American inequality highlighted by 30-year gap in life expectancy

July 17, 2008

independent.co.uk

American inequality highlighted by 30-year gap in life expectancy
By Leonard Doyle in Washington

The United States of America is becoming less united by the day. A 30-year gap now exists in the average life expectancy between Mississippi, in the Deep South, and Connecticut, in prosperous New England.

Huge disparities have also opened up in income, health and education depending on where people live in the US, according to a report published yesterday.

The American Human Development Index has applied to the US an aid agency approach to measuring well-being – more familiar to observers of the Third World – with shocking results. The US finds itself ranked 42nd in global life expectancy and 34th in survival of infants to age. Suicide and murder are among the top 15 causes of death and although the US is home to just 5 per cent of the global population it accounts for 24 per cent of the world’s prisoners.

Despite an almost cult-like devotion to the belief that unfettered free enterprise is the best way to lift Americans out of poverty, the report points to a rigged system that does little to lessen inequalities.

“The report shows that although America is one of the richest nations in the world, it is woefully behind when it comes to providing opportunity and choices to all Americans to build a better life,” the authors said.

Some of its more shocking findings reveal that, in parts of Texas, the percentage of adults who pass through high school has not improved since the 1970s.

Asian-American males have the best quality of life and black Americans the lowest, with a staggering 50-year life expectancy gap between the two groups.

Despite the fact that the US spends roughly $5.2bn (£2.6bn) every day on health care, more per capita than any other nation in the world, Americans live shorter lives than citizens of every western European and Nordic country, bar Denmark..

Using official government statistics, the study points out that because American schools are funded primarily from local property taxes, rich districts get the best state education. The US has no federally mandated sick pay, paternity leave or annual paid vacation.

“Some Americans are living anywhere from 30 to 50 years behind others when it comes to issues we all care about: health, education and standard of living,” said Sarah Burd-Sharps co-author of the report.

Although the US is one of the most powerful and rich nations in the world, the study concludes it is “woefully behind when it comes to providing opportunity and choices to all Americans to build a better life”.

According to a United Nations human development report, the US is in 12th place in a league table of wealthy developed nations.


Building A New World

July 2, 2008

This speech was given by Author and Historian William Blum during the “Building A New World” conference at Radford University, Virginia, May 23, 2008.

I like to ask the question: What does US foreign policy have in common with Mae West, the Hollywood sexpot of the 1940s? The story is told of a visitor to her mansion, who looked around and said: “My goodness, what a beautiful home you have.” And Mae West replied: “Goodness has nothing to do with it.”

My assignment here today, as I understand it, is to enlighten you all on how to quickly end the war in Iraq. And how to prevent the United States from attacking Iran. Or Venezuela, Cuba, Ecuador and Bolivia. In short, how to put an end to the American empire.

Also, how to impeach Bush and Cheney.

And, while I’m at it, maybe, how to end poverty once and for all, how to save the environment, and how to legalize marijuana.

Well, good luck to us all.

Actually, as fanciful as all that sounds, I think that if the radical left had abundant access to the mass media, for a year or so, we could do it. It wouldn’t even have to be sole access, just as much time on radio and TV networks as the conservatives and NPR-type centrists and liberals have.

As some of you may recall, two years ago Osama bin Laden, in one of his audio messages, recommended that Americans should read my book Rogue State. Within hours I was swamped by the media and soon appeared on many of the leading TV news shows, dozens of radio programs, and a long profile in the Washington Post. In the previous 10 years I had sent in dozens of letters to the Post mainly commenting on their less-than-ideal coverage of US foreign policy. Not one was printed. Now my photo was on page one.

A few people who called into the TV and radio programs I was on attacked me as if I and bin Laden were friends and I had asked him for the endorsement. I had to point out that he and I were not really friends; in fact, I hadn’t spoken to him in months.

Some of the media hosts wanted me to say that I was repulsed by bin Laden’s “endorsement” . But I did not say I was repulsed, because I wasn’t. What I said was: “There are two elements, involved here: On the one hand, I totally despise any kind of religious fundamentalism and the societies spawned by such, like the Taliban in Afghanistan. On the other hand, I’m a member of a movement which has the very ambitious goal of slowing down, if not stopping, the American Empire, to keep it from continuing to go round the world doing things like bombings, invasions, overthrowing governments, and torture.

To have any success, we need to reach the American people with our message. And to reach the American people we need to have access to the mass media. What has just happened has given me the opportunity to reach millions of people I would otherwise never reach. Why should I not be glad about that? How could I let such an opportunity go to waste?”

But many, perhaps most, of those who called in were not hostile. During a 45-minute interview on C-Span and on some radio programs, several people called in to say how delighted they were to hear views expressed that they had never heard before on that station, or had never heard anywhere. I received more than 1000 emails from people I had never been in contact with before, most of which were supportive. I estimate that I sold about 20,000 copies of my book because of my increased exposure.

