Author: Patrick Hill Page 10 of 18

Taxpayers Pick Up $12 billion Trump Trade War Cost

On July 25, 2018

In Protectionism, Tariffs, Trade, Trump Trade War, US - China Trade

Image: 99getsmart.com

The Trump Trade War has cost corn, wheat, and soybean farmers over $13 billion in lost contracts and revenue already. As we have noted in previous posts, as China stocks up on crops from Russia, Brazil and other countries our farmers lose their incumbent status. U.S. farmers have to go back to their customers now doing business with China and unhook that deal to write more contracts to replace the business they lost. Our agriculture industry will be challenged by not being the incumbent supplier.

The Administration announced yesterday that the Department of Agriculture will begin offering direct cash subsidies to farmers impacted by the tariffs. Farmers would be compensated based on the projected size of their harvests, they can begin signing up in September. The direct payments by the government due to tariffs would be the first time ever by the Agriculture Department. In addition to direct cash payments, the government will purchase surplus food products and distribute them to food banks, schools and other nutrition programs. The cash and surplus purchase program will cost taxpayers $12 billion.

We believe the cost to taxpayers is just the start. As China and other countries hunker down, as the Administration is buying time for its tariffs, more subsidies will be implemented. Other industries in other sectors will ask for loss compensation in steel, aluminum industries and consumer products on the Administration’s tariff list.

Next Steps:

POTUS is now compounding a disastrous trade war strategy with no exit plan by subsidizing his errors. No, ‘trade wars are not easy to win’ as last May 1100 economists sent the President a letter admonishing him not to enter into a trade war. Sen. Charles E. Grassley, R – Iowa, noted in a statement yesterday, “What farmers in Iowa and throughout rural America need in the long term are markets and opportunity, not government handouts.”

There is an even more ominous aspect to these subsidies is the idea of ‘hunkering down’ for the long term. With no plan for ending the trade war except vague goals of ‘fair deals’ the Trump Trade War can easily get out of hand. The following analysis by Oxford Economics shows how a full-fledged trade war with China could cost the U.S. billions of dollars to the US economy and shave off 1 % cumulative GDP growth by 2020. Needless to say, a trade war of this magnitude will trigger a recession which will be deep and difficult to turnaround. By creating angst with our allies and customers, it will be difficult to win back their trust and their business.

Source Oxford Economics, The Wall Street Journal, The Daily Shot – 7/24/18

Stop the trade war now! Reverse all the ill-advised, poorly throughout and threatening oriented tariffs. Work through the WTO, which the U.S. helped to create, use other means to get more fair trade deals, work with our allies to focus on specific markets and opportunities without using myopic goals missing important data – like total trade deficit in goods and services not just goods. It is not too late, the armistice announced today with the EU on any new tariffs is a good start. Will the Administration come to an armistice with China? Considering how this Administration works, we are not holding our breath – just hoping for the best but preparing for the worst.

The Elite Makes U.S. A Land of Renters

By Patrick Hill

On July 24, 2018

In Consumer Squeeze, Corporate Power, Housing, Labor, Low Income Finance, The Elite, Wages

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: marketplace.org

Household formations have been trending down over the past 30 years from its peak reached after a continual increase since 1955. More than a quarter of possible home buyers are unemployed, underemployed, saddled with student debt or living at home with their parents making home buying a challenge. The other possible household formation group is making such low income they are forced into renting as the only budgetary alternative.

Source: Real Investment Advice – 7/13/18

The housing market has shifted drastically toward high end homes for the wealthy, not first time buyers, and multi-unit rental units for investment. As investors look outside the stock market for high returns rental units have been an excellent income stream with income streams totaling $800 billion per year.

So, while wages for the 80% in income, non – supervisory workers have been stagnant; profits, stock buybacks, executive salaries and other financial gimmicks have provided the top 10 % with 90 % of national income since 2008. In effect, we have become a nation of renters due to two factors: wages being held down, and inflated assets benefiting the rich.

Source: Real Investment Advice – 7/13/18

Corporate executives do not make their stock price and profit targets by raising wages resulting in reduced profits. Wages as a cost cut immediately into profits, which a CEO wants to stay clear of having to explain to the Board or shareholders. Does it really make sense that workers are not getting wage increases in a job market with the lowest unemployment rate in 10 years? Until workers get enough countervailing power in wage negotiations worker wages are likely to stay stagnant. No, executives are allocating profits, offshore and tax cut funds to benefit themselves and shareholders while workers are left out of the economic feast.

