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Would you help me write a futuristic novel about what happens after the revolution? Help me speculate about what Commissioner Leo Torres does after his election to the World Council chartered to develop a model for future living and human happiness.

Unlike most American Sci-Fi, there is no dystopian end-of-the-world in this one. Thinking people have managed to stop all the current trends toward certain annihilation. A coalition of the Progressive Party and the Green Party has wrested control from the old economic rulers. All the people who are still alive after the devastation caused by our current system have a chance to meet their basic needs.

Leo Torres was a very minor figure in the Progressive Party during the revolutionary days. By a fluke of time and place, he achieved great popularity, or possibly notoriety. In his first novel, the Progressive Party leaders asked him to take on the title of “Commissioner” and resolve a very minor problem in an obscure part of Oklahoma. In the second novel, he gets a somewhat more complicated assignment, but still minor, in the Texas Panhandle.

Because of his undeserved but considerable popularity, and because he has shown himself to be trustworthy, the Progressives decide to make him a candidate for World Council in the third novel. He learns a few things as he travels the country in his successful campaign. All the preceding novels are on-line at http://lilleskole.us.

Should he take his seat on the World Council?

What priorities should he have?

What assignments or committees will he be assigned?

What laws and legislation would YOU want enacted, if you were in Leo’s place?

Help me out by sending your ideas to genelantz19@gmail.com.

I can’t keep quiet any longer. For a month now, I’ve listened to “news” accounts, even on NPR, heck, ESPECIALLY on NPR, demonizing Russians and glorifying American foreign policy. I expected that, but I didn’t think it would work because we surely, by now, know a little bit more about Russia and about American foreign policy. From my friends’ Facebook posts, I’m afraid it has.

My marketing teacher used to say that the emotional appeal will always be more effective than the practical appeal. I’ve always wished he were wrong.

I see “brutes,” “beasts,” “monsters,” “dictators,” and “autocrats” when the posts look east, and “standing up to bullies,” “freedom,” and “democracy” when they look at NATO and the United States. The problem isn’t exactly that people don’t have information. The problem is that they don’t have a useful framework for their thinking.

Looking for “bad guys” and “good guys” is just silly. The only way to understand what is happening and chart a course for action is to look at reality and the likelihoods of different outcomes. In the present case of the Russian invasion of the Ukraine, a lot of people are going to get killed or maimed. Working people the world over will pay in blood and economic deprivation. A lot of American fossil-fuel magnates are going to get rich(er). That much is certain. The obvious course is to oppose the war, but that’s just an abstraction. The real question is, “what should you do?” That’s always the question.

Well, posting about monsters, saviors, and evil/good intentions is obviously not helpful. It makes sense for people in Russia to demonstrate against the war. It makes sense for people in America to demonstrate against NATO and American support for the war. There’s no good/bad here, there’s just what is going on and what can you, given your situation and resources, do about it.

Think of your possible courses of action. Think of the likely outcomes. Then go to work.

Dark money from the U.S. is supporting truck riots in Canada. Can you see why?

Can you see why Republicans block legislation that would benefit their districts? Some Republicans even try to take credit for beneficial legislation that they voted and campaigned AGAINST! Why? Why did the Republican National Convention condone the January 6 insurrectionists? Why are Republican think tanks supplying scripts for crazies who disrupt school board meetings? Why are apparently sane Republicans who get vaccinated arguing that other people shouldn’t? Why take the side of disease over good health? Why underwrite chaos?

The reason that normal Americans can’t understand today’s political events is that nothing like this has ever happened in our country before. It is outside our experience. The only historical precedents are from other countries like, say, Brazil, Argentina, Indonesia, Spain, and Germany. In those countries, chaos was used to help bring down participatory government to benefit autocrats. Possibly the best example for us, because a number of us are old enough to remember it, and because we know more about it, is Chile in 1973.

If you think about it, you might see that, for certain politicians, chaos is a good thing. It worked for the CIA and General Augusto Pinochet in Chile in 1973. Truckers were involved then, too, as some of them are now. Google “Trucks AND Chile.” Read the New York Times article from August 18, 1973, “Chile Calls Truck Strike ‘Catastrophic.'”

It says that a 23-day trucker’s strike has had “catastrophic’ repercussions on Chile’s already ailing economy.

“This is a political strike aimed at overthrowing the Government, with the help of imperialism,” said Gonzalo Martner, Minister of National Planning and one of the chief policy makers for President Salvador Allende Gossens’s socialist government.