In summary, I think that there’s a very large audience of Americans out there just waiting for us to reach them. Many of them very much suspect that there are things seriously wrong with what the media, the White House, and the Pentagon tell them, but they don’t know enough to really be sure or to try to influence others. And they’re weighed down by the myths, the myths surrounding US foreign policy. I’ve gotten quite a few emails from people who tell me about friends and family who simply refuse to be swayed by the facts in my books or other sources. No matter how much these people are shown that what they believe is fallacious, they still refuse to reconsider their views. They say that the author must be quoting out of context or they simply don’t care what the argument is.

Now why is that? Are these people just stupid? I think a better answer is that they have certain preconceptions; consciously or unconsciously, they have certain basic beliefs about US foreign policy, and if you don’t deal with those basic beliefs you’ll be talking to a stone wall. Here are what I think are eight of those basic beliefs, or they can as well be called “myths”:

(1) US foreign policy “means well”. American leaders may make mistakes, they may blunder, they may lie, they may even on the odd occasion cause more harm than good, but they do mean well. Their intentions are honorable, if not divinely inspired. Of that most Americans are certain. They genuinely wonder why the rest of the world can’t see how benevolent and self-sacrificing America has been.

The idea that the United States is seeking to dominate the world, and exploit it economically, and is prepared to use any means necessary, is not something that’s easy for most Americans to swallow. They see our leaders on TV and their photos in the press, they see them smiling or laughing, telling jokes; see them with their families, hear them speak of God and love, of peace and law, of democracy and freedom, of human rights and justice and even baseball … How can such people be called immoral or war criminals?

They have names like George and Dick and Donald, not a single Mohammed or Abdullah in the bunch. And they speak English. Well, George almost does. People named Mohammed or Abdullah cut off an arm or a leg as punishment for theft. We know that that’s horrible. We’re too civilized for that. But we don’t consider that people named George and Dick and Donald drop millions of cluster bombs on cities and villages, and the many unexploded ones become land mines, and before very long a child picks one up or steps on one of them and loses an arm or leg, sometimes worse.

I like to ask the question: What does US foreign policy have in common with Mae West, the Hollywood sexpot of the 1940s? The story is told of a visitor to her mansion, who looked around and said: “My goodness, what a beautiful home you have.” And Mae West replied: “Goodness has nothing to do with it.”

That’s one of the important points you have to make about US foreign policy — goodness has nothing to do with it.

If I were to write a book called The American Empire for Dummies, page one would say: Don’t ever look for the moral factor. US foreign policy has no moral factor built into its DNA. Clear your mind of that baggage which only gets in the way of seeing beyond the clichés and the platitudes they feed us all.

So when American officials state or imply benevolent motivations behind their foreign policy, we should not let them get away with claiming such intentions. Supporters of US policies have that rationale profoundly embedded in their thinking, and I find it very useful in discussions with such people to raise moral questions about the government’s motivations. These people are not used to hearing such an argument. The media almost never mentions it. It’s almost disorienting for Americans. Or I sometimes ask them what the United States would have to do abroad to lose their support? What for them would be too much? Try that.

(2) The United States is really concerned with this thing called “democracy”. Even though in the past 60 years, the US has attempted to overthrow literally dozens of democratically- elected governments, sometimes successfully, sometimes not, and grossly interfered in as many democratic elections in every corner of the world. Moreover, it would be difficult to name a brutal dictatorship of the second half of the 20th century that was not supported by the United States. Not just supported, but put into power, and kept in power, against the wishes of the population.

The question is: What do the Busheviks mean by “democracy”?

Well, the first thing they have in mind is making sure the country in question is hospitable to corporate globalization and American military bases; and if this means forcing a regime change, so be it. The last thing they have in mind is any kind of economic democracy, the closing of the gap between the desperate poor and those for whom too much is not enough.

(3) Anti-American sentiment in the Middle East comes from hatred of our alleged freedom and democracy, or our wealth, or our secular government, or our culture. George W. has declared this many times. But polls taken in many Middle East countries in recent years, by respected international polling organizations, show again and again that the great majority of those people really admire American society.

There’s no clash of civilizations. It’s much simpler. What bothers them about the United States are the decades of appalling things done to their homelands by US foreign policy. That’s what motivates anti-American terrorists. It’s not the sex in American films and TV; it’s the American bombs dropping on their homes and schools. It’s not the alcohol and the miniskirts. It’s the American invasions and occupations; American torture; support of Middle East dictators; unmitigated support of Israel.

It works the same all over the world. In the period of the 1950s to the 1980s in Latin America, in response to a long succession of Washington’s awful policies, there were countless acts of terrorism against US diplomatic and military targets as well as the offices of US corporations. No one likes being invaded or bombed or tortured or having their government overthrown by a foreign power. Why should there be any doubt about this? But Americans have to be reminded of it.