Next steps:

We have outlined multiple reasons for lack of wage increases in earlier posts, the bottom line is executives don’t want to give raises beyond inflation. Proposals like Senator Cory Booker’s Worker’s Dividend Act to share stock buyback dollars with workers is a good start, yet the sustainable solution lies in corporate governance, where activities shareholders required management to give workers their fair share of profits; for example if executives receive a 5 % cut of the profits workers should receive the same 5 % as well.

To give first time home buyers a boost, we need to reduce student loan debt by re financing their rates to the rates that the Federal Reserve offers bank. After all we are ‘banking in the future’ of our young people. Where possible student debt could be forgiven for domestic service corps work or working with corporations who hire graduates to reduce their loans as part of the offer package. Government mortgage agencies need to support first time buyers with reduced down payment requirements and other incentives. To incentivize home builders set asides of homes for first time buyers need to be established to create inventory from which a first time buyer can select their home.

Increasing household formations should be a top priority for policy makers and the wealthy alike. When household formations are moving ahead, furniture, appliances, home improvement hardware, and thousands of product and services are purchased. Plus, when people own a home they have a piece in the future of their neighborhood, schools and community which will increase property values for all.

Make America A Democracy Again

By Patrick Hill

On July 23, 2018

In Common Good, Corporate Nation State, Corporate Power, Debt, Democracy, Wages

Image: civicsacademy.co.za

Memo

To: Oli Garchy, CEO, The Elite

Subject: Meeting – Make America a Democracy Again

Time: Lunch

Place: The Lawn in Front of the Lincoln Memorial, Washington DC (It helps to have Honest Abe watching over the mixed group)

Date: Soon…before it’s too late.

Oli,

Ok, we recognize you and your team since Ronald Reagan have built an Oligarchy that stands out (not outstanding for the 90 %) as a model for the history books, based on government statistics:

1. President is a billionaire (first one) – and holds title to all his properties while in office, making money while in office (first time)
2. Cabinet of largest number of billionaires in history of U.S.
3. Corporate tax rate lowest in 50 years
4. Corporations have the most cash ever sitting in banks and offshore shelters at over $1 trillion
5. Top 1 % taxes are the lowest in 50 years
6. Top 1 % received 90 % of income gained since the Great Recession
7. The 80 % working class real wages have declined in the last 30 years – while CEO pay is 300 times the average worker’s
8. Home ownership is at lowest level in 40 yrs – renting at the highest level in 15 yrs (you’ll own more residential real estate than ever)
9. Student debt highest ever at $1.5 trillion – because:
10. Spending by state and federal government on public education secondary thru higher education is the lowest ever as per cent of GDP
12. Healthcare services costs more per person in US than anywhere in the world with life expectancy lowest of all developed countries – due to all the built in middle profit layers of insurance, drug price gauging and stock buybacks 13. Stock buy backs were at the highest level ever last quarter $431 billion, not one dime to employees or workers directly in wage increases
14. Last year had the highest average global temperature, yet the administration wants to end car emissions standards by California, drill for more oil on the coasts – fossil fuel executives are getting what they want and more 15. Tax receipts from U.S. corporations hit a 75 year low 16. The Top 1 % have 40 % of all U.S. wealth, the highest concentration since 1929

You’ve wrapped Congress around your little finger with the Tax Cut bill where 70 % of the tax cut proceeds went to executive salaries, stock buybacks, and dividends, very little into research and development, increasing productivity or job training. You promised to raise wages and very few companies did.

The American people care more about the environment and its stewardship then you’re team, 60 % in a recent Pew Research poll say that preserving the environment is more important, even if there is an economic cost. Oli, think about it, your profits won’t last long if your customers are unhealthy or dying due to pollution of the water, air or land.

Professors Gilens and Page at Princeton and Northwestern reviewed opinion polls versus legislation passed over the past 30 years and found of 1779 laws passed 90 % did not support popular opinion, seems you own Congress.

Your 30 year old oligarchy has come at great cost, look at the debt increased by a magnitude from the Tax Cut you wanted and the public did not:

Sources: The Congressional Budget Office, The Wall Street Journal, The Daily Shot – 7/23/18

You’ve just mortgaged your children and our children’s future for good jobs, owning a home and good health care just to give you and your friends a huge tax cut. You and your team have the lowest corporate tax cut on record, but at great cost!