I’m not sure how reliable the Times’ account is, because they were probably in on it. But it is well known now that the chaos in Chile was designed and abetted by the CIA, United States of America! For would-be dictators, chaos has its uses, then and now!

–Gene Lantz

I’m on KNON’s “Workers Beat” talk show at 9AM Central Time every Saturday. My podcast, “Workers Beat Extra” is posted on Soundcloud.com every Wednesday. If you are curious about what I really think, check out my personal web site

Every New Years, I’ve tried to get people to make predictions. Hardly any of them will. The best I have received so far is a stock broker who called KNON. After I prodded him, he responded, “The rich will get richer.” That’s about the safest prediction I ever heard.

My 2022 Predictions:

  • Massive evictions will put millions into the ‘homeless’ category.
  • Vigilantes and illegal militias will flourish.
  • Political violence will become commonplace.
  • Police will tend to allow the anti-worker outrages to flame, while suppressing any activity of pro-worker forces. This was the precedent set in Germany in the 1920s and has generally held.
  • Poverty and hunger will grow, especially among children.
  • The formal educational system will continue to deteriorate as Republicans undermine them with schemes like “charter” schools and assaults on officials. More and more parents will begin to seek out internet solutions.
  • Big corporations will try to privatize the internet and everything else, including all utilities and municipal services.
  • Persistent inflation will force the federal reserve to cut back on “quantitative easing” and near-zero interest rates. Stocks and bonds will crumble but the “real economy” won’t be hit so hard.
  • Little if anything will get done about the environmental crisis. Freak weather disasters will increase and worsen.
  • As world economies teeter, governments will advocate new wars.
  • Omicron will hit early and hard. After it peaks early in the year, a solid majority of Americans will have some immunity from vaccination or from having already suffered through COVID. By late summer, it will no longer be the top of every news story
  • The democratic party will continue unraveling while the Republican Party will grow more homogeneous and harder.
  • Independent movements, particularly the women’s movement, will grow. We will see a revival of unemployed and homeless advocacy groups similar to those of the 1930s.
  • These independent movements will be larger, better informed, and better integrated than anything we have ever seen in history. This is because people are better informed and have infinitely better communications.
  • Unions will not initially lead these powerful independent movements. Unions will be drawn into the larger movement. They will play an important role in guiding and financing the movement.
  • The 2022 elections will show people voting increasingly for 3rd or 4th parties, Greens, Working Family, Democrats, and Independents.
  • One thing that the strong progressive organizations will agree on is this: vote for no Republican!
  • Americans will begin to experiment with the kind of political strikes that have been known in other countries.
  • And slowly, the way forward will begin to show itself.

-Gene Lantz

I’m on KNON’s “Workers Beat” talk show at 9AM Central Time every Saturday. The program and a supplemental “Workers Beat Extra” are podcast on Soundcloud.com every Wednesday. My January 5 podcast includes these predictions. If you are curious about what I really think, check out my personal web site

Book Review: Krugman, Paul, “Arguing with Zombies: Economics, Politics, and the Fight for a Better Future.” Kindle Edition, 2020

Nobel economist Paul Krugman writes columns for the NY Times. He collected a bunch of them from around 2004 to 2020 and ordered them, more or less, by topic, then published it as a book. It’s a chance to learn something about contemporary economics while examining political developments.

As I have written before, the separation of political economy into two separate “disciplines” was a terrible blow to knowledge in general. Consequently, while Krugman does not deliberately try to overcome the gaps of separation, he tends to ameliorate the problem by examining political developments from an economics perspective. The “zombies” in the title are economic theories that have already been discounted, but just won’t go away. Principal among them are the monetary theories popularized by Republican zealots such as drip-down prosperity.

In the introduction, Krugman writes, “The administration of George W Bush was dishonest to a degree never before seen in U.S. politics (though now surpassed by the Trumpists), and it was obviously, it seemed t ome, taking us to war o false pretenseses. Yet nobody else with a columnin a major newspaper seemed willing to point this out. As  result, I felt I had to do the job.”

Krugman’s treatments are candid and clear. He doesn’t mind exposing and naming some of the partisan sellouts who pretend that economic theory underlines outright class warfare. Krugman declares himself a modern Keynesian and argues for government spending throughout the period 2004-2020. Krugman’s co-thinkers can be pretty smug about his recommendations, both those that were applied and those that weren’t, because history is the best proof.

