Since the elected politicians of the United States government govern on behalf of Wall Street, Big Oil and the rest of the 0.01 percent with few exceptions (such as US Senators Elizabeth Warren and Jeff Merkley), and these corrupt politicians of both major political parties primarily redistribute income from the 99 to the 1 percent via legislation, maybe all benefits they receive such as retirement and monthly pay should not be paid by the taxpayers. Perhaps they should be paid by Wall Street/Big Oil since that is who the politicians serve. That’s why the political and economic games are rigged against the American people. Politicians of both political parties have been bought off.
On Thursday, November 20, 2014, President Obama announced that he was taking executive action that will allow up to five million undocumented immigrants to stay in the United States. The president promised these immigrants that they will not be deported, that they can seek work legally in the United States, on certain conditions, such as paying taxes.
Much of the news media of the 1 percent are claiming this is good for the economy, that everybody will prosper because of the president’s action.
For example, a study released by the Center for American Progress says, “Once they (undocumented immigrants) attain legal status, immigrants will be able to contribute to the increased consumption of goods and services that boosts business sales and raises the earnings of all Americans. They will pay taxes on their higher wages and increase the gross state product (GSP). Additionally, immigrants will be able to use their new legal status by integrating their skill set and education into creating jobs and raising productivity.”
Common sense, however, tells us that once undocumented immigrants receive legal status, they will consume approximately what they consume today. It is possible that with higher wages they will consume more. That will be offset, however, because the rest of us will be consuming less, according to an analysis of a similar congressional measure by the non-partisan Congressional Budget Office (CBO). According to the CBO, everybody’s wages and job opportunities will decline with the deal, except for the newly legalized immigrants. That means the impact of immigration reform will have little, or no, or perhaps even negative, net impact on the consumption of goods and services. It could even result in a decline of GNP. How could the consumption of goods and services go up if everybody’s wages and salaries are going down? They can’t and so the claim by the Center for American Progress is patently wrong.
According to the CBO, a senate bill similar to President Obama’s executive action which failed in committee last year would have depressed wages of all workers for the next twelve years, “raise the unemployment rate,” and “result in higher interest rates.” Notice the corporate news media hasn’t reported these things to you.
The president’s action will also push the unemployment rate higher than it would otherwise be through 2031. Currently, the real unemployment is somewhere between 10 and 13 percent, which is higher than the official rate of 7 percent. The executive action will force more and more people to compete for a smaller number of jobs, and this will drive wages down.
According to the Pew Hispanic Research Center, 80 percent of undocumented immigrants work under the table, that is without paying income taxes. Most of these people are expected to move into better paying jobs in the legal job market, creating greater labor competition, and driving wages down.
This same process also occurred after the amnesty granted undocumented immigrants in December 1986. Real wages immediately began to plummet for the next six years and didn’t recover to their 1986 level until 11 years later. Check out the graph below from the Bureau of Labor Statistics website. You’ll see a big dip in real wages for everybody beginning in December 1986.
The CBO also reported, “Capital investment would rise primarily because the return that investors would earn on a given amount of investment would be higher under the legislation than under current law.” The rationale for this is given with economic jargon, but basically it boils down to this; lower wages will increase profit margins, and so members of the 1 percent will purchase more corporate stocks, bonds and politicians.
In other words, the president’s executive action ensures the 1 percent benefit by pushing down wages, salaries and other compensation and redistributing the difference between the old rates and the new lower rates into the hands of the 1 percent. Nice scam, but it gets worse.
The president’s action comes at a time of real declining average wages for all American citizens, and so things are now going to become worse for us. On top of this, the 1 percent has been stealing 95 percent of all income growth for the last four years. Now it might grow as high as 96 percent. We are in an economy heading for disaster.
Posted in corruption, Economics, Economics, recession, income redistribution, Politics, the Rigged Game, Uncategorized, war, wealth redistribution | Tagged 1 percent, 99 percent, Barack Obama, Congressional Budget Office, distribution, executive action, Income, income redistribution, President | Leave a Comment »
In an op-ed for the Huffington Post, US Senator Elizabeth Warren issued a caustic rebut that she would no longer support President Obama and his Wall Street cronies when the president nominates such people to important government positions, such as US Treasury Secretary and Undersecretary of Treasury. The president has nominated a plethora of such people, showing his links to Wall Street in the process.
Gene Sperling (Goldman Sachs) – Director of the National Economic Council
Jacob Lew (Citigroup) – Treasury Secretary
Stanley Fisher (Citigroup) – Vice Chairman of the Federal Reserve
William Daley (J.P. Morgan Chase) – Chief of Staff
Rahm Emanuel (Wasserstein Perella) – Chief of Staff
Nathan Sheets (Citigroup) – Treasury Under Sec. for International Affairs
Stefan Selig (Bank of America) – Under Sec. for International Trade at the Dept of Commerce
These are the people that help to rig the economic and political game for the 1 percent and against the 99 percent.
Below is what Warren wrote:
I believe President Obama deserves deference in picking his team, and I’ve generally tried to give him that. But enough is enough.
Last Wednesday, President Obama announced his nomination of Antonio Weiss to serve as Under Secretary for Domestic Finance at the Treasury Department. This is a position that oversees Dodd-Frank implementation and a wide range of banking and economic policymaking issues, including consumer protection.
So who is Antonio Weiss? He’s the head of global investment banking for the financial giant Lazard. He has spent the last 20 years of his career at Lazard — most of it advising on international mergers and acquisitions.
That raises the first issue. Weiss has spent most of his career working on international transactions — from 2001 to 2009 he lived and worked in Paris — and now he’s being asked to run domestic finance at Treasury. Neither his background nor his professional experience makes him qualified to oversee consumer protection and domestic regulatory functions at the Treasury. As someone who has spent my career focused on domestic economic issues, including a stint of my own at the Treasury Department, I know how important these issues are and how much the people in Treasury can shape policies. I also know that there are a lot of people who have spent their careers focused on these issues, and Weiss isn’t one of them.
For the complete story click the link below.
Posted in corruption, Economics, Economics, recession, income redistribution, Politics, the Rigged Game, war, wealth redistribution | Tagged Anthony Weiss, Barack Obama, Dodd-Frank, Elizabeth Warren, Lazard | Leave a Comment »
A Dutch project that integrates solar panels into a bike commuter path officially opened last week, on a special roadway outside Amsterdam. “Power generated by the SolaRoad’s panels will be funneled into the national energy grid.
The project in the town of Krommenie is being called the world’s first public road that includes embedded solar cells. The crystalline silicon solar cells are encased in two layers of tempered safety glass, mounted in a concrete housing.”
While the United States remains mired in massive political corruption, honest governments are moving toward the future.
Check out the rest of the story from NPR by clicking on the link below.