How Stupid Are the RepubliCons? It’s all about the economy stupid!

U.S. Republican Senate Majority Leader Mitch McConnell must be as stupid as U.S. Senator’s Rand Paul and Ted Cruz. Paul and Cruz oppose the U.S. House of Representatives Heroes bill sponsored by the Democratic Party that will continue to provide $600 a week to the unemployed until January, as well as tens of billions of dollars to cities and states that are experiencing reduced tax dollars and will likely need to lay off tens of thousands, if not hundreds of thousands or more, of public employees without further Federal aid.

Many Republican senators are opposed to the HEROES Act because it will not reward their billionaire owners to the same degree the CARES Act did, and which gave the superrich and their corporations $4.75 trillion in a $2.2 trillion bill. (Click here for that story.)

McConnell, appearing to be a dimwit, does not understand the issue that will decide the election in November. “It’s the economy stupid,” James Carville used to say. Carville was Bill Clinton’s presidential campaign manager in 1992. They won the election in 1992.

“We swears to serve the master of the precious.”

The U.S. economy is tanking big time. The only thing stopping the economy from further falling and moving into a Great Depression is the CARES Act, one of whose most important provisions for the 99 percent is about to expire. That provision is the $600 a week extra in unemployment benefits.

McConnell does not understand the economy needs people to spend money to keep it afloat. He opposes the $600 extra a week because some people are receiving more money than they were earning at their jobs, giving them an incentive to not look for work. Who cares? That $600 dollars is helping to keep the economy afloat, and there are not a whole bunch of available jobs out there right now anyway.

When cities, counties and states begin to lay off employees by the tens of thousands, along with those folks on unemployment who will stop receiving that $600 at the end of this month, the economy will likely move into a Great Depression, if we have not already done so.

The result will be a Democratic Party wave in November. Then it is likely the Republican Party will begin its fade into the history books as more and younger voters have become Bernie style Democratic Socialists, which is to say New Deal Democrats. McConnell and the rest of the Republican senators are about to send their political party into historical oblivion after voting to reward their billionaire backers $4.75 trillion while providing the vast majority of U.S. citizens crumbs with the CARES Act last March.

Meanwhile, U.S. House Majority Leader Nancy Pelosi decided to placate her Party’s base by sponsoring the Heroes Act, but not that saving the base and the economy from ruin was something she actually wanted to do. The Heroes Act is the fourth stimulus package since March and her attempts to save the billionaires who control her Party and neglect the financial needs of the 99 percent is most obvious by this fact alone. Something must have clicked in her brain to come up with the HEROES Act.

She likely came to understand saving the economy and the billionaires from ruin means having to save the rest of us. McConnell, Rand Paul and “tiny hands” Ted Cruz have not figured out this basic economic issue yet even as Texas, the state Cruz represents, is rapidly turning blue along with Virginia, North Carolina, and several other states the Republican Party reliably once controlled.

When these states turn blue, this will eliminate the Republican Party as a factor in national politics. This has already occurred on several state levels. The Republican Party used to control California. Now it is the super minority party in both of California’s legislative houses. McConnell, Cruz and Paul are hastening the Party’s decline by their economic stupidity. It’s the economy stupid!

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The Billionaires Who Control the Democratic Party Rise Up Against Warren and Bernie

The billionaires who own the Democratic Party are preparing to sit out the presidential campaign fundraising cycle, and have threatened to back President Trump if Senator Elizabeth Warren wins the party’s nomination. We know where the loyalty of the billionaires who control the Democrat Party lie, and it is with their comrades in arms, the billionaires who own the RepubliCon Party.

The billionaires that control both major political parties work hard using their news media and talking heads to get Democratic and Republican voters to side with their party and argue with one another about social issues, such as abortion, gun control, or whether or not transgender bathrooms should have urinals, and whether or not Albus Dumbledore of Harry Potter fame is gay or not, and whether or not Santa Claus should be depicted as transgender or not, rather than talking about income, wealth and the political inequality the billionaires, their politicians (such as Wall Street Senator Ron Wyden) and their Supreme Court have created, and how the billionaires have rigged and corrupted the democracy we live in, while simultaneously working together to financially rob and rape the 99 percent of both Parties in whatever way possible so long as it makes them richer in the process.

The billionaires who control the Democratic Party have already supported President Trump on a number of issues, such as tax cuts for the rich.