In my opinion, Krugman doesn’t go far enough in his analysis of modern economics. He doesn’t say outright that the liars with zombie theories are really puppets of the ruling class. He isn’t as absolute and clear as Thomas Piketty. When Krugman talks about Piketty, he seems to try to fit him in with all capitalist economists who are trying to make the system work, like Krugman himself. I don’t believe that Piketty is trying to make capitalism work.

On July 21, I wrote that I had just read Paul Krugman’s review of Piketty’s new book “Capital and Ideology.” Krugman thinks that Piketty’s work is epic, but that his conclusions are suspect. Here’s where I disagree with Krugman: “And his [Picketty’s] clear implication is that social democracy can be revived by refocusing on populist economic policies, and winning back the working class.” I don’t think that Piketty has any intention of reviving social democracy.

I haven’t read the new book, but the Piketty tome I read did not mention, anywhere, about reviving social democracy. Like any good Marxist, Picketty does not expect social democracy to be revived. Even if it was, Picketty and I would say that it was only temporary. Capitalism, all Marxists agree, is doomed. For decades now, economists have helped a ruthless and wealthy gang maintain their stranglehold to the detriment of the rest of us. In that sense, all their theories are zombies.

-Gene Lantz

I’m on KNON’s “Workers Beat” radio show every Saturday at 9 AM Central Time. The talk show and “Workers Beat Extra” podcast are put on Soundcloud.com every Wednesday. I don’t mind saying what I think and I even made a personal web site that may interest you.

Book Review:

Piketty, Thomas, “Why Save the Bankers? And Other Essays on Our Economic and Political Crisis.” Houghton Mifflin Harcourt, Boston New York, 2016. Dallas Library 330.94 P636W 2016

economics-vague

Apparently, publishers were looking for anything by Piketty after his world-shaking 2014 (in French, 2015 in English) book “Capital in the 21st Century.” This is only a collection of his essays on contemporary developments in Europe 2010-2015. He has a monthly newspaper column.

These are short and readable and, if nothing else, give a short summary of major economic developments in the European Union during the period. They also encapsulate some of his major recommendations for solutions to the capitalist crisis:

  1. The worldwide wealth tax espoused in his major work
  2. Additional economic integration — he calls it ‘federation’ — within the European Union. He particularly wants the EU to be able to issue common bonds and have common debt. At other times, he mentions other economic aspects of closer federation.

“Federalism, the Only Solution,” is the title of one very central essay.

Piketty doesn’t believe that austerity will solve any particular country’s crisis, consequently, he sees no reason why some countries (Germany and France) would force it onto other countries (Greece). He opposes what he calls “tax competition” between nations. It consists of lowering business taxes in order to entice more economic activity away from countries with higher taxes. He mentions Luxembourg and Ireland particularly.

At the end of 2017, Republicans in Congress drastically lowered taxes for businesses and wealthy Americans. One of their excuses was that other nations had lowered theirs already. Race to the bottom!

In a very general sense, Piketty sees the European Union as having unnecessary crises because they only partly joined their economies. Fiscal and monetary policy simply don’t work when they aren’t coordinated among the nations. What hurts one helps another.

-Gene Lantz

I’m on KNON radio‘s “Workers Beat” program at 9 AM Central Time every Saturday. 89.3 FM in Dallas. They podcast them on Itunes. If you are curious about what I actually think, check out my personal web site.

The outlook for working families is far worse than usually noted.

inequality-europe-US

The graph above is one of those used in the best selling, world-shaking economics book “Capital in the 21st Century” by Thomas Piketty.

Like many graphs in the book, this one shows that income inequality dropped during the middle part of the 20th century. Then it began to rise again and continues to rise toward conditions that Monsieur Piketty and others describe as “intolerable.”

Popular economics books of today such as “Runaway Inequality,” a book broadly used in the American labor movement, only look at the later half of the graph – from 1945 to present. Most of the economic analysis used by the AFL-CIO is based on a “return to normal” which they define as 1945-1973. Most of us grew up in that period and consequently it is natural that we would think of it as “normal.”

In 1973, the United States and the world dropped the gold standard and began floating their currencies. After those great economic changes of the Nixon Administration, and even more so under the trickle-down “Reaganomics” of 1980, we say that really bad people distorted American economics to the detriment of working families. Since the bad people took power, inequality has continually grown much worse.

