The Justice Department has just obtained documents showing thatJPMorgan Chase, Wall Street’s biggest bank, has been hiring the children of China’s ruling elite in order to secure “existing and potential business opportunities” from Chinese government-run companies. “You all know I have always been a big believer of the Sons and Daughters program,” says one JP Morgan executive in an email, because “it almost has a linear relationship” to winning assignments to advise Chinese companies. The documents even include spreadsheets that list the bank’s “track record” for converting hires into business deals.
It’s a serious offense. But let’s get real. How different is bribing China’s “princelings,” as they’re called there, from Wall Street’s ongoing program of hiring departing U.S. Treasury officials, presumably in order to grease the wheels of official Washington? Timothy Geithner, Obama’s first Treasury Secretary, is now president of the private-equity firm Warburg Pincus; Obama’s budget director Peter Orszag is now a top executive at Citigroup.
Or, for that matter, how different is what JP Morgan did in China from Wall Street’s habit of hiring the children of powerful American politicians? (I don’t mean to suggest Chelsea Clinton got her hedge-fund job at Avenue Capital LLC, where she worked from 2006 to 2009, on the basis of anything other than her financial talents.) ( Continue… )
The President’s speech Wednesday on inequality avoided the “R” word. No politician wants to mention “redistribution” because it conjures up images of worthy “makers” forced to hand over hard-earned income to undeserving “takers.”
But as low-wage work proliferates in America, so-called takers are working as hard if not harder than anyone else, and often at more than one job.
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Yet they’re still not making it because the twin forces of globalization and technological change have reduced their bargaining power and undermined their economic standing — while bestowing ever greater benefits on a comparative few with the right education and connections (and whose parents are often best able to secure these advantages for them).
Better education and training for those on the losing end is critically important, as will several of the other proposals the President listed. But they will only go so far. ( Continue… )
The most important website last weekend and in weeks to come — on which the hopes and fears of countless Americans are focused (and the President’s poll-ratings depend) – is not HealthCare.gov. It’s Amazon.com.
Even if and when HealthCare.gov works perfectly, relatively few Americans will be affected by it. Only 5 percent of us are in the private health-insurance market to begin with. But almost half of Americans are now shopping for great holiday deals online, and many will be profoundly affected — not because they get great deals, but because their jobs and incomes are at stake.
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Online retailing is the future. Amazon is the main online shopping portal this holiday season but traditional retailers are moving online as fast as they can. Online sales are already up 20 percent over last year, and the pace will only accelerate.Target and many other bricks-and-mortar outlets plan to spend more on technology next year than on building and upgrading new stores.
Americans are getting great deals online, and they like the convenience. But there’s a hidden price. With the growth of online retailing, fewer Americans will have jobs in bricks-and-mortar retail stores.
Amazon announced last summer it would add 5,000 new jobs to the 20,000 it already has. But not even 25,000 Amazon jobs come near to replacing the hundreds of thousands of retail jobs Amazon has already wiped out, and the hundreds of thousands more it will eliminate in the future. ( Continue… )
Having failed to defeat the Affordable Care Act in Congress, to beat it back in the last election, to repeal it despite more than eighty votes in the House, to stop it in the federal courts, to get enough votes in the Supreme Court to overrule it, and to gut it with outright extortion (closing the government and threatening to default on the nation’s debts unless it was repealed), Republicans are now down to their last ploy.
They are hell-bent on destroying the Affordable Care Act in Americans’ minds.
A document circulating among House Republicans (reported by the New York Times) instructs them to repeat the following themes and stories continuously: “Because of Obamacare, I Lost My Insurance.” “Obamacare Increases Health Care Costs.” “The Exchanges May Not Be Secure, Putting Personal Information at Risk.”
Every Republican in Washington has been programmed to use the word “disaster” whenever mentioning the Act, always refer to it as Obamacare, and demand its repeal. ( Continue… )
Walmart just reported shrinking sales for a third straight quarter. What’s going on? Explained William S. Simon, the CEO of Walmart, referring to the company’s customers, “their income is going down while food costs are not. Gas and energy prices, while they’re abating, I think they’re still eating up a big piece of the customer’s budget.”
