The real problem here is the Federal Reserve -SYNDICATE, a mafioso scheme/scam of a PRIVATE (owned and run by the banksters!) corporation colluding with their partner-in-crime - the Federal Government to benefit themselves at the expense of the great majority of citizens. It’s a win for the banksters and their government lackeys and a loss for the rest of us. The Fed’s system of publishing fiat money out of thin air is what is enabling all these idiotic immoral wars, alway enough money for another war or another corporate-insurance monopoly like Obamacare. We have a government of, by, and for the money, a nearly pure corporatocracy. I don’t claim to know what the next best move for health care is but it sure isn’t turning it over to a corrupt government and its corrupt corporations. Yes we have mega inflation that wages can never expect to catch up to but it is coming from a government $21T in debt publishing money around the clock to keep up with its own scams. Is welfare a bribe for warfare? Food stamps in exchange for endless war? Reminds me of P.J. O’Roarke’s famous quote which goes something like, “Giving money to Congress is like giving whiskey and car keys to teenagers.” Civilization after civilization ends after the aristocracy has used government as a tool to enrich itself by pillaging the lower classes until the whole damn mess collapses. That’s where we are headed unless we can figure out how to have a government of, by , and for the people instead of the money. The private corporation known as The Federal Reserve System needs to be taken away from the banksters and made into an actual part of the federal Government that we the people have at least SOME control of where the money - OUR money - goes. Gopherit
“Clear away the financial rubble from those two former crashes and you’d see they both followed upon widening imbalances between the capacity of most people to buy, and what they as workers could produce.”
Do away with the profit motive, and implement a system that operates on what is socially necessary.
We the People must have a Revolution of Ideas put into Action bringing to Heel the 1%.
I would prefer that money was injected into the economy via fiscal policy and the Treasury. We don’t have to issue bonds to create money, although the Federal Reserve Act requires the government to issue bonds when there is a deficit. However, the issue of public debt is a non-issue as far as having to be repaid, it isn’t supposed to be repaid. US bonds, literally the safest investments in the world, are simply a subsidy to private capital and we have chosen to create money that way. The government’s deficit at any given time necessarily equals the private sector’s surplus in the wider economy, although that private surplus is obviously inequitably distributed. But the Fed doesn’t really have true independence in many ways, since it is required by law to work with the Treasury in ways that ties its hands. It is, however, completely non-transparent and the recent limited audit of the Fed uncovered a staggering amount of corruption. As MMT economists have shown, we could inject money into the economy without issuing bonds, and people like Mary Mellor have shown a host of different ways of the government injecting money into the economy without even using the banks at all.
I was billed 480 dollars by my doctor’s office. Apparently the full amount charged for regular visits was being considered towards my deductible, after I was asked to pay only the copay during visit.
I have never had that experience before.
They find every dirty trick to get your money, and you only have your legislators to fight for you, but they are taking your money from the insurance company.
The issue is Capitalism itself. It not like the great Depression and the crash of 2007 were isolated events. Prior to WW2 these things were happening with frequency every 20 years or so. Post WW2 the times between these crashes was kept somewhat in control by a number of factors including the Social Porgrams Governments began instituting around the world and the investments needed for post war recovery.
Capitalism by DESIGN wants a small number of very rich people (called your investors) and a ever larger pool of laborers so that those Capitalists can make ever more if the way of profits and suck the wealth produced by labor into their own pockets. Capitalism by DESIGN wants to maximize profits while minimizing costs. The lower a wage paid to the worker, the higher the profits. The more readily resources can be sucked from the natural world wherein the true COSTS transferred , the greater the profits. Capitalism by DESIGN relies on the very opposite of a “Free Market”. It relies on Governments protecting profits via the law by using things like Copyright and trademarks and patent protections. Its most successful industries are societies greatest leeches.
Mr Reich complaining about the wealth shift that occurs under a system that is DESIGNED to do that is like complaining that after a game of Monopoly one guy owns everything.
Robert, you make a lot of valid points, but you’re still failing to see the bigger picture.
“Trump and his Republican enablers are now reversing regulations put in place to stop Wall Street’s excessively risky lending”.
