Thomas Frank

“I don’t like Amazon, and I don’t like Donald Trump either. I would approve enthusiastically if a president started enforcing antitrust laws, but that’s not what Trump is proposing to do. What we are being offered instead is a choice between the worst president of our lifetimes and one of the most rapacious corporate enterprises in the country. And, eagerly, we are lining up with one or the other.

“This in turn seems to me an almost perfect representation of the wretched choices available to Americans these days, as well as the megadoses of self-deception we are swallowing in order to make them. It is everything that is wrong with our politics, and it extends from the most sweeping matters of state right down to the individual reader.

“. . . [T]his [is] where we are now in the world’s greatest democracy. We have the billionaire Republicans, with their bigotry and their war on all things public, and the billionaire Democrats, with their oblivious ideology of globe and technology. To the common people, assembled in all our majesty, the momentous question is posed: who do you hate more?”

Thomas Frank, in his wonderful piece in The Guardian,Trump’s enemy is not your friend

(U.S. readers might not be aware of this, but The Guardian [formerly  The Manchester Guardian] is the single best news source on the Internet, including sources hidden behind a paywall [e.g., New York Times or Jeff Bezos’s Washington Post]; The Guardian is the best source, period. I like them enough that I occasionally contribute money to them. The only other news outlet that I would unreservedly recommend is The Intercept, which due to lesser financial resources posts fewer stories than The Guardian, but whose journalism is arguably of even higher quality. For opinion mixed with news, you won’t do better than Truthdig.)


This morning I had coffee with a friend who’s a CPA, and we talked for over an hour about the economy, and especially about how those of us who work for a living are getting screwed. There are almost innumerable ways — pick an area, any area — but for now we’ll stick to the purely economic. Here are few of the things we talked about:

  • Dividends and capital gains (basically profits from selling stocks and bonds) are only taxed at about half the rate of money earned through work. If you work for a living in the USA, you’re probably paying about twice the amount of income tax (as a percentage of income) as a trust fund kid who’s never worked a day in his life.
  • If you work for a living and have to spend all, or nearly all, of the money you earn, you’ll pay a much higher effective tax rate on the necessities of life than wealthy people. Here’s why (to keep things simple, we’ll only talk about sales taxes here): If you live in an area with an 8% sales tax rate, make $2,000 a month, and spend $1,000 of it on such things as clothing, food, car parts, and beer (mustn’t forget the beer), you’ll end up paying 4% of your income in sales taxes. If you’re a trust funder with an income of $20,000 a month from dividends and capital gains (i.e., income not derived from useful work), and similarly spend $1,000 on clothing etc., your effective tax rate on those necessities will only be .4% of your income — one-tenth the rate of a $2,000-a-month wage earner.
  • If unemployment is low, and wage growth starts to outstrip the rate of inflation, the Federal Reserve Board will raise the prime rate to create more unemployment and keep wages down (as it’s doing at present). How does an increase in the prime rate do this? It “cools the economy” by making it more expensive for businesses to borrow and then spend the borrowed money on new facilities, machinery, or wages for new workers. It also raises the cost of consumer borrowing, especially as regards home mortgages. And the higher the mortgage interest rate, the fewer mortgages are taken out; this puts a damper on new construction and so decreases the number of construction jobs and also jobs in the industries that supply construction firms. Hence “economy cooled” and wages held down.
  • If you work for a living, have little or no savings (as is typical), and have to borrow money for a medical or other emergency, you’ll likely do so on a credit card, on which you’ll be paying sky high interest, probably in the 15% to 20% range, if not higher. If you’re wealthy and decide to borrow money, you’ll likely pay an interest rate in the low to mid single digits.
  • Under Trump’s much vaunted tax cut, 83% of the benefits go to the wealthiest 1% of Americans.  The rest of us get crumbs and will have to pick up the tab in fairly short order, in the form of goods-and-services price inflation and higher interest rates on credit cards and mortgages. In essence, Trump’s tax cut is a massive wealth transfer from those who do useful work to the ultra-rich, who don’t. (Disgustingly, some working class people are happy to scarf up crumbs, lick their masters’ boots, and grovel like dogs.) And if you think giving the rich ever more money is somehow a good idea, that’s been de facto federal policy since the time of Reagan; and how has that worked out for you? It has?! Good boy! What a good boy! Lick up those crumbs! Good boy!

I could go on, but won’t.

To put it simply, the economic deck is stacked against those who work do useful work, especially those who do useful work and won’t exploit others.

 


Iain M. Banks

“Ferbin’s father had had the same robustly pragmatic view of religion as he’d had of everything else. In his opinion, only the very poor and downtrodden really needed religion, to make their laborious lives more bearable. People craved self-importance, they longed to be told that they mattered as individuals, not just as part of a mass of people or some historical process. They needed the reassurance that while their life might be hard, bitter and thankless, some reward would be theirs after death. Happily for the governing class, a well-formed faith also kept people from seeking recompense in the here and now, through riot, insurrection or revolution.

“A temple was worth a dozen barracks; a militia man carrying a gun could control a small unarmed crowd only for as long as he was present; however, a single priest could put a policeman inside the head of every one of their flock, for ever.”

Iain M. Banks, Matter


Paul Morantz

“Is America First that much different from Deutschland uber alles?”

–Paul Morantz, “The Cult of Trump


(from our friend Pamela Sutter, author of May the Farce Be with You)


Teodrose Fikre

 

“Discount anyone who talks about social justice if they do not speak about economic inequalities. They want you to hack at branches while disregarding the root of iniquities. Economic imbalances are at the core of most of society’s ills. Crime, drug abuse, broken families, homelessness, suicides and high incarceration, in large part, can be traced back to the hopelessness that hunger and poverty inculcate in the minds of those who struggle in indigence. A vast majority of Americans are one or two paychecks away from insolvency and destitution; our nation has been turned into a vast pyramid scheme where wealth is transferred from the many who languish to the few who flourish. Focus like a laser on this issue and pay no attention to frauds who try to convince you that your enemy are people who are struggling just like you.”

— Teodrose Fikre, “Forget Tribalism, Disavow Politics and Stand Up for Inclusive Justice” (on Truthdig)


“Some write their first draft and think whatever pours out of them in the first instance is Man Booker-worthy. If you can nail a first draft like that then I doff my cap to thee, but for the vast majority of us, editing is necessary. As Hemingway eloquently put it: ‘first drafts are shit.’ Before you get down to revising, though, there’s something you need to do: put your story away for a while.” 

— “7 Nifty Editing Tips

(All seven tips are well worth reading.)