The New York Times screamed its headline — “In 1997, Apple was 90 Days from Going Broke. On Thursday [Aug. 2, 2018], it became the first publicly traded American company to be valued at… $1,000,000,000,000.” The first trillion dollar company!
Peking University, School of Marxist Studies
May 5-6, 2018
Volumes II and III of Marx’s Capital describe how debt grows exponentially, burdening the economy with carrying charges. This overhead is subjecting today’s Western finance-capitalist economies to austerity, shrinking living standards and capital investment while increasing their cost of living and doing business. That is the main reason why they are losing their export markets and becoming de-industrialized.
Have the Republican greed-hound toadies gone too far? How much are the American people going to take before they replace the reckless Republicans in the next election? Low and middle-income Americans are bracing for the likely passage of a Trump-supported tax bill that deviously redistributes even more of the people’s income to the richest one percent (including a big tax cut for Trump) and the unpatriotic giant corporations.
For decades, the factors that decided what noteworthy stories would not find their way into print or on the air came down to the media’s ignorance, laziness or from advertising restraints. How else can one explain the many years that passed before the tobacco, auto and junk food industries became the subject of regular consumer reporting? For too long, the explosive material for good journalism in these and other areas had remained hidden in plain sight.
The monster of economic waste—over $7 trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald Reagan. That was when SEC Chairman John Shad, a former Wall Street CEO, redefined unlawful ‘stock manipulation’ to exclude stock buybacks.
Imagine you are a shareholder in a big company and the top executives are sitting on huge amounts of cash and are not interested in putting it to work through productive capital investments, research and development, reducing company debt or paying employees a higher wage. What would you want done about it? Since you and other shareholders are the owners of the company, you’d likely say “give us back our money in cash dividends.”
In college, Economics 101 is often described as the social science discipline that deals with the production, distribution and consumption of goods and services. MIT Economist Paul Samuelson liked to focus on scarcity, or more specifically, the allocation of scarce resources. “Abundance” was always a pretty word with an idyllic connotation for Professor Samuelson. I often wonder why there weren’t a few classes about the real-life consequences of abundance, along with scarcity and people’s material welfare.
Updated: Aug. 25, 2015
TheRealNews on Aug 24, 2015
Michael Hudson, the author of Killing the Host: How Financial Parasites and Debt Destroy Global Economy, says the stock market crash on Monday has very little to do with China and all to do with shortermism and buybacks of corporations inflating their own stocks.
Jim McNerney, CEO
The Boeing Company
100 North Riverside
Chicago, IL 60606
Dear Mr. McNerney:
The squeeze that you and Boeing are putting on your machinist workers’ pensions, pay scales and your stance on other labor issues regarding the assembling of the new 777X airliners is unseemly for several reasons.
First, consider your pay this year of $21.1 million, a 15 percent increase from the previous year, and much higher than your predecessors. Continue reading
The word “inequality” is much in vogue these days. We hear almost daily about the inequality of wealth, income and wages between the richest top 2 or 3 percent of people and the majority of the country’s wage earners. But not much attention is given and not many marches and other protests are addressing the huge inequalities between creditors and debtors.
Europe’s sovereign debt crisis in historical perspective
Sankt Georgen University, Frankfurt, June 22, 2012
The Eurozone lacks a central bank to do what most central banks are supposed to do: finance government deficits. To make matters worse, the Lisbon Agreement limits these deficits to 3% – too small to pull economies out of depression by offsetting private-sector debt deflation.
This is a re-working of my second talk at the Rimini MMT conference, as heard on Guns and Butter.
Suppose you were alive back in 1945 and were told about all the new technology that would be invented between then and now: the computers and internet, mobile phones and other consumer electronics, faster and cheaper air travel, super trains and even outer space exploration, higher gas mileage on the ground, plastics, medical breakthroughs and science in general. Continue reading
2,181 Italians pack a Sports Arena to learn Modern Monetary Theory:
The Economy doesn’t Need to suffer Neoliberal Austerity
I have just returned from Rimini, Italy, where I experienced one of the most amazing spectacles of my academic life. Four of us associated with the University of Missouri at Kansas City (UMKC) were invited to lecture for three days on Modern Monetary Theory (MMT) and explain why Europe is in such monetary trouble today – and to show that there is an alternative, that the enforced austerity for the 99% and vast wealth grab by the 1% is not a force of nature.