Walmart’s CEO gets it. Most of Walmart’s customers are still in the Great Recession, grappling with stagnant or declining pay. So, naturally, Walmart’s sales are dropping.
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But what Walmart’s CEO doesn’t get is that a large portion of Walmart’s customers are lower-wage workers who are working at places like … Walmart. And Walmart, not incidentally, refuses to raise its median wage (including its army of part-timers) of $8.80 an hour.
Walmart isn’t your average mom-and-pop operation. It’s the largest employer in America. As such, it’s the trendsetter for millions of other employers of low-wage workers. As long as Walmart keeps its wages at or near the bottom, other low-wage employers keep wages there, too. All they need do is offer $8.85 an hour to have their pick. ( Continue… )
How will the 2016 election be framed? What will be America’s choice?
If the coverage of last week’s two big winners offers a guide, the choice will be between “pragmatism” and “ideology.”
But the mainstream media used a different adjective to describe Bill de Blasio, last week’s other landslide victor. The New York Times, for example, wrote of “the rise of the left-leaning Mr. de Blasio.”
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Again and again, Christie is described as the pragmatist; De Blasio, the lefty. ( Continue… )
Pundits who are already describing the victories of Terry McAuliffe in Virginia and Chris Christie in New Jersey as a “return to the center” of American politics are confusing the “center” with big business and Wall Street.
A few decades ago McAuliffe would be viewed as a right-wing Democrat and Christie as a right-wing Republican. Both garnered their major support from corporate America, and both will reliably govern as fiscal conservatives who won’t raise taxes on the wealthy.
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Both look moderate only by contrast with the Tea Partiers to their extreme right. ( Continue… )
So how to explain this paradox?
As of November 1 more than 47 million Americans have lost some or all of their food stamp benefits. House Republicans are pushing for further cuts. If the sequester isn’t stopped everything else poor and working-class Americans depend on will be further squeezed.
We’re not talking about a small sliver of America here. Half of all children get food stamps at some point during their childhood. Half of all adults get them sometime between ages 18 and 65. Many employers – including the nation’s largest, Walmart – now pay so little that food stamps are necessary in order to keep food on the family table, and other forms of assistance are required to keep a roof overhead.
The larger reality is that most Americans are still living in the Great Recession. Median household income continues to drop. In last week’s Washington Post-ABC poll, 75 percent rated the state of the economy as “negative” or “poor.”
So why is Washington whacking safety nets and services that a large portion of Americans need, when we still very much need them? ( Continue… )
House Majority Leader Eric Cantor says Republicans will seek to delay a requirement of the 2010 Affordable Care Act that all Americans obtain health insurance or face a tax penalty. ”With so many unanswered questions and the problems arising around this rollout, it doesn’t make any sense to impose this one percent mandate tax on the American people.”
While Republicans plot new ways to sabotage the Affordable Care Act, it’s easy to forget that for years they’ve been arguing that any comprehensive health insurance system be designed exactly like the one that officially began October 1st, glitches and all.
For as many years Democrats tried to graft healthcare onto Social Security and Medicare, and pay for it through the payroll tax. But Republicans countered that any system must be based on private insurance and paid for with a combination of subsidies for low-income purchasers and a requirement that the younger and healthier sign up. ( Continue… )
Conservative Republicans have lost their fight over the shutdown and debt ceiling, and they probably won’t get major spending cuts in upcoming negotiations over the budget.
But they’re winning the big one: How the nation understands our biggest domestic problem.
They say the biggest problem is the size of government and the budget deficit.
In fact our biggest problem is the decline of the middle class and increasing ranks of the poor, while almost all the economic gains go to the top.
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The Labor Department reported Tuesday that only 148,000 jobs were created in September — way down from the average of 207,000 new jobs a month in the first quarter of the year. ( Continue… )