Posts Tagged ‘income inequality’

In an economy dominated by the financial desires of the 1 percent, why has educational services experienced the most job growth over the last twenty-five years?

Look at the list below. Scroll down toward the bottom. There you have manufacturing, in negative job growth, and once the biggest employer in the United States a scant sixty years ago. Those jobs have experienced negative growth. That’s because US corporations have exported tens of millions of them over the course of the last thirty-five years, forcing more and more people to seek training in other occupations.


As the economy has redistributed trillions upon trillions of dollars to the super wealthy via the exporting of jobs, the demand for goods and services has declined per capita. The result is a lack of job growth, sending more and more students into the university systems. That’s because the US population continues to grow.

80-90 percent of all US population growth over the last thirty or so years has been driven by immigration. This has kept the demand for K-12 teachers higher than it would with no or little immigration, thus fueling educational services.

Notice the top six places in US job growth is in services. This says a lot, and none of it is good. Services are the top employers, but all rest on construction, mining, farming and manufacturing since the wealth of all nations is the things created by their people.

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Citibank of Wall Street pretty much chose who was going to serve on President Obama’s cabinet, as well as who was going to fill the key positions elsewhere in his administration.

John Podesta is the campaign manager for Democratic presidential candidate Hillary Clinton.

WikiLeaks released some of Podesta’s emails, many of which go back to 2008 when Podesta was the co-chair of the transition team for President-elect Barack Obama. A month before the election, the primary staffing of the key positions in the Obama administration was almost complete.

In 2008, Michael Froman was an executive at Citibank. According to the New Republic, Froman “wrote an email to Podesta on October 6, 2008, with the subject “Lists.” Froman used a Citigroup email address. He attached three documents: a list of women for top administration jobs, a list of non-white candidates, and a sample outline of 31 cabinet-level positions and who would fill them. “The lists will continue to grow,” Froman wrote to Podesta, “but these are the names to date that seem to be coming up as recommended by various sources for senior level jobs.

The cabinet list ended up being almost entirely on the money. It correctly identified Eric Holder for the Justice Department, Janet Napolitano for Homeland Security, Robert Gates for Defense, Rahm Emanuel for chief of staff, Peter Orszag for the Office of Management and Budget, Arne Duncan for Education, Eric Shinseki for Veterans Affairs, Kathleen Sebelius for Health and Human Services, Melody Barnes for the Domestic Policy Council, and more. For the Treasury, three possibilities were on the list: Robert Rubin, Larry Summers, and Timothy Geithner.

This was October 6. The election was November 4. And yet Froman, an executive at Citigroup, which would ultimately become the recipient of the largest bailout from the federal government during the financial crisis, had mapped out virtually the entire Obama cabinet, a month before votes were counted. And according to the Froman/Podesta emails, lists were floating around even before that.

These revelations also reinforce the need for critical scrutiny of Hillary Clinton, and for advocacy to ensure the next transition doesn’t go like the last, at least with respect to the same old Democrats scooping up all the positions of power well in advance.”

In 2016, Michael Froman was the US Trade Representative negotiating the Trans Pacific Partnership, the largest income and political power redistribution scam in world history. Froman was negotiating to export millions of US jobs to third world nations. The difference between the old higher US wages and the new lower third world wages will go straight into the pockets of the wealthy via higher corporate profits, surging share prices and rising dividends. Wall Street banks would be a primary beneficiary at the expense of the 99 percent.

Obama is doing exactly what his Wall Street masters want him to do, just like Wall Street Senator Ron Wyden does. Will Hillary do the same if she is elected?

As an aside, I mention Wyden because he is the Democrat who will lead the charge for the TPP in the US senate on behalf of Wall Street and Nike.

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Computerworld reports that the University of California is outsourcing eighty IT jobs to an Indian corporation, HCL. US workers are now training their H1-B replacements. Note that H1-B visas are supposed to be given only when qualified Americans cannot be found to do a job in the USA.

The situation is really this; US citizens are qualified to train their H2-B replacements. This means the H1-B visa recipients are not qualified to do the job until they receive training from the US citizens they are replacing, who are sufficiently qualified to train their replacements.

In other words, the H1-B system is being used to undercut US wages and salaries. That is this program’s sole purpose. When a US worker has to train an H1-B visa worker to do their job it is the H1-B worker who is not qualified and the US worker who is.

One of the effected University of California employees wrote California US Senator Diane Feinstein, a person who was reported to be worth between $43 and $99 million in 2005. Her wealth and income has likely grown since then. Much of the growth is likely due to exporting jobs and outsourcing jobs to H1-B visa workers. When you push wages down, or export jobs overseas, the difference between the old higher pay and the new lower wages goes straight into the pockets of the rich via higher corporate profits, rising share prices and surging dividends.

