is worth almost as much
as all of Europe's banks).
Apple’s enormous profitability on high-price goods negates the argument that trade deals like NAFTA would preserve higher paid American jobs at the expense of low
skilled jobs on cheap products. Truth is, any American job is at risk. Ross Perot has warned America since 1992 about the giant sucking sound of jobs leaving America. The sucking sound is gone,
replaced now by the cries of the long-term unemployed.
According to Wikipedia, Apple’s revenue was $65 billion in 2010, with $14 billion in profit. After resuming control of Apple in 1997, Steve Jobs eliminated all corporate philanthropy programs. This guy is the poster-child for greed and bad
behavior.
The tale of Apple Computer should outrage every American. Apple has 250,000 Foxconn employees in China
to produce its products. In America Apple has about 30,000 employees. That means for every Apple worker in the U.S. there are almost 10 people in China working on iMacs, iPods, and iPhones. Foxconn
has been in the news recently for employee suicides over working conditions. How is that cost factored into the pretty
Apple iProduct?
Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Abraham Lincoln
United Brotherhood of Carpenters and Joiners of America, Founded 1881 official website
The United Brotherhood of Carpenters and Joiners of America is one of the largest building trades union in the United States. The union was created in 1881 by a convention of carpenters' unions led by Peter J. McGuire, who served as the General Secretary of the new union for its first twenty years and its only paid officer for much of its first decade. The union supported legislation establishing the eight hour day. Read more on Wikipedia
Regulations, taxes aren't killing small business
Regulations, taxes aren't killing small business, owners say
McClatchy Newspapers
by Kevin G. Hall
September 1, 2011
WASHINGTON — Politicians and business groups often blame excessive regulation and fear of higher taxes for tepid hiring in the economy. However, little evidence of that
emerged when McClatchy canvassed a random sample of small business owners across the nation.
"Government regulations are not 'choking' our business, the hospitality business," Bernard Wolfson, the president of Hospitality Operations in Miami, told The Miami
Herald. "In order to do business in today's environment, government regulations are necessary and we must deal with them. The health and safety of our guests depend on regulations. It is the
government regulations that help keep things in order." Read more here
The Sun Chairman, What's Future Is Prologue, And Why The Second French Revolution Is Coming To America
The Sun Chairman, What's Future Is Prologue, And Why The
Second French Revolution Is Coming To America
Zero Hedge
by Tyler Durden
August 14, 2011
For our closing post of the day we once open the floor to Sean Corrigan who proves that just when we thought all historical comparisons to the current deplorable
economic miasma have been used up, a new one springs up, this time perhaps the one most indicative not so much of the past but of the future. Indeed, if history is any indication, and it is,
America's catastrophic and untenable position is worse than even that of one Louis XIV, better known as "The Sun King", whose rule set the stage for the downfall of the French monarchy and which
ultimately culminated with the French Revolution of 1789. For arguably the best indication of historical parallels to the present, and yet another confirmation that there really is nothing new in
this world, especially in the world of central planning of monetary affairs, we present the following summary of the practices of Louis XIV which is verbatim applicable to the actions of the current
central planning cartel: Read more here
Jeff Rubin, the former Chief Economist of CIBC World Markets and the author of Why Your World Is About To Get A Whole Lot Smaller built his reputation as one of Canada's top economists based on a number of successful predictions including the housing bust of the early 90s and the rise of oil prices. In his recent book, Mr. Rubin predicts $225 per barrel oil by 2012 and with it the end of globalization, a movement towards local sourcing and a need for massive scaling up of energy efficiency.
Will Our Economy Trigger Violence In U.S.?
Jack Cafferty
For the first time maybe since the Vietnam War or certainly since the civil rights movement, there are some darkening storm clouds on the civility horizon. A growing
number of voices are continuing to suggest that if this economy doesn't turn around, and people can't start feeling optimistic about their futures again, we could be headed for some ugly scenarios. A
new CNN poll says 48 percent of Americans think the country is headed for another Great Depression in the next twelve months. That is a stunning number. Read more here
Wolf Blitzer, CNN with Jack Cafferty, June 08, 2011
American middle class
American middle class
From Wikipedia, the free encyclopedia
The American middle class is a social class in the United States. While the concept is typically ambiguous in popular opinion and common language use, contemporary
social scientists have put forward several, more or less congruent, theories on the American middle class. Depending on class model used, the middle class may constitute anywhere from 25% to 66% of
households.
One of first major studies of the middle class in America, White Collar: The American Middle Classes, was made by sociologist C. Wright Mills in 1951. Later sociologists
such as Dennis Gilbert of Hamilton College commonly divide the middle class into two sub-groups. Constituting roughly 15% to 20% of households is the upper or professional middle class consisting of
highly educated, salaried professionals and managers. Constituting roughly one third of households is the lower middle class consisting mostly of semi-professionals, skilled craftsmen and lower level
management. Middle class persons commonly have a comfortable standard of living, significant economic security, considerable work autonomy and rely on their expertise to sustain
themselves.
