As California Considers a Public Bank, The Story of North Dakota’s

North Dakota’s bank is 100 years old, and this Vox story tells its story and how that is influencing California.

Readings in Inequality. September 2019 Links

Readings in Inequality. September 2019 Links

Each Sunday Tony Wikrent posts a list of links at Real Economics and Ian Welsh. Some are political, many lead to news about runaway inequality. This post borrows a few that seem to fit together very well.

The New York Times reported that inequality is getting worse, which for poor people means more sickness and an earlier death.

Peter Turchin, at Evonomics, discusses what it is that sometimes (like in the post World War II era) decreases inequality. Namely policy changes when disenchantment with inequality reaches a boiling point.

Bloomberg takes a look at the growing disenchantment with capitalism in the US and UK, with charts.

Chris Hedges demolishes the Business Roundtable’s efforts to rebrand their rapacious capitalism, which has led to the worst inequality since the 1920s, as benevolent leadership.

Pam and Russ Martens note that Bernie Sanders said the top three US billionaires (Gates, Bezos, Buffett) have more wealth than 160 million Americans, but he was using 2017 numbers. The inequality today is much worse.

You’ll find more excellent links from Tony at  Real Economics and Ian Welsh each Sunday. 

About the Business Roundtable’s Mission Change

About the Business Roundtable’s Mission Change

The Business Roundtable was formed in 1972 with the goal of undermining New Deal-forged worker rights and corporate regulation by the federal government. The Roundtable worked to weaken antitrust regulations, undermine labor protections and stopped Ralph Nader’s attempt to create a consumer protection agency in 1977. This was a group of hundreds of the country’s top companies working to escape federal regulations, decrease taxes, and promote the better business environment. And free trade.

But last week they issued a letter that said (from the NY Times): “Breaking with decades of long-held corporate orthodoxy, the Business Roundtable issued a statement on “the purpose of a corporation,” arguing that companies should no longer advance only the interests of shareholders. Instead, the group said, they must also invest in their employees, protect the environment and deal fairly and ethically with their suppliers.”

The statement sounds like a major breakthrough, a return to the time before Runaway Inequality took off, when labor unions and workers were protected by US law and companies committed to their home towns because that’s where they lived, before free trade and internationalization led them to follow the easy dollars of cheap material and labor overseas. But is it?

Move Over, Shareholders: Top CEOs Say Companies Have Obligations to Society

If only that turns out to be true.

Elizabeth Warren Announces Her Plan to Stop the Financialization of the US Economy.

You can read her ideas and plans here.

Key quote:

Here’s the problem with the belief that helping Wall Street always helps the economy: it isn’t true. In recent decades, Wall Street has grown bigger and financial sector profits have gone from 10% to 25% of total corporate profits, but everyone else in America has lived through a generation of stagnant wages and sluggish economic growth. Even today, big banks are making record profits and handing out huge bonuses as average wages barely budge.

The truth is that Washington has it backwards. For a long time now, Wall Street’s success hasn’t helped the broader economy — it’s come at the expense of the rest of the economy. Wall Street is looting the economy and Washington is helping them do it.

Elizabeth Warren, “My Plan to Rein in Wall Street”