Feinstein clearly has an incentive to say one thing in public and an opposite thing with private bankers.

Anyway, the US citizen IT worker wrote,

“The decision to move the University of California San Francisco datacenters from California to Washington was difficult to grasp. I saw several of my long time co-workers terminated, and my California tax dollars that go into the UC system being diverted to the state of Washington.

“The recent decision to outsource 17% of Information Technology to India based Company HCL has literally hit home. I am being asked to do knowledge transfer to a foreigner so they can take over my job in February of 2017.

“I am asking for your support in requesting an oversight with the Department of Labor in regards to the contract between HCL of India and University of California San Francisco. This contract will more than likely not save the University money, but it will definitely wipe out what is now a somewhat diverse workplace.”

According to Computerworld, “As a U.S. senator, Feinstein could have asked the U.S. Department of Labor, Department of Homeland Security and other agencies to review the situation. She could have also asked California’s governor to take a look at the IT outsourcing or contact the University of California directly — a public institution that also receives federal dollars — to ask why a partially taxpayer-supported university is moving jobs to India.”

Instead Feinstein did nothing, except respond with a form letter.

For more on this story, click the following link to Computerworld. Outsourced Workers Ask Feinstein for Help and Get a Form Letter in Return–Computerworld

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Hershey moved its production to Mexico years ago so as to pay lower wages and avoid health, safety and environmental regulations. Many US candy corporations exported US jobs there and elsewhere rather than stay here in the USA. Why buy that low wage anti-American stuff when you can buy US made candy? Why not boycott Hershey’s products, as well as the products of other things not made in the USA?

They’re plenty of choices in Halloween candy that are made in the USA.

Tootsie Roll Industries is an American manufacturer of popular candy brands like Tootsie Pops, Tootsie Rolls, Junior Mints, Charms Blow Pops, DOTS, Sugar Daddy, and Charleston Chew. Most of these candies are made in Chicago, Illinois. Junior Mints are made in Cambridge, Massachusetts.

Just Born Candy, headquartered in Bethlehem, Pennsylvania, manufactures all of it’s candy in the USA, including brands like Teenee Beanee Jelly Beans, Mike & Ike, Hot Tamales, Peeps, and Goldenberg’s Peanut Chews.

Dum Dums Lollipops are made in Bryan, Ohio by the Spangler company.

Elmer Chocolate has been making chocolate candies in Louisiana since 1855. Look for Elmer Gold Brick Eggs and Heavenly Hash Eggs at Easter time!

Hillside Candy manufactures the Go Naturally candy line in New Jersey. This candy is organic, dairy free, gluten free and made by hand.

Jelly Belly jelly beans are made in Fairfield, California.

Income inequality in the USA is at an all time high and getting bigger. Every time you purchase something foreign made, like Hershey’s candy bars or Apple smart phones, you are redistributing your income straight into the pockets of the super rich. Why not buy American and keep income inequality from getting worse?

Click here for a fairly complete list of US made candy.

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US Federal Reserve Chairwoman Janet Yellen is faced with a problem. In the seventh year of an economic expansion there is considerable disagreement over whether the Fed should hike interest rates.

According to Bloomberg News, “At the presidential debate on Sept. 26, Republican candidate Donald Trump accused Federal Reserve Chair Janet Yellen of inflating “a big, fat, ugly bubble” by keeping interest rates too low. Yellen couldn’t just shrug off the accusation, because only five days earlier three members of her own rate-setting group, the Federal Open Market Committee, had expressed the same idea in more delicate language.”

So what’s the problem? The economy isn’t overheating at a time when it’s likely peaking. Unemployment is low, but then so is demand for goods or services compared to previous business expansions. Otherwise, the Fed would be happy to raise rates in order to curb inflation.

The underlying problem for Yellen and the governor’s of the Fed is that income distribution has become so one-sided that the 99 percent cannot afford to purchase enough stuff to make inflation rear its head. This is the one thing the press and Yellen don’t consider, at least not in public. Perhaps this is because it’s politically unpalatable to the super-rich overseers of the elected officials of the Republican and Democratic parties.

Those overseers have a financial stake in the outcome of the Fed’s decision. Raising rates might push share prices lower. Of course, that housing bubble might also blow up.

The 1 percent took 99 percent of all income growth from 2009-14 (an historic record), and more than 50 percent in 2015. The 1 percent now are stealing via legislation anywhere from 22 to 36 percent of all income produced every year in the US (depending on whose figures you use), up from roughly 8 percent in 1981. That leaves the 99 percent with less money to burn.

Of course, the 99 percent use credit to make up for some of that shortfall, but during this recession, picking up the slack in demand via credit isn’t working as well as during the other boom times during the last 35 years.

