Tag: Bill Moyers

Nobel Prize winning economist Joseph E. Stiglitz discussed the problem of large corporations using tax loop holes to avoid paying taxes and how by closing those loop holes could be a cure for inequality and a faltering economy.

Stiglitz tells Bill that Apple, Google, GE and a host of other Fortune 500 companies are creating what amounts to “an unlimited IRA for corporations.” The result? Vast amounts of lost revenue for our treasury and the exporting of much-needed jobs to other countries.

“I think we can use our tax system to create a better society, to be an expression of our true values.” Stiglitz says. “But if people don’t think that their tax system is fair, they’re not going to want to contribute. It’s going to be difficult to get them to pay. And, unfortunately, right now, our tax system is neither fair nor efficient.”

Dr. Stiglitz’s paper, Reforming Taxation to Promote Growth and Equity, can be read here (pdf).

Seven Key Takeaways From Joseph E. Stiglitz’s Tax Plan for Growth and Equality

1. Raise Corporate Income Tax Rates While Providing Incentives for Investments and Job Creation in the US. [..]

2. Reduce Spending on Corporate Welfare [..]

3. Tax the Financial Sector [..]

4. Tax on Monopolies and Other Rent-Based Enterprises [..]

5. Ensure that Multinationals Pay Their Fair Share of Taxes and Have Incentives to Invest in America [..]

6. Tax Monopolies and Other Rent-Based Enterprises [..]

7. Make Dividend Payments Tax Deductible, But Impose a Withholding Tax [..]

In an article for Huffington Post, economist Dean Baker explains the basic point of Thomas Piketty’s best selling book, “Capital for the 21st Century,” which has the economic world buzzing.

Piketty’s basic point on this issue is almost too simple for economists to understand: If the rate of return on wealth (r) is greater than the rate of growth (g), then wealth is likely to become ever more concentrated.

To stem the growth of the wealth gap, Piketty suggests a “Global Wealth Tax” which in today’s global political climate isn’t likely to happen. So what can be done? Baker offers some solutions:

A new I.M.F. analysis found the value of the implicit government insurance provided to too big to fail banks was $50 billion a year in the United States and $300 billion a year in the euro zone. The euro zone figure is more than 20 percent of after-tax corporate profits in the area. Much of this subsidy ends up as corporate profits or income to top banking executives.

In addition to this subsidy we also have the fact that finance is hugely under-taxed, a view shared by the I.M.F. It recommends a modest value-added tax of 0.2 percent of GDP (at $35 billion a year). We could also do a more robust financial transactions tax like Japan had in place in its boom years which raised more than 1.0 percent of GDP ($170 billion a year).

In this vein, serious progressives should be trying to stop plans to privatize Fannie and Freddie and replace them with a government subsidized private system. Undoubtedly we will see many Washington types praising Piketty as they watch Congress pass this giant new handout to the one percent.

The pharmaceutical industry also benefits from enormous rents through government granted patent monopolies. We spend more than $380 billion (2.2 percent of GDP) a year on drugs. We would spend 10 to 20 percent of this amount in a free market. We would not only have cheaper drugs, but likely better medicine if we funded research upfront instead of through patent monopolies since it would eliminate incentives to lie about research findings and conceal them from other researchers.

There are also substantial rents resulting from monopoly power in major sectors like telecommunications and air travel. We also give away public resources in areas like broadcast frequencies and airport landing slots. And we don’t charge the fossil fuel industry for destroying the environment. A carbon tax that roughly compensated for the damages could raise between $80 to $170 billion a year (0.5 to 1.0 percent of GDP). [..]

In addition to the rent reducing measures listed above, there are redistributionist measures that we should support, such as higher minimum wages, mandated sick days and family leave, and more balanced labor laws that again allow workers the right to organize. Such measures should help to raise wages at the expense of a lower rate of return to wealth.

In an interview with Bill Moyers, Nobel Prize-winning economist and New York Times columnist Paul Krugman, talks about Piketty’s “magnificent” new book and what the 1% don’t want us to know.

In the coming weeks, the Supreme Court is expected to issue another big decision on campaign finance, one that could further open the floodgates to unfettered and anonymous contributions, just as the Citizens United case did four years ago. [..]

Already, three times as much money has been raised for this year’s elections as four years ago, when the Citizens United decision was announced. “This is the era of the empowered ‘one percenter’. They’re taking action and they’re becoming the new, headline players in this political system,” Kroll tells Moyers. Kim Barker adds, “People want influence. It’s a question of whether we’re going to allow it to happen, especially if we’re going to allow it to happen and nobody even knows who the influencers are.”