The world owes its gratitude to the Occupy Movement for having focused our attention on rising inequality. They saw that the 1% was growing in wealth and power to the detriment of the 99%, and they forced the rest of us to see it. The unfortunate inadequacy of their solution grew from the shortcomings of their analysis. They didn’t look deeply enough into the data.

Bernie Sanders took this growing consciousness much further. His analysis included the nuts and bolts of inequality, the ways that the 1% keeps the flow of wealth moving upward toward them. Sanders’ prescriptions for new nuts and bolts were much more useful than what the Occupy Movement had offered. Sanders and his followers are converging with the American labor movement today, and both are being strengthened. For that, too, the world must be grateful. I am grateful.

At the same time, during the fiery height of the Bernie Sanders campaign in 2016, even while I was campaigning for him, I often said, “Bernie Sanders will never live to see his program implemented. They would kill him first.”

The solution being put forward by almost everyone in the labor movement and by progressives at large, Bernie Sanders included, is to stop electing bad people and start electing good people who will return to the good policies that reduced inequality during 1914-1973. It’s a simple and seductive solution.

It Won’t Work

I would truly like to think that elections, elections in general and specifically the ones we’re about to have, will elect those good people, with those good solutions, and we will return to the policies that lowered instead of raising inequality in the United States and in the world. But they won’t.

I want to tell you why, even though I supported the Occupy Movement, and even though I support the Bernie Sanders socialists, and even though I am completely devoted to the AFL-CIO and the American labor movement, I want to tell you why I think their analysis is incomplete. Not only is their analysis incomplete, but their prescription, what to do about our situation, is inadequate. One cannot arrive at successful tactics without first understanding the present situation.

Look at the Whole Graph

The popular analysis, and the prescriptions that come from it, are wrong. Look at the whole graph. In fact, look at the entire history of capitalism. Piketty and his associates have accumulated data and anecdotal records going back to the early days of capitalism. Those data show incontrovertibly that increasing inequality is fundamental to capitalism. The 60-year drop in inequality, roughly from World War I until 1973, a small part of capitalism’s history, was never normal. It was completely abnormal and, in fact, antithetical to normal capitalism. What we had before 1914, and what we have now, rising inequality, is “normal.”

Didn’t Work in 2008, Won’t Work in 2018

If one realizes that we are now living in a “normal” period, then one should be able to see that there is no single simple solution. Even if we have great election victories in 2018, as we did in 2008 by the way, inequality is not going to diminish. We’re going to have to work a lot harder than that.

What we are living in now, and what we lived in before World War I, is normal. In an article titled “Who Will Be the Winners of the Crisis?”, Piketty himself explains: “Left to itself, capitalism, because it is profoundly unstable and inegalitarian, leads naturally to catastrophes.” “Inegalitarian” means what you think it does.

So the period of my youth was abnormal. What we are suffering under today is normal.

Why Did Inequality Diminish in the Abnormal Period?

Monsieur Piketty points out that the crises of the 20th century did not cause inequality to go down. As he says in the article I just quoted, “The historical data… shows unambiguously that that financial crises, as such, have no lasting effect on inequality; it all depends on the political response to them.”

So the political responses to the two world wars and to the great depression were what lowered inequality. It was the progressive taxation that lowered inequality. But why did these progressive policies get selected? Why not let the rich continue getting richer and the poor get poorer? Piketty says that the system received “shocks” with two world wars and a great depression.

Look At the Graph Again

Piketty is wrong about the “why” of diminished inequality 1914-1973. It wasn’t “shocks.” It was the success of the working class. We may not know much about the 23 countries that Piketty studied, but we do know what happened in the United States in the middle of the 20th century.

Workers Power Grew

In 1914, when Piketty says inequality began to get lower, the Socialist Party was riding high in America. Even out here, in Texas and in Oklahoma, many people were openly socialists. They voted socialist. There were socialists elected here and there and everywhere. There were socialists in Congress! The Industrial Workers of the World was terrifying employers from the textile mills of New England to the timber forests of Oregon. In 1917, socialists took power in the Russian empire! In 1919, Eugene Debs got a million votes for President while he was in prison!

The great depression hit hard in the capitalist countries, but the socialists were able to point to the Soviet Union and say “They aren’t having a depression!” Socialism, and the workers movement, was growing in popularity while inequality was falling. During World War II, it was the socialists who led the resistance movements. Many of them were so popular that they took power when the Germans and Japanese were finally defeated. Look at Marshall Tito in Yugoslavia, Enver Hoxha in Albania. Look at Mao Tse Tung in China and Ho Chi Minh in Vietnam!

