The horizon is not so far as we can see, but as far as we can imagine

Author: Tony Wikrent Page 5 of 41

Week-end Wrap – Political Economy – August 18 2024

by Tony Wikrent

 

Strategic Political Economy

The world will lose $4.7 trillion of revenue in the next decade to tax havens. How did we get here? 

[The Business Standard, via Naked Capitalism 08-16-2024]

 

American Pharmaceutical Companies Aren’t Paying Any Tax in the United States

Brad W. Setser and Michael Weilandt [CFR, via Naked Capitalism 08-16-2024]

It is an undisputed fact that American pharmaceutical prices are the highest in the world…. However, those high prices do not translate into high reported profits in the United States. Rather the contrary: large pharmaceutical companies generally report losing money in the U.S….

So high prices strangely seem to correlate with large losses. This, of course, is a clear sign that pharmaceutical companies live in a world marked by transfer pricing and tax arbitrage….

The average effective tax rate paid in the U.S. (so U.S. tax paid versus global profit) was only 3 percent from 2018 to 2022, well below the typical effective tax paid in the US before the Tax Cuts and Jobs Act (see the work of Senator Wyden and his staff for more details).

A Very Good Sign: Kamala Harris Is Going Right at Corporate Greed 

Nick Hanauer, August 16, 2024 [The New Republic]

… Greedy CEOs have milked the average American household for $12,000 since the pandemic. As a businessman, I can explain how they’re doing it. …if you compare corporate profits in 2019 to the last four years, you’ll find corporations have gouged their way to an almost unbelievable $1.5 trillion in excess profits since 2020—that’s in addition to their pre-pandemic profit rates.

That means the average American household has paid an eye-popping $12,000 in higher prices solely to pump up quarterly corporate profit margins. To put that figure into perspective, $12,000 could buy the average American household more than two years’ worth of groceries….

Over the last two years, CEOs learned they could get away with padding their profits by keeping prices high. We have really great evidence that this is what’s been happening, because CEOs admitted this is what’s been happening.

For example, Procter & Gamble chief financial officer Andre Schulten bragged during a 2023 earnings call that even though the company’s input costs to make diapers had decreased, they were still keeping consumer prices high….

This corporate embrace of price gouging is a new and troubling development in American capitalism. And this is an area I know something about.

I’ve founded, financed, and/or run 43 different companies, spanning a dozen different industries…. I’m deeply acquainted with all the tricks of the trade when it comes to corporate profit margins.

But I’ve never seen executives exult in raising prices like this….

The chasm between corporate costs and profits has never been greater in my lifetime:

Immediately before the pandemic, corporate profits were 9.7 percent of the total gross domestic product. From 2020 to 2023, they spiked to an average 11.2 percent of annual GDP. The disparity between those two numbers amounts to a jaw-dropping $1.5 trillion more of our economy that was transferred over to corporate profits in the last four years.

That money was picked directly from the pockets of American families, who each paid $12,000 more to plump the profit margins of corporations (and that’s not even counting the excess APR rates that have cost the average credit card user $946 over the same four-year period)….

 

Global power shift

China is on track to overtake France and the United States as the world’s leading source of atomic power 

[BNE Intellinews, via Naked Capitalism 08-15-2024]

Week-end Wrap – Political Economy – August 11 2024

by Tony Wikrent

 

Strategic Political Economy

In 2023 the world’s forests stopped acting as a carbon sink 

[REDD Monitor, via Naked Capitalism 08-10-2024]

At the recent International Carbon Dioxide Conference in Manaus, Brazil, scientists presented preliminary findings that in 2023 the world’s forests stopped acting as a carbon sink. An intense drought in the Amazon rainforest and record wildfires in Canada were part of the reason that forests and other land ecosystems emitted almost as much carbon dioxide as they removed from the atmosphere.

Usually, forests remove about one-quarter of the world’s annual CO₂ emissions from the atmosphere. But in 2023, that carbon sink collapsed, study co-author Philippe Ciais of the French research organisation the Laboratory for Climate and Environmental Sciences told Reuters.