Everyone wants to believe they are middle class...But this eagerness...has led the definition to be stretched like a bungee cord — used to defend/attack/describe
everything...The Drum Major Institute...places the range for middle class at individuals making between $25,000 and $100,000 a year. Ah yes, there's a group of people bound to run into each other
while house-hunting.
—Dante Chinni
Members of the middle class belong to diverse groups which overlap with each other. Overall, middle class persons, especially upper middle class individuals, are
characterized by conceptualizing, creating and consulting. Thus, college education is one of the main indicators of middle class status. Largely attributed to the nature of middle class occupations,
middle class values tend to emphasize independence, adherence to intrinsic standards, valuing innovation and respecting non-conformity. Politically more active than other demographics, college
educated middle class professionals are split between the two major parties. Income varies considerably from near the national median to well in excess of $100,000. Household income figures, however,
do not always reflect class status and standard of living, as they are largely influenced by the number of income earners and fail to recognize household size. It is therefore possible for a large,
dual-earner, lower middle class household to out-earn a small, one-earner, upper middle class household. The middle classes are very influential, as they encompass the majority of voters, writers,
teachers, journalists, and editors. Most societal trends in the US originate within the middle classes. Read more here
Superficial Economy, America is not the place it used to be, claims Steinhardt
Michael SteinhardtSuperficial Economy, America is not the place it used to be, claims Steinhardt
CNBC
April 5, 2011
Just after dawn, hedge fund manager Michael Steinhardt appeared on CNBC as the token contrarian in the Titans of Groupthink series. After some pleasantries we hit the 6 minutes mark where the
formerly trite narrative experienced a flash crash. In the most candid discussion of the truth in America, Steinhardt said that "we live in an inland sea of calm waters while surrounding us are
turbulent, horrible places," to which everyone nodded soberly in agreement, unaware of what was coming next. "America seems almost as insular as it has in times past," He continued. "America is not
the wonderful place it used to be... Look at the rest of the world compared to America, look what’s happening all over and then here the biggest thing we have to worry about is how long it will take
Buffett to come down to earth…how long until people like you begin to realize his reality and get off some…cloud."
Yet the smackdown of the Becky Quick/Joe Kernen Buffett-sycophant brigade was the prime attraction by far.
"Here in America's the biggest thing we have to worry about is how long it will take for Buffett to come down to earth where he should have been a long time ago, so people like you begin to realize
his reality and get off some cloud."
Berkshire Hathaway Chairman Warren Buffett is the "greatest PR person of recent times" and has "managed to achieve a snow job that has conned virtually everyone in the press," Wisdom Tree Investments
Chairman Michael Steinhardt told CNBC Tuesday. "It is remarkable that he continues to do it."
24 Signs Of Economic Decline In America
24 Signs Of Economic Decline In America
Economic Collapse Blog
Michael T. Snyder, Esq.
April 22, 2011
The United States is in the middle of a devastating long-term economic decline and it is getting really hard to deny it. Over the past year I have included literally thousands of depressing
statistics in my articles about the U.S. economy. I have done this in order to make an overwhelming case that the U.S. economy is in deep decline and is dying a little bit more every single day.
Until we understand exactly how bad our problems are we will never be willing to accept the solutions. The truth is that our leaders have absolutely wrecked the greatest economic machine that the
world has ever seen. Most Americans just assume that we will always experience overwhelming prosperity, but that is not anywhere close to the truth. We are not guaranteed anything. Our manufacturing
base has been gutted, the number of jobs is declining, more Americans are dependent on government handouts than ever before, our dollar is dying and as a nation we are absolutely drowning in debt.
The economists that are trumpeting an "economic recovery" and that are declaring that the U.S. economy will soon be "better than ever" are delusional. We really are steamrolling toward a complete and
total economic collapse and our leaders are doing nothing to stop it. Read more
here
Donald Trump Warning of Coming Economic Collapse
Donald TrumpDonald Trump Warning of Coming Economic Collapse
The Economic Collapse blog
by Michael T. Snyder, Esq.
February 9, 2011
Will Donald Trump run for president of the US?
In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America. Using phrases such as "you’re going to pay $25 for a loaf of bread pretty soon" and "we could end up being another Egypt", Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business. As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation. In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012. But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us. Read more here
The American Dream By The Provocateur Network
The AMERICAN DREAM is a 30 minute animated film that shows you how you've been scammed by the most basic elements of our government system. All of us Americans strive for the American Dream, and this film shows you why your dream is getting farther and farther away. Do you know how your money is created? Or how banking works? Why did housing prices skyrocket and then plunge? Do you really know what the Federal Reserve System is and how it affects you every single day? THE AMERICAN DREAM takes an entertaining but hard hitting look at how the problems we have today are nothing new, and why leaders throughout our history have warned us and fought against the current type of financial system we have in America today. You will be challenged to investigate some very entrenched and powerful institutions in this nation, and hopefully encouraged to help get our nation back on track.