Warren tweeted in response to the threat, “I’m fighting for an economy and a government that works for all of us, not just the wealthy and well-connected. I’m not afraid of anonymous quotes, and wealthy donors don’t get to buy this process. I won’t back down from fighting for the big, structural change we need.”

In recent weeks, CNBC spoke to several high-dollar Democratic donors and fundraisers in the business community and found that this opinion was becoming widely shared as Warren, an outspoken critic of big banks and corporations, gains momentum against Joe Biden and Bernie Sanders in the 2020 race.

What CNBC did not say was that the vast majority of U.S. citizens need a new Franklin Delano Roosevelt as United States president in order to stave off the predations of the billionaires who own both major political parties, as well as the corrupt/corporate/conservative wing of the United States Supreme Court.

One Democratic Party senior private equity executive said, “You’re in a box because you’re a Democrat and you’re thinking, ‘I want to help the party, but she’s going to hurt me, so I’m going to help President Trump.’” This billionaire spoke on the condition of anonymity in fear of retribution by party leaders. The executive said this Wednesday, a day after Speaker Nancy Pelosi announced that the House would begin a formal impeachment inquiry into Trump.

During the campaign, Warren has put out multiple plans intended to curb the corrupting influence of Wall Street on government, both major political parties, and the United States Supreme Court, including a wealth tax. In July, she released a proposal that would make private equity firms responsible for debts and pension obligations of companies they buy. The billionaires surely do not want that. Trump, meanwhile, has given wealthy business leaders a helping hand with a major corporate tax cut and by eliminating regulations.

Warren has sworn off taking part in big money fundraisers for the 2020 presidential primary. She has also promised to not take donations from special interest groups. She finished raising at least $19 million in the second quarter mainly through small-dollar donors.

Trump, has been raising hundreds of millions of dollars, putting any eventual 2020 rival in a bind as 20 or so Democrats compete for their party’s nomination.

Trump’s campaign and the Republican National Committee have raised over $100 million in the second quarter, and a record $125 million in the third quarter. Most of that came from wealthy donors who gave to their joint fundraising committee, Trump Victory. In August, the RNC raised just over $23 million and has $53 million on hand.

The Democratic National Committee have struggled to keep up. The DNC finished August bringing in $7.9 million and has $7.2 million in debt. CNBC decided not to mention this is because Democratic grassroots voters are throwing tens of millions of dollars to the Warren and Bernie Sanders campaigns.

Biden, who has courted and garnered the support of various wealthy donors, has started to lag in some polls. The latest Quinnipiac poll has Warren virtually tied with the former vice president. Biden was one of three contenders that saw an influx of contributions from those on Wall Street in the second quarter.

The business community’s unease about Warren’s candidacy has surged in tandem with her campaign’s momentum. CNBC’s Jim Cramer said earlier this month that he’s heard from Wall Street executives that they believe Warren has “got to be stopped.”

Some big bank executives and hedge fund managers have been stunned by Warren’s ascent, and they are primed to resist her. Ultimately, this means they intend to resist the will of the vast majority of United States citizens.

“They will not support her. It would be like shutting down their industry,” an executive at one of the nation’s largest banks told CNBC, also speaking on condition of anonymity. This person said Warren’s policies could be worse for Wall Street than those of President Barack Obama, who signed the Dodd-Frank bank regulation bill in the wake of the 2008 financial meltdown.

Yet before Obama was elected, his campaign took over $1 million from employees at Goldman Sachs, according to the nonpartisan Center for Responsive Politics.

A hedge fund executive pointed to Trump’s tax cut as a reason why his colleagues would not contribute or vote for Warren if she wins the nomination.

“I think if she can show that the tax code of 2017 was basically nonsense and only helped corporations, Wall Street would not like the public thinking about that,” this executive said, also insisting on anonymity.

This really means something simple: if you want to vote for your interests, as well as the interests of the vast majority of United States citizens, vote for Elizabeth Warren or Bernie Sanders. If you want to vote for the interests of the billionaires’ vote for Joe Biden.

Billionaires Rise Up Against Elizabeth Warren

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United States Income Inequality Continues to Surge

The gap between the richest and the poorest U.S. households is now the largest it’s been in the past 50 years according to new data from the U.S. Census Bureau.

U.S. income inequality was “significantly higher” in 2018 than in 2017, the Census Bureau says in its latest American Community Survey report. Since the rich in the United States possess earnings and investments abroad, it is likely the income and wealth gaps are much larger than the Census Bureau measures.