As a result, in 2023, the growth rate of CO₂ in the atmosphere shot up by 86% compared to 2022. Yet CO₂ emissions — which come mainly from burning fossil fuels — only increased by between 0.1% and 1.1%. The explanation is that natural carbon sinks absorbed much less….

 

‘Holy Sh*t This Ad Is Powerful’: UAW Says It Knows How to Defeat Trump and the Billionaire Class

Jon Queally, August 10, 2024 [CommonDreams]

“This is brilliant,” said author Naomi Klein in response to new United Auto Workers ad….

“There is only one answer to the threat we face as a nation. The answer is solidarity.”

That is the core message directed at the American working class from the United Auto Workers (UAW) in a new ad that frames the nation’s current political battle as one between organized workers and the billionaire and corporate classes.

“We stand at a historic crossroads in this country right now,” says UAW president Shawn Fain to begin the 2-minute video. “And it’s clear Donald Trump represents the billionaire class—that’s his base.” ….

UAW: Fight For a Better Life

“The dream of a man like Donald Trump is that the vast majority of working class people will remain divide,” says Fain. “They divide us by race. They divide us by gender, by who we love, or where we were born. That’s the game of the wealthy, divide and conquer

 

The battle over who makes the rules for US companies

[Financial Times, via Naked Capitalism 08-06-2024]

….Over the past autumn and winter, the Chancery trial court ruled on three highly esoteric matters of corporate law, making certain long-accepted dealmaking practices impermissible.
But, this summer, the state’s legislature and governor were quickly persuaded by the influential law firms that represent big companies to enact changes to the Delaware General Corporation Law that nullified the rulings. The convention of waiting for the Delaware Supreme Court, often a tempering mechanism, to hear any appeals was ignored.
Lawyers representing pension funds, asset managers and individual shareholders fret that the changes will unduly limit their ability to bring lawsuits against misbehaving corporate boards and overmighty founders.
And many law professors worry that the foundations of Delaware corporate law have been carelessly erased without an understanding of the broader consequences….

Global power shift

China Is Done With Global Carmakers: “Thanks For Coming”: Dwindling Sales and Vanishing Profits

Michael Dunne, August 06, 2024 [via Naked Capitalism 08-10-2024]

For most of this century, foreign brands totally dominated China’s car market. Every year, they sold millions of cars and earned billions in profits.

Chinese consumers swarmed into Buick, Volkswagen, BMW and Toyota showrooms nationwide, happy to pay cash for the prestige of owning a brand that wasn’t Chinese.

“China is our forever profit machine,” my colleagues at GM liked to humble-brag a decade ago, back when I ran GM’s Indonesia operations. “We can bank on an easy $2 billion dividend every year.”

Now, suddenly, that golden era is over.

Sales and profits in the People’s Republic are vanishing. And boards in Detroit, Wolfsburg and Tokyo are stunned by the speed and intensity of the changes.

Ford has lost more than $5 billion in China since 2020. Sales are down 70% from their peak. “We’ve never seen competition like this before,” says CEO Jim Farley.

GM is hurting, too. The former poster child for sunny US-China relations, GM has lost more than $200 million so far this year alone. That marks the first time in two decades that GM’s China operations have printed red ink….

Driving China’s ascendancy is a massive and abrupt shift to electric vehicles. The EV share of total car sales will jump to almost 50% this year, up from just 6% in 2020.

Think about that. China has sprinted from 1 million to more than 10 million annual EV deliveries in just four short years. (I already see you dealership folks scratching your heads in amazement.)

Global automakers were caught flat-footed on EVs, lulled into complacency by years of winning at selling gasoline-powered vehicles.

 

TSMC Arizona struggles to overcome vast differences between Taiwanese and US work culture 

[Tom’s Hardware, via Naked Capitalism 08-10-2024]

[NC commenter Micael T: “So all this American Talwan vs. China nonsense iis really about importing new management practices to the US?” Moi: Some of you may remember that Toyota went into a joint venture with GM to take over GM’s worst plant, which feature regular absenteeism and drunkenness in its workforce, and of course high defect rates. Toyota got the plant performance to above average for Toyota plants, which was much higher than GM levels.”]