US National Debt Chart
Michael T. Snyder, Esq., the Economic Collapse blog
Michael Snyder, Esq.
Michael T. Snyder, Esq. is a graduate of the McIntire School of Commerce at the University of Virginia and has two law degrees from the University of Florida. You can follow him on The Economic Collapse blog
20 Shocking New Economic Records Set In 2010
20 Shocking New Economic Records Set In 2010
The Economic Collapse blog
by Michael T. Snyder, Esq.
January 14, 2011
2010 was quite a year, wasn't it? 2010 will be remembered for a lot of things, but for those living in the United States, one of the main things that last year will
be remembered for is economic decline. The number of foreclosure filings set a new record, the number of home repossessions set a new record, the number of bankruptcies went up again, the number of
Americans that became so discouraged that they simply quit looking for work reached a new all-time high and the number of Americans on food stamps kept setting a brand new record every single
month.
Meanwhile, U.S. government debt reached record highs, state government debt reached record highs and local government debt reached record highs. What a mess! In fact, even many of the "good" economic
records that were set during 2010 were indications of underlying economic weakness. For example, the price of gold set an all-time record during 2010, but one of the primary reasons for the increase
in the price of gold was that the U.S. dollar was rapidly losing value. Most Americans had been hoping that 2010 would be the beginning of better times, but unfortunately economic conditions just
kept getting worse.
Paying Workers A Living Wage
"We never had the opportunity to make wages like this before," says Ms. Castillo, a soft-spoken woman who earns $500 a month. "I feel blessed."
Joseph Bozich, C.E.O. of Knights Apparel, and Mireya Perez, a union leader. In the Dominican Republic, a Knights plant pays far above industry averages.
A Factory Defies Stereotypes, but Can It
Thrive?
The New York Times
By STEVEN GREENHOUSE
July 16, 2010
VILLA ALTAGRACIA, Dominican Republic
SITTING in her tiny living room here, Santa Castillo beams about the new house that she and her husband are building directly behind the wooden shack where they now
live.
The new home will be four times bigger, with two bedrooms and an indoor bathroom; the couple and their three children now share a windowless bedroom and rely on an outhouse two doors away.
Ms. Castillo had long dreamed of a bigger, sturdier house, but three months ago something happened that finally made it possible: she landed a job at one of the world’s most unusual garment
factories. Industry experts say it is a pioneer in the developing world because it pays a "living wage" — in this case, three times the average pay of the country’s apparel workers — and allows
workers to join a union without a fight.
"We never had the opportunity to make wages like this before," says Ms. Castillo, a soft-spoken woman who earns $500 a month. "I feel blessed." Read more here
16 Shocking Facts About The Student Loan Debt Bubble And The Great College Education Scam
16 Shocking Facts About The Student Loan Debt Bubble And The Great College Education Scam
The Economic Collapse blog
by Michael T. Snyder, Esq.
December 23, 2010
As you read this, there are over 18 million students enrolled at the nearly 5,000 colleges and universities currently in operation across the United States. Many of
these institutions of higher learning are now charging $20,000, $30,000 or even $40,000 a year for tuition and fees. That does not even count living expenses.
Today it is 400% more expensive to go to college in the United States than it was just 30 years ago. Most of these 18 million students have been told over and over that a "higher education" is the
key to getting a good job and living the American Dream. They have been told not to worry about how much it costs and that there is plenty of financial aid (mostly made up of loans) available. Now
our economy is facing the biggest student loan debt bubble in the history of the world, and when our new college graduates enter the "real world" they are finding out that the good jobs they were
promised are very few and far between. As millions of Americans wake up and start realizing that the tens of thousands of dollars that they have poured into their college educations was mostly a
waste, will the great college education scam finally be exposed? Read more here
The Worst Bathroom in New York
stock photoThe Worst Bathroom in New York
The New York Times
By ELIZABETH DWOSKIN
December 8, 2010
A story of third-world living conditions in America
Prior to visiting Lorillard, I had written about a building on a street facing the elevated Aqueduct Park, a property so neglected that a group of tenants were running a gambling parlor from an apartment on the first floor. One Sunday afternoon, they let me park myself on the couch while people played slot machines — yes, the tenants had purchased two actual casino slot machines — and bolitos, the Dominican numbers lottery. A middle-aged woman in a hoodie sat at a wooden desk calling in the numbers from Costa Rica or Puerto Rico, while people steadily streamed in and out, buying their tickets, drinking lime-flavored vodka from the bodega and watching a Halle Berry movie on TV. A video surveillance camera kept watch on the lobby. Read more here
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