The gap grew despite a surging national economy that has seen low unemployment and more than 10 years of consecutive GDP growth.

The most troubling thing about the new report, says William M. Rodgers III, a professor of public policy and chief economist at the Heldrich Center at Rutgers University, is that it “clearly illustrates the inability of the current economic expansion, the longest on record, to lessen inequality.”

That is because the rich are using their political power to create income inequality in their favor.

When asked why the rising economic tide has raised some boats more than others, Rodgers lists several factors, including the decline of organized labor and competition for jobs from abroad. He also cites tax policies that favor businesses and higher-income families.

To understand even a little of how labor unions have been weakened you only need to look at a few of the legal decisions made by the corrupt corporate wing of the United States Supreme Court when it sided with the billionaires and their corporations in the Janus vs. AFSCME case. The corrupt wing of the court, lead by Cheif Justice John Roberts, decided to put an end to decades of legal precedent in which labor union members who did not want to pay union dues were required to pay a lesser fee to their unions to cover the cost of negotiating new contracts with management. Now labor unions are the only organizations in the United States that must provide free services to members who do not wish to pay. The corrupt wing of the court’s intention in making this decision was to weaken the power of labor unions, and working people in general, vis-a-vis the billionaires and their corporations.

Everybody knew the corrupt corporate wing of the court was going to vote in favor of Janus and end four decades of legal precedent in the process. Everybody knew the billionaires had the corporate wing in their hip pocket.

Income inequality is measured through the Gini index, which measures how far apart incomes are from each other. To do that, the index assigns a hypothetical score of 0.0 to a population in which incomes are distributed perfectly evenly and a score of 1.0 to a population where only one household gets all of the income.

The United States has been one of the most unequal of nations in the world using the Gini coefficient. The U.S. is ranked 103 in the world by the World Bank for income inequality, behind every major industrialized country, and up there with such nations as Haiti and Uganda. The U.S. was ranked at 73 ten years ago, so inequality continues to worsen here.

The billionaires’ control the corrupt corporate wing of the United States Supreme Court, the entire Republican Party, and most Democratic politicians at the national level. Therefore, you can expect income and wealth inequality will continue to get worse in the United States.

In other words, vote for Bernie Sanders or Elizabeth Warren for president.

US Census Bureau Report

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Elizabeth Warren Aims High on Trade Policy

Elizabeth Warren plans to put an end to Wall Street control of the Democratic Party if she becomes president. The first place she would begin is with international trade policies, drawing sharp contrasts with Wall Street puppet’s Barack Obama, Bill Clinton and Hillary Clinton in the process, along with Democratic Party Wall Street Senator Ron Wyden and dozens of other Democrats in political office.

Wyden has long been one of the architects of the growing income and wealth inequality in the United States over the last thirty years. He has continuously championed the exporting of tens of millions of American jobs on behalf of Wall Street investment banks and corporate bigwigs. The difference between the old higher U.S. wages and the new much less third world wages goes straight into the already fat wallets of the billionaires. My ex-wife calls Wyden, accurately as it turns out, a RepubliCon on all economic matters.

As for Warren, her plans include nine issues every nation would have to meet before negotiating a trade deal with the United States. Those standards include upholding and enforcing the labor rights laid out by the International Labour Organization, eliminating all domestic fossil fuel subsidies, fulfilling commitments from the Paris Climate Agreement, not running afoul of the State Department’s Country Reports on Human Rights, and not being on the Treasury Department’s monitoring list for manipulative currency practices. Warren’s requirements would apply not only to new trade deals but to existing treaties that Warren pledges to renegotiate.

Naturally, RepubliCons and Corporate/Wall Street Democrats, such as Wyden, will be opposed to Warren’s standards. So are the billionaires, Wall Street investors, and the so-called news media they control. Their only standard is to redistribute income and wealth from the 99 to the 1 percent even if the world burns.

Taken together, Warren’s mandates would fundamentally change American trade policy, potentially excluding many countries that would see the requirements as too onerous for the parasitic elites who control those governments, and who want to continue the maldistribution of income and wealth that existing trade agreements have been negotiated to bring about.

“For decades, big multinational corporations have bought and lobbied their way into dictating America’s trade policy,” Warren wrote, calling the policies across Republican and Democratic administrations a “failed trade agenda.”