And so Yellen sits and waits, while the governors of the Fed argue over whether rates should be raised. There’s obviously strong interest within the Fed to pop that bubble.

Maybe those Fed officials should be wondering what they’re going to do when the economy tanks. It’s late in this boom period. Perhaps, Fed officials need to think about applying negative interest rates.

#Note: The Fed raised interest rates by a tad last November, but it hasn’t dared lift them since.

Yellen Can’t Hide the Struggle Inside the Fed–Bloomberg News

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The Trans-Pacific Partnership (TPP) is a corporate power grab, a 5,544-page document that was negotiated in secret by big corporations while Congress, the public, and unions were locked out.

Multinationals like Google, Exxon, Monsanto, Goldman Sachs, UPS, FedEx, Apple, and Walmart are lobbying hard for it. Virtually every union in the U.S. opposes it. So do major environmental, senior, health, and consumer organizations.

This agreement has virtually nothing to do with trade since tariffs between the twelve nations of the TPP are at historic low. This agreement is really about exporting jobs, raising prices and more bonuses for the 1 percent at the expense of the 99 percent.

The TPP will mean fewer jobs and lower wages, higher prices for prescription drugs, the loss of regulations that protect our drinking water and food supply, and the loss of Internet freedom. It encourages privatization, undermines democracy, and will forbid many of the policies we need to combat climate change.

The worst part is the Investor-State Dispute Settlement provision, which allows a multinational corporation to sue to override any U.S. law, policy, or practice that it claims could limit its future profits. Secret panels of corporate lawyers and corporate lobbyists will decide these cases. Their judgments cannot be appealed, not even to the Supreme Court.

This provision will override your votes on the state and local levels. In other words, President Obama and Wall Street Senator Ron Wyden intend to suppress your voting rights, along with most of the Republican Party led by Paul Ryan, Mitch McConnell and Orrin Hatch.

Though the Obama administration touts the pact’s labor and environmental protections, the official Labor Advisory Committee on the TPP strongly opposes it, arguing that these protections are largely unenforceable window dressing.

On behalf of Wall Street and rich investors throughout the United States, President Obama is planning to call for a vote on the TPP in the US senate and the US House after the elections in November. Obama signed the TPP, a despicable income and political power redistribution scam, months ago. Wall Street Senator Ron Wyden will likely introduce the TPP in the senate. Wyden is Obama’s and Wall Street’s attack dog in the US senate in their war against the middle class. He has voted to redistribute trillions of dollars from the 99 to the 1 percent over the course of the his career in congress.

To learn more about the TPP, check out Citizen’s Trade Campaign, and Public Citizen’s Global Trade Watch, Public Citizen. For labor-specific resources, try CWA, http://stopthetpp.org/, and the AFL-CIO, http://www.aflcio.org/Issues/Trade.

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According to Jack Bogle, founder of Vanguard, the mutual funds investment company, Social Security is in crisis.

Bogle said the system’s finances could get a big boost from changes that may be rejected as “politically sensitive,” including

  1. adopting a less-generous approach to calculating cost-of-living adjustments,
  2. raising the maximum annual earnings subject to Social Security tax,
  3. and raising the age for full retirement benefits further from the current range of ages 66 to 67.

First of all, Social Security is not in a crisis. The Fund has a reserve of $2.5 trillion that earns $180 billion in interest a year. That money is due to be used up by roughly 2036 as more and more baby boomers retire. Then Social Security can still pay 84 percent of everybody’s benefits after that.

This means it won’t take much to make up the shortfall. Currently, nobody pays social security taxes on income above $118,500. Simply eliminating this cap on taxing income would erase the future shortfall. However, we could go farther and with good reason.

Here’s what the corporate media doesn’t want you to know.

Trillions of dollars every decade earmarked for the social security trust fund are redirected from the fund into the already fat wallets of the super rich. The rich don’t pay social security taxes on capital gains and dividends. Every time a job is exported, the wages and social security contributions from that job are transformed into capital gains and dividends.

Millions of jobs have been exported. That’s hundreds of billions of dollars every year no longer heading into the Trust Fund because the difference between the old higher US wages and the new lower third world wages goes straight into the pockets of the ultra wealthy via capital gains and dividends.

Capital gains and dividend income are exempt from paying social security taxes.

So why not establish social security taxes on dividends and capital gains above a certain point, say $100,000 a year in income from those sources?

Then you could increase monthly payments to retirees while simultaneously raising the demand for goods and services, which would strengthen the economy, as well as spur job and wage growth.

Wall Street won’t like it, but millions of older folks could use the money being stolen from social security via international income redistribution scams falsely marketed as “trade agreements.”

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