I don’t think, by the way, that poverty plays much of a role in creating terrorists. The 9-11 hijackers, or alleged hijackers, were not a bunch of poor peasants; they were largely middle and upper class, and educated. Bin Laden himself is, or was, a millionaire. So we shouldn’t confuse terrorism with revolution.

(4) The United States has been pursuing a War on Terror. But the fact is the US is not actually against terrorism per se, they’re against only those terrorists who are not allies of the American empire. For example, there is a lengthy and infamous history of Washington’s support for numerous anti-Castro terrorists, even when their terrorist acts were committed in the United States.

At this moment, Luis Posada Carriles remains protected by the US government in Florida, though he masterminded the blowing up of a Cuban airplane that killed 73 people. Venezuela, a key location in this murder plot, has asked Washington to return Posada to Caracas. But the US has refused. He’s but one of hundreds of anti-Castro terrorists who’ve been given haven in the United States over the years along with many other terrorists from Chile, Guatemala, El Salvador, and other countries.

The United States has also provided support of terrorists in Kosovo, Bosnia, Iran, Iraq, Chechnya, Afghanistan, Pakistan, and elsewhere, including those with known connections to al Qaeda. All to further foreign policy goals more important than fighting terrorism. What’s happened is that the War on Terror has served as a cover for the expansion of the empire.

Supporters of the War on Terror tell us that it’s been a success because there hasn’t been a terrorist attack in the US in the six -plus years since 9-11. Well, there wasn’t a terrorist attack in the US in the six-plus years before 9-11 either. So what does that prove? More importantly, since the first American bombs fell on Afghanistan in October 2001 there have been scores of terrorist attacks against American institutions in the Middle East, South Asia and the Pacific — military, civilian, Christian, and other targets associated with the United States, including two very major attacks in Indonesia with large loss of life.

But the worst failure of the War on Terror is that American actions in Iraq and Afghanistan, including all the torture, have probably created thousands of new anti-American terrorists. We’ll be hearing from them for a terribly long time.

(5) If Saddam Hussein had in fact possessed all the terrible weapons the US claimed he had, the invasion and occupation of Iraq would then have been justified. Of the numerous lies we’ve been told about the war in Iraq, this is the biggest one, this is the most insidious, the necessary foundation for all the other lies. Think about it — What possible reason could Saddam Hussein have had for attacking the United States or Israel other than an irresistible desire for mass national suicide? Because that’s what would have followed an Iraqi attack on the US or Israel — if not a nuclear devastation of Iraq, then a non-nuclear devastation of Iraq.

But if in fact Iraq was not a threat to attack the US or Israel, then all we’ve been told about the war, before it began, and afterwards, is totally meaningless; all the accusations and discussions about whether the intelligence was right or wrong about this or that, or whether the Democrats also believed the lies, all meaningless.

And keep in mind, the same question applies to Iran: What possible reason could Iran have for attacking the United States or Israel other than an irresistible desire for mass national suicide? Of course, what worries Tel Aviv and Washington is not so much the danger of such an attack, but the fact that some day Israel might not be the only nuclear power in the Middle East, a serious loss of their ability to dominate.

Sometimes, when I have a discussion with a person who supports the war in Iraq, and the person has no other argument left to defend US policy there he may say something like: “Well, just tell me one thing, are you glad that Saddam Hussein was overthrown?”

And I say “No”.

And he says “No?”

And I say: Tell me, if you went into surgery to correct a knee problem and the surgeon mistakenly amputated your entire leg, what would you think if someone asked you afterward: Well, aren’t you glad that you no longer have a knee problem? It’s the same with the Iraqi people. They no longer have a Saddam Hussein problem. In general, the great majority of Iraqis had a much better life under Saddam Hussein than they’ve had under US occupation. That’s been confirmed again and again.

(6) There are many who believe that invading and occupying Iraq has been a horrible mistake, but that doing the same in Afghanistan has been justified. Afghanistan has become “the good war”. It was to revenge the deaths of September 11, 2001, was it not? Of course — in a rational world — revenge should be taken against those responsible for what happened on that infamous date. But of the tens of thousands of people killed by the US and its allies in Afghanistan the past six-plus years, how many, can it be said, had anything to do with the events of September 11? My rough estimate is … none. So what kind of revenge is that?

Yes, Osama bin Laden had been living in Afghanistan and that’s where the attack had been partially planned. But consider … If Timothy McVeigh, who carried out the terrible bombing of the federal building in Oklahoma City in 1995, had not been quickly caught, would the government have bombed the state of Michigan or any of the other places McVeigh had called home and where he had planned his attack?

Whatever one thinks of the appalling society the Taliban created, they had not really been associated with terrorist acts, and the masses of Taliban supporters shouldn’t have been held responsible if their leader, Mohammed Omar, one person, allowed foreign terrorists into the country, any more than I would want to be held responsible for all the Cuban terrorists in Miami. And most of the foreigners had probably come to Afghanistan in the 1990s to help the Taliban in their civil war — a religious mission for them — nothing the US government should have been concerned about. And remember, Mohammed Omar offered to turn bin Laden over to the United States if Washington presented proof of bin Laden’s involvement in 9-11. The United States did not accept the offer.