Oli, here is the issue for your team; without a thriving Working Class the value of your assets will go down. Consumer spending will spiral down unless the Working Class get a fair piece of the economic pie. When consumer spending goes down, your businesses begin losing money, their value drops and if the spiral keeps going like it did after 1929, you could lose everything.

The way to build a Working Class that you need is via a democracy – remember that from your textbooks. It looks like this: a government ‘by the people, for the people and of the people’ – Lincoln had it right.

Think about it Oli, meet with us before it is too late. In the future, there maybe hostility with the wealthy elite, but there is still time.

Next steps:

How about lunch? How about our people meeting with your people? Our folks; Senators – Warren, Sanders, Booker and Harris, Representative Pramila Jayapal, Nick Hanauer, and Robert Reich.

Let me know who on your team you would like to invite, maybe the Koch Brothers, The Devos – as couple, Steve Mnuchin, Wilbur Ross, and five more would be a good size group.

Our luncheon wrap up takes place in the Jefferson Memorial where on the south east portico Jefferson observed we must make progress together:

“I am not an advocate for frequent changes in laws and constitutions, but laws and institutions must go hand in hand with the progress of the human mind.”

Please read our posts on the Common Good in a Democracy as a refresher on what it is and how we all need to build it again. Frankly, Oli, the Common Good seems lost right now, yet it provides the beacon to keep the ship of state on course for all the people. We need to work together to build the Common Good. Let’s – Make America A Democracy Again.

The Common Good Beacon Keeps the Ship of State On Course

By Patrick Hill

On July 20, 2018

In Common Good, Duty, Social Responsibility

Image: Your Little Planet

Sometimes it helps to be pragmatic about building the Common Good, here are 10 points that all Americans can agree on proposed by Ann B. Diamond in a letter to the editor of the NY Times:

1. We deserve a president who tells the truth.

2. Cabinet members should be advocates for their agency.

3. Americans want clean air and water and believe in climate change

4. Every citizen should be encouraged to vote.

5. No child should go to bed hungry.

6. Canada and Mexico are not our enemies.

7. Russia is not our friend, and is trying to undermine democracy

8. The press is not the enemy.

9. The tax cut benefits corporations and the wealthy, not the middle class.

10. Children belong with their parents.

Two years ago, most Americans would have said about these ten points: “These shared ideas are all obvious, what is the big deal?” It shows how far our ship of state has gone off course.

We have been blown off a common course by a GOP Administration, violating value after value, norm after norm and majority opinion after majority opinion. No precept can be taken for granted anymore. If a poll were taken today on these 10 Common Good precepts – 60 to 90 % of all Americans would agree with their core values.

America is founded on principles of justice, equal opportunity and individual freedom balanced with the Common Good. We all need an understanding of the Common Good or, for example, we couldn’t drive our cars on public roads if other drivers decided to disobey traffic laws implemented with a simple red light ‘because it’s my right’. Here the Common Good is clear – you can’t crash into another person’s car. While, the ten points are not as obvious, their core assumptions about our humanity, Constitution and common history must be our duty to understand, protect and sustain. Duty to our Common Good values is crucial for them to survive, and provide a beacon of light ahead to keep our ship of state on course. We are all on deck, not just the captain, sometimes it is good to let him know there are rocks ahead he does not see!

Scientists Discover Plants Can Reduce Ocean Acidity

By Patrick Hill

On July 19, 2018

In Environment, Pollution, Public Interest, Scientists, Solution

Image: see.systemsbiology.net

Global ocean acidity has increased by 30 % over the past 200 years and is expected to increase by 150 % by 2099 to the highest level in over 20 million years. About 25 % of the carbon dioxide in the air is absorbed into the ocean. For carbon organisms like algae they will grow increasingly prevalent yet for calcifying organisms like oysters, lobsters, clams, sea urchins, corals and others they will lose the ability to grow and reproduce.

Source: WXshift

Three and one half billion people rely on the ocean for food. It is of huge consequence to have the oceans of the world become so acidic that the sea cannot sustain ocean life nourishing billions of people.

