Deregulation Is Just Another Word For Corruption

Remember,On Facebook and Google, you’re the product. The advertiser is the customer. The companies sell you to them. Advertisers pay Google and Facebook to show their ads to you.

When you see the same ad over and over and over that’s Google or Facebook telling the customer they are buying several products – “impressions,” when actually they are paying for the same product several times. That’s fraud.

And when you see no one doing anything about the fraud, that’s deregulation.

Deregulation is just another word for corruption.

Easier Than Governing

This post originally appeared at Government Cheese: Chronicling the collapse of democracy

Modern society is complex, vast, complicated. Governing modern society is hard. Getting it right requires a lot of hard work doing the managing, measuring, forecasting, planning, consulting, regulating, making & enforcing rules and all that boring hippie crap. Getting the details right is difficult. All of it means attending endless meetings. The skills needed take decades to master. And it all requires dedication and commitment.

Instead Of Doing The Actual Work

US Republicans and UK Tories have found a way around doing the actual, difficult work: Just don’t do it! Problem solved!

“Conservatives” espouse “The magic of the market.” Instead of governing, why not simply “unleash” the “market” to do everything.

Kill off the rules and regulations. Fire the enforcers. Skip the planning. Cancel the meetings. Demonize the “experts.” Turn it all over to “the magic of the market.”

Above all else, nurture the “market.” Allow any entity calling itself a “corporation” to engage in any scheme that can be imagined.

So Many Good Things

Protect people from disease? The market will do that.
Protect people from fraud? The market will do that.
Make sure the food is safe? The market will do that.
Maintain and improve the standard of living? The market will do that.
Provide shelter? The market will do that.

The Invisible Hand Will Do The Work

After you have dismantled the entire governing process (“the Deep State”) you can just sit back and party while everything is taken care of by an invisible hand engaging in creative destruction. The Lord will work in mysterious ways. Disruption is the key.

It’s magic!

Cash Bonus

This approach comes with a huge bonus. “The Market” rewards those who “unleash” it.

And Here We Are

And here we are. Infrastructure falling apart. Health care systems in shambles. Education systems not educating. Etc. Etc. Etc. Everywhere you look everything in society is falling apart.

Don’t forget the big one: The planet’s climate is disintegrating and could very well wipe out society itself.

The Magic of the Market at work!

Capitalism And Privatization

On the benefits of privatization – turning public assets over to the “private sector”:

Capitalism – “the private sector” – does not invest in the pubic interest. That is not what it is for. It exists to enrich the few “owners,” and even that only in the short term.

Everything else is propaganda to convince the public to let them get away with that.

How Free Markets Work

“Neoliberalism” is the idea that markets are better at making decisions than democracy.

If it doesn’t show up click here.

Capitalism And ‘The Private Sector’ Aren’t What We Think They Are

I hear a lot of “capitalism can work if it is regulated.” This misunderstands what capitalism -IS-.

Govt everywhere makes society’s decisions. In OUR system govt decided to “contract out” to the “private sector” to do lots of things. THAT is what “capitalism” is. We HIRED the private sector. We LET private capital invest, and pay them a bit of the profits as a management fee. We are the boss of them.

We are the boss of them.

We all have a misunderstanding of the relationship between government and “private” capital. We (government) ALLOW private capital to exist at all. “Regulation” is too mild a term for the relationship between government and the “private sector.” The “private sector” -IS- govt, just contracted out. The RULEs for that contract aren’t strong enough. We are the boss of them. Period.

This is about our OWN understanding of the relationship between government (us) and “private” businesses. We have lost sight of this.

See Understanding What a Corporation Actually Is Can Help Restore Democracy

Also The “Private Sector” Is Government “Contracting Out” Its Functions

Commercial for BIG MONEY (Video)

Big Money: It’s unregulated, gathers by the billions, causes inaction on the climate crisis, bank collapses, and an unaffordable life for billions of people. It sells itself, but now it has its own commercial.

Raise a toast to what made it all possible.

A Way To Understand What Went Wrong With The US

Society wants cars/antibiotics/furniture/houses/etc but doesn’t want to make them ourselves through our government.

In order to accomplish functions like these that government wants accomplished but doesn’t want to do itself, government “contracts out” those functions. Corporations are those contracts. Corporations facilitate aggregation and manage of resources (huge sums, labor, etc) that are beyond the scope of individuals. We “contract out” through corporate charters to get these things done for us.

