2016-12-12

AMERICA DIES YOUNG, POOR AND

ADDICTED!

http://mexicanoccupation.blogspot.com/2016/12/americas-slow-march-to-death-us-life.html

A Nation Commits Suicide

Study on pay for young adults highlights plunge in US living standards

Study on pay for young adults highlights plunge in US living standards

12 December 2016

A study released last week by a team of economists from

Stanford, Harvard and the University of California at

Berkeley found that the odds of American children growing

up to earn more than their parents declined precipitously

from 1970 to the present. Whereas in 1970, 92 percent of 30-

year-olds earned more than their parents did at a similar age,

that number fell to 51 percent by 2014.

The figures for males were even worse. As of 2014, only 41

percent of 30-year-old men earned more than their fathers at

a similar age. The researchers also found that the decline in

the ability of children to earn more than their parents was

greatest in the Midwest, where decades of deindustrialization

have had their most devastating social impact.

The economists concluded that even rapid economic growth

would do little to reverse the downward trend because of the

immense and ongoing growth of social inequality.

The authors of the study described their findings as a harsh

verdict on the strength of what they called “the American

dream.” In fact, their own findings add to a mass of social

indices demonstrating that the much-vaunted but largely

mythical “American dream” has turned into a nightmare. To

the extent that this term, promoted to encourage illusions in

American capitalism, ever corresponded to social reality, it

was largely in connection with the belief that each young

generation would enjoy a better standard of living than the

one that preceded it.

Just last week, the federal Centers for Disease Control and

Prevention (CDC) reported that overall life expectancy in the

US declined for the first time in more than two decades in

2015. The fall reflected rising death rates for a variety of

diseases, an increase in unintentional injuries, accelerating

suicide rates and an increase in infant mortality.

Earlier this year, a group of Harvard researchers reported that

there was a 15-year life expectancy gap between men in the

richest one percent of the population and those in the bottom

one percent. Another reflection of the social crisis is the

CDC’s finding that deaths from heroin overdoses surpassed

gun homicides in 2015, while total annual deaths from all

opioid overdoses quadrupled between 1999 and 2015.

The study on pay noted that the sharpest drop in the

percentage of young adults earning more than their parents

occurred from 1970 to about 1992—from 92 percent to 58

percent. The percentage stabilized for about a decade and

began to fall again beginning in 2002.

There is a direct correlation between this downward

trajectory in living standards and the decay of American

capitalism. The 1970s was the decade when the unraveling of

the post-World War II economic boom and the erosion of the

dominance of American industry found open expression in

the collapse of the Bretton Woods monetary system in 1971

and the growing share of global markets, including the US

market, captured by rivals such as Germany and Japan.

At the end of the decade, the American ruling class initiated a

major shift in its class policy, terminating the postwar period

of relative class compromise and launching a class-war

offensive aimed at breaking the militant resistance of the

working class and reversing its previous social gains. A wave

of plant closures and mass layoffs that began under the

Democratic Carter administration was intensified under

Reagan, who used the growth of unemployment along with

union busting and wage cutting, made possible by the

betrayals and collusion of the unions, to drive down working-

class living standards.

This ruling-class offensive has continued ever since, under

Democratic no less than Republican administrations. The

pace of decline in working-class living standards slowed

somewhat in the 1990s, with Clinton presiding over a

transient upward trend in economic growth based on the

removal of virtually all restraints on financial speculation and

parasitism. The resulting dot.com bubble imploded in 2000,

fueling a new wave of mass layoffs and wage cutting under

both the Bush and Obama administrations. This offensive was

stepped up in response to the Wall Street crash of 2008.

It is this social catastrophe, rooted in the decline of American

capitalism, that underlies the political crisis of both big-

business parties in the 2016 election and the victory of Trump

—the personification of the economic, political and moral

decay of the American ruling class.

The election was dominated by the growth of popular anger

and disgust with both parties and the political and economic

status quo. The broad popular support, particularly among

young people and workers, for the Democratic primary

campaign of Bernie Sanders, who presented himself as a

“socialist” opponent of the “billionaire class” and social

inequality, reflected the initial stages of a movement of the

working class to the left. Sanders worked to channel this

opposition behind the Democratic Party, culminating in his

endorsement of and campaign for Hillary Clinton.

Clinton’s campaign, the most right-wing in modern

Democratic Party history, focused on scandalmongering

against Trump and warmongering against Russia. She was

broadly backed by Wall Street and the CIA and ran as the

continuator of Obama’s supposed economic “recovery.” She

utilized racial and gender politics to portray “white working

class” support for Trump as motivated by racism and sexism

and distract attention from the ongoing growth of social

inequality and impoverishment of broad layers of working

people.

In an election where the two candidates vied for the

distinction of being the most despised presidential

contenders in US history, and the biggest bloc of voters were

those who saw no reason to vote, Trump was given a free path

by the Democrats and Sanders to exploit the economic

grievances of workers and middle-class people whose living

standards had been devastated by the policies of both parties.

