One Must Imagine Sisyphus
Happy
- Albert Camus -
(Comments on the political, social and economic issues of the day, from a liberal perspective)
The Oligarchs Are Coming! (Oh wait, they're here...)
When we hear the word, "oligarch," admit it: our first thoughts are Russia and Corruption. Property and media control by a few uber rich, supported by the state. Well, think again. An extensive web of the uber rich is spread all across the U.S. This web sets our agendas, shapes our messages, influences our democratic institutions, and elects the politicians who pass our laws.
Immigrants are labeled “criminals” and worse. Fact: illegal immigrants are no more criminal as the rest of us, perhaps less. 1
The border is claimed to be out of control. Fact: Trump opposed the bipartisan bill to control illegal immigration, so he could use this issue in the campaign. Now, the border really is Trump’s problem.
Big cities are supposed to be cesspools of crime. Fact: major crime has been declining for years.2 According to the FBI, violent crime declined by 49%, and property crime by 59% between 1993 and 2022.
Inflation is supposed to be out of control, destroying our quality of life. Fact: inflation has come down from 7% in 2021 to 2.6% in 2024. But we all know that food prices are high, and continue to increase beyond the average inflation rate.
Our elections are supposed to be corrupt. Fact: we probably have the most accurate and secure elections in the world.
Our colleges and universities are supposed to be brain-washing our children. Fact: our colleges and universities are teaching them how to think independently, which is precisely why the right wants to weaken our educational system.
But facts don’t matter if the web of the rich controls the messages. That is why empowering the oligarchy is so dangerous for democracy. Let’s look at some of the oligarchies in the U.S.
Individual Influence
Media control. A billionaire owner of the Washington Post stops the paper's editorial board from endorsing Harris for President. Another billionaire owner of the Los Angeles Times does the same. Dollar power over journalism.
More dollar power: the major contributors to the Republican Party in the last two years were:
Timothy Mellon, Retired - $197 million
Richard and Elizabeth Uihlein, Uihlein Inc - $134 million
Miriam Adelson, Las Vegas Sands - $132 million
Elon Musk, SpaceX - $200 million
Kenneth Griffin, Citadel LLC - $100 million
Jeffrey and Janine Yass, Susquehanna Intl - $96 million
Paul Singer, Elliott Management - $59 million
These nine contributors donated over $900 million to Republicans. A small group of people trying to influence our elections, empowered by the Supreme Court. 3 One could say, a small group of oligarchs.
It once was that most of the uber rich built libraries, schools, and museums. They practiced philanthropy. But this is out of style. Political influence has taken over.
Industry Concentration
Outside of the political sphere, key industries are highly concentrated: 4 One of the key elements of these industries is the high cost of entry. A new competitor would have to invest a great deal to enter the sector. So these sectors remain barely competitive, giving its players more power over pricing, products, and services.
In addition, the high concentration of the food and mining sectors increases the risks of supply chain disruption, as we learned at the beginning of the Covid epidemic, and with Russia’s invasion of the Ukraine. And while prices went up, they rarely came down, as most of us see at the grocery each week. Remember, less competition means higher prices and fewer services.
Highly concentrated industries include:
Film and TV production - Disney, Warner, NBC Universal, Sony, and Viacom
Recorded music - Sony Music, Universal Music, Warner Music
Wireless carriers - T-Mobile, Verizon, AT&T
Airlines - American, Delta, Southwest, United
Auto - Ford, General Motors, Stellantis in the U.S., Toyota, Honda, Volkswagen, Renault-Nissan-Mitsubishi elsewhere
Health care - Hospitals and medical practices are being bought by investment funds, which are raising prices and cutting services. These, too, are vulnerable to supply chain disruptions.
The five largest private health care insurance companies account for 54% of the market.