Former GOP congressional staff member with the powerful House and Senate Budget Committees and author of “The Party Is Over: How Republicans Went Crazy, Democrats Became Useless and the Middle Class Got Shafted,” Mike Lofgren was a guest on “Moyers and Company” and discussed with host, Bill Moyers, how elected and unelected figures collude to protect and serve powerful vested interests.

Mr. Lofgren also wrote this essay in conjunction with the show: Anatomy of the Deep State

There is the visible government situated around the Mall in Washington, and then there is another, more shadowy, more indefinable government that is not explained in Civics 101 or observable to tourists at the White House or the Capitol. The former is traditional Washington partisan politics: the tip of the iceberg that a public watching C-SPAN sees daily and which is theoretically controllable via elections. The subsurface part of the iceberg I shall call the Deep State, which operates according to its own compass heading regardless of who is formally in power.

During the last five years, the news media has been flooded with pundits decrying the broken politics of Washington. The conventional wisdom has it that partisan gridlock and dysfunction have become the new normal. That is certainly the case, and I have been among the harshest critics of this development. But it is also imperative to acknowledge the limits of this critique as it applies to the American governmental system. On one level, the critique is self-evident: In the domain that the public can see, Congress is hopelessly deadlocked in the worst manner since the 1850s, the violently rancorous decade preceding the Civil War.

As I wrote in The Party is Over, the present objective of congressional Republicans is to render the executive branch powerless, at least until a Republican president is elected (a goal that voter suppression laws in GOP-controlled states are clearly intended to accomplish). President Obama cannot enact his domestic policies and budgets: Because of incessant GOP filibustering, not only could he not fill the large number of vacancies in the federal judiciary, he could not even get his most innocuous presidential appointees into office. Democrats controlling the Senate have responded by weakening the filibuster of nominations, but Republicans are sure to react with other parliamentary delaying tactics. This strategy amounts to congressional nullification of executive branch powers by a party that controls a majority in only one house of Congress.

Despite this apparent impotence, President Obama can liquidate American citizens without due processes, detain prisoners indefinitely without charge, conduct dragnet surveillance on the American people without judicial warrant and engage in unprecedented – at least since the McCarthy era – witch hunts against federal employees (the so-called “Insider Threat Program”). Within the United States, this power is characterized by massive displays of intimidating force by militarized federal, state and local law enforcement. Abroad, President Obama can start wars at will and engage in virtually any other activity whatsoever without so much as a by-your-leave from Congress, such as arranging the forced landing of a plane carrying a sovereign head of state over foreign territory. Despite the habitual cant of congressional Republicans about executive overreach by Obama, the would-be dictator, we have until recently heard very little from them about these actions – with the minor exception of comments from gadfly Senator Rand Paul of Kentucky. Democrats, save a few mavericks such as Ron Wyden of Oregon, are not unduly troubled, either – even to the extent of permitting seemingly perjured congressional testimony under oath by executive branch officials on the subject of illegal surveillance.

These are not isolated instances of a contradiction; they have been so pervasive that they tend to be disregarded as background noise. During the time in 2011 when political warfare over the debt ceiling was beginning to paralyze the business of governance in Washington, the United States government somehow summoned the resources to overthrow Muammar Ghaddafi’s regime in Libya, and, when the instability created by that coup spilled over into Mali, provide overt and covert assistance to French intervention there. At a time when there was heated debate about continuing meat inspections and civilian air traffic control because of the budget crisis, our government was somehow able to commit $115 million to keeping a civil war going in Syria and to pay at least £100m to the United Kingdom’s Government Communications Headquarters to buy influence over and access to that country’s intelligence. Since 2007, two bridges carrying interstate highways have collapsed due to inadequate maintenance of infrastructure, one killing 13 people. During that same period of time, the government spent $1.7 billion constructing a building in Utah that is the size of 17 football fields. This mammoth structure is intended to allow the National Security Agency to store a yottabyte of information, the largest numerical designator computer scientists have coined. A yottabyte is equal to 500 quintillion pages of text. They need that much storage to archive every single trace of your electronic life.

