Author: Tony Wikrent Page 37 of 51

by Tony Wikrent

Strategic Political Economy

Genocide.

[Brasilwire, via Naked Capitalism 3-22-21]

In January of this year, a study published by the Center for Research and Studies on Health Law at the University of São Paulo, and NGO Conectas, proved that the spread of the coronavirus in Brazil was a government strategy. The same researchers now insist the president should be investigated for genocide.

In May 2020, the far-right president insisted that “only the weak, the sick and the elderly should be worried” about Covid-19. What sounded like denialism a year ago now reads like a candid admission…. No other country on earth had a head of state actively preventing their population from being vaccinated, whilst leaving the poorest unable to protect themselves through isolation.

A recent study in Brazil’s largest city São Paulo shows that those living in its poorest neighbourhoods are 3 times more likely to die of Covid-19 than those in its wealthiest.

A Better Path to Tech Reform? Felony Charges

[Wired, via Naked Capitalism 3-24-21]

…there are two options to buy time, neither of which requires congressional action. It merely requires the government to apply regulatory tools that do not get used frequently, namely subjecting business executives to felony prosecution.

The first option is an antitrust case against Google led by the attorney general of Texas that alleges a price fixing conspiracy in digital advertising. The complaint names Facebook as a co-conspirator. Price fixing falls under Section 1 of the Sherman Act, significant because it does not require proof of harm. The attempt itself is a crime. And if, as has been alleged, there is evidence of an agreement for mutual legal defense, there may be a second count. When appropriate, executives can be subject to felony prosecution, punishable by up to three years in prison. Google denies any wrongdoing.

The Biden Justice Department has an opportunity to join the Texas case or to pursue its own case as a felony. DOJ can adds Google and Facebook executives to its criminal antitrust indictments. The situation warrants it, as the harms in question are the result of deliberate business choices. The threat of imprisonment might change the calculus for internet CEOs, creating for the first time an incentive to make the changes to their business model necessary to stop harm to public health, democracy, privacy, and competition….

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by Tony Wikrent

Strategic Political Economy

[Twitter, via Naked Capitalism 3-15-21]

1. There's an important debate w/in the Federalist Society over the conservative legal movement. The alliance between social conservatives and libertarians is breaking down. A few observations about this wonderful @jacklgoldsmith essay on the tension. https://t.co/z5eIxeUUNC

— Matt Stoller (@matthewstoller) March 13, 2021

The Dark Money “Ring” of Charles Koch and Leonard Leo Gets an Airing Before the U.S. Senate – Followed by a Mainstream Media News Blackout

Pam Martens and Russ Martens, March 15, 2021 [Wall Street on Parade]

Last Wednesday, March 10, a Subcommittee of the Senate Judiciary Committee held a hearing of critical importance to every American on the growing tsunami of dark money that is corrupting the U.S court system, up to, and including, the U.S. Supreme Court. Senator Sheldon Whitehouse (D-RI), who has written extensively on the corrupting influence of dark money on American democracy, chairs that Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights….

Had a truly objective Editorial Board at the Wall Street Journal taken the time to read the full written testimony of Lisa Graves, President of the Center for Media and Democracy, that was presented at this hearing, there would be no doubt in their minds that the Federal court system in the United States has been obscenely corrupted by dark money, coming predominantly from fossil fuels billionaire Charles Koch and his dark money network….

Graves’ courageous testimony named names and backed up her charges with hard facts. Graves explained the campaign to seat Amy Coney Barrett on the Supreme Court…. Graves writes that Leonard Leo, the Co-Chairman of the Koch-funded Federalist Society “sits at the hub of a secretive scheme to capture the courts and remake our laws, with a cadre of his confidantes and groups.” Graves says that “more than $400 million” was received by this dark money network between 2014 and 2018….

Graves explains the motive behind the involvement of the Federalist Society as follows:

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by Tony Wikrent

Strategic Political Economy

Russia turns away from NASA, says it will work with China on a Moon base 

[Ars Technica, via Naked Capitalism 3-10-21]

Brazil’s High Court Invalidates Lula’s Convictions, Leaving Him Eligible to Run Against Bolsonaro

[greenwald.substack.com, via Naked Capitalism 3-10-21]

….this is increasingly becoming the playbook for neoliberal elites who are angry that the population has defied them by voting for those they oppose. Thwarted by the democratic process, elites now resort instead to subversions of democracy in the name of upholding it. The employ frivolous impeachments to remove the leader whose legitimacy they never accepted, lawfare designed to make governance impossible through endless investigations or even the unjust imprisonment of their political opponents, and a full-scale union with the corporate media which openly and shamelessly ceases to report and instead engages in tawdry political activism to destroy the leaders chosen by the disobedient population. Indeed, the oligarchical Brazilian media so openly and overwhelmingly favored Dilma’s impeachment that the steadfastly apolitical press freedom group Reporters Without Borders dropped Brazil to 104th in its annual press freedom rankings and warned that the Brazilian press’ abandonment of the journalistic function while agitating for Dilma’s removal was so severe that the Brazilian press itself endangered press freedom.