· UnitedHealth Group (14%)
· Elevance Health (12%)
· CVS (Aetna) (11%)
· Cigna (10%)
· Kaiser Permanente (7%)
Food production - PepsiCo, Nestle, Tyson Foods, General Mills, Kraft Heinz
Food distribution - Sysco, US Foods, Performance Food Group, McLane
Rare earth minerals - China (70%!), Australia, U.S., Myanmar, Thailand, Japan
Lithium (used for auto batteries, for example) - Australia, Chile, China
Dark Money Groups
A network of dark money groups has donated millions to Republican candidates in recent years. 5 They do not have to report the sources of their funds. Most of their expenditures are for negative political ads. Of the top 15 dark money groups, all but 3 donate to Republican causes. These 12 are:
Crossroads GPS; Americans for Prosperity; American Future Fund; American Action Network; Americans for Job Security; 45 Committee; Americans for Tax Reform; Patriot Majority USA; 60 Plus Association; National Rifle Association; and the U.S. Chamber of Commerce.
Putting all of this together, a small number of unelected individuals and corporations have gained a lot of power over the rest of us. Oligarchy is alive and well in the U.S. What to do? Perhaps it is hopeless.
At some point, however, the people may notice and demand action. Here are some possible but not soon likely options...
When it comes to individuals, we can't regulate their behavior, but we can tax their wealth. Taxing both wealth and income at 90% would leave them quite wealthy, but also would sharply reduce their ability to influence the country. We have taxed income at this level before. The top income tax rate was 91% from 1945-1963! 6 Now we have to go a step further and tax both income and wealth.
When it comes to corporations in key sectors, we could consider regulating them as utilities for the common good. That means requiring more information about their activities, practices, costs, and pricing. Government approval would be required for price hikes.
For both the food and health-care sectors, we could diversify both production and distribution by encouraging new players to enter the field, reducing the risks of supply chain disruption.
In the health care sector, we could bar investment funds from owning health care facilities.
Another example. Treated as a utility, we could require the airlines to widen seats again, to provide food on longer flights, and to eliminate the nickel-and-dime fees which have increased each year.
We also could reverse the Supreme Court decisions that granted corporations free speech rights, and the ability to make unlimited political contributions. 7
It was a long, slow process that led us to this place. It will be a long, slow process to undo the damage. Our democracy depends upon the free exchange of factual information, open competition, and reducing the influence of oligarchies. Giving up is not an option. Getting started is.
2 https://www.pewresearch.org/short-reads/2024/04/24/what-the-data-says-about-crime-in-the-us/
4 https://www.investopedia.com/ask/answers/010915/what-are-most-famous-cases-oligopolies.asp
5 https://issueone.org/donors-key-findings-and-profiles-of-the-top-15-dark-money-groups/
6 https://www.wolterskluwer.com/en/expert-insights/whole-ball-of-tax-historical-income-tax-rates
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Friday, 15 Nov 24
Is International law a dream?
The dream of a world constrained by International Law is fading. Respect for the sovereignty of nations has been lost. Three aspects of international law are considered here. Direct attacks on civilians are war crimes. Forcible transfer of a population is a crime against humanity. Destruction of a national, ethnic, racial, or religious group is genocide.
First, consider Ukraine. The Russian invasion itself is a violation of international law. Russia has attacked schools, hospitals, energy facilities, and other infrastructure, all war crimes. Yet, the Russian veto at the U. N. security Council rules out any effective U. N. action, including a peace-keeping force.
And, the Russian nuclear threat minimizes the chances for direct military intervention by any coalition supporting the Ukraine. Even military aid is constrained by Russian threats. The U. S. continues to refuse to allow Ukraine to hit Russian military targets in Russia, a foolish and cowardly guarantee that the Ukraine will be lost, but slowly.
Second, consider Israel and Gaza. The horrible Hamas attack of 7 October killed 1200 Israelis and captured several hundred hostages. The Israeli response has killed over 40,000, with no end in sight. Over 30 Gazan deaths for each Israeli death. Is this a proportional response, as called for by international law? NO. Is the Israeli destruction of Gazan infrastructure and the displacement of 90% of Gaza's population reasonable or acceptable? NO.
Yet virtually every comment by the U. S. and other countries starts by noting Israel's right to defend itself. But this is not defense. It is slaughter without end. No criticism or constraint of Israel, only endorsement.