So, what is being done to reduce ocean acidification? Certainly, efforts at reducing global warming are having an impact in the ocean specifically. There are some intelligent solutions being developed that would immediately improve shell organism survival. The Pacific Northwest has a $200 million shellfish industry for export and shipping to West Coast cities. Baywater Shellfish, west of Seattle, is having trouble growing geoducks, oysters and clams for market due to increased acidification of the water causing the shellfish to lose nutrients they need to grow and survive. However, Oregon State University researchers working on an solution have discovered that eelgrass growing near the shell fish farms can lower the acidity in the water through photosynthesis absorbing the carbon, and pulling it from the water. This process allows vital nutrients to become available to the shellfish. Eelgrasses can be planted in oyster farms or near shellfish hatcheries to provide the necessary lower acidity levels to nourish the shellfish.

The ocean covers 70% of our planet and provides food for 3.5 billion people making it crucial to human existence. We have a stewardship responsibility to reverse the damage we are causing by human activity to preserve the oceans for future generations. Cleanup of the ocean is a top priority for all of us and businesses too, as business success in the future assumes access to safe, clean, reliable water supplies and ocean environment.

GOP Administration Panders to Infant Formula Companies

By Patrick Hill

On July 10, 2018

In Drug Companies, GOP Administration, Health, Public Interest, Social Responsibility

Photo: elle

Last May, the U.S. attended a multi-lateral World Health Assembly meeting held in Ecuador to finalize the language for promotion of breast feeding to developing countries with poor regions. The policy recommended mothers breast feed their babies to promote better health than using possibly contaminated water with dry formula. The risks of mixing infant formula with polluted water outweighed the possibly less breast milk that some mothers give their infants.

Source: Down to Earth – 3/22/18

About 11 % of the world’s population and 19 % of people in India alone do not have access to clean water. For developing nations developing sources of clean water is crucial for their long term economic, and societal development. People drinking contaminated water suffer from multiple GI diseases, growth deformities and death.

U.S. representatives dropped long time support of over 40 years of research and other investigations in poor regions of the world noting the good health practice of breast feeding. Instead, the administration wanted all language recommending breast milk over infant formula deleted, including language focused on monitoring infant formula companies overly promoting their formula products.

Taking the corporate side is not new. In 1981, during the Reagan Administration U.S. representatives at a WHO conference took the only position out of 118 countries against promoting the use of the breast milk over infant formula.

Breast milk provides anti-bodies, nutrients and other substances not available in infant formulas which are synthesized. Obviously, when breast milk is not available infant formula maybe a good substitute temporarily when using clean water.

Next Steps:

The infant formula market is estimated to be $26 billion in 2017 growing to $66 billion by 2027. The industry is adding GMOs to its formula, offering organic versions and other approaches focused particularly on emerging countries where birth rates are much higher offering greater sales opportunities than in developed countries. It is clear the infant formula industry has successfully lobbied the GOP Administration when it shifts policy that has been settled for decades promoting breast milk is best for babies to promote good health and longevity. Plus, other studies show the nurturing relationship of the mother with her baby during breast feeding is beneficial to the social, and psychological health of the child.

The infant formula industry ought to understand their products depend on access to clean water to be effective as a compliment to breast feeding. The industry should shift its resources from blind product promotion and lobbying efforts and instead help to increase access to clean water worldwide. The infant formula industry needs to recognize their responsibility to support the common good promoting clean water and good health overall.

Farmers First Casualties of Trump Trade War

By Patrick Hill

On July 9, 2018

In Farmers, Trade, Trump Trade War, US - China Trade

Photo: geneticliteracyproject.org

The financial mainstream media focus on policy declarations from White House policy spin masters like Larry Kudlow, Chief Economic Adviser to the President saying of the trade war, “it is trade dispute among family members.” Meantime, American farmer family incomes are being sacrificed as the first casualties of the trade war.

Sources: Bloomberg, U.S. Department of Agriculture, The Wall Street Journal, The Daily Shot – 7/6/18

As Net Farmer Income drops along with the price of soybeans, the Chinese are cancelling their contracts with U.S. farmers and buying soybeans from Brazil and other suppliers like Russia.

Sources: China National Grain and Otis Information Center – 7/5/18

Sources: Bloomberg, China Customs – 5/18/18

It is a basic business reality that when customers go to other suppliers and secure contracts if the customer is pleased with the quality of new products they will stay with the new supplier. Our farmers are being cut out of business they have been building for decades, and now their livelihoods are being sacrificed to charge on in a lose-lose Trump Trade War (TTW). In the future, it will be difficult to impossible to get back much of the business farmers are losing as new suppliers become the incumbent.

