Labels: cabal, elites, greed, income gap, inequality, offshore economy, poverty, Russia Today, super-rich, tax evasion, tax havens
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posted by profmarcus at
7/23/2012
A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much as the American and Japanese GDPs put together – according to research commissioned by the campaign group Tax Justice Network.
James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer.
He shows that at least £13tn – perhaps up to £20tn – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy". According to Henry's research, the top 10 private banks, which include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from £1.5tn five years earlier.
The detailed analysis in the report, compiled using data from a range of sources, including the Bank of International Settlements and the International Monetary Fund, suggests that for many developing countries the cumulative value of the capital that has flowed out of their economies since the 1970s would be more than enough to pay off their debts to the rest of the world.
Oil-rich states with an internationally mobile elite have been especially prone to watching their wealth disappear into offshore bank accounts instead of being invested at home, the research suggests. Once the returns on investing the hidden assets is included, almost £500bn has left Russia since the early 1990s when its economy was opened up. Saudi Arabia has seen £197bn flood out since the mid-1970s, and Nigeria £196bn.
"The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments," the report says.
The sheer size of the cash pile sitting out of reach of tax authorities is so great that it suggests standard measures of inequality radically underestimate the true gap between rich and poor. According to Henry's calculations, £6.3tn of assets is owned by only 92,000 people, or 0.001% of the world's population – a tiny class of the mega-rich who have more in common with each other than those at the bottom of the income scale in their own societies.
"These estimates reveal a staggering failure: inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people," said John Christensen of the Tax Justice Network. "People on the street have no illusions about how unfair the situation has become."
Labels: cabal, elites, greed, Guardian, income gap, inequality, offshore economy, poverty, super-rich, tax evasion, Tax Justice Network
Submit To Propellerposted by profmarcus at
7/22/2012
Journalist and activist Chris Hedges appeared Friday on Moyers & Company to talk about the conclusions of his latest book. Days of Destruction, Days of Revolt is dedicated to investigating the most exploited and impoverished places in America, places that he says are “virtually off the radar screen in terms of the commercial media.”
“It’s absolutely imperative that we begin to understand what unfettered, unregulated capitalism does,” Hedges emphasized. “These are sacrifice zones, areas that have been destroyed for quarterly profit. And we’re talking about environmentally destroyed, communities destroyed, human beings destroyed, families destroyed. And because there are no impediments left, these sacrifice zones are just going to spread outward.”
When Moyers asked Hedges what he meant by saying there are no impediments left, he explained, “The political system is bought off, the judicial system is bought off, the law enforcement system services the interests of power, they have been rendered powerless.” Even worse, Hedges believes these devastated communities represent the future for all of us.
Hedges was particularly eloquent in describing the coal-mining areas of West Virginia, which “in terms of national resources is one of the richest areas of the United States [but] harbor the poorest pockets of community, the poorest communities in the United States. Because those resources are extracted, and that money is not funneled back into the communities.”
[...]
“These corporations know only one word, and that’s more,” Hedges went on. “And because the mechanisms of governance can no longer control them, there is nothing now within the formal mechanisms of power to stop them from the creating, essentially, a corporate oligarchic state.”
“We have become complicit,” he noted sadly, “because we’ve accepted this as a kind of natural law. And the acceptance of this kind of behavior, and even the celebration of it is going to ultimately trigger our demise.”
Labels: Bill Moyers, capitalism, Chris Hedges, corporate greed, elites, environmental damage, foreclosures, oligarchy, poverty, sacrifice zones, super-rich
Submit To Propellerposted by profmarcus at
7/21/2012
Some Outrageous Facts about US Inequality
By Paul Buchheit
July 03, 2012 "Common Dreams" -- Studying inequality in America reveals some facts that are truly hard to believe. Amidst all the absurdity a few stand out.1. U.S. companies in total pay a smaller percentage of taxes than the lowest-income 20% of Americans.Total corporate profits for 2011 were $1.97 trillion. Corporations paid $181 billion in federal taxes (9%) and $40 billion in state taxes (2%), for a total tax burden of 11%. The poorest 20% of American citizens pay 17.4% in federal, state, and local taxes.2. The high-profit, tax-avoiding tech industry was built on publicly-funded research.The technology sector has been more dependent on government research and development than any other industry. The U.S. government provided about half of the funding for basic research in technology and communications well into the 1980s. Even today, federal grants support about 60 percent of research performed at universities.IBM was founded in 1911, Hewlett-Packard in 1947, Intel in 1968, Microsoft in 1975, Apple and Oracle in 1977, Cisco in 1984. All relied on government and military innovations. The more recently incorporated Google, which started in 1996, grew out of the Defense Department's ARPANET system and the National Science Foundation's Digital Library Initiative.