In 1935 in America, the Committee for Industrial Organization took over where the Industrial Workers of the World left off. The progressive movement grew like crazy. By 1947, they had gone from a small part of the labor movement to approximately 1/3 of the American workforce! The actual numbers of people in unions continued to rise until the mid-1950s. Then it started to drop off. In that same period, socialists were red-baited into virtual obscurity.  The Soviet Union was probably at the height of its world popularity when it sent up Sputnik in 1957, but its popularity sagged after that. By the time Reagan declared war against the progressive movement, the steam had gone out of the workers’ movement, both internationally and here.

I saw one book, sold by the AFL-CIO, that says the American labor movement died in 1972 because they failed to support McGovern for President. We didn’t actually die, but we lost a lot of blood.

However one may analyze it, no matter what statistics one uses, one still has to conclude that the workers’ movement does not have the power that it enjoyed in the middle of the century, when inequality was at its lowest.

After 1980, the power of American employers waxed while ours waned. Inequality grew. Inequality is still growing.

While Employers Rule, Workers Can Make No Permanent Gains

The greatest person I ever knew personally was named George Meyers. He had been a leader of the CIO before he joined the army in World War II. George used to say, ‘There are no permanent gains for workers under capitalism.” No matter what you win, you will always have to fight for the same things again.

I had a personal experience with that. My union carried out an incredible fight in 1984-5, and we emerged with the best contract in the aerospace industry. Better than Boeing’s contract, and we were just little LTV in Grand Prairie, Texas. But nobody hangs on to those gains. You have to win them over again, the same things, win them over and over and over, every contract.

With Understanding, We Can Prescribe Solutions

The solution to the rising inequality caused today by normal capitalism is to fight with everything we can find. We have to fight to win these elections, of course, and we really need to win. But that’s not all. We need economic struggle as well as political struggle. We need boycotts, we need petitioning campaigns, we need militant contract fights, and above all we need to organize. We need to bring the entire progressive movement together and focus it on fighting the employers, the 1%.

It’s easy to say these things but not so easy to do. Contract fights are rare today, because the legalities have become so rigorous against us and our leaders have lost their edge while our members are confused. Even a simple idea like organizing is really really hard. Most union staffers and officers are far too busy to organize. There’s very little money for organizing, and there are very few unpaid volunteers in today’s labor movement.

But There’s Good News

We are in the biggest and most general progressive upsurge in American history. It isn’t focused, it isn’t united, but it’s big and it’s enthusiastic. The most exciting news of the 21st century came from the teachers of West Virginia and a few other states this year. They carried out victorious political strikes. Political strikes are common in Europe, but almost unheard of in America. That kind of planning, that kind of volunteering, and that kind of militancy is what we have to have.

I won’t say it’s easy to do what has to be done, but I will say that it has to be done. There is no other way.

–Gene Lantz

I’m on KNON radio 89.3FM in Dallas at 9 AM Central time every Saturday. They podcast it on Itunes. If you are curious about what I really think, see my personal web site. I intend to present the ideas in this article at 6:30PM Central Time on September 1 at Romo’s Restaurant, 7033 Greenville Av in Dallas. Come down and discuss it!

Book review:

Piketty, Thomas: Capital in the 21st Century, Belknap Press of Harvard University Press, Cambridge, Massachusetts, London, England, 2014. 332-041 P636C in Dallas Public Library

The library had to renew this book twice before I could finish its 577 pages. Like other books about economics, it is full of Greek symbols, formulas, graphs, and statistics.

inequality

Piketty claims to have accumulated more economic data than any work before him. His facts and numbers go back into the 18th century. His best data is from his home country, France, but he has a lot from U.S., Britain, Germany, Italy. A little data from other countries and a little data from other times going back to the Romans. This book shook the world. His information base is far more comprehensive than anything else I’ve seen or heard of.

It is difficult to argue against someone who has the data, so I won’t argue over facts. But I will argue against his interpretation of the data, and I will argue even more strongly against his suggestions for future action. First, a bit about what he says:

It was very gratifying to see that he doesn’t think that economics can stand as an independent science. It has to be combined with other disciplines, especially politics, to be of any use.

Piketty’s graphs show that the period from roughly 1914 to 1973 was very different from before or after. Inequality was rampant before, it’s rampant now, but it wasn’t so dire during 1914-1973. I’ll call that the abnormal period. Capitalism is now “normal,” that is, it is creating devastating inequality. Piketty asserts strongly that the best solution is a global tax on wealth, not for revenue, but to redistribute wealth and lessen inequality.