“Trade can be a powerful tool to help working families but our failed pro-corporate agenda has used trade to harm American workers and the environment. My plan represents a new approach to trade — one that uses America’s leverage to boost American workers and raise the standard of living across the globe.”

In effect, Warren aims to reverse the income and wealth stolen from 99 percent of Americans and given to the billionaires by Wyden, Clinton, Obama, and the entire RepubliCon Party.

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These CEO’s Make 1000 Times More Than the Lowest Paid Employees

Income and wealth inequality continues to rise in favor of the richest 0.5 percent in the United States and throughout the world. This is due solely to political corruption, often presented as making common sense. Former President Bill Clinton, who, like his wife, is owned by billionaires, is a perfect example of such political corruption, as much as any RepubliCon party politician, and that political party is the epidemy of corruption.

Twenty-five years ago, Clinton campaigned on an idea for limiting excessive pay for American CEOs by capping the tax deductibility of top executives’ compensation at $1 million, and corporations, not wanting bigger tax bills, might reel in their pay. Under the Clinton backed legislation, corporations couldn’t deduct CEO pay over $1 million unless it was “performance-based.” So stock options and performance-based bonuses became the norm. We were told this was a good thing, but, like many things the US public has been told by its corrupted political and business leaders, as well as the corrupted news media, this was a lie, and most likely a deliberate lie.

This lie has resulted in chief executive officers earning more money in less than an hour as much as their typical employee earns in an entire year. Notice the corruption of both political parties has decided not to rescind Clinton’s legislation that he signed on behalf of the rich and their corporations. Notice Joe Biden, an old, sleazy Wall Street pawn, hasn’t said a word either.

USA Today reported a month or so ago that “Stock options – which are often indicative of CEO performance – are not taxable, however, and as such, are often a preferred form of CEO compensation reported.”

Clinton’s legislation gone bad is one of the reasons why stock buybacks have become so popular with CEOs. 59 percent of corporate profits in recent years has gone toward stock buybacks, according to a story in the Guardian a few months ago. This is an easy way to manipulate stock prices higher and make an extra buck in the process. Corporations buy their own lousy stock, driving the prices higher, and then turn around and gradually sell their stock at the higher prices. Any high school student in the same position as any CEO would do the same since the result is higher CEO compensation.

Of course, CEO’s also drive wages, salaries, and benefits downward in order to increase their own compensation via stock options and bonuses. The result has been unprecedented income and wealth inequality. Thank you RepubliCon Party, Bill Clinton, and Joe Biden.

According to USA Today’s report, the most overpaid CEOs are:

1. Arthur L. Peck
• Company: The Gap Inc.
• CEO annual pay: $20.8 million (3,566 times the typical employee)
• Median annual employee pay: $5,831
• Annual corporate profit: $1.0 billion

2. Ynon Kreiz
• Company: Mattel Inc.
• CEO annual pay: $18.7 million (3,408 times the typical employee)
• Median annual employee pay: $5,489
• Annual corporate profit: -$531.0 million

3. Joseph M. Hogan
• Company: Align Technology Inc.
• CEO annual pay: $41.8 million (3,168 times the typical employee)
• Median annual employee pay: $13,180
• Annual corporate profit: $400.2 million

4. Kevin P. Clark
• Company: Aptiv PLC
• CEO annual pay: $14.1 million (2,609 times the typical employee)
• Median annual employee pay: $5,414
• Annual corporate profit: $1.1 billion

5. Brian R. Niccol
• Company: Chipotle Mexican Grill Inc.
• CEO annual pay: $33.6 million (2,438 times the typical employee)
• Median annual employee pay: $13,779
• Annual corporate profit: $176.6 million

For a list of the top thirteen, as well as the full story, click on the link below.

CEO’s Made 1000 Times More Than Their Employees

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World’s 26 Richest People Own More Wealth Than the Bottom 50 Percent of the World’s Population

In 2018, the world’s billionaires saw their wealth grow by $2.5 billion every day while the world’s poorest 3.8 billion people experienced an 11 drop in their wealth, according to a new report by Oxfam, a charity organization that tracks income and wealth inequality throughout the world.

The report noted the wealth of the rich grew by 12 percent last year. Much of that growth was because the billionaires extracted it from the lower 99 percent using their levers of political and judicial power, having corrupted democratic institutions in most nations of the world, most notably in the United States. So yes, the wealth of the rich grew at the expense of the lower 5O percent of the world’s population and most everybody else.