The combined 2011 federal tax payment for the eight companies was just 10.6%.3. The sales tax on a quadrillion dollars of financial sales is ZERO.The Bank for International Settlements reported in 2008 that total annual derivatives trades were $1.14 quadrillion. The same year, the Chicago Mercantile Exchange reported a trading volume of $1.2 quadrillion.A quadrillion dollars is the entire world economy, 12 times over. It's enough to give 3 million dollars to every person in the United States. But in a sense it's not real money. Most of it is high-volume nanosecond computer trading, the type that almost crashed our economy. So it's a good candidate for a tiny sales tax. But there is no sales tax.Go out and buy shoes or an iPhone and you pay up to a 10% sales tax. But walk over to Wall Street and buy a million dollar high-risk credit default swap and pay 0%.4. Many Americans get just a penny on the dollar.
Labels: A.I.G., Common Dreams, corporatocracy, elites, Information Clearing House, John Paulson, Paul Buchheit, poverty, super-rich, taxes
Submit To Propellerposted by profmarcus at
7/03/2012
Tuesday night on Current TV’s “The Young Turks,” host Cenk welcomed Sister Diane Donoghue of #NunsOnTheBus, a group of progressive Catholic nuns who are traveling coast-to-coast by bus. The women are bucking the Catholic church’s male hierarchy and spreading what they hope is a message of social and economic justice by protesting the slew of federal cuts to programs for the needy proposed in the Republican budget outlined by Wisconsin Congressman Rep. Paul Ryan (R).
Their plan has sparked an uproar among conservatives, who are accustomed to the Catholic Church and its adherents being staunchly on their side. Right wing AM radio host Jan Mickelson asked Rep. Tom Latham (R-IA) in an interview if there was a plan in place “to pull the nuns on the bus over and pistol whip them?”
Uygur asked Donoghue how she would answer allegations that the rebel nuns are instigators who “threw the first punch” in the fight for the rights of the poor.
“We’ve been doing this a long time,” Donoghue told him, saying that nuns have been on the forefront of all human frontiers of exploration and settlement, bringing aid and comfort to the needy and helping the sick and helpless.
“We are based in Washington, DC,” she said, “but we work for social justice.”
“Sister Diane,” said Uygur, “There’s something weird in this country with Republicans who claim they have the mantle of Christianity on their side and yet, when you go to help the poor, they say, ‘How dare you!’” He asked if he was wrong in his reading of the New Testament of the Bible. Didn’t Jesus care a lot about the poor?
“Jesus talked about sheltering the homeless, clothing people, feeding people, and always with compassion,” Donoghue replied, adding “He spent more time with poor people than anybody else, and that’s what we want to be able to do in terms of saying, ‘This is not fair.’ We want to turn it around."
Labels: #NunsOnTheBus, Catholic Church, Cenk Uygur, Diane Donoghue, nuns, organized religion, Paul Ryan, poverty, Raw Story, social justice, Vatican, Young Turks
Submit To Propellerposted by profmarcus at
6/27/2012
[W]omen and men who rise up in the pockets of poverty and despair ... resist not because they will succeed in reversing the corporate onslaught against them, or even save themselves or their communities from poverty, but because it is right. They wake each day to defy, often in small, unseen acts of revolt, the intractable poverty, the despair and violence, by nurturing life. They often can do little to protect the lives, especially the lives of children, that are daily crushed and destroyed. But they refuse to bow before the forces of oppression or neglect. And in that defiance they achieve grandeur.
Labels: Chris Hedges, despair, neglect, oppression, poverty, revolution, violence
Submit To Propellerposted by profmarcus at
6/25/2012
Occupy is Alive; So is History
Political leadership in the West has calcified atop a set of existing facts and trajectory that assure rebellion in one form or another until they are reconciled. In addition to the economic divides between wealth and poverty, employment and unemployment, opportunity and the lack of opportunity, there is a generational divide that has left youth around the world on the outside of economic life.
[...]
These conditions were not created by the young or by the multitudes that are likewise on the outside of economic and mainstream political life. They result from decades of ideologically driven policies that assumed that the secular deity of markets removed the need for thought, knowledge, information, and any notion of public life. This ideology supports a predatory economic order that has had disastrous consequences for vast majorities in the West. And yet it still drives economic and political decisions today.