(7) In the Cold War, the United States defeated what was known as the International Communist Conspiracy. The legacy of the Cold War is still with us; it keeps coming up, often used by conservatives in one way or another as an argument in support of the War on Terror.

Let me take you back a bit now. If you think what you have now is government lying and deceit, let me tell you that in my day, during the cold war, the big lie, the big huge lie they pounded into our heads from childhood on was that there was something out there called The International Communist Conspiracy, headquarters in Moscow, and active in every country of the world, looking to subvert everything that was decent and holy, looking to enslave us all. That’s what they taught us, in our schools, our churches, on radio, TV, newspapers, in our comic books — The Communist Menace, the red menace, more dangerous than al Qaeda is presented to us today.

The Communist Menace was international, you couldn’t escape it. And almost every American believed this message unquestioningly. I was a good, loyal anti-communist until I was past the age of 30. In fact, in the 1960s I was working at the State Department planning on becoming a foreign service officer so I could join the battle against communism, until a thing called Vietnam came along and changed my mind, and my life.

It was all a con game. There was never any such animal as The International Communist Conspiracy. What there was, was people all over the Third World fighting for economic and political changes which didn’t coincide with the needs of the American power elite, and so the US moved to crush those governments and those movements, even though the Soviet Union was playing hardly any role at all in those scenarios.

Washington officials of course couldn’t say that they were intervening somewhere to block social change, so they called it fighting communism, fighting a communist conspiracy, and of course fighting for freedom and democracy. Just like now the White House can’t say that it invaded Iraq to expand the empire, or for the oil, or for the corporations, or for Israel, so it says it’s fighting terrorism.

Remember: The cold war ended in 1991 … the International Communist Conspiracy was no more … no more red threat … and nothing changed in American foreign policy. Since that time the US has been intervening, bombing, and overthrowing governments just as often as during the cold war. What does that tell you? It tells me that the so-called “communist threat” was just a ploy, an excuse for American imperialism.

Keep this in mind:

Following its bombing of Iraq in 1991 — after the cold war was ended — the United States wound up with military bases in Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the United Arab Emirates.

Following its bombing of Yugoslavia in 1999, the United States wound up with military bases in Kosovo, Albania, Bulgaria, Macedonia, Hungary, Bosnia and Croatia.

Following its bombing of Afghanistan in 2001-2, the United States wound up with military bases in Afghanistan, Pakistan, Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Georgia, Yemen and Djibouti.

Following its bombing and invasion of Iraq in 2003, the United States wound up with Iraq.

This is not very subtle foreign policy. It’s certainly not covert. The men who run the American Empire are not easily embarrassed.

And that’s the way the empire grows — a base in every region, ready to be mobilized to put down any threat to imperial rule, real or imagined. 63 years after World War II ended, the United States still has major bases in Germany and Japan; 55 years after the end of the Korean War, tens of thousands of American armed forces continue to be stationed in South Korea.

The last myth I’d like to mention has to do with the media, and it affects the political views of Americans as much as any of the previously mentioned myths. It’s the idea that conservatives and liberals are ideological polar opposites. In actuality, conservatives, especially of the neo- kind, are far to the right on the political spectrum, while liberals are ever so slightly to the left of center. Yet, we are led to believe that a radio or TV talk show on foreign policy with a conservative and a liberal is offering a “balanced” point of view.

But a more appropriate balance to a neo-conservative would be a left-wing radical or progressive. American liberals are typically closer to conservatives on foreign policy than they are to these groups on the left, and the educational value of such supposedly balanced media can be more harmful than beneficial as far as seeing through the empire’s actions and motives. The listener thinks he’s getting more or less a full range of opinion on the topic and doesn’t realize that there’s a whole world outside the narrow box he’s being placed in.

The fundamental political difference between liberalism and Marxism is that liberalism sees a problem — such as America’s role as the world’s bully — simply as bad policy, while the Marxist sees it as something that flows out logically from US economic and military interests.

When a liberal sees a beggar, he says the system isn’t working. When a Marxist sees a beggar, he says the system is working.

Ideology is a very important concept and I think that most people are rather confused by it, which is due in no small measure to the fact that the media are confused by it, or they at least pretend to be confused. The official ideology of the American media is that they don’t have any ideology.

So all this I hope is ammunition you can use in trying to win over new recruits for the cause. And don’t be shy about raising such points even when “preaching to the choir” or “preaching to the converted”. That’s what speakers and writers are often scoffed at for doing — saying the same old thing to the same old people, just spinning their wheels. That’s what some would say I’m doing at this very moment. You are part of the choir, are you not?