During the abnormal period, the author says, there were two world wars and a depression. Governments established strong central banks to deal with the world depression. To pay for their wars, they implemented progressive taxation, especially of income and inheritance. As for the cause of these developments and the subsequent lessening of inequality, Piketty just calls the wars and depression “shocks.”

Were “Shocks” the Cause?

That’s not how I interpret the abnormal period that Piketty revealed. Something else happened 1914-1973 besides a depression and two world wars.

I note that 1914 marked the upsurge of the workers movement worldwide, not just in Russia. In America, for example, socialists were being elected to office, including to the U.S. Congress. I also note that 1973 marked the Sino-Soviet split (Nixon’s trip to China) the beginning of the downturn for the USSR in particular and the worldwide workers’ movement in general. One book I read said that the American labor movement died during Nixon’s campaign for a second term (they didn’t support McGovern). At any rate, the American labor movement’s weakening was certainly visible by 1973.

Inequality was indeed lessened by progressive taxation during the abnormal period, but it wasn’t because of “shocks.” It was because the workers’ movement was waxing strong. During World War I, the Bolsheviks took power and inspired the world movement. During the depression, communists argued that the Soviet Union was the only untouched major economy in the world. After World War II, communists were politically strong because they had led the resistance movements in occupied territories such as France, China and Vietnam; not to mention that the USSR defeated Hitler.

Of course the big capitalist nations raised taxes and granted health care and retirement to workers during the abnormal period! In the face of the threatening workers’ movement, what else could they have done?

But by 1973, the workers’ movement was on the wane in the U.S. and elsewhere. At that point, capitalist nations began to take back what they had allowed, to further undermine the workers, and to drive the Soviets into insolvency.

What drives history?

To put it bluntly: the motor force of history is the class struggle, not various “shocks.”

Now, as for Piketty’s remedy for runaway inequality and eventual disaster: He knows, and says so several times, that his worldwide tax on wealth is not feasible. It would take far more transparency than capitalists will allow to even know who to tax and how much. To think that democracy can impose itself on the capitalist class is to assume that the workers’ democracy movement is strengthening and the capitalist power is diminishing, when Piketty knows the opposite is true.

As inequality increases, and it is increasing greatly, probably far more than Piketty could have predicted when he wrote this great book in 2014, then the power of the wealthy increases as well. They are not just piling up wealth; they are also piling up power. As long as they are in power, they will never allow Piketty’s pipe dream to come true. He knows that.

Disaster Lies Ahead

But Piketty’s assertion that inequality will continue to rise and will become intolerable is irresistible. He must be right. When this certainty becomes clear to everyone, that the rich are getting almost everything and the rest of us are moving close to starvation, the situation will indeed be intolerable. Only three outcomes are possible: devastating world war, fascism or revolution.

–Gene Lantz

I’m on KNON radio 89.3 in Dallas every Saturday at 9 AM Central Time. Podcasts are available through the “events” tab. What I really think is on my personal site.

NOTES:

Uses several Latin and French terms:

A priori – “from before” used to mean that no proof is necessary

“Cadastral” (of a map or survey) showing the extent, value, and ownership of land, especially for taxation.

“Belle Epoque” – Period ending 1914

“a fortiore” used to express a conclusion for which there is stronger evidence than for a previously accepted one.

Pg1 (bottom) He says we need to regain control over capitalism. He’s going to tell us how by the end of this book.

13 Kuznet’s curve says that capitalist growth will even out inequality without any need for anybody to do anything. The market and invisible hand will care for us.

50 Beta = capital/annual income. Usually 6

52 (top) Economics cannot stand alone. Must be combined with politics and other kinds of studies before it yields useful knowledge

52 First law of capitalism Theta = rate of growth times (Capital/annual income)

Theta is capital’s share of national income

r is rate of return on capital

52 Karl Marx quite wrong. My question: Not all capital is invested

Pg86: “They decided to work less” – He ignores class struggle altogether!

87 on consumption. Does he realize that older societies produced and consumed agreat deal that never reached a market? They made their own clothes, for example.

Pg166: Beta = s/g =The 2nd law of capitalism

203 Corporations invented circa 1850

222 Steady rise in Beta and Theta

250: Middle “class” – he means income

270: Measurement is “never neutral.”