Both the Obama administration and the Clinton election

campaign were the outcome of nearly five decades, beginning

at the end of the 1960s, during which the Democratic Party

has repudiated any connection to policies of social reform and

moved ever more sharply to the right.

It will not take long for workers, including those who voted

for Trump, to realize that they have been taken for a ride and

face in his administration the most ferocious enemy of the

working class. His cabinet of billionaire reactionaries and

warmongering generals already makes clear that his will be

the most right-wing, anti-working class government in US

history.

Trump’s policies of social counterrevolution and war will do

nothing to resolve the underlying crisis of American and

world capitalism. They will only exacerbate the social crisis.

The working class will face immense shocks in the coming

months. It will move into struggle against a government that

is preparing an unprecedented level of state repression in

defense of the corporate-financial elite.

The interests and needs of the working class can find no

expression within the existing political system. The defense

of democratic and social rights must assume the conscious

form of a socialist political movement of the working class

against the capitalist system.

Niles Niemuth

AMERICA: A NATION RULED BY and FOR  CRONY BANKSTERS

TRUMP VOWS TO KEEP OBAMA’S CRONY BANKSTERS LOOTING

MNUCHIN: THE  FORECLOSURE  MACHINE!

http://the-trump-white-house.blogspot.com/2016/11/mnuchin-trump-vows-to-keep-obamas-crony.html

The FDIC paid OneWest $1 billion, which Stein said went to “billionaire investors … to cover the close of foreclosing on working class, everyday American folks.”

“But the bank came under fire for its foreclosure practices as housing advocacy groups accused it of being too quick to foreclose on struggling homeowners. In 2011, dozens of demonstrators descended on Mnuchin's $26.5 million home in he wealthy Bel Air neighborhood to protest OneWest's eviction tactics, according to the Los Angeles Times.”

Wikileaks exposed!

BARACK OBAMA AND THE GOLDEN AGE OF CRONY BANKSTER LOOTING…. And not one went to prison!

“Citigroup’s recommendations came just three days after then-President George W. Bush signed into law the Troubled Asset Relief Program, which allocated $700 billion in taxpayer money to rescue the largest Wall Street banks. The single biggest beneficiary was Citigroup, which was given $45 billion in cash in the form of a government stock  purchase, plus a $306 billion government guarantee to back up its worthless mortgage-related assets.”

MUCH MORE HERE:

http://mexicanoccupation.blogspot.com/2016/10/the-bankster-owned-president-citigroup.html

“As president, Obama not only funneled trillions of  dollars to the banks, he saw to it that not a single leading Wall Street executive faced prosecution for the orgy of speculation and swindling that led to the financial collapse and Great Recession, and he personally intervened to block legislation capping executive pay at bailed-out firms.”

“So when Clinton was hobnobbing with  Goldman Sachs CEO Blankfein in 2013, while  investigations of wrongdoing by Goldman and the other Wall Street banks were still ongoing, she was consorting with a man who belonged in prison.”

THANKSGIVING 2016

THE LAST BEFORE THE REVOLUTION

STAGGERING ADDICTION and POVERTY IN AMERICA

http://mexicanoccupation.blogspot.com/2016/11/staggering-poverty-in-america-under.html

Markets pushed to record highs on Trump surge

Markets pushed to record highs on Trump surge

By Nick Beams

12 December 2016

In his book on the 1930s Depression, The Great Crash, the economist John Kenneth Galbraith included a chapter titled “In Goldman, Sachs We Trust.” The title could well be reprised in an analysis of the stock market surge that has followed the election of Donald Trump to the US presidency.

Since November 8, Wall Street’s Dow Jones index has risen by 7.8 percent, closing on Friday at a record high of 19,765—the 14th record close since the election of Trump. It is heading toward 20,000 just weeks after it broke through 19,000 for the first time. The euphoric surge in the Dow is even more remarkable considering that on election night the futures index at one pointed indicated a possible 500-point decline.

The broader-based S&P 500 index has also enjoyed a surge. It has risen by 5.6 percent in the last month and also set a new record on Friday—the seventh time it has done so since the election.

The chief component in the rise of the Dow

has been the leap in the share price of the

investment and banking giant Goldman

Sachs. Its shares have risen by 33 percent,

making it responsible for 29 percent of the

overall rise in the Dow, or 400 points out of

the total 1,422-point increase in the index

since the election.

The second biggest contributor to the stock market

lift-off has been JPMorgan Chase. Its shares have

risen by 22 percent, contributing 7 percent to the

rise in the Dow.

During the election campaign, Trump railed against the Democratic Party candidate Hillary Clinton for her close connections with Wall Street, and Goldman Sachs in particular. On Friday, however, Trump offered a major economic post in his administration to Gary Cohn, the president and chief operating officer of Goldman Sachs, second in the chain of command to CEO Lloyd Blankfein.