How disingenuous of you to lead off with this statement, as though Dems didn’t have a part in this economic coup. You want to help society ? Stop herding for the Dem party, and acting as though they aren’t part of the problem.
You’re a ex-Labor Dept. secretary, how about helping the working class, get on board the Greens, help form a Workers party, do something productive for the people, and stop this “the Dems are going to save you BS”.
When nothing changes, it’s the same shit, different day.
I know to most people capitalism is fascism, fascism is capitalism. Certainly describes the econmy of this country. Stalin and Hitler both loved and praised their fiat money system too saying they would not have been so “successful” if they didn’t have money on publish demand. I think most taxes should be collected and spent locally. If you know where your government “servant” parks his car, it tends to keep them in line. The further away you send those compulsory tax dollars, the less control you have how it is spent. Gopherit
A good first step towards preventing these “crashes”, “recessions”, “marked downturns” or whatever moronic euphemism they come up with next would be to call them what they are.
Wealth transfers, theft or market manipulation.
“The richest 1 percent of Americans now takes home about 20 percent of total income, and owns over 40 percent of the nation’s wealth.”
In 1975, only 10 percent of national income went to the top 1 percent. The extra 10 percent is profits generated from stagnant wages - where workers lost bargaining power due to automation and off-shoring. It’s now over $1 trillion per year and growing, or over $11,000 per year per American family.
I say let’s tax that over $1 trillion year back, and, as Warren Buffett suggests, legislate a “big-time” increase in the Earned Income Tax Credit.
Reagan stole from social security to increase military spending. His S&L people went to jail. Left massive deficit. Clinton was told to work hard to reduce it and he left a surplus. Bush destroyed it all not only with Iraq but his friends in Wall Street. While Obama let the Wall Street criminals walk he did fine them massive money and left a good economy. Trump immediately gave his friends $1.5 Trillion tax breaks the sent the deficit over $1T they think will be taken from the disposables by destroying all forms of life support including social security, medicare, heatlh care and the environment they will loot. If this is not an obvious pattern what is? It is not a “party” thing. It is a “nation” thing. Why be part of a nation dedicated to destroying sheeple?
Thank you Oreo-Barack! Oh and Namora – your brainless posts only serve to prove my point!
Nice white-wash here, Reich.
Nice ignoring your buddy Bill Clinton’s terrible damage done to us by repealing Glass-Steagall and the Neo-Liberal machinations of your candidate of Hillary Clinton.
Yep, nice job of making it look like the problem is all due to Trump instead of it being a full on bipartisan rape of the people.
Good luck you apparatchik of the unDemocratic Party.
It’s not enough, Reich, to exchange Trump and the GOP for a different set of villains like the ones you always endorse.
Hey don’t bash the Demopublicans! They are the true paragons of mind control. Keep the serfs squabbling among themselves while the banksters smugly trot off to the bank with their stolen loot. Everybody knows the Democrats have no brains and the Republicans have no heart. Or is it the other way arround? Oh well, just keep the squabling going on about “right” and “left” and no one will not notice how “normal” perpetual war is, or one in two dying of (environmental-induced) cancer, or 10% inflation year in/year out, or that all our news is really just “corporate” news. It’ all normal, natural, nothing to see here folks, just move along. Don’t question God, er, your government, it’s all good. Gopherit
The state, since at least Carter, has been increasingly retreating, and more and more of our economy has been handed over to private institutions, we have on almost every level moved more towards a self-adjusting or free market. It has happened because of domestic policy, and it has happened through international institutions (the IMF, the WTO, the World Bank, etc.), through processes like financialization, and through things like investor rights agreement (the NAFTA model). To call the government your god, given this and given how much more the government is involved in other developed countries (for the better) than our own, it makes no logical sense to focus on things getting worse because of the government. At best, we could critique the state for being corrupt and handing over so much to institutions and interests that clearly have made things worse. Across the board, during the last 40 or so years, we have moved to the right on economic policy, and yes, things are worse. So, logically, why should we focus our ire on the the state and not the interests we’ve given power to, and the economic model they’ve been pushing? I don’t want your god, by the way. We need more socialism, not less, and it is beyond obvious at this point.