“Since the global economy collapsed, we have learned nothing—the number of billionaires has nearly doubled, with a new billionaire being minted every other day,” said Paul O’Brien, Oxfam America’s Vice President for Policy and Campaigns. “While corporations and the super-rich enjoy lower tax bills, millions of girls around the world have no access to a decent education and women are dying due to a lack of maternal health care.”

In the United States, 30 people hold as much wealth as the poorest half of the population. The Trump/Republican Party tax cuts favoring the wealthy and their corporations predominantly benefit men, who own 50 percent more wealth than women globally and control over 86 percent of corporations.

“The recent US tax law is a master class on how to favor massive corporations and the richest citizens,” O’Brien said. Corporations, coincidently, much like the corrupt corporate wing of the United States Supreme Court, are tools of the rich and are used to tilt the economic, financial and political markets in their favor, and against the interests of the 99 percent.

Globalization is a primary conduit for redistributing income from the 99 to the 1 percent. Exporting US jobs via free trade treaties, for example, is a perfect example. Income and wealth are redistributed by these government negotiated treaties as US jobs are exported; the difference between the old higher U.S. wages and benefits and the new poverty wages in third world nations is redistributed to the rich via higher corporate earnings, rising dividends, and surging share prices. The US workers, if they are lucky, might qualify for unemployment insurance for a few months.

Our economy has been broken by the rich using their ill-gotten gains to purchase the favor of politicians and US Supreme Court Justices, either with legalized bribes called campaign contributions, jobs for spouses, and/or their political and judicial actions are guided with a strong belief in class solidarity. Meanwhile, hundreds of millions of people live in extreme poverty while huge rewards go to those at the very top. The number of billionaires has doubled since the financial crisis and their fortunes grow by $2.5 billion a day, yet the super-rich and their corporations are paying lower rates of tax than they have in decades. The human costs, such as children without teachers, clinics without medicines, are huge. Piecemeal private services punish poor people and benefit the so-called global elites, who should be more accurately known as the global parasites.

“According to the report, “Women suffer the most and are left to fill the gaps in public services with many hours of unpaid care. We need to transform our economies to deliver universal health, education and other public services. To make this possible, the richest people and corporations should pay their fair share of tax. This will drive a dramatic reduction in the gap between rich and poor and between women and men.”

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Returning to the Good Times: Alexandria Ocasio-Cortez Proposes Raising Tax Rates on the Rich

There they go again. Congresswoman Alexandria Ocasio-Cortez (AOC) recently suggested the United States should raise the top marginal tax rate on the rich to over 70 percent. Republicans, naturally, have attacked her as being crazy, although all the evidence points toward higher marginal tax rates on the rich produces a stronger United States economy for all citizens, not just the rich ones.

As you can see from the graph above, the higher the tax rate on the rich, the stronger is GNP growth. The same can be said for jobs and wage growth. It can also be pointed out that when the rich have fewer dollars to spend, they have less spare change to bribe politicians with political contributions.

The only crazy people out there on this issue are Republicans, as usual, performing their jobs as lying lap dogs of the rich. As I have been saying for years, there is not a shred of evidence that suggests, as the Republican Party lap dogs proclaim, that lowering taxes on the rich has created a single job, and you can see that from the graph.

There is a ton of evidence in the form of peer-reviewed studies that show AOC is correct.

Paul Krugman recently wrote, “Republicans almost universally advocate low taxes on the wealthy, based on the claim that tax cuts at the top will have huge beneficial effects on the economy. This claim rests on research by … well, nobody. There isn’t any body of serious work supporting G.O.P. tax ideas, because the evidence is overwhelmingly against those ideas.”

Reducing taxes on the rich have always reduced gross domestic product, wages, and job creation. It also creates income and wealth inequality since the rich have more income to burn at buying both Republican and Democratic Party lap dogs, such as Mitch McConnell and Ron Wyden. These guys have voted time and again to redistribute income from the 99 to the 1 percent.

The Case for a Progressive Tax: From Basic Research to Policy Recommendations-Journal of Economic Perspectives

Why one editor won’t run any more op-eds by the Heritage Foundation’s top economist–Columbia Journalism Review

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Who’s afraid of Elizabeth Warren Besides Donald Trump? You Should Not Be Surprised

It looks as though progressive, anti-Wall Street, pro main street, US Senator Elizabeth Warren of Massachusetts is getting ready to make a run to become the next United States president. She has always been the champion of the 99 percent and the scourge of Wall Street criminals.