Yes, there is another government concealed behind the one that is visible at either end of Pennsylvania Avenue, a hybrid entity of public and private institutions ruling the country according to consistent patterns in season and out, connected to, but only intermittently controlled by, the visible state whose leaders we choose. My analysis of this phenomenon is not an exposé of a secret, conspiratorial cabal; the state within a state is hiding mostly in plain sight, and its operators mainly act in the light of day. Nor can this other government be accurately termed an “establishment.” All complex societies have an establishment, a social network committed to its own enrichment and perpetuation. In terms of its scope, financial resources and sheer global reach, the American hybrid state, the Deep State, is in a class by itself. That said, it is neither omniscient nor invincible. The institution is not so much sinister (although it has highly sinister aspects) as it is relentlessly well entrenched. Far from being invincible, its failures, such as those in Iraq, Afghanistan and Libya, are routine enough that it is only the Deep State’s protectiveness towards its higher-ranking personnel that allows them to escape the consequences of their frequent ineptitude.

The entire article is a must read.

Author and scholar, Henry Giroux joined Bill Moyer, to discuss his book Zombie Politics and Culture in the Age of Casino Capitalism which describes how [our current system is informed by a “machinery of social and civil death” that chills “any vestige of a robust democracy.”

Giroux explains that such a machine turns “people who are basically so caught up with surviving that they become like the walking dead – they lose their sense of agency, they lose their homes, they lose their jobs.”

What’s more, Giroux points out, the system that creates this vacuum has little to do with expanding the meaning and the substance of democracy itself. Under “casino capitalism,” the goal is to get a quick return, taking advantage of a kind of logic in which the only thing that drives us is to put as much money as we can into a slot machine and hope we walk out with our wallets overflowing.

Henry Giroux: Well, for me democracy is too important to allow it to be undermined in a way in which every vital institution that matters from the political process to the schools to the inequalities that, to the money being put into politics, I mean, all those things that make a democracy viable are in crisis.

And the problem is the crisis, while we recognize in many ways is associated increasingly with the economic system, what we haven’t gotten yet is that it should be accompanied by a crisis of ideas, that the stories that are being told about democracy are really about the swindle of fulfillment.

The swindle of fulfillment in that what the reigning elite in all of their diversity now tell the American people if not the rest of the world is that democracy is an excess. It doesn’t really matter anymore, that we don’t need social provisions, we don’t need the welfare state, that the survival of the fittest is all that matters, that in fact society should mimic those values in ways that suggest a new narrative.

I mean you have a consolidation of power that is so overwhelming, not just in its ability to control resources and drive the economy and redistribute wealth upward, but basically to provide the most fraudulent definition of what a democracy should be.

I mean, the notion that profit making is the essence of democracy, the notion that economics is divorced from ethics, the notion that the only obligation of citizenship is consumerism, the notion that the welfare state is a pathology, that any form of dependency basically is disreputable and needs to be attacked, I mean, this is a vicious set of assumptions.

Bill Moyers: Are we close to equating democracy with capitalism?

Henry Giroux: Oh, I mean, I think that’s the biggest lie of all actually. The biggest lie of all is that capitalism is democracy. We have no way of understanding democracy outside of the market, just as we have no understanding of how to understand freedom outside of market values.

The last imbroglio over raising the debt ceiling may be over for the moment but the threat is still hanging on the horizon. Its use as a bargaining tool by the minority to circumvent laws they don’t like and elections they lost is an extremely dangerous tactic that effects not just the American economy but could bring down the global economy and irreparably harm the value of the dollar and America’s reputation of being a good investment. Even the financial and business sectors have called the debt ceiling toxic to economic health. The CEO of JP Morgan, Jamie Dimon, when asked about the consequences of not raising the debt ceiling responded, “you don’t want to know.” Martin Wolf, the chief economic commentator at The Financial Times called the debt ceiling law a “doomsday device” that should be repealed. In simple terms he explained why it is too dangerous to use:

The first is constitutional. In a recent article, Neil Buchanan of The George Washington University and Michael Dorf of Cornell (pdf) argue that a binding debt ceiling would create a “trilemma” for the president: “Ignore the debt ceiling and unilaterally issue new bonds, thus usurping Congress’s borrowing power; unilaterally raise taxes, thus usurping Congress’s taxing power; or unilaterally cut spending, thus usurping Congress’s spending power.” Thus, a binding debt ceiling would force the president to violate his obligation to “take care that the laws be faithfully executed”. The authors conclude that the president should choose the “least unconstitutional” course and ignore the debt ceiling. But, inevitably, whatever the president did would create a constitutional crisis. No responsible Congress would seek to put the president in that position.

The second reason why the debt ceiling is so dangerous is that the administration could not obey it in a non-destructive way. At some point between October 17 and the end of the month, the administration would lack the money to pay its bills. All choices would be dire.

