LA Dodgers a Microcosm of American Society

The LA Dodgers are bankrupt. They do not have the cash to pay their employees’ wages. We are talking about a community here. The Dodgers are a baseball team much loved by its many patrons, as sports teams usually are, whether big or small. And the Dodgers are bankrupt despite recent success—they made the play offs as recently as 2008 and 2009. Why then has this catastrophe engulfed the team? Andrew Gumbel of the UK Observer has explained it.

The fact is that the owner of the team has sucked them dry for his own aggrandisement. It should be a lesson for Americans, especially those who persistently defend the mega rich, people whom they do not know and never will, and people who are richer than they can ever imagine—America’s plutocrats, the corrupt and greedy rich.

Frank McCourt, not the deceased Irish novelist but a car lot magnate, bought the team and bled it dry to support a life of luxury for himself and his family. McCourt bought the Dodgers from News Corp, who had used it to build up a regional sports network. To do it, McCourt borrowed $150m from Bank of America, $75m from Major League Baseball and $196m from Fox, so he had not spent a penny of his own money.

McCourt then sliced off what was most profitable, the stadium car park and the ticket office as his own operations, which charged the Dodgers rent, and, in turn, giving McCourt security to borrow more dollars. He paid himself $5m a year, his wife, Jamie, $2m pa as chief executive, and their two children $600,000 each—one was a student at Stanford University and Goldman Sachs employed the other. McCourt also enjoyed a private jet and four luxurious houses in Hollywood and Malibu. In typical robbing financier style, the money and debt were spread among, and constantly moved between McCourt’s shell companies and subsidiaries to hide what was going on.

And what was going on was that the assets of the team were being stripped and moved into the personal accounts of a single family and a few hangers on.

Yes, it ought to be a lesson for the average American, whether poor and unemployed or middle class and imagining that they are well off. You just do not have a clue, especially you Tea Partiers taken in by rich men’s stunts to keep you on side. The invisible über rich of the USA are taking you all for the same sort of ride as McCourt took the community that supported the LA Dodgers. They are robbing you silly, and too many of you are defending them!

You cheer because they are sending your boys to distant lands to get maimed and killed, and they make money out of armaments and the vast support industry of the military-industrial complex that supports it. Often you don’t even get a badly paid job out of it. They manufacture more and more abroad in low cost countries. You lose your jobs, or the threat is used to keep wages down or to get concessions from the city and the state treasury, and all of it goes into pockets just as McCourt’s did. You don’t know what is going on because they are like McCourt experts in hiding it, and have a gigantic publicity service called the media to feed you anything to keep you confused and divided.

Get real! You Yankees are like the Dodgers fans—being conned!

How Does Mixing Business with Politics Differ from Corruption and Bribery?

Most people would disapprove of corruption. It is one of those things people think are bad. Yet few of these same people realize that politically connected firms get massive benefits from their sponsoring of favored candidates in elections, once their favorites get into government. The bailouts of the banks deemed “too big to fail” are the latest and most obvious example.

A study by Russell Crook and David Woehr of the University of Tennessee, Knoxville, found that when firms engage in corporate political activities, such as lobbying and making campaign contributions, they get roughly 20 percent higher profits. So, to fatten your company’s profits, donate to a political campaign!

The analysis of 7,000 firms over various time periods, showed what led them into corporate political activity. The larger the firm, the more likely it was to be politically active, and politicians closer to power, more able to influence policy and legislation, were more likely to receive corporate donations. Incumbents more often got money than new candidates.

Yet in January 2010, the US Supreme Court in Citizens United v Federal Election Commission overturned an old ruling limiting corporate donations to politicians. It gave the nod to higher levels of corporate political influence. Consequently, corporate political donations will be subject to less scrutiny and transparency, and it will be all the harder to know who is sponsoring whom, and to what amount. Crook said:

Given this, we think that the Supreme Court ruling means that corporations and politicians will develop closer relationships than ever before.

In fact, corporations have already donated more money to politicians in the recent elections than ever before, despite the parlous state of the US economy. It reflects the money that big political donors seem to find quite readily to support supposedly grass roots Tea Parties, despite the country allegedly being on its uppers. Plainly the rich donors are not on their uppers.

Why then do corporate political donations lead to fatter profit margins? The corporate bosses do not like throwing money away to no purpose, so political corporate spending has a purpose, obviously. It is to get favorable legislation enacted. The donations are actually bribes! Besides the bank bailouts, another example was the “Copyright Term Extension Act”, sarcastically called, the “Mickey Mouse Protection Act”, in which Disney successfully lobbied to extend US copyrights by 20 years.