[...]
[T]here are entirely practical reasons why rebellion is here to stay until these problems are resolved. What this rebellion will look like will be a function of material conditions as they develop and the systemic response to them. To date this response has been discouraging and events unfolding in Egypt add new degrees of pessimism. This written, rebellion is both necessary and life affirming.
Labels: capitalism, common good, free markets, ideology, Occupy, poverty, predators, rebellion, repression, unemployment, youth
Submit To Propellerposted by profmarcus at
6/21/2012
[T]he American dream is a myth. There is less equality of opportunity in the United States today than there is in Europe – or, indeed, in any advanced industrial country for which there are data.
This is one of the reasons that America has the highest level of inequality of any of the advanced countries – and its gap with the rest has been widening. In the “recovery” of 2009-2010, the top 1% of US income earners captured 93% of the income growth. Other inequality indicators – like wealth, health, and life expectancy – are as bad or even worse. The clear trend is one of concentration of income and wealth at the top, the hollowing out of the middle, and increasing poverty at the bottom.
It would be one thing if the high incomes of those at the top were the result of greater contributions to society, but the Great Recession showed otherwise: even bankers who had led the global economy, as well as their own firms, to the brink of ruin, received outsize bonuses.
A closer look at those at the top reveals a disproportionate role for rent-seeking: some have obtained their wealth by exercising monopoly power; others are CEOs who have taken advantage of deficiencies in corporate governance to extract for themselves an excessive share of corporate earnings; and still others have used political connections to benefit from government munificence – either excessively high prices for what the government buys (drugs), or excessively low prices for what the government sells (mineral rights).
Likewise, part of the wealth of those in finance comes from exploiting the poor, through predatory lending and abusive credit-card practices. Those at the top, in such cases, are enriched at the direct expense of those at the bottom.
Labels: 1%, American dream, common good, elites, Great Recession, greed, inequality, Joseph Stiglitz, poverty, rent-seeking, super-rich
Submit To Propellerposted by profmarcus at
6/06/2012
Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.
It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell.
[...]
You might think that policymakers would take a keen interest in the amounts that are stolen, coerced, or extorted from the poor, but there are no official efforts to track such figures. Instead, we have to turn to independent investigators, like Kim Bobo, author of Wage Theft in America, who estimates that wage theft nets employers at least $100 billion a year and possibly twice that. As for the profits extracted by the lending industry, Gary Rivlin, who wrote Broke USA: From Pawnshops to Poverty, Inc. -- How the Working Poor Became Big Business, says the poor pay an effective surcharge of about $30 billion a year for the financial products they consume and more than twice that if you include subprime credit cards, subprime auto loans, and subprime mortgages.
[...]
I could propose all kinds of policies to curb the ongoing predation on the poor. Limits on usury should be reinstated. Theft should be taken seriously even when it’s committed by millionaire employers. No one should be incarcerated for debt or squeezed for money they have no chance of getting their hands on. These are no-brainers, and should take precedence over any long term talk about generating jobs or strengthening the safety net. Before we can “do something” for the poor, there are some things we need to stop doing to them.
Labels: Barbara Ehrenreich, payday lenders, poverty, predators, screw the poor, wage theft
Submit To Propellerposted by profmarcus at
5/17/2012
The death of American liberalism as a significant moral force can be traced to the point in 1996 when President Bill Clinton signed legislation that effectively ended the main federal anti-poverty program and turned the fate of welfare recipients, 70 percent of whom were children, over to the tender mercies of the states. With a stroke of the pen, Clinton eliminated what remained of New Deal-era compassion for the poor and codified into law the “tough love” callousness that his Republican allies in the Congress, led by Newt Gingrich, had long embraced.
The ensuing wave of state-imposed eligibility restrictions was designed to replace the war on poverty with a war on welfare recipients, with the result that in this time of economic crisis the poor have nowhere to turn. It also allowed states to play in a meanness derby, cutting the welfare rolls and forcing many of the desperate to cross state lines to locales where they might survive. “My take on it was the states would push people off [the assistance lists] and not let them back on, and that’s just what they did,” said Peter B. Edelman, who resigned from the Clinton administration over this issue and who told the Times for the recent article, “It’s been even worse than I thought it would be."
Edelman, now a law professor at Georgetown University, was a close friend of the Clintons. His principled resignation was a rare exception to the cheerleading by Democrats who celebrated President Clinton’s betrayal of the poor as shrewd triangulation.