Mr. Wolf explains that the claims of “prioritisation” by the Treasury Department to pick and choose which bills to pay would still be a default (pdf). Mostly, it is not possible since Treasury uses two different computer systems to pay its foreign and domestic bills. The states that the economics effect of choosing which to pay and which to allow to default would effect the Treasury bonds aming them a risky investment. The International Monetary Fund and World Bank heads meeting in Washington last week issued warnings of the grave dangers to the global economy.

In an interview with Bill Moyers’, Mr. Wolf gives his analysis of the debt ceiling crisis.

The income gap between the 99% is has grown to the point that it now as great as it was a the start of the Great Depression. In New York City, Democratic candidate Bill de Blasio built his campaign for mayor around the increased poverty of New Yorkers that he says is creating two cities. According to the US Census Bureau the poverty rate continues to climb in NYC threatening the viability of the city:

The poverty rate rose to 21.2 percent in 2012, from 20.9 percent the year before, meaning that 1.7 million New Yorkers fell below the official federal poverty threshold. That increase was not statistically significant, but the rise from the 2010 rate of 20.1 percent was.

Former Labor Secretary for President Bill Clinton, Robert Reich has released a documentary, Inequality for All, on the fifth anniversary of the fall of Lehman Bothers and the second anniversary of Occupy Wall Street which brought attention to the income gap and change the nation’s conversation about the “American Dream.” Sec. Reich joined Bill Moyers on his show Moyers & Company to discuss his film and the increasing income inequality for all of us.

“The core principle is that we want an economy that works for everyone, not just for a small elite. We want equal opportunity, not equality of outcome. We want to make sure that there’s upward mobility again, in our society and in our economy.”

By the Numbers: The Incredibly Shrinking American Middle Class

by Karen Kamp, Moyers & Company

A typical American household made about $51,017 in 2012, according to new figures out from the Census Bureau this week. That number may sound familiar to anyone who remembers George H. W. Bush’s first year as president or Michael Jackson in his prime. That’s because household income in 2012 is similar to what it was in 1989 (but back then it was actually higher: you had an extra $600 or so to spend compared to today).

That sobering statistic gives an indication of where the American middle class appears to be headed. Take a look below at a snapshot of where the middle class is now, the problems they face and what our Facebook audience has to say about squeaking out a living these days.

In an interview with economist Richard Wolff, Bill Moyers discusses discuss the fight for economic justice, including a fair minimum wage and how to tame capitalism run wild.

“We have this disparity getting wider and wider between those for whom capitalism continues to deliver the goods by all means, [and] a growing majority in this society facing harder and harder times,” Wolff tells Bill. “And that’s what provokes some of us to say it’s a systemic problem.”

The people who harvest our fruits and vegetables are, today, among the country’s most marginalized. They earn well below the poverty line and spend a substantial portion of the year unemployed. They do not have the right to overtime pay or to collective bargaining with their employers. In some cases, workers have faced abuses that fall under modern-day slavery statutes. “The extreme is slavery,” observed Senator Bernie Sanders (I-Vt.), while visiting farm workers in Florida. “The norm is disaster.” [..]

In 1960, legendary broadcaster Edward R. Murrow and his producers Fred Friendly and David Lowe attempted to draw public attention to this state of affairs with the documentary Harvest of Shame. The film – an hour-long portrait of the “humans who harvest the food for the best-fed people in the world” – aired on CBS the day after Thanksgiving, 1960.

The story of American families facing food insecurity is as frustrating as it is heartbreaking, because the truth is as avoidable as it is tragic. Here in the richest country on earth, 50 million of us – one in six Americans – go hungry. More than a third of them are children. And yet Congress can’t pass a Farm Bill because our representatives continue to fight over how many billions to slash from the Supplemental Nutrition Assistance Program, better known as food stamps. The debate is filled with tired clichés about freeloaders undeserving of government help, living large at the expense of honest, hardworking taxpayers. But a new documentary, A Place at the Table, paints a truer picture of America’s poor.

“The cost of food insecurity, obesity and malnutrition is way larger than it is to feed kids nutritious food,” Kristi Jacobson, one of the film’s directors and producers, tells Bill. She and Mariana Chilton, director of the Center for Hunger-Free Communities, explain to Bill how hunger hits hard at people from every walk of life. [..]

Later, Greg Kaufmann – poverty correspondent for The Nation – talks about how the poor have been stereotyped and demonized in an effort to justify huge cuts in food stamps and other crucial programs for low-income Americans.