Though Crook and Woehr are careful not to say these practices are corrupt, they plainly think they are a cause for concern to citizens. Sticking with the market model, Crook said:

We do not believe that this activity is illegal, but this activity constrains natural market forces and is thus undesirable. And with the new Supreme Court ruling, it is only going to get worse.

The journal, Financial Management, has also revealed that corruption is widespread in the corporate world, and has confirmed successful corporations are often the ones with the most extensive political connections.

Mara Faccio studied several thousand firms and found:

Politically connected firms have higher leverage in the form of preferential loans, pay lower taxes, have regulatory protection, are made eligible for government aid, and have stronger market power. They differ more dramatically from their peers when their political links are stronger, and in more corrupt countries, although these characteristics can be observed worldwide.

She alleges that connected firms appear to enjoy substantial favors from governments, distorting the allocation of public resources. “Firms with no political ties appear to be at a disadvantage”, so, it seems, the pressure is on for all firms to corrupt government! Her study was not restricted to the USA. She looked at 47 countries all together, but political influence by companies was common in both emerging and developed countries, although the methods of political influence varied somewhat.

These studies show that the ordinary voter is oblivious to the way that democracy is commonly swindled by political bribery and corruption, in the USA and in most other capitalist countries, whether advanced or developing. People consider corruption as wrong, but show no curiosity that it is happening daily, and the one who suffers in the end is Joe and Jane Doe, the common man and woman, you and me.

It is time this corrupt system was ended, and it is certain that right wingers dressing up as Captain America and in tricorn hats—led by the nose by private sponsors from among the rich—will not do it. A genuine grass roots movement is needed, and it will probably be led, as it is in France and latterly in Britain, by serious students and angry unemployed young people.

Where is All the Money? Ask Credit Suisse Bank!

Sam Pizzigati, editor of Too Much, an online newsletter on excess and inequality, reports that the Swiss banking giant Credit Suisse has issued for the first time a Global Wealth Report based on financial data from over 200 countries. It shows that total global net worth, despite the 2008 global economic meltdown, has rocketed up 72 percent since 2000. Credit Suisse sums up:

The past decade has been especially conducive to the establishment and preservation of large fortunes.

The world has more than enough wealth to ensure no one on the planet need be potless. The study shows the world has 4.4 billion adults and the total wealth they own is $194.5 trillion. Shared out, every adult in the world could have $43,800. The fact is, though, that three billion people, almost 70 percent, have less than $10,000, and 1.1 billion, a quarter of all adults, have less than $1,000. These figures are net worth, meaning their assets less their liabilities. Half the people on earth who are 20 and older have less than 2 percent of global wealth—each less than $4,000.

The world’s richest 1 percent—adults who have at least $588,000—hold 43 percent of the world’s wealth. They constitute the ruling class, the wealthiest class, and they break down as:

• just over 1,000 billionaires, with over $1000 million each
• 80,000 more super rich people worth between $50 million and $1 billion each
• 24 million more people who are millionaires worth between $1 million and $50 million.

Those wealth differences are exacerbated by the local conditions. In uncivilized societies with poor public health care, poor quality public education, and no state pensions, then the poor are hit by ill health, a miserable old age, and ignorance because they cannot afford to pay for the absent public services. Moreover, epidemics like swine flu, natural disasters, like Katrina, and unemploment are additional shocks for which the poor do not have the reserves to survive easily. In a society with the opposite conditions, a history of civilized caring governments which have provided public services and benefits then poverty does not have the stigma and practical horrors it has in poor societies.

No other nation has as much total wealth as the United States, with only 5.2 percent of the world’s population. It has 23 percent of the world’s adults worth at least $100,000 and an even greater proportion, 41 percent, of the world’s millionaires. Yet, it is a society with inadequate social services, so its people need more personal wealth to survive than people in countries like France, Sweden and Germany which have good social services.

Canada has a national public health insurance. Credit Suisse calculates the wealth of the typical Canadian family is $94,700, double the $47,771 US average. It shows that good public services add to a nation’s wealth. Public services provide jobs, and need private business suppliers, and health and pension security means people are less risk averse, and will be more inclined to start up new businesses.

Why then have we given trillions of dollars to the banks, depleting our treasuries so much that we are told we have been living too extravagantly? It is a big lie, and we ought to be taking direct action to change it. But we can do without Tea Party economics. We do not need tax cuts for the rich, we need services for the poor, paid for by taxing the rich. They can afford it, we cannot!