Week-end Wrap – Political Economy – August 4 2024

by Tony Wikrent

 

Gaza / Palestine / Israel

US Urged to Condemn Israel’s ‘Summary Execution’ of Two Journalists

Edward Carver, August 02, 2024 [CommonDreams]

A Palestinian journalist on Thursday pressed a U.S. State Department spokesperson to characterize the killings of two Al Jazeera journalists by Israeli forces as summary execution.

The heated press briefing followed an airstrike on Wednesday that killedAl Jazeera reporter Ismail al-Ghoul and cameraman Rami al-Rifee, and sparked global outrage. Israel’s military acknowledged targeting al-Ghoul, saying he was “eliminated” because he was a Hamas “terrorist,” an allegation the Qatar-based network said was “baseless.”

The death toll of Palestinian journalists and media workers now stands at least 108, including several intentionally targeted by Israel forces, according to the Committee to Protect Journalists (CPJ).

 

[X-Twitter, via Naked Capitalism 07-31-2024]

It’s telling Israel (allegedly) can conduct pinpoint operations thousands of kilometers away to a capture target with precision, yet just two kilometers from home, they use 5-ton bombs on families to eliminate minor threats.

Oligarchy

Private Equity Giants Invest More Than $200M in Federal Races to Protect Their Lucrative Tax Loophole 

[Exposed by CMD, via Naked Capitalism 08-02-2024]

 

The carnage of mainstream neoliberal economics

Uber, Lyft and Others Win California Ruling to Treat Drivers as Contractors 

[Wall Street Journal, via Naked Capitalism 07-28-2024]

 

Big Law Confronts Tail Risk Threat to Private Equity Bankruptcy 

[Bloomberg, via Naked Capitalism 07-29-2024]

Big Law partners are looking at a ruling that sent shock waves through the bankruptcy world as a lesson rather than a serious threat to their model of representing both private equity sponsors and their distressed portfolio companies.

The fallout comes in the wake of a decision this month in the Eastern District of Virginia. The court declared Vinson & Elkins could not represent wood-pellet maker Enviva Inc. in its bankruptcy case due to the law firm’s longstanding relationship with Riverstone Investment Group LLC, a private equity firm that held 43% of Enviva’s publicly traded shares.

Week-end Wrap – Political Economy – July 21 2024

by Tony Wikrent

Strategic Political Economy

Fight Or Die 

David Sirota, July 18, 2024 [The Lever]

In 2008, I published a book with a straightforward premise: the upcoming era of American politics would be defined by a competition between the left and right to harness the working class’s intensifying rage in a society being pillaged by corporate interests.

It was the twilight of the Bush era, and the country was beginning its nose-dive into recession and turmoil, but hope and change seemed just over the horizon. I predicted that with elements of both political parties in a warrior stance, simmering conflicts over deindustrialization, financialization, and neoliberalism would soon explode and realign politics, birthing some American version of either social democracy or authoritarianism.

The 16 years since The Uprising was released have delivered much of the tumult I imagined. It has been a period of unrest, chaos, and flip-flopping control of government — and yet, amid all that volatility, the decline persisted. Whether medical bankruptcies, foreclosures, lower life spans, spikes in prices, mountains of paperwork, or endless junk fees attached to everything — life in America just kept getting more difficult, annoying, inhumane, painful, and seemingly impossible.

In the political arena, there was a sensation of change, but in real life, there was more of the same.

Donald Trump’s 2016 win was a reaction to the dissonance — a pressure cooker that finally exploded — but still possibly just a weird anomaly. For shellshocked liberals, the end of his first term felt like the conclusion of a roller-coaster ride, a reversion to a mean, and proof that the competition to harness the discontent had finally been won on the center left.

But as Trump surges and Democrats teeter in this blazing summer of discontent, it’s the 2020 election that seems more like the anomaly — a last rest stop on a wild Natural Born Killers-style jaunt. 2024 feels like the final destination in a journey bookended by two iconic roadside billboards: the “HOPE” poster featuring Barack Obama’s cool gaze, and now the photograph of a bloodied Donald Trump defiantly calling his armies to battle….

 

Can J.D. Vance’s Populist Crusade Succeed? 

