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Archive for the ‘wealth redistribution’ Category

400 information technology workers at Southern California Edison (SCE) are being laid off and replaced by H-1B workers from India. Some employees are training their H-1B visa holding replacements, and many have already lost their jobs.

The employees are upset and say they can’t understand how H-1B guest workers can be used to replace them.

Typically, a US corporation will layoff employees, and outsource their jobs, which is what is happening in this case, even as the Obama administration and some congressional Republicans are trying to expand the H-1B program. They want to reduce worker wages and increase corporate profits by doing so even though there is no shortage of high skill tech workers in the United States. There’s not even a shortage of low skill workers.

In all, about 500 people are being phased out at SCE, 400 of whom are being laid off. According to Computerworld, the H-1B visa-holding replacements are employees of two Indian companies — Infosys and Tata Consultancy Services — that have contracted with SCE.

According to USA Today, “If a shortage (of tech workers) did exist, wages would be rising as companies tried to attract scarce workers. Instead, legislation that expanded visas for IT personnel during the 1990s has kept average wages flat over the past 16 years. Indeed, guest workers have become the predominant source of new hires in these fields.”

The H1B visa is being used to keep Americans unemployed, wages down, and corporate profits up. In other words, H-1B is an income redistribution scam. Money is redistributed from the 99 to the 1 percent. Apparently, US economic policy is simple. It’s used to only benefit the 1 percent at the expense of the 99 percent.

Wall Street profits handsomely from these visas. Higher profits mean more stock transactions, corporate bond issues, more highly profitable IPOs. Tech corporations see their stock prices soar, due to their artificially higher profits caused by their government induced artificially lower labor costs.

For more on the story, click on the links below.

Southern California Edison Workers Beyond Furious Over H1b Replacements–Computer World

Personal Liberty–Angry California Stem Workers Train H1b visa replacements

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Moveon.org has launched a campaign to convince US Senator Elizabeth Warren to run for president. One of the reasons why they are doing this is above.

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Internet freedom has been saved for now. Below is a statement by Federal Communications Commission Chairman and Corporate Plutocrat Tom Wheeler.

BUT FIRST, WHAT ABOUT THE TRANS-PACIFIC PARTNERSHIP? (TPP) AND WHAT ROLE MIGHT IT HAVE IN WHEELER’S DECISION?

Will there be an end run around Wheeler’s decision? The TPP is the most secretive international income and political power redistribution scam to ever come down the pike. There have been a few leaks, from which we know the TPP has nothing to do with trade. It’s mostly about rising prices on consumers, ending government regulations on Wall Street, and ending your right to vote on local and state levels on certain issues, such as health, safety and labeling laws. We don’t know if Internet freedom is on the table during the negotiations, but given that raising prices is a cornerstone of this agreement, and given that ending Internet freedom means raising the prices charged by Internet Service providers, well, perhaps you can see my point. BTW, raising prices redistributes income from your pocket to the pockets of rich corporate shareholders. In other words, in every way, the TPP is a massive income redistribution scam.

From Federal Communications Chairman and Corporate Plutocrat Tom Wheeler:

After more than a decade of debate and a record-setting proceeding that attracted nearly 4 million public comments, the time to settle the Net Neutrality question has arrived. This week, I will circulate to the members of the Federal Communications Commission (FCC) proposed new rules to preserve the internet as an open platform for innovation and free expression. This proposal is rooted in long-standing regulatory principles, marketplace experience, and public input received over the last several months.

Broadband network operators have an understandable motivation to manage their network to maximize their business interests. But their actions may not always be optimal for network users. The Congress gave the FCC broad authority to update its rules to reflect changes in technology and marketplace behavior in a way that protects consumers. Over the years, the Commission has used this authority to the public’s great benefit.
Tom Wheeler

The internet wouldn’t have emerged as it did, for instance, if the FCC hadn’t mandated open access for network equipment in the late 1960s. Before then, AT&T prohibited anyone from attaching non-AT&T equipment to the network. The modems that enabled the internet were usable only because the FCC required the network to be open.

Companies such as AOL were able to grow in the early days of home computing because these modems gave them access to the open telephone network.

I personally learned the importance of open networks the hard way. In the mid-1980s I was president of a startup, NABU: The Home Computer Network. My company was using new technology to deliver high-speed data to home computers over cable television lines. Across town Steve Case was starting what became AOL. NABU was delivering service at the then-blazing speed of 1.5 megabits per second—hundreds of times faster than Case’s company. “We used to worry about you a lot,” Case told me years later.

But NABU went broke while AOL became very successful. Why that is highlights the fundamental problem with allowing networks to act as gatekeepers.

While delivering better service, NABU had to depend on cable television operators granting access to their systems. Steve Case was not only a brilliant entrepreneur, but he also had access to an unlimited number of customers nationwide who only had to attach a modem to their phone line to receive his service. The phone network was open whereas the cable networks were closed. End of story.

The phone network’s openness did not happen by accident, but by FCC rule. How we precisely deliver that kind of openness for America’s broadband networks has been the subject of a debate over the last several months.

Originally, I believed that the FCC could assure internet openness through a determination of “commercial reasonableness” under Section 706 of the Telecommunications Act of 1996. While a recent court decision seemed to draw a roadmap for using this approach, I became concerned that this relatively new concept might, down the road, be interpreted to mean what is reasonable for commercial interests, not consumers.