When You Look At It This Way

When you look at it this way — that government is the way all of society’s functions are managed(of course it is) and that corporations & the “private sector” are just “contracting out” some government functions — it gives people a way to take back the power in their own thinking. Who is the boss of who? How should corporations be regulated? Who should be regulating them? Etc.

Where Things Went Wrong

Here is where we went wrong. Executives at corporations are allowed to use corporate funds to influence society and pay politicians to allow things that enrich those executives personally.

Everything else we see happening flows from that.

The “Private Sector” Is Government “Contracting Out” Its Functions

This was originally posted at Imagine Democracy

We live in a society, and getting things done for society is what government is for. Government is society’s way to make decisions about society’s resources, economy and future. Period. Anyone who tells you you don’t need government, or that government shouldn’t do this or that, is actually just trying to BE the government, for their own benefit.

EVERY decision about society’s resources, econony and future is made by government, one way or another. Period. Every. Single. One. Socialism, capitalism, communism, dictatorship, aristocracy, oligarchy, democracy, etc are just descriptions of how that decision-making is divided up. It’s about who makes the decisions and who gets the benefits. All the “ideological” battles are really just all about keeping the public from understanding that.

In the US, supposedly a democracy where the decisions are ultimately made by “We the People,” we hear about the “public sector” and the “private sector” of our economy. What we call “the private sector” is really just the government “contracting out” the functions of managing society. Corporations are those contracts. From the recent post about corporations, Understanding What a Corporation Actually Is Can Help Restore Democracy,

We the People want to have factories to build cars or toasters. We the People could do this – build the factory, hire the managers, organize supply chains, provide insurance. etc. – ourselves but instead we have come up with corporations as a way to “contract it out” to private investors to accomplish these jobs for us.

Corporations are the contracts government makes when it “contracts out” its functions. Period. Government charters corporations to do things government doesn’t want to do itself. Those charters come with conditions and rules.

Except our currently captured government doesn’t enforce the agreements.

A Currently ‘Hot’ Example

Government contracts out money creation. We charter banking corporations to do that function of government for us. The Post Office could do that as well, but we, for various reasons, choose to let a few “capital” holders – wealthy people – do that and reap the returns.

Corruption And Consequences

This post originally appeared at Government Cheese – “Chronicling the collapse of democracy

Silicon Valley Bank fails…

Corruption allowed the finance industry to operate outside of sensible government oversight, even as the world has experienced the consequences of this over and over again. So here in Silicon Valley and around the world, tech employees are waiting to find out if they’ll get their paychecks or get laid off next week. The world is wondering if contagion will spread that fear. Again. (Last time, because of corruption, not one banker type was held accountable. Not one.)

Also here in Silicon Valley it is raining harder than almost ever – except for a couple weeks ago. Flooding everywhere. I mean, torrential, incredible rain pouring down right now. This is because corruption has caused governments to allow the industry causing this to keep putting more and more carbon into the air even as we all know what the consequences will be.

The news lately has been about train derailments devastating localities. This happens because corruption allows wealthy rail-owners to keep governments from making them operate safely.

Inequality is now completely out-of-control. 60% of Americans now live paycheck-to-paycheck, not even able to raise $500 to cover an emergency like a car breakdown. The government doesn’t raise the minimum wage or otherwise address this because of obvious corruption. Million upon millions are spent convincing these people to blame government for this and vote for those backed by that money, and abolish democracy. “I am your retribution.”

The Supreme Court “rules” that this is all OK. Any amount of secret money is allowed to influence elections. People trying to fix this face millions of dollars spent smearing them in LOCAL elections. This Supreme Court we have is the way it is because of corrupt money spent to put them there.

Is there a common theme here?

Why Minting the Coin Is A Threat To The Established Order

I really think the upcoming Debt Ceiling fight is going to be a turning point of some kind. The right intends to let the country default to stop “government spending.” They mean it.

Biden’s choice is to let that happen, cave like Obama did, or enforce the Constitution, which says the govt has to pay its bills.

Gimmicks

For those insisting that “Mint the Coin” as a solution to this is a “gimmick” – (as if the debt ceiling wasn’t just a gimmick) – compare that to what we do now:

Our Government Issues Currency

Our federal budget is not like a family “kitchen table” budget. We stopped using gold as our currency a long time ago. We don’t mine or “round up” money at the federal level. Our government does not get “revenue” from taxes. It does not “borrow” money, it prints it.