275 War & rent control mentioned but not USSR

279 “Income from labor.” I think he is including CEO pay. It’s interesting that he doesn’t seem to know that CEO pay is skyrocketing because CEO’s command the corporate boards that set CEO pay. In other words, CEO pay isn’t “labor,” it’s income from capital.

332 (bottom) CEO Pay

355 Fiscal Competition – nothing so far on class struggle, but I think it explains the first half of 20th century even though he attributes it to “shock.”?

358 Inequality causes political reaction

409 (middle) In the 1970s, people thought that inequality was defeated

423 “rent is not an imperfection”

439 tax on capital

471 “…it was the wars of the twentieth century that, to a large extent, wiped away the past and transformed the structure of inequality.”

why not the class struggle?

471 war, disaster, or Piketty’s global tax on wealth?

473 “The crisis of 2008 was the first crisis of the globalized patrimonial capitalism of the twenty-first century. It is unlikely to be the last.”

474 New instruments needed

475 graph of social spending (class struggle again)

484 Social mobility lower in U.S.

488 Privatizing Social Security?

497 Taxes growing more regressive. Tax competition mentioned over and over. Too bad he wrote this before the Republican tax giveaway of 2017!

500 Bolsheviks. Progressive taxes

509 International competition

514 “No hypocrisy is too great”

518 Capital tax not for revenue but for wealth redistribution

519 Top centile’s growth goes on indefinitely.

Transparency needed

521 How could this be done without a world government? It couldn’t and he knows it

529 Italian was voted out for having invented a wealth tax

534 He is against protectionism and says it creates no value. All this before Trump!

539 “Temptations of defensive nationalism and identity politics…” sounds like he was anticipating Trumpism

541 Public debt solutions: taxes on capital, inflation, austerity

Pg 558 his solution to European public debt is for all the EU to pool their debts and make a common solution. Utopian!

Pg 560 “…the Eurozone cannot do without a genuine parliamentary chamber…” more utopia

560: “Tax competition” used throughout the book. Described here as the various nations lowering their corporate taxes in order to compete with one another. I’ve been calling this “inter-imperialist competition” for years.

His solutions throughout the book are worldwide inter-nation solutions, when he knows that won’t happen. Also, he wrote this before the Brexit vote began a chasm in the EU. He’s assuming more cooperation between nations, not less as we are already seeing.

562: “…without such a European political union, it is highly likely that tax competition will continue to wreak havoc. The race to the bottom continues in regard to corporate taxes…”

566: He agrees with me about bond elections: “…debt often becomes a backhanded form of redistribution of wealth from the poor to the rich…” The wealthy should be taxed instead of allowed to loan money and collect interest.

567 “…debt must be reduced as quickly as possible, ideally by means of a progressive one-time tax on private capital or, failing that, by inflation….”

569: his solution: Economic transparency and democratic control of capital. Neither one of which currently exists.

572: The right solution

574: “Political economy” is the term he prefers

577 (last page) “…economic and political changes are inextricably intertwined and must be studied together.” He prefers “political economy” to “scientific economics.”

The last line of the book: “Refusing to deal with numbers rarely serves the interests of the least well-off.”

OTHER REVIEWS:

Synopsis: https://www.newyorker.com/news/john-cassidy/pikettys-inequality-story-in-six-charts

Piketty’s Inequality Story in Six Charts

By John Cassidy

March 26, 2014

https://www.economist.com/the-economist-explains/2014/05/04/thomas-pikettys-capital-summarised-in-four-paragraphs

The Economist explains Thomas Piketty’s “Capital”, summarized in four paragraphs.

A very brief summary of “Capital in the Twenty-First Century”

http://www.nybooks.com/articles/2014/05/08/thomas-piketty-new-gilded-age/

Why We’re in a New Gilded Age

Paul Krugman

MAY 8, 2014 ISSUE

http://bostonreview.net/class-inequality/marshall-steinbaum-why-are-economists-giving-piketty-cold-shoulder

Boston Review: Why Are Economists Giving Piketty the Cold Shoulder?

MARSHALL STEINBAUM

May 12, 2017

“his work on inequality is an agenda-setting and generation-marking intellectual achievement, potentially as explosive (albeit with a longer fuse) in academia as it has been outside of it.”