As neoliberalism destroys more and more lives around the world, leaving an endless array of social pathologies in its wake, power centers will seek out tactics to subvert the democratic will. The increasing insistence on censoring the internet and controlling the flow of information is one symptom of elite fear of popular rage and desperation. So, too, is the related attempt by corporate media outlets to regain their monopoly over news and discourse by discrediting anyone or anything which sits in opposition to them. And the playbook that resulted in Dilma’s removal from office less than eighteen months after Brazil elected her, followed by the unjust imprisonment of Lula to ensure he could not run and win again, is reflective of a pattern already emerging in the west: abusing the force of law, propaganda and state processes to destroy those whom the population was not supposed to elect.\

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by Tony Wikrent

Strategic Political Economy

All futurism is Afrofuturism

Noah Smith [Noahpinion, via Naked Capitalism 3-4-21]

A recent paper in The Lancet attempts to model how African population will change as women’s education and access to contraception (the two biggest things other than GDP that we know affect fertility) increase. They predict a population for Sub-Saharan Africa of about 3.4 billion by century’s end — only 0.8 billion lower than the UN median projection. That’s still an absolutely enormous fraction of humanity, and an even larger chunk of the young population.

Thus, the future of Africa is the future of humanity, despite the fact that Africa will experience a normal fertility transition and its population will eventually stabilize rather than explode. I don’t think people in the U.S. (or, probably, other regions) have come to grips with the full import of this.

But what happens to Africa is even more important, relative to the rest of the world, than these population numbers suggest! This is because Africa is still a mostly poor region. Economics teaches us that marginal utility — i.e. the amount life gets better when you get a little richer — is much higher for poor people. And with China and (to some degree) India industrializing successfully and seeing population growth slow, soon most of the extremely poor people in the world will probably reside in Africa.

Chinese vaccines sweep much of the world, despite concerns

[AP, via The Big Picture 3-3-21]

China’s vaccine diplomacy campaign has been a surprising success: It has pledged half a billion doses of its vaccines to more than 45 countries. With just four of China’s many vaccine makers claiming they are able to produce at least 2.6 billion doses this year, a large part of the world’s population will end up inoculated not with the fancy Western vaccines boasting headline-grabbing efficacy rates, but with China’s humble, traditionally made shots.

Trends in Income From 1975 to 2018 

[Rand Corporation, via Naked Capitalism 2-28-21]

 We document the cumulative effect of four decades of income growth below the growth of per capita gross national income and estimate that aggregate income for the population below the 90th percentile over this time period would have been $2.5 trillion (67 percent) higher in 2018 had income growth since 1975 remained as equitable as it was in the first two post-War decades. From 1975 to 2018, the difference between the aggregate taxable income for those below the 90th percentile and the equitable growth counterfactual totals $47 trillion.

The American Dream is dying, and it’s taking democracy with it

[Washington Post 3-5-2021]

Democracy is in retreat around the globe, according to the latest annual report from Freedom House, a civil liberties watchdog.

The situation is especially concerning in the United States, where a decade of creeping authoritarianism has produced one of the world’s most rapid paces of democratic deterioration, according to the report. In terms of individual freedoms, we’re now “closer to countries such as Romania and Panama than Western European partners such as France and Germany,” as Ishaan Tharoor noted recently. But there’s a major economic component to our recent decline, as well: the yawning divide between rich and poor, which researchers have found to be both a cause and a consequence of democratic backsliding here and elsewhere….

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by Tony Wikrent

Strategic Political Economy

Austerity and the Rise of the Nazi Party

Gregori Galofré-Vilà, Christopher M. Meissner, Martin McKee, and
David Stuckler
Economic History Association, published online by Cambridge University Press, 11 January 2021

We study the link between fiscal austerity and Nazi electoral success. Voting data from a thousand districts and a hundred cities for four elections between 1930 and 1933 show that areas more affected by austerity (spending cuts and tax increases) had relatively higher vote shares for the Nazi Party. We also find that the localities with relatively high austerity experienced relatively high suffering (measured by mortality rates) and these areas’ electorates were more likely to vote for the Nazi Party. Our findings are robust to a range of specifications including an instrumental variable strategy and a border-pair policy discontinuity design….

In this paper, we investigate the association between the austerity measures implemented by the German government between 1930 and 1932 and voters’ increased support for the Nazi Party. A growing literature studies the interactions between political preferences and fiscal policy with evidence that austerity packages are correlated with rising extremism (Alesina, Favero, and Giavazzi 2019; Bor 2017; Eichengreen 2015, 2018; Fetzer 2019; Ponticelli and Voth 2020)….

We also provide some novel quantitative estimates concerning the channels by which austerity mattered. To do so, we study the relationship between mortality rates and austerity. We find a plausible link, since where public spending on health care dropped more, mortality was higher. These places also saw a relatively large increase in Nazi support at the polls. Finally, looking at archival documents of Nazi propaganda, we document how Nazi leaders invoked austerity to attack Brüning and the Weimar Republic and how Brüning’s tax rises were seen as inefficient and unfair by the German masses.