But long experience as speaker, writer and activist in the area of foreign policy tells me it just ain’t so. From the questions and comments I often get from my audiences, in person and via email, and from other people’s audiences as well, I can plainly see that there are numerous significant information gaps and misconceptions in the choir’s thinking, often leaving them unable to see through the newest government lie or propaganda scheme. They’re unknowing or forgetful of what happened in the past that illuminates the present. Or they may know the facts but are unable to apply them at the appropriate moment. Or they’re vulnerable to being confused by the next person who comes along with a specious argument that opposes what they currently believe, or think they believe. In short, the choir needs to be frequently reminded and enlightened.

So that’s your assignment. Go out there and educate, and agitate, and subvert. There’s no magical tactic, only persistence. As the Quakers are fond of saying: If not now, when? If not here, where? If not you, who?

I thank you very much.


New Yorkers Use Classic Salsa to Fight Gentrification

June 6, 2008

New York’s salsa scene, still going strong in Spanish Harlem, valiantly beats back the McCondo purge
by Raquel Cepeda

I almost broke my neck the other day, walking across the intersection of Third Avenue and 109th Street in Spanish Harlem—better known as El Barrio—to pick my daughter up from school. I whirled around at the sight of a man I thought didn’t exist anymore in New York City. He was a local titere (a street tough), sauntering down the very same “Calle Luna, Calle Sol” that salsa legend Héctor Lavoe sang about on a song from friend and fellow icon Willie Colón’s classic 1973 album, Lo Mato.

The cautionary tale, sung in Spanish, warns the citizens of John Lindsay’s New York to stay clear of the matóns (hoodlums) locking down the streets unless they’re prepared to go fisticuffs, or worse. But here, in 2008, the older, weathered man—well into his fifties—strutted right past me rocking a beaded Puerto Rican flag necklace and matching T-shirt, carrying a shoddy boombox on his shoulder that blared yet another of Lavoe’s many emblematic collaborations with Colón, “Che Che Colé,” from its rustic speakers.

I couldn’t help but flash back to a rare interview—obviously one of his last, now canonized on YouTube—wherein a melancholic, barely recognizable Lavoe slurred that “Che Che Colé” was, to him, the most indelible song among all his nonpareil repertoire, because it transported him back to happier days when he had money, and his wife Nilda and son Héctor Jr. were in his life.

Sung in the authentically jibaro, rural timbre that makes every listen a visceral experience, the opening track off Colón’s (recently remastered) 1969 long-player Cosa Nuestra feels like an astral excursion into the countryside of Lavoe’s native Puerto Rico.

But to hear it now? In Manhattan?

Full Article


The War On Greed

May 26, 2008


Evo Morales: 10 Commandments to save the planet, life and humanity

April 23, 2008

The 10 commandments President Evo Morales suggested to save the planet, life and humanity are:

1-Acabar con el sistema capitalista
1-End the capitalist system

2-Renunciar a las guerras
2-Renouncing wars

3-Un mundo sin imperialismo ni colonialismo
3-A world without imperialism or colonialism

4-Derecho al agua
4-Right to water

5-Desarrollo de energi­as limpias
5-Development of clean energies

6-Respeto a la madre tierra
6-Respect for Mother Earth

7-Servicios basicos como derechos humanos
7-Basic services such as human rights

8-Combatir las desigualdades
8-Fighting inequalities

9-Promover la diversidad de culturas y economias
9-Promoting diversity of cultures and economies

10-Vivir bien, no vivir mejor a costa del otro
10-Living well, not living better at the expense of others


Income Inequality Rises in Most States

April 11, 2008

Same old story. The rich get richer, the poor get poorer. The largest level of income inequality is in my home state of New York. Not surprising though, considering the large concentration of wealth that is there and obscenely exists alongside wide spread poverty.

This report is significant in that, among other things, it examines income inequality on a state by state basis. A real in depth look at the economic divide in the US.

Beyond the research and statistics, a conclusion that to me, is only reinforced by this report, is that the market economy is not fair, just or humane. The market economy can not reduce inequality. It can not do so because it needs such social and economic conditions to exist in order for it to function properly for the benefit of society’s wealthy ruling class.

This report is a damning indictment of the American economic and political system.

INCOME INEQUALITY GREW IN MOST STATES OVER PAST TWO DECADES:
Low-Income Families Lost Ground Since Late 1990s

The gap between the richest and poorest families, and between the richest and middle-income families, grew significantly in most states over the past two decades, according to a new study by the Center on Budget and Policy Priorities and the Economic Policy Institute.

In fact, the nation’s longstanding trend of growing inequality accelerated since the late 1990s as incomes fell for poor families and stagnated for middle-income families in a number of states.

Low- and middle-income families have reaped few gains since the late 1990s, despite the recent years of economic prosperity. Average incomes actually fell by 2.5% for those in the bottom fifth of the income scale and rose by just 1.3% for those in the middle fifth. Meanwhile, incomes climbed 9% for those in the top fifth.