Matt Stoller [BIG, via Naked Capitalism 07-19-2024]

On Monday, Donald Trump unveiled his choice for Vice President, and picked a young Senator from Ohio, best-selling author and populist J.D. Vance. Last night, Vance spoke to the Republican National Convention, attacking Wall Street barons, the war in Iraq, multi-national corporations, and trade deals like NAFTA. What he said was shocking for a Republican. “We’re done catering to Wall Street,” he said. “We’ll commit to the working man.”

But what he *didn’t* say was equally shocking. There was no talk of tax cuts, deregulation, or attacks on government, and while he levied plenty of fire at Democrats over immigration, environmentalism and overall weakness, he did not go after the substantially populist pro-labor and competition focused elements of the Biden administration. Vance’s fight is not just with Democrats, it’s within the Republican Party.

It’s hard to overstate the earthquake this pick has fostered in the citadels of power. CNBC, libertarians, and the Wall Street Journal editorial page are in mourning. “Wall Street will be begging for the return of Lina Khan after two months of the Trump-Vance administration,” said one New York dealmaker to the Financial Times. CNBC is replaying clips of the Vance speech, with Jim Cramer analogizing it to William Jennings Bryan’s famous 1896 Cross of Gold oration….

At first, Vance bought into standard libertarian ideas, consistent with Thiel’s thinking. Thiel was a co-founder of PayPal with Elon Musk, and the alums from PayPal, the so-called “PayPal mafia,” are hugely influential in Silicon Valley today, though they are not entirely aligned with big tech. Thiel, for instance, hates Google, and this group is one of Vance’s core influences….

So what does Vance think? He is in agreement with the views of a rising set of younger conservatives, populists like Sohrab Ahmari and Oren Cass, who assert that libertarianism is a cover for private rule, most explicitly in Ahmari’s book Tyranny, Inc. It is flourishing of the family that animates this new group, not worship of the market. At Remedy Fest, Vance was explicit in his agreement with this notion, saying “I don’t really care if the entity that is most threatening to that vision is a private entity or a public entity, we have to be worried about it.”….

Musk, Andreessen, and the crypto world are aligned in their own ways with Vance, though the extent of the alignment isn’t wholly clear. The arguments of these venture capitalists and crypto purveyors deserve to be taken seriously. Fortunately, Andreessen and Horowitz laid them out in a recent 90 minute podcast describing why they are supporting Donald Trump with vast financial resources. It comes down to the basic thesis that they believe that Joe Biden, far from a do-nothing President, is an existential threat to the status quo….

Andreessen and Horowitz have a view of America in which our might, and thus the world’s peace and prosperity, rests on three pillars: a strong economy, world-leading technology, and a powerful military. American culture is, as they put it, “depraved” and full of drug addiction, but our strength is that talented people can build things. We are not, as they put it, Argentina, or the Soviet Union. In World War II, America won because we invented better technology – not the government – but the private sector, the ‘Little tech’ guys like Henry Ford and Thomas Edison, whose legacy Andreessen and Horowitz see themselves as upholding….

[TW: Stoller summarizes what Andreessen and Horowitz believe:  ” In World War II, America won because we invented better technology – not the government – but the private sector, the ‘Little tech’ guys like Henry Ford and Thomas Edison, whose legacy Andreessen and Horowitz see themselves as upholding.”

Week-end Wrap – Political Economy – July 14 2024

by Tony Wikrent

The Trump Shooting: The Most Shocking Act of a Shockingly Violent Age

Michael Tomasky, July 14, 2024 [The New Republic]

This was not an abnormal incident. It’s a sign of the times….

ut whatever his motivation turns out to be, his act not isolated. There was the shooting of Republican Congressman Steve Scalise in 2017. The attack on Paul Pelosi, husband of Nancy, in 2022. Those are just the headline-grabbers, but political violence, or at least the threat of it, is now a constant in American life.