Warren recently took a DNA test showing she has a small percentage of native American running in her bloodstream. For years President Trump mocked Warren’s claim “that family lore says I have Cherokee blood in me.” Trump, true to his immaturity, has always ridiculed her by calling her Pocahontas. This suggests the president and his billionaire backers are terrified of her, and the polls show why he should be scared of her.

During the presidential primaries in 2016, Trump was the only man standing in the Republican field, while Bernie Sanders was still running hard against eventual nominee and Wall Street favorite Hilliary Rodham Clinton. Polls showed Clinton consistently beating Trump by 5 to 10 points at the time, Meanwhile, polls showed progressive candidate Sanders wiping out Trump by 10 to 20 points.

This suggests a significant number of Republican voters would have preferred Sanders over Trump.

In the actual election, Clinton beat Trump by four million votes but lost the electoral college and the presidency. Warren would likely defeat Trump by a greater amount than Wall Street Hillary.

Trump’s popularity is running at 41 percent. Warren, assuming she develops name recognition and a funding machine as Sanders did, would likely wipe Trump out.

However, getting out of the primaries will be tough for Warren. For starters, the Wall Street billionaires who control the Democratic Party, and in particular its leadership; the Democratic National Committee (DNC), would do just about anything to stop a progressive candidate such as Warren, Bernie Sanders or Oregon’s US Senator Jeff Merkley from ever winning the Democratic primary. Wall Street billionaires are terrified of Warren because she actually wants to put an end to business as usual, which is largely based on corruption.

Should Warren win the Democratic presidential primary in 2020, her most bitter foes will be Trump, the Republican Party, the DNC, the Koch brothers, and almost every living billionaire, and perhaps every living billionaire.

Not since President Franklin Delano Roosevelt will the forces of corruption be so united against one candidate. Want proof? The reliably DNC ally Huffington Post has run stories two days in a row denigrating Warren releasing her DNA test results. The last thing the billionaires want is a high visibility presidential candidate talking about bread and butter issues such as forty years of stagnant wages, massive income and wealth inequality, as well as political corruption, Supreme court corruption, and Wall Street corruption.

The attacks on Warren will come from all sides. The big boys are utterly terrified of her. This is precisely why both the Huffington Post, the New York Times and CNN, bastions of the DNC and its billionaire backers, have viciously attacked Warren for her DNA test. Let the battle begin.

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The Dow is up 40% since Trump took Office? So what is wrong with the US economy?

On June 11, 2018 PresidentTrump tweeted, “Stock Market up almost 40% since the Election, with 7 Trillion Dollars of U.S. value built throughout the economy. Lowest unemployment rate in many decades, with Black & Hispanic unemployment lowest in History, and Female unemployment lowest in 21 years. Highest confidence ever!”

Besides the obvious grammatical errors, what is wrong with the above tweet?

For starters, while the stock market has gone up since Trump became president, it has also gone down. The Dow reached a peak of $26,616 in January 2018 and dropped a couple thousand dollars into the $23,000 to $25,000 range since then. Most of the major sundry stock market indexes have dropped since January, such as the Standard and Poor 500. The exception to this has been the NASDAQ, which peaked on June 12th and has been falling for the past month.

The Trump tax cuts, in effect, haven’t done squat to bolster the stock market bubbles, though they may have delayed the current stock market bubble from completely imploding. As you can see from the graph above, investors and institutions, such as corporations, are borrowing in greater and greater amounts in order to buy shares, thereby keeping share prices higher than they would otherwise be.

In addition, the Republican/Trump tax cuts haven’t done anything to stimulate the US economy. CNBC reports the vast majority of tax cuts the rich and their corporations have received are going toward stock buybacks, dividends, mergers, and acquisitions. Typically, mergers and acquisitions result in job losses. CNBC expects corporations to spend $2.5 trillion this year on these things, and most of that money is coming from the tax cuts and retained earnings.

All of this is being done to enhance share prices, which also jacks up CEO compensation. This means the corporate tax cuts are being used to avert a massive popping of the current stock market bubble, which means we’re nearing bear market and recession territory.

All of which suggests the big money boys are throwing good money after bad, like tossing more money into a failing Ponzi scheme, which is kind of what the US stock markets are.