Book Review:

Thomas Hartman, The Crash of 2016. Twelve, the Hachette Book Group, New York,  2013

us-economic-collpase

If there really had been a crash in 2016, Hartman would have been considered a great genius. As there wasn’t, he ends up with some egg on his face. Further unfortunately for Hartman, some of the problems he points out were already reversed by the Trump administration, specifically tariffs and China-bashing. So his argument for the crash of 2016 is further undermined.

However, a ‘great crash’ within the present time frame would nevertheless redeem him and people would only say that he missed it a few years. The book is a good, exciting, read, but I would have to put it into the category of well-written alarmist narrative rather than serious economic study. Like all of the books written before Piketty (2015 in English) that I have read, they consider 1945-1979 “normal” and everything subsequent as “abnormal.’ I consider this wrong, and so does Piketty. The abnormal period was 1945-1979. Before and after that short “American century,” what happened and is happening is just capitalism.

Hartman puts most of the fault for the disastrous 1979-to-present period on mental states and subjective attitudes rather than historical and economic developments. FDR was a good guy, the “economic royalists” were bad guys with questionable sanity. In fact he calls them psychopaths. The rest of us are guilty of mental lapses, too, as new generations go through a “great forgetting” that causes us to repeat previous economic errors.

As Hartman doesn’t understand the cause of the present economic problems, he doesn’t have a very good handle on solutions, either. Some of his hopes are presently being carried out by Donald J. Trump and are not likely to bring long-term economic benefit to the populace.  He also proposes things that aren’t likely to happen given current trends. After the “crash of 2016” that he predicts, he wants us to reinvigorate democracy through election reform. He wants the labor movement to be encouraged by government. Most of all, he seems to want worker cooperatives to replace the giant corporations as the main economic engines.

How any of that could happen, Hartman doesn’t say.

some notes:

Pg15: Good quote from Grover Cleveland in 1888: “The gulf between employers and the employed is constantly widening, and classes are rapidly forming, one comprising the very rich and powerful, while in another are found the toiling poor. As we view the achievements of aggregate capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations, which should be the carefully restrained creatures of the law and the servants of the people, are fast becoming the people’s masters.”

20: The Business plot: General Smedley Butler blew the whistle on a plot to bring an army of 500,000 men into DC to oust FDR. The front man for the businessmen and banksters was Gerald MacGuire.

26: Moyers quote on plutocracy on 2011: “Our democracy is dysfunctional…. We no longer have a government of, by, and for the people– representative democracy. We have government by plutocracy– the rule of the rich for the rich by the rich…. Plutocracy has one purpose, which is to protect wealth.”

Pg34: Powell memo outlined how Republicans could take over. Lewis F Powell Jr in 1971 went to Nixon. Nixon made him Supreme Court Justice. His memo, written to the United States Chamber of Commerce just before his nomination, recommended a militant political action program ranging from the courts to the campuses. He wanted to undo the New Deal.  Powell called on corporate leaders to launch an economic and ideological assault on college and high school campuses, the media, the courts, and Capitol Hill. The objective was simple: the revival of the Royalist-controlled so-called ‘free market’ system. (page 37)

pg40 Roger Ailes prepared the way for Fox news misrepresentation

pg43: lobbying mushroomed. ALEC formed

44: CATO and Heritage foundation come out of Koch Brothers

48: Supreme Court decisions such as Citizens United

52: “Trickle down” economist Milton Friedman advises the fascists in Chile. Terrible economic results

71: He credits FDR and “good “ politics for 1945-1979 good times. Unlike Piketty, who says it was the “shocks” of two world wars.

88: He is pro-tariffs. This is before Trump imposed them

93: Psychopaths. He says that banksters and other filthy rich are basically psychopaths. In fact, a lot of Hartman’s analysis has to do with mental states. He thinks that generations go through a “great forgetting,” for example, that causes us to repeat previous economic errors.

95: Getting sillier. He thinks madness is part of evolution.

96-7: Oligopoly

101: On China, he seems to be agreeing with Trump again. Lots of China bashing here

122: Tillman Act under Theodore Roosevelt stopped corporate electioneering

151: Corporations, especially Railroad Corporations, made many efforts to get legalization in Supreme Court decisions. They always lost until “Citizens United.”

207: He gives recommendations for after the crash of 2016. It’s all reformism of capitalism. He espouses value of co-operatives.

273: Author is described as a talk show host with several important books before this one.

–Gene Lantz

I’m on the “Workers Beat” talk show on radio KNON in Dallas at 9 AM Central Time every Saturday. Podcasts are available under the “events” tab. If you are curious about what I really think, check out my personal web site.