Threats of political violence against members of Congress have skyrocketed. The Capitol Police investigated 902 such threats in 2016. That jumped up to 3,939 in 2017, and by 2021, the number was more than 9,600, or 10 times the number from just five years before. Hate crimes in 2022 hit 11,288, which is up from recent years (the number was 7,759 in 2020.) Domestic terrorism is on the rise, with the preponderance coming from the political right; the National Institute of Justice, the research arm of the Department of Justice, reported earlier this year that since 1990, “far-right extremists have committed far more ideologically motivated homicides than far-left or radical Islamist extremists, including 227 events that took more than 520 lives.”

Strategic Political Economy

What Liberals Get Wrong about the Right with Corey Robin – Factually! – 236

[Youtube]

.

Rising Market Power Has Led to the Rise in Far-Right Political Parties 

[ProMarket, via Naked Capitalism 07-02-2024]

 

Is the Heart and Soul of Trump’s MAGA Base Really the White Working Class?

Les Leopold, January 16, 2024 [Wall Street’s War on Workers Newsletter; Common Dreams]

The corporate media and all too many politicians are blaming working people for the rise of Trump and MAGA. Yet, if we open our (lying) eyes a bit more, we can’t miss the massive horde of lawyers and businesspeople who serve as Trump’s enthusiastic enablers….

Political scientists Noam Lupu (Vanderbilt) and Nicholas Carnes (Duke) definitively disproved the notion that most of the people who voted for Trump in 2016 were white working class. They showed that only 30 percent of the Trump voters could be considered a part of that group….

The 2018 Primaries Project, at the Brookings Institute, reported that those voting in congressional Republican primaries in 2018 were better educated and richer than the public at large. Again, the white working class formed no more than one-third of the Republican primary base.

What about the January 6th insurrection? Wasn’t that a white working-class riot? Not according to the University of Chicago Project on Security and Threats, which analyzed the demographics of the 716 individuals who had been charged with various January 6th crimes, as of January 1, 2022. Fifty percent were either business owners or white-collar workers, and only 25 percent were blue-collar workers (defined as no college degree).

The research for my book, Wall Street’s War on Workers, provides new data that confirms the white working class does not in any way pour into Hillary Clinton’s “basket full of deplorables.” In fact, most white working-class voters have become decidedly more liberal on divisive social issues over the last several decades, including LGBTQ+ rights, immigration, and racial discrimination….

Why Blame the White Working Class?

The attacks on working-class populism have been around for more than 140 years. Corporate owners and their newspapers viciously denounced the populist movement of the late 19th century, which aggressively challenged financial and corporate power. To counter that increasingly successful movement, newspapers, as well as pro-corporate politicians, depicted the populists as ignorant bomb-throwing radicals and worse….

Week-end Wrap – Political Economy – July 07 2024

by Tony Wikrent

 

The (anti)Federalist Society assault on the Constitution

The Weekend at Yale That Changed American Politics 

Michael Kruse [Politico, magazine September/October 2018]

It’s not too extreme to say that one wonky student group founded in 1982 has reshaped the Supreme Court, and the nation. What actually happened at the birth of the Federalist Society? ….

…a few conservative students at elite law schools sensed not anxiety but a moment of opportunity. Inspired by Reagan’s ideology and emboldened by his election, they did something ambitious to the point of audacious. They asked a collection of the country’s most notable right-leaning scholars, judges and Department of Justice officials to assemble at one of the very hubs of liberal orthodoxy, the campus of Yale University. Convened principally by Steven Calabresi, who was at Yale Law, and Lee Liberman and David McIntosh, who were at University of Chicago Law, some 200 people arrived in New Haven, Connecticut, on the last weekend of April for a three-day symposium.

It had a dry title—“A Symposium on Federalism: Legal and Political Ramifications”—and it easily could have been just another set of lectures, of interest only to a small lot of participants and attendees, the kind of higher-ed, corkboard-flyer get-togethers that happen all the time with no broader fanfare or larger lasting consequences. But at this one, as speakers castigated what they viewed as coastal elites and a leftist media and legal establishment and argued for a more “originalist” reading of the Constitution, people present felt a new sort of buzz. In the hallways, between the sessions, the vibe was more than just brainy….