State Fact Sheets

Full Report


Health Insurance Criminals

April 11, 2008


America’s “Fortunate 400” control vast wealth

March 7, 2008

wsws.org

America’s “Fortunate 400” control vast wealth
By David Walsh
7 March 2008

The richest four hundred American taxpayers have amassed immense wealth, and that amount is steadily increasing, according to figures reported by the Wall Street Journal Wednesday.

The Journal piece and the latest celebration of the world’s billionaires carried out by Forbes magazine point to an increasingly and malignantly polarized American and global social order, with fabulous riches accumulated at one pole and widespread social wretchedness at the other.

The data published in the Wall Street Journal article come from an Internal Revenue Service (IRS) study of wealthy US taxpayers in 2005, an update of a report conducted five years earlier. The study reveals that the 400 super-rich—who represent approximately .0003 percent of the nation’s 134 million taxpayers—reported total income of $85.6 billion in 2005, an average of $213.9 million each.

To be a member of this exclusive crowd, “the Fortunate 400,” as one academic terms the group, an individual had to report an income of at least $100.3 million in 2005, a sharp increase from the $74.5 million such membership would have required only the year before.

The increase in the fortunes of the 400 wealthiest taxpayers over the four years 2002-2005 was phenomenal. In 2002 the average income of the 400 was ‘merely’ $104.1 million, little more than the “entry level” in 2005. The 2002 total income of the group was $41.6 billion, less than half the 2005 total.

The 400 wealthiest absorbed 1.15 percent of total national income in 2005 (in other words, three-millionths of the taxpaying population took in an eighty-seventh of total income), an increase from 1.02 percent in 2004 and more than double the 0.49 percent in 1995. After adjusting for inflation, the minimum income required for entry into the club of 400 has tripled since 1992. This provides a snapshot of a social process that has gone on uninterruptedly under both Democratic and Republican administrations.

The Journal emphasizes that the figures “actually understate the group of 400’s remarkable performance.” The IRS measured the 2005 earnings by what is known as “adjusted gross income,” and does not include tax-exempt interest income from state and local government bonds. In addition, adjusted gross income is only calculated after deducting for various expenses, including moving, alimony and the self-employed health insurance deduction.

The newspaper also notes, “The IRS relied only on what taxpayers actually reported, without making any independent effort to estimate unreported income.”

The parasitic character of the wealth accumulation found expression in the fact that a majority of the income accumulated by the super-rich in 2005 came from capital gains—the amount by which the selling price of an asset exceeds the purchase price. Presumably, much of this came from the stock market boom.

The 400, according to the IRS, reported net capital gains in 2005 of nearly $50 billion, an average of $125 million per tax return, or 58 percent of their total income.

The Bush tax cuts helped this group enrich itself to the tune of billions of dollars. The individuals paid an average federal income tax rate of 18.23 percent in 2005, an increase from 18.16 percent the year prior, but otherwise a lower percentage than in any year since 1992. The richest 400 paid an average tax rate of 30 percent as recently as 1995.

It is some measure of the social regression that has occurred in the US that this tiny handful of obscenely wealthy individuals paid only slightly more than the average income tax rate for all taxpayers in 2005, 12.6 percent.

The IRS study reveals that 322 of the 400 reported total salaries and wages of $7.38 billion, or some $22 million per tax return. Three hundred ninety three reported income from dividends, some $5.9 billion, an average of $15 million each.

The $85 billion in income reported by 400 US taxpayers in a single year is equal to the entire amount that the Bush administration claims it has committed to helping rebuild the Gulf Coast in the wake of Hurricane Katrina, a disaster that devastated the lives of hundreds of thousands. The income of this group in 2005 alone could pay off all outstanding student loans in the US.

Over the last several decades, a transfer of vast amounts of wealth has taken place in the US, to the benefit of the very rich. According to Gregory D. Squires, professor of sociology and public policy and public administration at George Washington University, Washington, D.C., on the Economic Policy Institute web site, between 1967 and 2005 the share of income going to the top quintile of all households increased from 43.6 percent to 50.4 percent, while the share going to the bottom fifth fell from 4 percent to 3.4 percent. In 2004 those in the top one percent experienced a 12.5 percent increase in their incomes while everyone else, the other 99 percent of the population, saw an increase of only 1.5 percent.

In January 2008 workers’ real hourly and weekly earnings in the US were both down by 1 percent from the year before.

The IRS figures for 2005, and there is every reason to believe the process has continued unabated, reveal that the greatest increase in wealth has occurred within a small layer, a tiny fraction of the population. These are the people who “count” in America, the ones who ultimately decide the economic fate of tens of millions, determine the principal actions of the two big business parties and shape the officially-sanctioned “public opinion” daily transmitted through the airwaves and in countless newspaper columns and editorials.

