America will have to finally get serious about preserving and creating jobs — and on a larger, and more lasting, scale than Roosevelt’s New Deal. Private enterprise and government will have to think in terms of industrial policy, and one that emphasizes labor-intensive economic growth and innovation. Reducing class sizes in all public schools to 15 or fewer would require a great many new teachers even as it would raise the quality of education.
In the long run, reducing working time — perhaps to as low as 30 hours a week, with the lost income made up by unemployment compensation — would lead to a modest increase in jobs, through work sharing. New taxes on income and wealth are unavoidable, as are special taxes on the capital-intensive part of the economy. Policies that are now seemingly utopian will have to be tried as well, and today’s polarized and increasingly corporate-run democracy will have to be turned into a truly representative one.
The Age of the Superfluous Worker – NYTimes.com
25 NovWe Are the 99.9% – NYTimes.com
25 NovFor who are the 0.1 percent? Very few of them are Steve Jobs-type innovators; most of them are corporate bigwigs and financial wheeler-dealers. One recent analysis found that 43 percent of the super-elite are executives at nonfinancial companies, 18 percent are in finance and another 12 percent are lawyers or in real estate. And these are not, to put it mildly, professions in which there is a clear relationship between someone’s income and his economic contribution.
Executive pay, which has skyrocketed over the past generation, is famously set by boards of directors appointed by the very people whose pay they determine; poorly performing C.E.O.’s still get lavish paychecks, and even failed and fired executives often receive millions as they go out the door.
Meanwhile, the economic crisis showed that much of the apparent value created by modern finance was a mirage. As the Bank of England’s director for financial stability recently put it, seemingly high returns before the crisis simply reflected increased risk-taking — risk that was mostly borne not by the wheeler-dealers themselves but either by naïve investors or by taxpayers, who ended up holding the bag when it all went wrong. And as he waspishly noted, “If risk-making were a value-adding activity, Russian roulette players would contribute disproportionately to global welfare.”
Are U.S. corporations good citizens? – Salon.com
22 NovThe time is ripe for a reevaluation of the role of the corporation in American society. The passion motivating Occupy Wall Street protesters tells us this, as does the spectacle of a political and economic system that is so clearly broken.
Therefore, in the spirit of contributing to enhancing consumer enlightenment as to how our corporations rank as responsible citizens, Salon is launching a new series: The Corporate Citizen Challenge — an attempt to rate the good citizenship performance of America’s biggest companies.
Look for the first installment the week after Thanksgiving. We’ll start with the big financial institutions that benefited the most from government bailouts. We’ll evaluate them according to a series of metrics: job creation, dollars spent lobbying, total taxes paid, executive compensation, impact on the environment, and others.
Occupy the Agenda – NYTimes.com
19 NovA reporter for Politico found that use of the words “income inequality” quintupled in a news database after the Occupy protests began. That’s a significant achievement, for this is an issue that goes to our country’s values and our opportunities for growth — and yet we in the news business have rarely given it the attention it deserves.
A Horrific Crash Sets Off Online Anger in China – NYTimes.com
19 NovAs China sped toward its new status as the world’s second largest economy, the already yawning gap between the rich and poor grew wider. By sociologists’ calculations, income inequality here is not that far from levels that have spurred social unrest in other nations.
But some things are not easily reduced to statistics. There is an argument, buttressed by the Gansu tragedy, that what truly eats at people here is not so much the rich-poor gap as the canyon that separates the powerful from the powerless.
“Most Chinese aren’t angry about rising inequality,” said Martin K. Whyte, a Harvard sociologist who specializes in research on Chinese social trends. “It’s not rich versus poor. It’s the system of power and procedural injustices that they’re upset about.”
And in fact, many episodes in the litany of scandal and misfortune that has consumed Chinese Web surfers in recent years had little to do with money.
via A Horrific Crash Sets Off Online Anger in China – NYTimes.com.
Insight: The Wall Street disconnect | Reuters
19 NovWith U.S. cities moving this week to crack down on Occupy Wall Street encampments – including the one in New York’s Zuccotti Park – the staying power of the movement is in question. Whatever its future, it’s clear that so far, the Occupiers haven’t changed many minds on Wall Street over blame for the country’s hard times. The cognitive disconnect between the protesters and the captains of finance is alive and well.
David Mooney, chief executive officer of Alliant Credit Union in Chicago, one of the nation’s larger credit unions, used to work at one of Wall Street’s top banks, JPMorgan Chase. There’s a vast cultural gap between Wall Street and his new world, he says: Old friends from the Street, he says, now jokingly refer to him as a “socialist.” A credit union is supposed to be run in the interests of all members, he says, while commercial bankers tend to see consumers as customers who can be “exploited” by layering on more fees.
The corporate tax plunge: Down, down, down – Taxes – Salon.com
17 NovThe percentage of corporate profit (after taxes) paid as income tax has been on a steady downward trend since the 1950s. In the last year or so, it has rebounded a trifle since hitting its all-time low during the Great Recession, but still sits comfortably below any other point in the last six decades.
via The corporate tax plunge: Down, down, down – Taxes – Salon.com.
Did Fukushima kill the nuclear renaissance No, that renaissance died right here at home – The Tech
16 NovBottom line: right now, independently of Fukushima, nuclear power doesn’t make economic sense.
On the eve of the Tohoku earthquake, U.S. nuclear power looked just as moribund as it is today. The cause of this decline is not renewed concerns about safety, or even that old red herring, waste disposal — instead, it is simple economics. Other technologies, particularly natural gas, offer much cheaper power than nuclear both today and in the foreseeable future.
In 2009, the MIT Future of Nuclear Power study released an update to its 2003 estimate of the costs of nuclear power. Estimating a capital cost of $4,000/kW and a fuel cost of $0.67/MMBtu, the study’s authors projected a cost of new nuclear power of 6.6 cents/kWh. Using the same modeling approach, the cost of electricity from a natural gas plant with capital costs of $850/kW and fuel costs of $5.16/MMBtu would be 4.4 cents/kWh.
What’s worse, the estimate of 6.6 cents/kWh assumes that nuclear power is able to secure financing at the same interest rate as natural gas plants.
via Did Fukushima kill the nuclear renaissance No, that renaissance died right here at home – The Tech.
Sisters of St. Francis, the Quiet Shareholder Activists – NYTimes.com
14 NovWonderful!
In 1980, Sister Nora and her community formed a corporate responsibility committee to combat what they saw as troubling developments at the businesses in which they invested their retirement fund. A year later, in coordination with groups like the Philadelphia Area Coalition for Responsible Investment, they mounted their offensive. They boycotted Big Oil, took aim at Nestlé over labor policies, and urged Big Tobacco to change its ways.
Eventually, they developed a strategy combining moral philosophy and public shaming. Once they took aim at a company, they bought the minimum number of shares that would allow them to submit resolutions at that company’s annual shareholder meeting….That gave them a nuclear option, in the event the company’s executives refused to meet with them….
“You’re not going to get any sympathy for cutting off a nun at your annual meeting,” says Robert McCormick, chief policy officer of Glass, Lewis & Company, a firm that specializes in shareholder proxy votes. With their moral authority, he said, the Sisters of St. Francis “can really bring attention to issues.”
via Sisters of St. Francis, the Quiet Shareholder Activists – NYTimes.com.
Fort of the 1%
13 Nov
Truth and Traditions 