If Russia and Israel cannot suffer severe consequences from their illegal actions, then what is International Law? A dream, fading as we wake to an increasingly barbaric world.
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Sunday, 27 October 24
Preparing for the Debate
Well, Donald, name-calling and insults are what seven-year-olds throw around the schoolyard. But you're not seven. You're a seventy-eight year old man. Is name-calling Presidential? I don't think so.
It would be good for us all to have a real conversation about real issues. Where's the better health plan you've been promising for eight years? Where's the infrastructure plan? Where's the higher taxes on the rich, and the lower taxes for the middle-class? Oh, I forgot: you don't do higher taxes on the rich.
You did a major tax cut for the rich which added over two trillion to the Federal debt. The Wharton School estimates that your current proposals would add another four trillion to our debt. That’s over six trillion in new debt. Are you going to brag about it? In the 50’s and 60’s we had marginal tax rates of 70-90 % and we thrived. Businesses prospered. We built things. The middle-class grew. Tax cuts for the rich are just a swindle.
Let’s talk about immigration. The numbers are down, no matter what you say. But this is the important thing: Both the Republican and the Democratic leadership agreed on the best immigration bill in decades. But you demanded that Republicans vote against it, because you didn't want Democrats to have it. And to their shame, they listened to you. You called it a bad bill. OK, what's bad about it? Let's have that conversation. But don't claim that the border is a mess when you blocked a good bill. No bill is perfect, but this bill marked great progress. You're the one making the mess, instead of trying to fix it.
I have the plans and I'm willing to debate them. Are you going to go high, or are you going to stay low? Are we going to play as grown-ups, or are you going to play as a child? The people deserve grown-ups.
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Monday, 26 Aug 24
Gaza
Don’t call it a war. Israel has an air force, rockets, artillery, heavy weapons, and the best armed fighters in the Middle East. Hamas has... little. Hamas is a guerrilla force, striking opportunistically and vanishing quickly. Call it a slaughter.
Over thirty thousand Gazans have been killed. Hamas killed 1200 Israelis on 7 October. What is a just ratio of Gazans to Israelis? It’s now at about 25 to 1 and increasing daily. Can this number of innocent civilian deaths be morally justified?
Netanyahu’s goal is the elimination of Hamas once and for all. An impossible goal, but one which inflicts unthinkable harm to Gazan civilians. Israel’s attacks have destroyed housing, hospitals, power stations, food supplies, humanitarian aid flows, and virtually any possibility of a safe and normal life for millions of Gazans. Most of Gaza is rubble. The population has fled South, but soon will be attacked there. Where else to flee? Does the goal include stripping Gaza bare of its people? Controlling it indefinitely?
The international order of rules and morals is breaking down all over the world. Without enforcement, without accountability, the strong can act at will. Hamas is amoral. Israel is acting immorally.
Biden is trapped by his lifelong connection to Israel. He does not seem able to use his leverage to stop the slaughter permanently, and to begin rebuilding Gaza.
What could he do? First, he could declare Netanyahu persona-non-grata, and urge other nations to do the same. Second, he could stop all military and economic aid to Israel until a viable two state solution is in place: two states with a secure buffer zone in between. Third, if Israel does not respond to this pressure, he could break diplomatic relations. And fourth, if the destruction of Gaza continues, the illegal Israeli settlements could be destroyed in kind.
Just to be clear: Hamas is evil and should be reduced and constrained, to permit a new Gaza to emerge. One option: an international coalition with Arab nations to root out Hamas with precision, and to strengthen the Gazan government.
Will Biden do any of these? Doubtful. But other countries could. They have less leverage, but a coalition of countries acting for peace could do what Biden seems unable to do. Once again, the world is facing a moral question: simply watch and wring hands as thousands more die, or do something significant? If not the U.S., then others, and if not now, when? And if we don’t, then what are we? Peace is not an option, it is a necessity.
We must protect human life, both Israeli and Gazan, in the face of evil or immoral actors. Otherwise, to call ourselves civilized is a sham.
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Sunday, 14 Apr 24