Another Election: But US Voters Still Not Being Heard

A poll in Ohio shows independent voters are unhappy with the political system. Previous polls have already demonstrated a low level of trust, among independents especially. 70 percent of respondents reported low satisfaction with Ohio politics, with higher figures among independents than among Democrats or Republicans. Dr John Green, distinguished professor of political science at UA, said:

This unhappiness raises questions about the legitimacy of the political process.

Independent voters thought the political system has been unresponsive to the public, especially on the economy. Participants had a variety of views about the problem:

• we’re not being heard
• politicians were self-serving careerists
• politicians were arrogant and insulated from the problems of the public
• corruption was a common allegation, symbolized by the large sums of money raised and spent in campaigns
• politicians should “wear patches on their suits from their sponsors” like NASCAR drivers.
• people were alienated from the political process
• public officials were puppets of special interest groups.

In the US political system, the buck stops at the presidency, so Obama carried the can, not just for Tea Partyers, but because he had not done enough to address the problems of the average American. But views on Congress were also negative:

• it needed to be revamped
• anything would be better than the system we have now
• members of Congress did not respond to the needs of the public at large
• we just need new people in government
• parties were viewed as hell bent on their own agenda
• parties too far apart on every issue
• it takes years to get anything done
• parties needed to put America first
• parties needed to stay more to the Constitution
• a third or fourth political party was needed to keep the system honest
• a “common sense” party was needed to revive the economy and limit the size of government.

Some thought additional parties would not be “common sense” parties, but a base for lunatics, and would not be competitive. If any were a base for lunatics, it would have to be competitive to match the Republican Tea Partyists. Indeed, many independents were skeptical of the Tea Party agenda, but others were supportive. Many accepted that problems were partly their own fault for not being more involved in politics, but anger and distrust were strong motivations for political activity:

• the people need to exercise their power
• it is time for a revolution

There needed to be more free access and response from politicians:

• more and regular town hall meetings
• quick and thorough responses from contacted officeholders
• a greater presence of politicians in the community
• being a politician should not be seen as a job choice but a service to the country.

These lists of solutions offered are incoherent and inconsistent, illustrating the voter disunity, and failure to comprehend what is happening. It reflect the sense of being ignored by the government among independent voters. There is no way that Americans can solve the problem. They live in a society in which the ordinary people, workers and middle classes, refuse to accept they live in a class society in which the ruling class, the rich elite, control their system from top to bottom. As long as that is so, there can be no change unless the ruling class volunteer to give up some of their wealth and power in a redistribution for fairness and justice. It is not likely to happen. So, revolution is the only option, but that requires unity, and US workers are utterly divided and will remain so while the right wing media are so influential, and their target audience are so gullible.

God or Liberty? A Fair Society, Please!

Not Freedom from Taxation, Nor Mystical Faith, but a Fair Distribution of Wealth and a Functioning Society

US religious and social history has been characterized by a periodical pulsation of religious fervor. Since the 1980s, the pulsation has been upbeat, evangelical movements and their leaders grabbing a lot of publicity and political power. These periods of religious fervency rarely last over half a century, so the latest one is probably on the wane, and the religious enthusiasts are riding the Tea Parties as if it were a religious revival. But Pulitzer Prize winner, Jon Meacham, a journalist and a historian, sees the Tea Party as “nationalistic, not moralistic”.

Tea Partyers are less concerned about the moral issues and more concerned about economic ones. It is conservative Christians who still say, “We need government to protect our morality, to protect us from ourselves”.

The myth stems from the original event in 1773, the Boston Tea Party, which was an act of rebellion against taxation without representation. The colonies were ruled by the King Georges of England and had no say in their own affairs. Three years later, the American colonies rebelled, and won independence. For Meacham:

It is liberty, less than religion, that holds us together.

S Augustine, in City of God, defined a people as “the association of a multitude of rational beings united by a common agreement on the objects of their love.” The “City of God” he meant was the Christian Church, in those days, the Catholic Church, and the objects of their love were their fellow human beings, and, of course, God, in the form of Jesus Christ, who had identified himself with the meek and the downtrodden in the world. When the new Christian religion began to spread from the original Jews to gentiles in the Roman empire, it was indeed the poor and the downtrodden who responded, and a much smaller number of mainly rich women, glad to give up their legacies for salvation.