Next Steps:

We need to stop being complacent about the costs and sacrifices of TTW, there are real costs being borne by farmers, businessmen and their families. We agree with 1100 economists who sent a letter to POTUS imploring him not to use tariffs as a mechanism for trade dispute negotiation and resolution. There is no evidence of trade wars solving trade issues, except for damaging the economies of all those countries involved, and in the case of the Depression setting the stage for WWII. The fact that the GOP Administration is minimizing the damage from their no strategy tariff program, is alarming and needs to stop. Farmers did not ask to be sacrificed for the TTW, and all the other businesses and families being hurt by this disastrous trade policy. They need our support by making our concerns known to the White House and Congress. We agree with Prime Minister Merkel who stated last week in regard to auto tariffs being renegotiated that any discussions should be pursued via the World Trade Organization in fairness to all parties. For over 40 years the United States has supported building the WTO and using trade treaties to open doors for American businesses, now is not the time to use bullying, intimidation and threats as tactics for solving economic issues.

We Have A Duty to Provide, Protect and Promote the Common Good

By Patrick Hill

On July 6, 2018

In Common Good, Corporate Nation State, Duty, Education, School Funding, Social Responsibility, Teacher Wages

Image: Your Little Planet

Today’s discussion of the Common Good is focused on a point that arose this week from a court case where the parents of children in Detroit sued the city school district for better teachers, classroom conditions and funding. The basis of the suit was that it was a ‘constitutional right’ that all children should have a fair and equal education regardless of income.

Unfortunately, as much as we would like to see education as a ‘right’ it is not mentioned in the U.S. Constitution or the Bill of Rights. The judge held that there was no ‘right’ to a quality education. The 14^th Amendment does require states when they provide public education to offer equal access to all students – equal quality is not specifically defined. We see education as Madison and Jefferson did as a key pillar of the government where a well-informed citizenry will make wise choices about who would lead their government. We have outlined in an earlier post that we see Education as the Fifth Estate, after the Fourth Estate, The Press and the three main branches of federal government – The Executive, Congress and The Supreme Court. Then, it follows that as a country we have a duty and responsibility to ensure that all children have a equal opportunity for a high quality education and access to learning institutions.

We do not really talk much in our society anymore about duty to country – or duty at all. We are indoctrinated constantly about ‘my right’ to this and that. While it is important that we have key rights ensured by our Constitution and courts, duties need to be in balance and in many ways ensure that rights can be sustained.

What do we ask of our young people graduating from high school in regard to supporting the freedoms and rights they enjoy? Universal service for every 18 year old as they do in Switzerland, or universal military service as Israel requires? What sacrifices do we expect our people to take on at any age?

In WWII, the Korean War, Vietnam War, and Middle East Wars, American men and women fought alongside each other to ensure the freedoms we enjoy and to protect the freedom and welfare of others. The wealthy fought along with the poor as a team, to survive in a hostile environment against a common enemy. They shared this life changing experience, learned how to depend on each other to survive and discovered what they had in common. Today, young people serving in the armed forces are making sacrifices and sometimes putting their lives on the line, yet the vast majority of our forces are comprised of poor or working class men and women from rural regions of the country. We are not all sharing the duty of defense across classes.

Everyday there are citizens across classes serving our country, as many people do volunteer work in all types of ‘duty’ based work at churches, non- profits and relief groups. Some sacrifice themselves and time in environmental protection efforts that support good stewardship of the earth that we all live in and enjoy.

So, when we look to ‘get our rights’ in court, we may need to look to how to make duty more of a core value in our culture and in particular business culture. As we have observed our country is essentially run by Corporate Nation States, they must change their attitude, behavior and operating practices focused on their duty to all the people not just their executives and customers. Everything a corporation does in some way impacts the Common Good. We are the people these corporations serve, and we should expect nothing less than socially responsible behavior from the executives running these huge Corporate Nation States.

States Move Ahead of Fed To Reduce New Drug Prices

By Patrick Hill

On July 5, 2018

In Drug Pricing, Health, Health insurance, Medicaid, Medicare, Solution

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: healtheconomics.com

Several states including New York, Vermont, Massachusetts and California have begun initiatives to take on drug companies for the their exorbitant prices of new drugs. New York is taking a price versus effectiveness approach with a new drug called Orkambi for cystic fibrosis. The New York state Medicaid department is demanding a lower price as it is not clear the drug helps patients with the disease better than existing treatments. Vertex, the manufacturer of Orkambi made $1.3 billion in sales from the drug which is a high sales level for a drug that is marketed to only 26,000 eligible patients. Vertex prices Orkambi at $272,000 for one year of doses. The drug costs so much that some insurers pass on the high costs to patients in some cases $3000 per month.