[...]
Calling the shots on spending for the most vulnerable since the Clinton revisions went into effect, the states have diverted funds for the poor to filling other holes in state budgets. Consequently, as the New York Times piece noted last week, “Just one in five poor children now receive cash aid, the lowest level in nearly 50 years.”
The response of the right-to-life Republicans has been typical—indifference to the fate of the fetus once it’s born.
Labels: Bill Clinton, elites, greed, liberal failure, New Deal, poverty, social contract, social darwinism, super-rich
Submit To Propellerposted by profmarcus at
4/12/2012
We fancy ourselves indebted middle-class, but this mirage is quickly evaporating. Most of us are indebted slaves. Banks conjure money out of thin air to enslave most of us for life. We must go into debt to buy a house, a car or go to school. Many of us go into debt just to eat. Like you, you and you, I will carry my shitty credit score to a mass paupers’ grave, with my hearse a U-Haul. There is a renewed emphasis on going to college as a means to success, but in this economy, a degree will likely only impoverish you further, since you will be in hock to the banksters even as you work a job completely unrelated to your dubious education. If you can even get a job, that is. Joining winos and bag ladies with smudgy and off-target makeup will be legions of useless scholars.
Still, there are perks to being house slaves of the empire, since even homeless Americans sport brand name shoes, and our poor are generally the most obese, meaning they have enough to eat, even if what they’re ingesting may shorten their lives by decades.
[...]
Deprived of their toys, many Americans will demand that their government does whatever is necessary to restore the good old days, so there will be more desperate wars, and more repression of those who oppose this American way of life. Meanwhile, the media will serve up opulent fantasies to feed a nostalgia for this lost and glorious past. The poorer we become, the richer we will look on television.
Americans will have less, and our lives will be harder, but no one wants to talk about this decline, least of all politicians, since that would be the quickest way to not get elected, but even if we had a wise and ethical leadership, our country will still go into decline, because the resources for infinite growth are simply not there. They never were, of course, since this is a finite planet, after all, where natural limits must be reached sooner or later. That moment is now, unfortunately.
Don’t kid yourself that the fiery anger burning through Greece, Spain and elsewhere won’t be but a tame prelude to what will happen here, what with our robust sense of entitlement, deep alienation and trigger happy ways. Our government seems to anticipate as much, for it has put into place all of the physical and legal means to clamp down on us hard, when things do explode.
Labels: Camden, credit scores, empire in decline, endless war, Information Clearing House, Linh Dinh, Philadelphia, poverty
Submit To Propellerposted by profmarcus at
2/27/2012
#1 A staggering 48 percent of all Americans are either considered to be "low income" or are living in poverty.
#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be "low income" or impoverished.
#3 If the number of Americans that "wanted jobs" was the same today as it was back in 2007, the "official" unemployment rate put out by the U.S. government would be up to 11 percent.
#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
#7 Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.
#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
#11 Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.
#12 Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
#13 One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
#14 The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
#15 According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
#16 As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
#17 The U.S. Postal Service has lost more than 5 billion dollars over the past year.
#18 In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
#19 Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
#20 If you can believe it, the median price of a home in Detroit is now just $6000.
#21 According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was just ten years ago.
#22 New home construction in the United States is on pace to set a brand new all-time record low in 2011.
#23 As I have written about previously, 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
#24 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
#25 According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980. Today they account for approximately 16.3%.
#26 One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
#27 If you can believe it, one out of every seven Americans has at least 10 credit cards.
#28 The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
#29 It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
#30 The retirement crisis in the United States just continues to get worse. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
#31 Today, one out of every six elderly Americans lives below the federal poverty line.
#32 According to a study that was just released, CEO pay at America's biggest companies rose by 36.5% in just one recent 12 month period.
#33 Today, the "too big to fail" banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
#34 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
#35 According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
#36 If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
#37 A higher percentage of Americans is living in extreme poverty (6.7%) than has ever been measured before.
#38 Child homelessness in the United States is now 33 percent higher than it was back in 2007.
#39 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
#40 Sadly, child poverty is absolutely exploding all over America. According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.
#41 Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
#42 In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for more than 18 percent of all income.
#43 A staggering 48.5% of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
#44 Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
#45 For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.
