Six Demands the Wall Street Protesters Should Make
People over profit: An economic democracy is an economy that subordinates profit to people, not the other way around.
Stakeholders over shareholders: An economic democracy is an economic system in which the voices, rights, and interests of all economic stakeholders — including employees, stockholders, communities, ecosystems, other species and future generations — are represented. Unlike our current economy where shareholders are given primacy, in an economic democracy no one stakeholder is granted a disproportionate degree of power and privilege.
Better not bigger: In order to reorient the economy towards people and all stakeholders, we have to release it from the captivity of profit. In an economy geared towards GDP growth, the bottom line is the bottom line, and protecting it means suppressing wages, slashing payrolls, passing on costs to other people, other places, and other times. Most importantly, our economy has outgrown the physical limits of the planet, and saving civilization means stopping growth. A democratic economy should be a steady-state economy where existing wealth is distributed fairly, and where economic health is measured by true indicators of social welfare rather than the blunt and archaic tool of GDP. The Center for the Advancement of the Steady State Economy is a useful resource for steady-state solutions.
Main Street not Wall Street : The design of our financial system undermines true markets and productive community-based enterprises in favor of reckless speculation. It is designed to suck wealth away from communities and towards the corporate elite. A good blueprint here is the New Economy Working Group’s report How to Liberate America from Wall Street Rule.
One employee, one vote: An economic democracy is an economy where companies are built around the concept of one worker, one vote. In an economic democracy a company is a community of employees, where the employees, as full citizens of that community and the true source of company profit, decide how to invest that profit in the community. In this way, an economic democracy is distinct from both capitalism and socialism — both variations of economic oligarchy — where private boards on the one hand and public bureaucrats on the other decide how the profits workers generate are disposed of.
Economic Constitutionalism: In the United States Constitution the framers properly defined the powers and limits to the powers of the powerful institutions that govern our society. In an age where corporations have become as powerful as any institution of government, and have amassed undue influence over the policies of those institutions, their powers need to be defined and constitutionally limited just like any institution of government.
(Source: azspot)
How to Liberate America from Wall Street Rule
Despite the financial crash of 2008, the financial assets of America’s billionaires and the idle cash of the most profitable corporations are now at historic highs. Their biggest challenge is figuring out where to park all their cash.
Unfortunately, most of those who hold the cash and the corporations they control have lost interest in long-term investments that build and expand strong enterprises. The substantial majority of trades in financial markets are made by high-speed computers in securities held for fractions of a second. Business pundits still refer to this trading as investment. It bears no resemblance, however, to the investment required to put people to work rebuilding a strong America.
Corporations are using their stores of cash primarily to buy back their own stock, acquire control of other companies, invest in off-shoring yet more American jobs, and pay generous dividends to shareholders and outsized bonuses to management.
It was not always so. In response to the Great Depression, our country enacted financial reforms that put in place a system of money, banking, and investment based on community banks, mutual savings and loans, and credit unions. These institutions provided financial services to local Main Street economies that employed Americans to produce and trade real goods and services in response to community needs and opportunities.
This system, which Wall Street interests dismiss as quaint and antiquated, financed the U.S. victory in World War II, the creation of a strong American middle class, an unprecedented period of economic stability and prosperity, and the investments that made America the world’s undisputed industrial and technological leader.
In the 1970’s Wall Street interests began pushing a deregulation agenda that led to a transfer of financial power from Main Street to Wall Street. Wall Street’s mega-banks lost interest in real investment and developed a new business model. They now specialize in charging excessive fees and usurious interest rates, providing leverage to speculators, speculating for their own accounts, luring the unwary into mortgages they cannot afford, bundling junk mortgages to sell them as triple-A securities, betting against the clients to whom they sell the overrated securities, extracting subsidies and bailouts from government, laundering money from drug and arms traders, and offshoring their profits to avoid taxes.
The consequences include the erosion of the middle class, an extreme concentration of wealth and power, a costly financial collapse, persistent high unemployment, housing foreclosures, collapsing environmental systems, the hollowing out of U.S. industrial, technological, and research capacity, huge public and international trade deficits, and the corruption of our political institutions.
Wall Street profited at every step and declared its experiment with deregulation and tax cuts for the wealthy a great success. It now argues for extending the same measures even further.
(Source: azspot)
We need to fix the economy to fix education
In the intensifying debate over the future of education, two camps seem to be emerging. On one side, there are people like New York University professor/former Deputy U.S. Education Secretary Diane Ravitch who argue that larger social ills such as poverty, joblessness, economic despair and lack of health coverage negatively affect educational achievement, and that until those problems are addressed, schools will never be able to produce the results we want. On the other side, there are so-called “reformers” who want to radically change (read: charterize and/or privatize) public education under the premise that the primary problems are bad/lazy teachers and “unaccountable” school administrators (to hear a debate between Ravitch and self-described “reformer” Jon Alter, listen to this podcast from my KKZN-AM760 radio show).
For her work marshaling hard facts and empirical data against corporate-backed “reformers” who rely largely on substance-free rhetoric and platitudes, Ravitch has been named this year’s winner of the Daniel Patrick Moynihan Prize — so clearly, she’s holding her own, even as U.S. Secretary of Education Arne Duncan is launching a desperate PR campaign to make her Public Enemy #1. But just in case she needed any help making her argument about poverty and education, the National Bureau of Economic Research has published a new report further supporting her position.
(Source: azspot)
Noam Chomsky on the economy, Iran and NATO expansion in 2009.
(Source: sleepflower, via soupsoup)
In 2009, as unemployment hit its highest level in seventeen years, Morgan Stanley paid its employees over fourteen billion dollars. Goldman Sachs paid out over sixteen billion. In 2010, bonuses were even higher. For decades, the American financial system was stable and safe.
But then something changed.
The financial industry turned its back on society, corrupted our political system, and plunged the world economy into crisis. At enormous cost, we’ve avoided disaster, and are recovering.
But the men and institutions that caused the crisis are still in power; and that needs to change.
They will tell us that we need them, and that what they do is too complicated for us to understand.
They will tell us it won’t happen again.
They will spend billions fighting reform.
It won’t be easy, but some things are worth fighting for.
(Source: soupsoup)