That is why I am proposing that the FCC use its Title II authority to implement and enforce open internet protections.

Thank You!

NOW, ABOUT THE TRANS-PACIFIC PARTNERSHIP! (TPP)

Will there be an end run around this issue? The TPP is the most secretive international income and political power redistribution scam to ever come down the pike. There have been a few leaks, from which we know the TPP has nothing to do with trade. It’s mostly about rising prices on consumers, ending government regulations on Wall Street, and ending your right to vote on local and state levels on certain issues, such as health, safety and labeling laws. We don’t know if Internet freedom is on the table during the negotiations, but given that raising prices is a cornerstone of this agreement, and given that ending Internet freedom means raising the prices charged by Internet Service providers, well, perhaps you can see my point.

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The 1 percent stole about 21 percent of all income produced in the United States in 2009, up from about 8 percent back in 1980. Now the 1 percent are stealing 36.6 percent of all income growth through the third quarter of 2014.

The economic game has been rigged even more by the 0.01 percent via legislation since 2009. Academic studies show that 95 percent of all income since 2009 have gone into the already fat wallets of the 1 percent.

Some simple math shows some interesting things.

According to the US Bureau of Economic Analysis, Americans earned a little over $12 trillion of income in 2009. All studies showed the 1 percent were stealing about 21 percent of that total, or about $2.5 trillion of that.

The total income produced by the people of the United States increased to more than $15.2 trillion in 2014.

Take that $15.2 trillion and subtract the $12 trillion produced in 2009. That’s $3.2 trillion. The 1 percent have used legislation to steal 95 percent of that $3.2 trillion, which means they’re stealing more than $3 trillion of that growth.

Now simply add the original 21 percent from 2009, which equals $2.5 trillion, and add the $3 trillion the 1 percent have been getting since 2009.

$2.5 trillion
+ $3.0 trillion

equals

$5.5 trillion going to the 1 percent

That’s out of the $15.2 trillion of total income produced by everybody and every business in the United States. In other words, roughly 36.67 percent of total national income goes to the 1 percent, compared to 8 percent thirty-four years ago.

This inequality is why demand for goods and services are so weak, which is why the economy is so historically weak. The 99 percent has considerably less money to spend on goods and services.

President Obama, along with Wall Street Senators Ron Wyden, Orrin Hatch and Mitch McConnell want to give even more of the national income to the 1 percent via the Trans-Pacific Partnership (TPP), the largest income redistribution scam in US history.

Among other things, the TPP will:

* give incentives for US corporations to export millions of US jobs. The Federal Reserve estimates that 28 million US jobs were exported between 1990 and 2010.

* increase US income and wealth inequality. The 1 percent have already taken 95 percent of all income growth in the United States since 2009. When the above jobs were exported, the difference between the old higher US wages and the new lower wages will go straight into the pockets of the 1 percent via higher corporate profits, rising dividends and surging share prices.

* Those lost jobs will no longer be paying the taxes for our infrastructure, social safety nets, schools, fire and police, but those lost jobs will push the stock markets higher.

* TPP will effectively eliminate your voting rights on local and state issues since it will unconstitutionally grant investors of the 0.01 percent special privileges to challenge labeling and health and safety local laws and regulations of the 99 percent, which most people call voter suppression, but in this case it should be called voter elimination,

* TPP will offer new monopolies for Big Pharma to raise medicine prices they charge you (which redistributes income from the 99 to the 1 percent),

* TPP will limit food safety standards (which redistributes and transforms your health into the profits of the 1 percent),

* TPP will block financial regulations aimed at preventing the next financial crisis (which will make it easier for Wall Street to redistribute your income and wealth to the 1 percent).

* TPP will destroy millions of jobs in Latin America (230,000 in the textile industry of El Salvador alone) forcing millions of undocumented immigrants into the United States.

* The result of the above will be to depress wages in both North and South America, all to the benefit of the 1 percent, and all at the expense of the 99 percent.

* And we can’t forget that TPP will increase the already massive US trade deficit with other nations, which is supposed to be a bad thing. The exported jobs will be producing goods overseas rather than here, and then US corporations will export their products from China and Vietnam into the United States, exacerbating the current trade deficit.

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Inequality in the United States began with a simple idea; give more money to the rich so they can purchase the favors of government. This was called the Reagan tax cuts. The rich used their money to purchase more tax breaks in the political markets, and that’s exactly what the political area is; a market with buyers and sellers.

When President Franklin Roosevelt pushed for a 90 percent top marginal tax rate, he did it to act as a maximum wage, to save democracy from being purchased by the rich. Reagan let the genie out of the bottle.

Since Reagan, all sorts of legislation has been passed to redistribute income from the 99 to the 1 percent, including income redistribution treaties, falsely referred to as trade agreements.

Now President Obama is pushing the Trans-Pacific Partnership (TPP), the largest income redistribution agreement of all time. Since 2009, the rich have stolen 95 percent of all income growth. The TPP will increase this inequality. Wall Street Senator’s Orrin Hatch, Mitch McConnell and Ron Wyden are all for the TPP, since they have a history of siding with legislation that redistributes income from the 99 to the 1 percent.

In other words, Reagan’s tax cuts began rigging the game of economics and politics in favor of the 1 percent.

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