#46 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
#47 Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
#48 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
#49 The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
#50 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
Labels: economic collapse, foreclosures, poverty, unemployment
Submit To Propellerposted by profmarcus at
12/16/2011
In a nutshell, Americans are ticked off. Millions are struggling financially; many are out of a job or are underemployed. They can't pay their bills. They are falling deeper into personal debt. They are losing hope that things will improve in the foreseeable future. Worst of all, while they are falling further behind a small minority appears to be leaping further ahead.
Wall Street and the big banks caused the market crash that cost millions of jobs and plunged the US economy into near-depression. Yet three years later, the country's financial elite continues to prosper while the other 99% suffers. Meanwhile, Washington, due mainly to the unceasing obstructionism of the Republican party, seems completely incapable of arresting America's decline.
In some ways, what's most amazing about OWS – and the support it's receiving – is not that it happened, but frankly why the hell it took so long.
[...]
OWS has arisen not because of the left's activism, but despite it. Focusing on electoral victories and legislative accomplishments, the left has failed to push an effective populist movement, focusing its energy more on social issues than economic ones. Democratic leaders have stayed at arm's length from the party's activist base for fear of being stained by their perceived political excesses (a position that has rightly alienated a generation of liberals). Considering these larger failures of the left, it seems almost appropriate that OWS has come about in such an organic and ad hoc manner.
Labels: 99%, banksters, Democrats, elites, leftists, Occupy Wall Street, personal debt, poverty, super-rich, U.S. politics, unemployment
Submit To Propellerposted by profmarcus at
10/17/2011
A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer. The term gray economy, however, refers to workers being paid under the table, without paying income taxes or contributing to such public services as Social Security and Medicare. It is sometimes referred to as the underground economy or "hidden economy."
[I]n 2009, economics professor Friedrich Schneider estimated that it was nearly 8 percent of the US's GDP, somewhere around $1 trillion. (That makes the shadow GDP bigger than the entire GDP of Turkey or Austria.) Schneider doesn’t include illegal activities in his count-- he studies legal production of goods and services that are outside of tax and labor laws. And that shadow economy is growing as regular jobs continue to be hard to come by—Schneider estimated 5 percent in '09 alone.
[...]
Workers in the underground economy can also be vulnerable to exploitation; the Monthly Review pointed out that workers, especially undocumented immigrants, are pushed into off-the-books work out of desperation and have no officials to appeal to when their conditions are horrific or their pay substandard; wages are pushed downward and expectations lowered.
Labor economist Mark Price agreed. He told me, “People enter such arrangements because of their difficulty finding formal employment. Think of undocumented immigrants that work as house-cleaners or in the construction industry.”
He continued, “Employers or consumers who use workers in this way are doing so to boost profits or lower prices. Of course documented workers also can end up choosing to work in the underground economy but that choice, like the choice for the undocumented, has the same basic driver--the inability to find formal paid employment that meets a worker's needs.”
Labels: barter, elites, grey economy, informal economy, poverty, super-rich, underground economy, unemployment
Submit To Propellerposted by profmarcus at
9/19/2011
Angry young people with nothing to do and little to lose are turning on their own communities, and they cannot be stopped, and they know it.
[...]
In one NBC report, a young man in Tottenham was asked if rioting really achieved anything:
"Yes," said the young man. "You wouldn't be talking to me now if we didn't riot, would you?"
"Two months ago we marched to Scotland Yard, more than 2,000 of us, all blacks, and it was peaceful and calm and you know what? Not a word in the press. Last night a bit of rioting and looting and look around you."
[...]
There are communities all over the country that nobody paid attention to unless there had recently been a riot or a murdered child. Well, they’re paying attention now.
Social order and the rule of law have broken down entirely. The city has been brought to a standstill; it is not safe to go out onto the streets. The looting and arson attacks have spread to at least fifty different areas across the UK, including dozens in London, and communities are now turning on each other, with the Guardian reporting on rival gangs forming battle lines. It has become clear to the disenfranchised young people of Britain, who feel that they have no stake in society and nothing to lose, that they can do what they like, and the police are utterly unable to stop them. That is what riots are all about.
Labels: London, poverty, Scotland Yard, social disintegration, Tottenham, UK riots, United Kingdom
Submit To Propellerposted by profmarcus at
8/10/2011
The comic opera in Washington this summer, which disgusts the country and bewilders the world, may have no analogue in the annals of parliamentary democracy.
The spectacle is even coming to frighten the sponsors of the charade. Corporate power is now concerned that the extremists they helped put in office may in fact bring down the edifice on which their own wealth and privilege relies, the powerful nanny state that caters to their interests.