In effect, the Trump/Republicon tax cuts have not stimulated the economy at all, and, as usual, they are destroying jobs. This also means the economy is puttering along based on the actions of former President Barack Obama that saved the nation from the last horrendous Republicon president and his immense and devastating failures. This means the actions of President Trump have nothing to do with the current recovery since his signature legislative achievement is the tax cuts.

The tax cuts have increased the federal deficit by $1.5 trillion. As Paul Krugman, Nobel Prize-winning economist sarcastically wrote in an op-ed in the New York Times, “Good thing we didn’t invest that $1.5 trillion of deficit spending on providing universal daycare, ending all homelessness in the United States, lifting millions of American children out of poverty, and/or making medication-assisted opioid-addiction treatment easily accessible and affordable for all who need it. Clearly, the private sector has allocated that capital much more efficiently.”

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The Evidence is In: The Trump/Republican Party Tax Cuts for the Rich and Their Corporations Fuel Income and Wealth Inequality

As expected, since the Trump and Republican Party tax cuts were written to benefit the rich and their corporations, only the rich and their corporations are benefiting from them, for the most part. The tax cuts were intended to increase income and wealth inequality in favor of the billionaires and multi-millionaires, and that is precisely what they have done, according to a perusal of a story in the May 11, 2018 issue of the Wall Street Journal (Buybacks Surge, Steadying Market, Wall Street Journal).

The Journal reported “U.S. companies are buying back their shares at a record pace, providing fresh support during a rocky stretch for the stock market when many investors have rushed for the exits. S&P 500 companies that have reported earnings for the first three months of 2018 bought $158 billion of their own stock in the quarter…. About 85% of S&P 500 components (companies which are also known as corporations) have reported so far.”

The Journal reports corporations can do this since the “new tax law” is “freeing up cash.” This is something corporations badly need since total US corporate profits fell during the fourth quarter of 2017. One can be reasonably suspicious that before-tax corporate profits during the first quarter of 2018 might also have fallen, especially since the US and world economies are at the tail end of an economic expansion. Those first quarter statistics are not yet available.

One can be reasonably suspicious that, as I pointed out in a previous story, much of the tax cut money would be used by corporations and the rich to fuel the stock market higher, rather than create jobs building products for which there is no demand.

The S&P 500 peaked at $2853.53 on January 26 of this year. It has been down ever since, influenced to a large degree by the fall in fourth-quarter profits. The Dow also peaked in January and has been down since then. This is likely why investors are fleeing the stock market.

When the Journal reporters write about “investors,” they are not writing about you and me. They are writing about billionaires, multi-millionaires, Wall Street Banks like Goldman Sachs, hedge funds, wealth fund managers, and other financial institutions that invest mostly for rich people.

So corporate managements are buying their own shares and taking them off the market. This is done in order to push share prices higher, which is a simple case of supply and demand. Reduce the supply of shares on the market, and this should jack up prices, so long as no other variables happen to come along. One of which is the decline in corporate profits.

Of course, there is something else CEO’s of corporations are doing to entice investors into the market.

They are taking the savings from tax cuts and offering higher dividends, which are payments made to shareholders. Notice these payments will go mostly to billionaires and millionaires, along with the higher priced shares due to the buybacks.

So the stock market bubble continues thanks to the Trump/Republican tax cuts for the rich and their corporations. Naturally, this only increases income and wealth inequality. Worst yet, with a recession right around the corner, all that money in buybacks and increased dividends is simply throwing good money after bad.

As a final note, I should point out that the Journal reporters (Ben Eisen and Akane Otani) are either stupid, poor reporters, or liars. They write, “The S&P 500 is up only modestly for the year.” Apparently, they do not count the month of January as being part of the year 2018 because that is when the S&P 500 reached its peak value, at least according to Yahoo. On the other hand, they write, “…many analysts believe major indexes would have suffered losses without the support of buybacks.” This is, of course, the purpose of the buybacks.

There is no doubt about the purpose of the tax cuts for the rich; increase income and wealth inequality in their favor and at the expense of the 99 percent. The federal government is now looking at reducing programs for the infirmed, the needy, the elderly, children, and others, in large measure due to the tax cuts. The federal deficit is now growing, thanks to the tax cuts. Fewer taxes collected mean fewer dollars for government programs that benefit anybody except the rich.

The federal government and the United States Federal Reserve Bank will only print up trillions of dollars to save the rich. The rest of us, being cannon fodder for the rich, are expendable.

For more information on this see Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–JohnHively.Wordpress.com

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