The figures on the “Fortunate 400” shocked even quite respectable members of the establishment. The Journal cited the comment of Michael Graetz, a professor of law at Yale University and a Treasury Department official under President George H. W. Bush: “Those numbers are really stunning. One hundred million dollars is an enormous estate to be accumulated over a lifetime, and not what we think of as one year’s income for anybody.”

1,125 billionaires worldwide

Meanwhile the world’s billionaires continue to grow fatter and fatter. This year’s crop of 1,125, according to Forbes, are worth a total of $4.4 trillion among them, an increase of 26 percent from the year before. On the annual list published a year ago, the magazine calculated 946 billionaires, with combined income of $3.5 trillion.

The existence of this group of financial and corporate predators, who cohabit the planet with some three billion human beings who survive (or fail to) on less than $2 a day, is a symptom of a diseased and doomed social order. In its usual manner, Forbes treated the cancerous growth of personal wealth as the opportunity for a special kind of celebrity watch.

Investor Warren Buffett displaced Microsoft’s Bill Gates as the world’s richest individual, according to Forbes. Buffett was worth some $62 billion as of February 11, an increase of $10 billion from a year ago. Gates gained $2 billion in net worth during the past 12 months, but lost ground to Buffett as the result of his company’s recent unsolicited bid for Yahoo! Gates actually slipped to third place, with $58 billion, falling behind Mexican telecom mogul Carlos Slim Helu ($60 billion).

Reflecting the general drift of the US in the world economy, only four of the world’s 20 richest individuals were Americans, down from ten only two years ago. India now claims four of the world’s ten wealthiest men and women. Russia, 16 years after the collapse of the Soviet Union, is now home to 87 billionaires, second only to the US. Germany comes in third, with 59 billionaires.

Of the 226 newcomers to the list, 77 come from the US, “half of whom made their fortunes in finance and investments, including John Paulson and Philip Falcone, both of whom became wealthy shorting subprime debt.”

In countries where millions go to sleep hungry every night, a handful is enriching itself. According to Forbes’ Luisa Kroll, “Another third of the new billionaires comes from Russia (35), China (28) and India (19). Two of the most noteworthy new entrants are South Africa’s Patrice Motsepe and Nigeria’s Aliko Dangote, the first black Africans to make their debut among the world’s richest. Dangote is also the first-ever Nigerian billionaire.”

The social type is revealing. Of Motsepe, Forbes writes: “Over 15 years Motsepe, preaching free market capitalism, turned a low-level mining services business into the country’s first black-owned mining company, African Rainbow Minerals, with 2007 revenue of $875 million. Driven by the Asian commodities boom, ARM’s share price has rocketed in the past year from $12 to $24, pushing the value of Motsepe’s net worth to $2.4 billion.”

The magazine feels obliged to acknowledge: “But for all the adulation, in South Africa such success comes with a price: being labeled an oligarch. Even many blacks have complained that the country’s 1994 transformation from apartheid to democracy has benefited only the elite few. The criticism stems from laws that require substantial black ownership in certain industries, including mining. A handful of politically connected individuals have grown enormously wealthy as a result. One of Motsepe’s sisters, Bridgette Radebe, who’s married to transport minister Jeffrey Radebe, heads a mining company and is said to be among the wealthiest black women in the country.”

Overall, Forbes notes that not all is “rosy,” pointing out that economic volatility “has been wreaking havoc on these fortunes on a daily basis for months.” Hong Kong billionaire Li Ka-shing lost $5.5 billion of his net worth over a span of 37 days in January and February. China’s richest person, Yang Huiyan, lost some $10 billion over the past year. Others fell off the list entirely, including Lehman Brothers chief Richard Fuld and Bear Stearns ex-chief James Cayne (who lost his job), “both victims of the world’s credit crunch,” and William Pulte of Pulte Homes, “whose stock collapsed along with the housing market.”

The various reports underscore the state of world capitalism in 2008: unrestrained growth of social inequality, economic instability—and the inevitability of social upheaval.


Record inequality in the US

December 22, 2007

wsws.org

Record inequality in the US: Billions for Wall Street bosses as workers’ share of income shrinks
By Patrick Martin

Goldman Sachs, the most profitable US investment bank, will distribute a staggering $12.1 billion in bonuses this month, up from $9.9 billion last year. The company will pay $20.2 billion in all forms of compensation, up from $16.5 billion last year.

While the total compensation figure includes salaries and benefits for all 30,000 people employed at Goldman Sachs—leading to breathless media reports of an “average” compensation of $661,490 per employee—the lion’s share will go to a few hundred top executives, managers and partners, who will receive tens of millions apiece.

Chairman and CEO Lloyd C. Blankfein will rake in about $70 million himself, up from $53.4 million last year, which at the time was the highest income ever reported by a bank CEO.