Over the years, the Federalists have honed a disciplined, excessively modest narrative of their origins and purpose—that they are simply a facilitator of the exchange of ideas, a high-minded fulcrum of right-of-center thought, a debating society that doesn’t take overtly partisan, political positions. That narrative is not wrong. It’s just not the whole truth. The full story of that initial weekend—based on interviews with people who were there, as well as the seldom-read words of the speeches recorded in a 1982 issue of the conservative Harvard Journal of Law and Public Policy—reveals something different. The effort was, from the get-go, aggressively political. There was a feeling of steeling for a fight….

…Bork, for example, who had been a law professor at Yale and had just become a federal judge, spoke of “the onslaught of the New Deal” and “the gentrification of the Constitution.” Abortion and “acceptable sexual behavior,” he said, should be “reserved to the states.” Pointedly, with Roe v. Wade, he said, the Supreme Court had “nationalized an issue which is a classical case for local control. There is simply no national moral consensus about abortion, and there is not about to be.”….

“Part of Reagan’s policy was to build up forces in battleground nations in order to help topple enemy regimes,” Calabresi told Riehl, “and I thought of us as kind of the same equivalent in law schools.”

At Yale, Calabresi and a couple of conservative law students formed a student group in the fall of 1981. Eating lunch one day, according to a subsequent telling in the journal at Harvard, they batted about possible names. The Ludwig von Mises Society? The Alexander Bickel Society? The Anti-Federalist Society? The Anti-Federalists, after all, were the ones who sought a more decentralized government at the time of the founding of the country. They landed, though, on the Federalist Society, because it invoked the Federalist Papers and the long-running American debate about the appropriate balance of power between the national and state governments….

…They had the beginnings of buy-in. Now they needed arguably an even more important lubricant. Money. Leveraging a recommendation from Scalia, Calabresi contacted the conservative Institute for Educational Affairs to ask. “As Professor Scalia of the University of Chicago Law School mentioned to you last Wednesday on the telephone, we are interested in holding a symposium,” he wrote early that February in a letter archived among Bork’s papers at the Library of Congress. “Professor Scalia said you thought I.E.A. might be quite interested in sponsoring and funding such a symposium.” Calabresi estimated that it would cost “in the neighborhood of $24,000.” It ended up being closer to $25,000. And it worked. IEA wrote a check that covered most of the cost. The rest came from donors, including the John M. Olin Foundation and the Intercollegiate Studies Institute….

In 1987, Bork’s Supreme Court nomination was scuttled by a liberal-led Senate campaign that used Bork’s own words on issues such as Roe v. Wade—issues he had spoken about at the symposium. It angered and motivated members of the Federalist Society, convincing them they needed to redouble their efforts. “It was a galvanizing defeat,” Hollis-Brusky told me, demonstrating to some of them that they had tried to come too far, too fast. It also reinforced the notion that ideological purity wasn’t the only ingredient to transforming the judiciary. Raw politics mattered as well. And nearly two decades later, the Federalists would cement their power by keeping someone off the court. In 2005, they agitated for the withdrawal of George W. Bush’s nominee Harriet Miers, who had no Federalist Society ties (and a conspicuously scant résumé), leading to the nomination of Samuel Alito, who did. The episode affirmed the way in which the society’s influence had grown. Alito joined fellow Federalist Society contributors Scalia, Clarence Thomas and Chief Justice John Roberts….

 

Trump’s Far-Right Army Is Threatening Bloodshed. Believe Them.

Thom Hartmann, July 5, 2024 [CommonDreams]

…America has been changed as a result of a series of corrupt rulings by Republicans (exclusively; not one of these rulings has been joined by a Democratic appointee) which have changed America’s legal and political systems themselves.…

First, in a series of decisions — the first written by that notorious corporatist Lewis Powell (of “Powell Memo” fame) — Republicans on the Court have functionally legalized bribery of politicians and judges by both the morbidly rich and massive corporations.

This started with Powell’s 1978 Bellotti opinion, which opened the door (already cracked a bit) to the idea that corporations are not only “persons” under the Constitution, but, more radically, are entitled to the human rights the Framers wrote into the Bill of Rights (the first ten amendments).