Cohn has been tapped by Trump to head the incoming administration’s National Economic Council, responsible for implementing the White House’s economic policy agenda. If he accepts, he will join two other former Goldman Sachs operatives in the new administration—Steven Mnuchin, who is to head the treasury department, and the ultra-right-wing Steve Bannon, who is to be the chief strategist of the Trump administration.

As for Blankfein, who supported Clinton in the election, he has turned around. Summing up the attitude of much of the financial aristocracy to the new administration, he told the Wall Street Journal that Trump was “a very smart guy,” who “may turn out to be a much better president than anyone else who might have been in that place.”

On the basis of appointments made so far, the Trump cabinet will be the wealthiest in American history. His choices for the key posts of Treasury, Commerce, Education and Transportation have a combined net worth of at least $8.1 billion.

The chief motivating factor behind the rise on Wall Street is the understanding that the incoming Trump administration will not only carry out policies to benefit the financial elites, but that responsibility for implementing this agenda will be in the hands of some its foremost representatives.

One of the main reasons for the rise in bank stocks, reflected in the fortunes of Goldman Sachs and JPMorgan Chase, is that a Trump administration will tear up the few restrictions on the operations of the banks and finance houses put in place under the Dodd-Frank Act, which was introduced in response to the global financial crisis of 2008. The 2011 report on the financial crisis

produced by the Senate Permanent

Subcommittee on Investigations made

it clear that Goldman Sachs’

operations in the lead-up to the 2008

Wall Street crash were of a criminal character.

Another factor fuelling the enthusiasm on Wall Street is the prospect that a Trump administration will cut the corporate tax rate to as low as 15 percent from its present level of 35 percent, while introducing personal tax cuts for the very wealthy.

The so-called infrastructure program of the new regime is also viewed as providing a boost to the bottom line. The basis of the Trump plan, at least so far as it has been revealed, is not a program of government works, but rather the provision of massive tax write-offs—possibly as high as 80 per cent—for corporations that undertake infrastructure projects. These will involve public-private partnerships under which the corporations will enjoy a permanent revenue stream from their operation.

Consequently, engineering, transport and construction companies are among those that have enjoyed a rise on Wall Street. Energy companies have also benefited based on the view that a Trump administration will ease environmental and other regulations in line with a broader deregulatory program across the economy as a whole.

Trump campaigned on the slogan “Make America Great Again” in an attempt to tap into the hostility to the political and financial establishment across broad layers of the American population—a hostility reflected not only in support for him, but even more strongly in that received by the Democratic Party contender Bernie Sanders, who proclaimed himself a “socialist” and opposed to the “billionaire class” before swinging behind Clinton once she received the nomination.

The basis of that opposition has been underscored by a new study on economic inequality in the US issued by economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman released last week. It showed that in the period from 1980 to 2014, the latest year for which complete data were available, the share of income received by the bottom half of the population, a total of 117 million adults, fell from 20 percent of the total to just 12.5 percent.

No doubt one of the factors in the rise on Wall Street is the recognition that the new administration will increase these trends even further.

There is also the perception that US firms will be the beneficiaries of the economic nationalist “America-first” agenda that forms the centre of the Trump program.

In general, media commentary on the rise in the markets has been celebratory in tone. But some notes of caution have been sounded. According to a measure developed by economist Robert Shiller, the present level of the cyclically adjusted price/earnings ratio stands at a level exceeded only three previous times: in 1929, in 2000 at the height of the tech bubble, and in 2007 during the housing and stock bubble.

Others have drawn parallels with the economic nationalist and protectionist Hoover administration, which sparked a 13 percent market surge in 1928 before the US economy plunged into the Great Depression.

AMERICA DIES YOUNG, POOR AND

ADDICTED!

http://mexicanoccupation.blogspot.com/2016/12/americas-slow-march-to-death-us-life.html

A Nation Commits Suicide

TRUMPERNOMICS: Serving the Rich, the Greedy and the Crooked.

TRUMP’S CABINET OF STOOGES, LOOTERS and CRONIES

http://mexicanoccupation.blogspot.com/2016/12/trump-promises-wall-street-more-obama.html

Puzder’s nomination is of a piece with Trump’s other cabinet

choices. Betsy DeVos, an enemy of public education, has

been selected to head the Department of Education. Ben

Carson, the neurosurgeon known for his antipathy towards

government “interference” in housing regulation, has been

nominated as the Housing and Urban Development

Secretary.

ANDREW PUZDER:

ENEMY OF THE AMERICAN WORKER and

ADVOCATE FOR OPEN BORDERS

TRUMP'S OPEN BORDERS AND AMNESTY/ NON-ENFORCEMENT POLICIES WILL HELP KEEP THE HAMBURGER INDUSTRY WELL STOCKED WITH "CHEAP" LABOR ILLEGALS.... The America people will then be forced to pay the REAL cost of all that staggeringly expensive labor

http://mexicanoccupation.blogspot.com/2016/12/donald-trump-advances-obama-clinton.html

“Yet Andrew Puzder, the chief executive of the company that operates Carl’s Jr. and Hardee’s, has been chosen by President-elect Donald Trump as labor secretary.”

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