Corporate power’s ascendancy over politics and society—by now mostly financial—has reached the point that both political organizations, which at this stage barely resemble traditional parties, are far to the right of the population on the major issues under debate.
A police station disemboweled, a double-decker bus reduced to a smoking carcass, shops pillaged, buildings razed by flames -- London's Tottenham quarter resembled a war zone Sunday following overnight riots.
Those condemning the events of the past couple of nights in north London and elsewhere would do well to take a step back and consider the bigger picture: a country in which the richest 10% are now 100 times better off than the poorest, where consumerism predicated on personal debt has been pushed for years as the solution to a faltering economy, and where, according to the OECD, social mhttp://www.blogger.com/img/blank.gifobility is worse than any other developed country.
I don’t think the President would be hurt, necessarily—the country certainly would not be hurt—by a primary challenge that would refocus him on what really matters. It would refocus him on what’s happening to too many people in this country. It would refocus him on a more progressive agenda. But having said that, I think if the race were held today, the President still wins. You can’t beat somebody with nobody, and I don’t see who the somebody is that can beat the President.
Labels: 2012 primaries, elites, income gap, Noam Chomsky, populism, poverty, rioting, super-rich, Tahrir Square
Submit To Propellerposted by profmarcus at
8/09/2011
In what has become a familiar pattern, the government defundshttp://www.blogger.com/img/blank.gif services that might help the poor while ramping up law enforcement. Shut down public housing, then make it a crime to be homeless. Generate no public-sector jobs, then penalize people for falling into debt. The experience of the poor, and especially poor people of color, comes to resemble that of a rat in a cage scrambling to avoid erratically administered electric shocks. And if you should try to escape this nightmare reality into a brief, drug-induced high, it’s “gotcha” all over again, because that of course is illegal too.
One result is our staggering level of incarceration, the highest in the world. Today, exactly the same number of Americans -- 2.3 million -- reside in prison as in public housing. And what public housing remains has become ever more prison-like, with random police sweeps and, in a growing number of cities, proposed drug tests for residents. The safety net, or what remains of it, has been transformed into a dragnet.
It is not clear whether economic hard times will finally force us to break the mad cycle of poverty and punishment. With even the official level of poverty increasing -- to over 14% in 2010 -- some states are beginning to ease up on the criminalization of poverty, using alternative sentencing methods, shortening probation, and reducing the number of people locked up for technical violations like missing court appointments. But others, diabolically enough, are tightening the screws: not only increasing the number of “crimes,” but charging prisoners for their room and board, guaranteeing they’ll be released with potentially criminalizing levels of debt.
Labels: Barbara Ehrenreich, criminalization, elites, incarceration, poverty, social darwinism, super-rich, unemployment
Submit To Propellerposted by profmarcus at
8/09/2011
Labels: debt crisis, elites, endless war, offshoring, Paul Craig Roberts, poverty, presstitutes, propaganda, super-rich
Submit To Propellerposted by profmarcus at
8/03/2011
Labels: Cryptogon, die-off, elites, middle class, poverty, structural unemployment, super-rich
Submit To Propellerposted by profmarcus at
7/09/2011
The world’s 4.4 billion adults, notes the new Credit Suisse research, now hold $194.5 trillion in wealth. That’s enough, if shared evenly across the globe, to guarantee every adult in the world a $43,800 net worth.
But the world’s wealth, of course, does not stand evenly divided, and the new Credit Suisse study, to its credit, neatly breaks down the arithmetic of our staggering global unevenness.
We now have, at the wealth spectrum’s uppermost reaches, just over 1,000 billionaires and another 80,000 “ultra high net worth individuals” worth over $50 million each. We can add into this wealthy summit still another 24 million adults worth between $1 million and $50 million.
At other end of the global spectrum sit three billion people — “more than two thirds of the global adult population” – with an average wealth per adult less than $10,000. About 1.1 billion of these adults hold net worths less than $1,000.
“Our analysis,” the Credit Suisse study says plainly, “finds some stark differences in the distribution of wealth.”
The study’s starkest data snapshot? Maybe this: Half the people aged 20 and over in the world today hold under $4,000 in net worth, after subtracting debts from assets. This half the world’s population holds under 2 percent of world wealth.
The world’s richest 1 percent, adults with at least $588,000 to call their own, hold 43 percent of the world’s wealth, all by themselves.
Labels: elites, income gap, poverty, super-rich, working poor
Submit To Propellerposted by profmarcus at
10/18/2010
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