Oh, and it is a fact that well over 90% of all money is created not by the state but private institutions. The Fed’s FRED database has data on M2, and you can find M3 data from sources like Shadowstats. The Fed and the Bank of England have produced good reports on money creation. If you are so concerned about inflation, then necessarily you should focus on private banks and credit money, not the state.
It is also beyond question that the environmental crisis is a direct result of the capitalist system and markets themselves, which ignore massive amounts of relevant environmental and social impacts.
If you can find a PDF version of this article, get and read it: https://www.tandfonline.com/doi/abs/10.1080/00213624.2007.11507090
Seemed like a bare-bones explanation. Give me some more Matt Taibbi. He has the depth to tackle this subject. Robert Reich barely scratches the surface. Ho hum.
The ever widening gap between rich and poor as fueled by our funny-money system is explained to a certain degree in this article https://www.lewrockwell.com/2018/09/thorsten-polleit/central-banks-enrich-a-select-few-at-the-expense-of-many/
I hope a libertarian website is OK here. I read points of view from every political perspective and then pick and choose. No one has ALL the truth and I particularly like to read articles that challenge my own predjudices which I believe we all have to greater and lesser degrees. Even the devil is a hard, energetic worker…ha! Gopherit
Sorry these aren’t the hippest looking graphics (with 1st link), but Jack Rasmus does EXPLAIN things. A thought comes to me these days. I have been as big a Russiagate skeptic as anyone. And I’m not going to tell you suddenly it seems like Russian hacks or Chinese hacks got Trump in there. No, but the thought has occurred to me that the new consortium of big powers that are getting distant from us might have made a scary error. A scarry error that went along with an attempt to sideline the US. And how would they do that (sideline us)?
How? They would do to us more or less what our vultures did to Russia and Argentina. And how would they do that? Well, when vultures asset strip, the factory machinery is sold to someone else. For example, Norton Villiers Triumph (motorcycles…true, true -> “vultures” deal with bonds, and asset strippers sometimes with real stuff; I won’t quibble). The way you’d get the US to do this would be to help a dufus get into the White House. You see, in the past it has worked for the super wealthy in America because we were doing it to others.
The scary part is the group ascending that might have planned to do it to us (ever since formation of the SCO?) in attempting to help Trump [and I emphasize that by numbers of votes they DID NOT prevail; HRC won by at least 2 million votes] seems to have put nuclear bombs perched on ICBMs totally out of their minds for the interum.
Good chance, though, they weren’t even trying. Probably the way international folks with money helped most was simply by never questioning their practice of expecting gobs of dividends from institutions that employ people (corporations). Right…they didn’t have enough leisure to look around and see what was happening.
Even crazier was the fact that US billionaires and their think tanks did the same thing (put nukes out of their minds). And crazier than that was that defense lobbyists in America (promoting hawks) have IMO gotten Dems poised (in their Russiagate fervor) to escalate things in Ukraine. Did we deserve all this? Well, you’d think there’d be some kinda karmic backlash. But karma I think would go a little more carefully.
Folks that follow things closely will be thinking he’s paint’n Russia as reckless. Like I said, this could all be wrong. And I will tell you straight up: I do not believe Morning Edition’s 9/5 portrait of Trump-the-greatly-concerned.
“Russia, by any detached measure, must be credited in recent months with some of the most outstanding statecraft of any major power in many years. Much of this, though not all, relates to Syria. In Douma last spring and more recently in the southwest, it negotiated agreements between jihadist militias and the Syrian Arab Army that allowed so-called “moderate rebels” safe-passage retreats. It then commenced relief efforts in both locations. Russia is now attempting the same thing in Idlib. Most startling, maybe, is the agreement Moscow arranged between Israel and Iran, whereby Iranian troops agreed not to participate in the S.A.A.’s southwest campaign, which put Syrian troops close to the border with the Israeli-occupied Golan Heights.” Lawrence (see 1st ConsortiumNews link below)
Back in the (Great) Game: The Revenge of Eurasian Land Powers 8/29
The Trump Administration’s Spoiler Foreign Policy 8/30
None of this means that Bannon wasn’t right out of his noodle.
A lot of the jobs go with the machinery too.