Dr. Steven D. Pearson, President of the Institute for Clinical and Economic Review is working with New York officials on a state board case against Vertex to bring the price down. The state board found that Orkambi did not meet the effectiveness claims by the manufacturer so New York should receive a 77 % discount. Dr. Pearson said his evaluation of the costs indicated that the drug could be discounted by 77 %.

Major states like New York and California are taking on the drug companies with renewed interest as their Medicaid costs soar in part from new drugs where companies like Vertex price the medication at extreme multiples of a fair cost. While the GOP Administration has promoted some ideas to bring the cost of new drugs down, nothing to date has been done.

The U.S. is alone of all major developed countries in not directly regulating drug prices. In Europe health services officials do not accept high prices for drug with marginal value and negotiate using their purchasing power to bring the price down. Congress has consistently bowed to the drug lobby by not speeding generic drugs to the market and not including in any drug bill the power for Health and Human Services to directly negotiate the price of all the medications it covers for U.S. patients.

Source: Bloomberg – 5/11/18

In 2014, U.S. patients paid the most of ten developed countries at $1,100 per year out of pocket and for many patients with difficult treatment diseases the costs per year are significantly more.

Next Steps:

Time is up for the drug companies and insurers gouging patients with soaring prices while they make hefty profits and executives pocket huge compensation packages. Drug companies need to stop buying back their stock, wasting the money that could be used to bring the price of their drugs by billions of dollars. Congress needs to give HHS the power to negotiate prices and effectiveness limits on drugs of dubious value the way most developed countries in the world do today. Over the past decade pharmaceutical companies have found that their exorbitant prices have not stuck in Europe or other developed country market, so they jack up the price of the medication in the U.S. where there is little regulatory constraint.

Corporations Are Taking Worker Wages To Increase Profits

By Patrick Hill

On July 3, 2018

In Common Good, Corporate Nation State, Corporate Power, Corporate Reform, Worker Wages

Image: csmonitor.com

Eight-three percent of all workers are ‘non-supervisory’ workers in the Federal Reserve classification of types of workers, yet they have not seen a fair cut of the profits since 2000. Corporations have used financial engineering techniques like stock buybacks where funds are used to buy corporate stock and goose the price up. J.P. Morgan estimates that with dollars repatriated from the tax cut bill, that stock buybacks will hit a new record of $800 billion for 2018. This $800 billion is absolutely wasted on driving stock prices up while not investing in employee wages, capital expenditures, research and development, instead stock buy backs increase executive compensation tied to stock price.

Source; Real Investment Advice – 6/29/18

Since before the Great Recession wages have been stagnant for working class people, the 80 % of the workforce that make corporations prosper. The wages to profits ratio arc shows a continuing decline since the 1980s – interestingly when the GOP was telling us that ‘trickle down’ economics would bring economic prosperity to all. Instead working class families are having to take two or three jobs and borrow on their credit cards just to keep their household finances afloat.

Next Steps:

The country is run by Corporate Nation States who make the contributions, fund the campaigns and essentially buy off the legislative influence that counts in the U.S. Each year corporations spend hundreds of millions of dollars in Washington DC lobbying alone, i.e. Amazon has 94 lobbyists keeping DOJ anti-trust lawyers distracted, the FCC at bay on drones and lobby other interests to keep its juggernaut growing.

It is time we wake up to what is happening from Supreme Court decisions that favor American Express over merchants, to the GOP tax cut bill, to relaxing the Dodd-Frank rules on banking Corporate Nation States are running this country. The basic economic trends in America are not going to change unless we have corporate reform. Will this reform come in the form of legislation like Sen. Booker’s Dividend Reform Act or letters from investment banks to corporate CEOs like Blackrock CEO Larry Fink sent recently. We are not sure, but we need to take a path that takes on the dominant power of Corporate Nation States or we are going to see the middle class wiped out and our economy with it. After all, as we pointed out in a recent post on the Common Good, when the working class has little money to spend the rich will lose too. The working class has earned a fair share of the profits. Fair share means when profits go up by 5 % wages go up by at least 5 % otherwise the economy deteriorates like it is today deeply in public and corporate debt.

“in the end the rich will need to see that it is in their interest to build the Common Good, by contributing to our institutions of government and common people or they will lose what they already have and probably a lot more.”