Using that rationale, Powell asserted that corporations, like rich people (from the Buckley decision that preceded Belotti by two years), are entitled to the First Amendment right of free speech. But he took it a radical step farther, ruling that because corporations don’t have mouths they can use to speak with, their use of money to spend supporting politicians or carpet-bombing advertising for a candidate or issue is free speech that can’t be tightly regulated.

Citizens United, another all-Republican decision with Clarence Thomas the deciding vote (after taking millions in bribes), expanded that doctrine for both corporations and rich people, creating new “dark money” systems that wealthy donors and companies can use to hide their involvement in their efforts to get the political/legal/legislative outcomes they seek.

Last week the Republicans on the Court took even that a huge step farther, declaring that when companies or wealthy people give money to politicians in exchange for contracts, legislation, or other favors, as long as the cash is paid out after the deed is done it’s not a bribe but a simple “gratuity.” ….

Finally, in the Trump immunity case, the Court ruled that presidents are immune from prosecution under criminal law, regardless of the crimes they commit, so long as they assert those crimes are done as part of their “official” responsibilities. And who decides what’s “official”? The six Republicans on the Supreme Court.

These actions — corporate personhood, money as speech, ending the Chevron deference to regulatory agencies, and giving the president life-and-death powers that historically have only been held by kings, shahs, mullahs, dictators, and popes — have fundamentally altered the nature of our nation….

Week-end Wrap – Political Economy – June 30 2024

by Tony Wikrent

 

The (anti)Federalist Society assault on the Constitution

[TW: There were a number of articles and videos in which people complained that “this Supreme Court is out of control.” I do not think such framing is useful. The conservative majority on the Supreme Court is very much in control of itself, and is carefully and deliberately implementing the hostile philosophy of government propounded by conservative, anti-republican theorists ever since Thomas Paine clashed with Edmund Burke, after Paine met Burke, and realized Burke may have been sympathetic to the American revolt against corrupt King, Parliament, and ministries, but was actually implacably hostile to the philosophy of self government of civic republicanism.

[Almost all of USA political history includes the background of this clash between the republicanism of Paine and the conservativism of Burke. Conservatism is simply philosophically hostile to the American experiment in republican self government. It is why conservatives argue that the Preamble of the Constitution is a meaningless flourish; that the General Welfare mandate and clause are dangerous mistakes that enable an overpowering “administrative state” and that the powers bestowed by the Constitution on the government are “strictly enumerated” and limited, not broad grants of legitimate power to solve problems not foreseen by the “founding fathers.” The Heritage collaboration with the Center for Renewing America and over 80 other right-wing groups to dismantle the “administrative state” by sharply curtailing government capacity while at the same time misusing executive power to punish political enemies — the infamous Project 2025 plan — is merely the latest development in this centuries-old struggle between conservativism and republicanism.

[There are no Democratic Party leaders I know of — with the notable exception of Representative Raskin (see below) — who discuss these issues of a philosophy for governing. In that sense, all the screaming, hollering, and agonizing over Biden’s awful debate performance is largely meaningless: there is no one in the leadership of the Democratic Party who is even attuned to the conservative / (anti)Republican assault on our government.  ]

‘Gift to Corporate Greed’: Dire Warnings as Supreme Court Scraps Chevron Doctrine

Jake Johnson, June 28, 2024 [CommonDreams]

The high court’s 6-3 ruling along ideological lines in Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce significantly constrains the regulatory authority of federal agencies tasked with crafting rules on a range of critical matters, from worker protection to the climate to drug safety.

The majority’s decision was written by Chief Justice John Roberts.

“The weight of human suffering likely to arise from this decision should keep the justices up at night,” said Emily Peterson-Cassin of Demand Progress, a watchdog group that called the decision “a gift to corporate greed.”

“The Supreme Court is threatening safeguards that protect hundreds of millions of people from unsafe products, bad medicines, dangerous chemicals, illegal scams, and more,” Peterson-Cassin added. “By handing policy decisions usually deliberated over by experts to lower level judges, the Supreme Court has set off a seismic political shift that primarily serves only the most powerful corporate interests.”

 

The Supreme Court Upends the Separation of Powers

Week-end Wrap – Political Economy – June 23 2024

by Tony Wikrent

 

Strategic Political Economy

Is the 4th Amendment Dead in Cyberspace?