For modern American Christians none of that applies. According to Meacham, “the attack culture has subsumed everything else”. American conservative Christians, like those who supported Bush, and who are now supporting “Tea Parties” to get rid of Obama think, and like to say, that the United States is a “Christian nation”. Even many liberal Americans agree. They think the country’s founding principles are based on Christianity, through the settlement of New England by the Pilgrim fathers in 1620.

It was not the Christian ideas of the Pilgrim Fathers who initially settled in America, but the Enlightenment values of the Founding Fathers of the new republic who set out the documents that proclaimed the nature of the new political entity, and set out its founding principles, principles that still apply. Since the country’s founding, Americans have confused its defining features.

Mark McGarvie, a history professor at the University of Richmond, points out that the stress on man’s duties and responsibilities towards his fellow man, according to the teaching of Christ, was an element in the motivation of the founding of some of the early US colonies, but Christianity had nothing to say about anyone’s individual freedom. Christ had nothing to say specifically about slavery. Plainly, though, slaves fell into the category of the poor, the meek and the downtrodden, people whom Christ said were blessed, would enter the kingdom of heaven and ought to be treated like God. The man Christians treat as their God, Paul, the one they prefer to cite rather than God—Christ whom they largely ignore—told slaves to settle for their lot. Paul marginalized Christ’s emphasis on being loving and kind to each other—on works, as the New Testament calls it—by substituting for Christ’s practical teaching his own mystification, faith in God and the body of Christ!

The Declaration of Independence was based on the ideas of the Enlightenment, the teachings of Locke and Rousseau, as expressed by Jefferson and Madison. These men were also concerned with the poor and downtrodden, with the centuries of oppression people had suffered while Europe was ruled by the Church, and its hereditary nobility, who wanted the people to believe that kings were divinely appointed and had to be obeyed, even when they were wicked. It is what S—Paul taught, but not Christ.

With the rise of the merchant class of capitalists, the Feudal System of government by the nobility and royalty was doomed, but struggles were needed to put it firmly in its grave, and the American Declaration of Independence was one of the acts that established that kings were not divinely right! Instead of the divine right of kings, the Enlightenment idea was that God had nothing to do with individual rights, except that free will meant everyone was personally free in God’s own view! The Enlightenment was about protecting individual rights, in contradiction of divine rights.

Now the point of individual rights is not that everyone should do as they like, for that would be intolerable, and indeed would be quite alien to anything that Christ taught or any Christian should believe. The Founding Fathers thought that humans were primarily good to each other, and that society should allow them to prosper according to their good nature. They inscribed on the country’s Great Seal the motto “Out of many, one”. Americans were to pursue their own interests and desires with the ultimate aim of doing good not just for themselves but for a whole united society.

The other side of the US Great Seal has two mottoes, one of which announces that the birth of the USA begins a “New Order of the Centuries”, while the other is simply “It Has Favored Our Efforts”, “It” meaning Fortune or Providence, according to your religious inclination. So, although Christians will read this as being God’s Providence, and therefore God, the deists who drew up the documents could be more neutral and read it as Fortune. Even here, then, a Christian interpretation is not the only one. Deists believed in a God, but not one that twiddled with the world he made.

The conflict between the mystified Christianity of Paul and Luther, and the practical Christianity of Christ himself, filtered through the Enlightenment, existed from the outset of the USA, and there seems little to be gained in denying it. Christians nevertheless do, or they do not recognize it at all.

In modern practical terms, freedom is the freedom of the hyper rich one or two percent of the people to take the enormity of the country’s wealth that leaves the poor and even the middle classes struggling, either to stay alive or to maintain their standards. It is not social schemes like health and education, schemes that no civilized country can do without but which are being starved of sufficient cash to offer a proper service, both in the US and abroad. Christ went about curing people gratis and blessing the poor like Lazarus, the beggar, while approving the damnation of the rich, like Dives, the rich man. The greed of the minority is the real moral problem of all societies. That is what Christ taught.

It is all very simply set out in the Christian gospels but none of the evangelical crowd, who think Tea Parties are sent by God, have read or comprehend the teachings of Christ. They believe what their Republican pastors and politicians tell them, and, as Limbaugh and Beck prove, being idiotic is what the conservative Christian loves—“That’s just how I feel. Boy aren’t these guys just great!” They are too easily conned to see they are being conned! These guys are not idiots. They are! They are being taken for a ride, and the only benefactors are the Republican grandees, the mega rich, whom they think will help them by reducing taxation when all it does is leave those with the income worth taxing, better off.