How the 1% is Hurting the Country (part 2)

In my last blog post--How the 1% is Hurting the Country (part 1)--I linked to an article that explains how the country has been harmed by those whose wealth is used to influence politics in a way that is unfair to the majority of us. That article very brilliantly enumerates the ways that this oligarchy has been detrimental to the greater economy and even to the long term interests of those in the so-called 1%.

The aforementioned article offers some great insight into the macroeconomic issues facing the country. This week, I'd like to focus in on a microeconomic aspect that ties into the previous article and illustrates the stark danger of the plutocracy that our country has become.

So, imagine that there is a business in a community and the business is doing well, paying all of its employees and therefore the entire community is thriving because everyone is working and everyone has money to spend. Then let's say that someone sees this all going on and decides: I would rather have all that money for me! That person buys the company, runs up its debt to pay himself hundreds of millions of dollars then, when the business cannot repay the new debts, closes the business, fires the workers and files for bankruptcy, hanging the company's debts on the taxpayers (some of whom were just fired from the company). Seem fair?

Of course, that scenario is not hypothetical. It is how private equity firms, like Mitt Romney's Bain Capital, sometimes operate. I bring it up because I often see comments from people online, suggesting that people who voted for President Obama may now be regretting their vote, as if Romney/Ryan was a viable alternative. I also bring it up because people still blame the poor economic recovery on the housing bubble, bank bailouts, the "takers" getting too much welfare, Obamacare, the wars, etc. Although most of those things may also be to blame, the business practices of private equity firms is certainly one of the most destructive forces and it is an issue that desperately needs to be addressed. It is also an issue that is largely ignored by the mainstream media, while people are all-too-eager to talk about the other possible causes. We are not going to have a strong economy again as long as people are more inclined to chase large, short-term profits as opposed to long-term growth and stability.

Personally, I could not vote for a person like Mitt Romney. The types of business practices he was involved in at Bain should be illegal. We certainly don't need a president that champions such business practices and might perhaps help others make out the way he did: by essentially stealing wealth from the common worker.

This relates to Joseph Stiglitz' article because, through the magic of plutocracy, such unethical business practices have not only been made legal, but the profits from such travesties are taxed at a rock-bottom rate, far lower than you or I pay on our income we receive from working and producing things. You see, when you or I request things from government--like tax relief, clean air and water, transparency and accountability in government, etc.--government usually yawns. But when a very wealthy and powerful person approaches government and asks to legalize theft and then get a sweetheart tax break on those ill-gotten gains, the government tends to listen and bend over backwards (and bend us over forward) to accommodate them.

We citizens in the so-called 99% are the majority in this country. And it is supposed to be a democracy. Therefore, if the majority of us are intelligent, we could come together to demand changes to the system so that it is no longer rigged against us; we can make destructive business practices illegal and we can make profits from "carried interest" deals taxed at the full rate. If...

~R. Charan Pagan
information systems technologist, musician, writer, filmmaker
Los Angeles, CA 90017
http://www.reclaimingourbirthright.blogspot.com/

How the 1% is Hurting the Country (part 1)



Can you afford a lobbyist? Will you get a fair shake without one?

I would like to share a link to a single article that I believe every American should read. The article puts some intellectual firepower behind the discontent of the 99% movement, which they themselves could not articulate and most did not fully understand: that the country has become a plutocracy which harms democracy, justice and fairness. Furthermore, the greed of the 1% and the income and wealth inequality that currently exists in the US is not only harming the country and many in the 99% but it is harming the 1% as well. Since people in the 1% control almost all of the news media in the country, they were able to mis-characterize the 99% movement as lazy free-loaders. Similarly, they re-directed the anger of the TEA Party movement from the abuses of big banks to instead demanding from government that the taxes on the rich can never be raised. The article brilliantly explains why our current economic structure is bad for everyone, including those currently benefiting from it.

http://www.vanityfair.com/politics/2012/05/joseph-stiglitz-the-price-on-inequality

~R. Charan Pagan
information systems technologist, musician, writer, filmmaker
Los Angeles, CA 90017
http://www.reclaimingourbirthright.blogspot.com/

Incompetence or Corruption?

Who Runs Our Government?

I'm always intrigued by the notion that our country is in such bad shape because politicians are incompetent. Ask the people on Wall Street if they feel the government is incompetent. You will likely get a different response than you or I might give. Ask the labor unions and the CEOs of large corporations how they would grade the performance of our politicians. Celebrities get the attention and reverence that could have a positive impact on the government if it were bestowed upon someone that has new ideas and real integrity. Likely, all of these special interest groups would grade the government's performance higher than you or I would. You see, they all get what they want from government, you and I do not.

UNITY! (with Direct Democratic Action)

So how do we change that situation? How do we become more powerful and influential than the special interest groups? It is not logical to pool our money in an attempt to out-spend the wealthy with campaign contributions. Nor is it logical for us to hire lobbyists to battle the corporate interests and unions that have their meat hooks in politicians. The only way to take on special interest and reform government so that it works for We the People is to unite. When we do, we will become bigger and stronger than the special interest groups. We can prevent corporations from lobbying government to get tax breaks and government subsidies. We can prevent big banks from getting bailed out when they make risky bets for quick profits. We can prevent unions from having undue influence in government and in the industries in which they operate. We can prevent corporations from overturning laws that protect consumers and other citizens to maximize profits. We can even find ways to reform campaign finance laws so that celebrities have no greater voice or more influence than any other American.

To accomplish it means that we have to let go of the divisive issues that keep us at odds with each other. We need to start being more understanding of one another and more open to ideas. We need to work together to expose the schemes of government and special interest groups. We need to find common ground on the many issues which the majority of us would agree. Because, if we do...

Victory!

~R. Charan Pagan
information systems technologist, musician, writer, filmmaker
Los Angeles, CA 90017
http://www.reclaimingourbirthright.blogspot.com/