Tracy Mitrano [Inside Higher Ed, via Thomas Neuburger, God’s Spies, June 21, 2024]

Over a year ago former director of both the NSA and CIA, Michael Hayden, flat out admitted, “we kill people based on metadata.” He quickly distinguished between the metadata about which the debate was focused, telephone records, and other forms of surveillance metadata upon which covert actions are taken. Not surprised about the actions, I confess I was taken aback when I considered the implications that this disclosure has on Fourth Amendment jurisprudence in cyberspace.

Ever since the USA-Patriot Act in 2001, I have been harping on complications of the Fourth Amendment between content and metadata in data networking. For as many years I have hoped for a revision of the Electronic Communications Privacy Act (ECPA) to correct the discordance. In all that time, I have assumed that a restructuring of Fourth Amendment jurisprudence around these distinctions might be possible.

I no longer believe that is a reasonable fix. The advanced algorithms applied to metadata in government surveillance make metadata the equivalent of content. That is what struck me about Hayden’s remarks. Not just occasional leaks of subject lines or an Internet Protocol address that resolves to a web page found in routing records, but the sorting, combining and redefining of that data into identifiable predictive behaviors that function as the basis of military or law enforcement actions. It is in this sense that I declare the Fourth Amendment dead in cyberspace. The only way to resurrect the Fourth Amendment could be to place all data, both content and metadata, under Fourth Amendment rubric.

[Neuburger: “The Fourth Amendment is gone. It was lost in 1928. So, to the question above, will we see it enforced again — in today’s security-fed state, the answer is no.” ]

 

Why Won’t the US Help Negotiate a Peaceful End to the War in Ukraine?

Jeffrey D. Sachs, June 19, 2024 [Common Dreams]

For the fifth time since 2008, Russia has proposed to negotiate with the U.S. over security arrangements, this time in proposals made by President Vladimir Putin on June 14, 2024. Four previous times, the U.S. rejected the offer of negotiations in favor of a neocon strategy to weaken or dismember Russia through war and covert operations. The U.S. neocon tactics have failed disastrously, devastating Ukraine in the process, and endangering the whole world. After all the warmongering, it’s time for Biden to open negotiations for peace with Russia.

Since the end of the Cold War, the U.S. grand strategy has been to weaken Russia. As early as 1992, then Defense Secretary Richard Cheney opined that following the 1991 demise of the Soviet Union, Russia too should be dismembered. Zbigniew Brzezinski opined in 1997 that Russia should be divided into three loosely confederated entities in Russian Europe, Siberia, and the far east. In 1999, the U.S.-led NATO alliance bombed Russia’s ally, Serbia, for 78 days in order to break Serbia apart and install a massive NATO military base in breakaway Kosovo. Leaders of the U.S. military-industrial complex vociferously supported the Chechen war against Russia in the early 2000s.

To secure these U.S. advances against Russia, Washington aggressively pushed NATO enlargement, despite promises to Mikhail Gorbachev and Boris Yeltsin that NATO would not move one inch eastward from Germany. Most tendentiously, the U.S. pushed NATO enlargement to Ukraine and Georgia, with the idea of surrounding Russia’s naval fleet in Sevastopol, Crimea with NATO states….

Brzezinski spelled out a chronology of NATO enlargement in 1997, including NATO membership of Ukraine during 2005-2010….

…In my view, [the February 2014 Maidan revolution in Ukraine] was a standard CIA-led covert regime change operation, of which there have been several dozen around the world, including sixty-four episodes between 1947 and 1989 meticulously documented by Professor Lindsey O’Rourke. Covert regime-change operations are of course not really hidden from view, but the U.S. government vociferously denies its role, keeps all documents highly confidential, and systematically gaslights the world….

 

Global power shift

US reputation on the line at Second Thomas Shoal 

[Asia Times, via Naked Capitalism 06-22-2024]

June 17 saw the most recent and most violent effort yet by the China Coast Guard to prevent the Philippines from resupplying the BNP Sierra Madre, an old navy ship deliberately grounded on Second Thomas Shoal and manned by a detachment of sailors and marines to assert Philippine control of the sea feature.

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