The bank reported Tuesday that its fourth-quarter profits rose 2.2 percent to $3.2 billion, $7.01 for each share of stock, well above the expectation of $6.61 a share set by stock analysts. Total profits for 2007 were $11.6 billion, up 22 percent over 2006, on total revenues of $88 billion.

Lehman Brothers, the fourth-biggest securities firm, announced last week a bonus pool of $5.7 billion and total compensation of $9.5 billion, with CEO Richard S. Fuld Jr. awarded a $35 million stock bonus, on top of his salary and benefits.

The vice-grip on Wall Street by a handful of big firms is underscored by the report that Goldman’s bonus pool alone was bigger than the total market value of the fifth-largest investment bank, Bear Stearns.

Another yardstick of the influence of Goldman Sachs is that the company’s bonus pool of $12.1 billion was greater than the $11 billion total increase in US government spending on all domestic social programs proposed by the congressional Democrats, and blocked last week by a White House veto threat.

A single Wall Street firm will distribute more than twice as much money to a few hundred executives as the US government spends on the State Children’s Health Insurance Program serving millions of children of low-paid workers, and more than the federal government spent this year on Hurricane Katrina reconstruction and relief.

Goldman Sachs total annual compensation exceeds the budget of the federal departments of Treasury, Justice, Labor, Agriculture or Interior, the EPA or NASA.

Such figures demonstrate the grotesque distortions inflicted on American society by the domination of financial speculators whose activities create nothing of value and have, from the standpoint of material production, an entirely parasitic and destructive impact.

Much of Goldman’s record profits this year come from its successful financial manipulations in the subprime mortgage market, where it essentially bet against its major Wall Street rivals, who plunged heavily into the business of repackaging home mortgages into ever-more-complex financial securities whose value is now problematic, even unknowable.

The company also raked in over $1 billion in profits in the fourth quarter alone from its private equity operations. Goldman-owned hedge funds serve the wealthiest one-tenth of one percent, those who can afford to bet tens of millions on financial manipulations that may return 20, 25, even 30 percent, far more than can be gained from investment in the development of the productive infrastructure of society.

One of the principal activities of hedge funds and other private equity firms is to buy up struggling companies, strip their assets, shut factories and offices, fire thousands of workers, and then refloat them on the stock exchange at a huge profit. Essentially, these firms coin the economic distress of laid-off workers and their families into gold.

Goldman Sachs reported its record bonus pool only a few days after a new report by the Congressional Budget Office that documented, from the standpoint of the US economy as a whole, the increasingly pernicious role of the super-rich.

The CBO report, made public Friday, found that the richest one percent of Americans saw a greater increase in their total income from 2003 to 2005 than the combined total income of the poorest 20 percent of the population. The income of the top one percent rose from under $1.3 trillion in 2003 to $1.8 trillion in 2005. The increase of $524.8 billion far exceeded the total income of the poorest fifth of Americans, $383.4 billion.

If the top one percent had simply been compelled to live in 2005 on the same exorbitant income they made in 2003, with the increase diverted to the poor, the incomes of the bottom 20 percent of the population could have been increased by 170 percent. In other words, the abolition of poverty in America would merely require stopping the superrich from grabbing an ever-greater share of the vast wealth produced by the labor of working people.

The CBO report provided other metrics for gauging the staggering growth of economic inequality. The total 2005 income of the top three million Americans was equivalent to the total income of the bottom 166 million.

The average household in the top one percent enjoyed an increase of $465,700 in annual income; the average household in the bottom 20 percent saw an increase of only $200, while those in the middle fifth saw a rise of just $2,400.

Further analysis of the CBO data by the Center on Budget and Policy Priorities and the Economic Policy Institute suggests the historic dimensions of the social polarization in the United States.

The wealthiest fifth of the population now collects 55 percent of total national income, considerably more than the total combined income of the bottom 80 percent, and the highest such figure ever recorded in the US.

The wealthiest one percent saw its share of national income double from 1979 and 2005, rising from 9 percent to 18 percent. During that quarter-century, the average income of this top layer more than tripled, rising 228 percent, from $319,000 to $1.1 million. During the same period, the average after-tax income of the poorest fifth grew only 6 percent, the average income of the middle fifth grew 21 percent, less than one percent a year.

The disparities between rich and poor, and between rich and the middle, ballooned accordingly. In 1979, the top 1 percent averaged 8 times more than middle-income families and 23 times more than the poorest 20 percent. By 2005, the top 1 percent had 21 times the income of middle-income families and 70 times the average income of the poorest 20 percent.

Jared Bernstein of EPI, summing up the record of the years 2003-2005, wrote, “Over those two years, the growth of inequality transferred $400 billion dollars from the bottom 95 percent to the top 5 percent.” He concluded, “Such concentration of income is unsustainable in a democratic society.”

Or to put it more bluntly: such a concentration of income is the driving force of the present assault on democratic rights, spearheaded by the Bush administration and supported by both big business parties, which defend the existing economic order.


The Shock Doctrine

November 3, 2007