(In this clip economist Stephanie Kelton explains that our government does not operate like a family “kitchen table” budget):

We (representative democracy through our Congress) decide that we’re going to allocate our resources toward accomplishing something, and we issue dollars as an exchange medium toward that. There are things Congress should do along with issuing currency (which we are not doing because of neoliberalism): Make sure we allocate resources we have (allocate toward steel increasing capacity before allocating toward using more steel than we have) and tax enough to balance the distribution (tax the rich) and soak up some of those circulating dollars.

This is the modern way of understanding money: Modern Monetary Theory, or MMT.

MMT Is A Paradigm Shift

Breaking away from the idea that the federal govt operates with “kitchen table economics” is a paradigm shift. You see it completely one way (deficits, debt, govt spending are bad), and then when something clicks you can’t see it that way anymore, only the new way (MMT, govt issues currency), and then you are frustrated seeing so many getting it so wrong.

Our government issues currency. So of course we could just “mint a coin” to issue dollars to pay off bondholders. But if we did that, the most dangerous question arises: If we can just issue money to pay bondholders, why can’t we issue money to … do things that people want and need?

Shake The Foundation

Minting platinum coins with a face value of $1 trillion and depositing them with the Federal Reserve is Constitutional and solves the problem. But it brings up questions that shake the foundations of neoliberalism. If we can “mint coins” to pay bondholders, why can’t we mint coins to do things that people want and need? Instead of just relying on private capital (the rich) to make investment decisions and get things done in our economy?

So Biden can do the right thing and just … pay our bills. But then the neoliberal order breaks down. If We (through Congress) can decide to … you name it, then why are we depending on “the investor class” (capital) and “market solutions” etc to decide where to invest, allocate resources, do the planning and everything else?

PS We CAN Have Nice Things!

Math Degree Needed To Understand Medicare

You’re going to need a Math degree to follow this, as with everything about Medicare. Actually I HAVE a Math degree and have trouble following it.

Before I Start

(You can skip this section. I wish I could have. You’ll wish that when you’re turning 65.)

I’m old enough that I am on Medicare. Figuring out what to sign up for was AMAZINGLY difficult. Part A, Part B, Part D (privatized) and then you need a private “Medigap” Supplemental plan. You can get Plan A or B or C or D or E or F or G. I think. See if you can understand this from Medicare.

Note: Medigap plans sold to people new to Medicare can no longer cover the Part B deductible. Because of this, Plans C and F are no longer available to people new to Medicare on or after January 1, 2020. However, if you were eligible for Medicare before January 1, 2020, but not yet enrolled, you may be able to buy one of these plans that cover the Part B deductible (Plan C or F). If you already have or were covered by Plan C or F (or the Plan F high deductible version) before January 1, 2020, you can keep your plan.

Or you can get Medicare Advantage, which are really almost all privatized scams. And then there are private supplements for vision & dental (both absolute scams worthy of another post!!!) Payments for these all come out of my Social Security.

Fortunately where I live we have Kaiser, which is NOT a for-profit corporation so it isn’t a scam and actually is pretty good. I was already on Kaiser so I stayed on Kaiser’s Medicare Advantage.

Now I’ll Start

ANYway… That’s not what this post is about.
Continue reading

What Happened At Southwest Airlines Is What Is Happening To Every American Company

Everyone please read this Facebook post “from inside Southwest.” It is spot on. It describes how the meltdown happened because the company had been stripped for two decades by executives looking for short-term profits at the expense of the company.

What it describes is not just happening at this airline, though, and not just at airlines. This is what has been happening at HOW MANY companies for a long time! But more than that, it is of a piece with what has been happening to our democracy.

All the incentives are for squeezing everything out of a company to get the appearance of profit THIS QUARTER to get the STOCK PRICE UP to get the EXECUTIVE QUARTERLY BONUS and it is all at the expense of everything else – the customers (obviously) , the suppliers, the employees, and the future of the companies.

Our government is supposed to oversee the way companies operate. They operate under RULES set up by our government.

Rather than get into the specifics of those rules, ask yourself if a government operating in the interests of the people of the country and the long-term good of the companies of the country would allow what we are seeing at SWA and so many other companies to continue? Of course not!!!
Continue reading