Eviction Moratorium Deemed Unconstitutional by Federal Judge in Texas

[Naked Capitalism 2-26-21]

Business Licensing and Constitutional Liberty
Amanda Shanor [The Yale Law Journal 314 (2016)]

….the Constitution is increasingly being invoked as a trump against certain types of economic regulation. My thesis is that the central arguments currently marshaled in favor of extending stringent judicial review to business licensing regulations are untenable. These lines of reasoning have no logical endpoint. Individual rights, on this view, could trump any manner of governmental regulation in favor of free-market ordering.

These business licensing cases raise deep and pressing questions about the purpose and scope of rights and constitutional judicial review more broadly today. Underlying these debates are competing conceptions of constitutional liberty. One view, perhaps the ascendant one, reflects free-market libertarian values, whereas others understand the First and Fourteenth Amendments to reflect ideals such as democratic self-governance, anti-subordination, or civic republicanism. Resolving disputes about the constitutional status of business licensing requires that we grapple with those deeper questions.

Predatory Capitalism in the Time of COVID19

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by Tony Wikrent

Strategic Political Economy

Nietzsche’s Marginal Children: On Friedrich Hayek.

Corey Robin [The Nation, May 7, 2013]

Why have marxists and socialists failed so spectacularly in opposing movement conservatism and neoliberalism?  I think one major factor is an intellectual infatuation with Nietzsche, which blinds them to Nietzsche’s oligarchical pedigree and mindset. This is why I believe we need a revival of the ideas and ideals of civic republicanism, because the issues always come down to republicanism versus oligarchical elites. 

The Nobel Prize–winning economist Friedrich Hayek is the leading theoretician of this movement, formulating the most genuinely political theory of capitalism on the right we’ve ever seen. The theory does not imagine a shift from government to the individual, as is often claimed by conservatives; nor does it imagine a simple shift from the state to the market or from society to the atomized self, as is sometimes claimed by the left. Rather, it recasts our understanding of politics and where it might be found. This may explain why the University of Chicago chose to reissue Hayek’s The Constitution of Liberty two years ago after the fiftieth anniversary of its publication. Like The Road to Serfdom (1944), which a swooning Glenn Beck catapulted to the bestseller list in 2010, The Constitution of Liberty is a text, as its publisher says, of “our present moment.”

But to understand that text and its influence, it’s necessary to turn away from contemporary America to fin de siècle Vienna. The seedbed of Hayek’s arguments is the half-century between the “marginal revolution,” which changed the field of economics in the late nineteenth century, and the collapse of the Habsburg monarchy in 1918. It is by now a commonplace of European cultural history that a dying Austro-Hungarian Empire gave birth to modernism, psychoanalysis and fascism. Yet from the vortex of Vienna came not only Wittgenstein, Freud and Hitler but also Hayek, who was born and educated in the city, and the Austrian school of economics….

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by Tony Wikrent

Strategic Political Economy

“How The US Legalized Corruption”

[Indi Samarajiva, via Naked Capitalism Water Cooler 2-8-21]

“Americans have this thing called a fundraiser where you put a pile of bribes on a table, wave a wand of asparagus over it, and it just disappears. Access is still bought, but somehow because people ate food, it’s not corruption anymore. The press will literally report on the food. “In New York last weekend, $100,000 got donors a plate of grilled chicken and asparagus, a posed picture with President Trump in a palatial, 60-foot-long entryway, and a 20-minute group chat with the president. WTF is this? In any other country you wouldn’t report on the chicken, you’d report on the corruption.” (Details of a fund raiser dinner from the Washington Post).

Because this is all legal, Americans ignore how fucking insane it is. It’s just daylight bribery. This is what I mean when I say that America has legalized corruption. It’s not that your system is corrupt. Your system is corruption.

Property, Liberty, and the Rights of the Community: Lessons from Munn v. Illinois
Paul Kens [Buffalo Public Interest Law Journal, Volume 30 (2011)]

Abstract: When considering the extent to which the United States Constitution places a limit on government regulation of business, today’s historians and constitutional theorists treat the question as a matter of balancing economic liberty or property rights against government power. Moreover, modem scholars commonly maintain that this balancing formula represents the predominant tradition in constitutional history. Tracing it back to the tenants of Jacksonian democracy that emphasized distrust of government, they imply that constitutional history has developed as a straight line: always with an emphasis on individual liberty and always with a presumption that entrepreneurial liberty should be favored over governments’ power to regulate.

This paper will use the 1877 case Munn v. Illinois to demonstrate that prior to the late 1880s the paradigm for determining the constitution’s limits on government regulation of business was actually quite different. There is no doubt that the Court has always emphatically recognized the importance of property rights. Nevertheless, during the first century under the Constitution, it treated business regulation as a matter of balancing entrepreneurial liberty against the rights of the community. Furthermore, it consistently held that, because state economic regulations were an expression of popular sovereignty and rights of the community, they should be presumed to be valid.

Munn is significant because in the conventional narrative it is portrayed as a steppingstone in the straight line evolution of constitutional doctrine that emphasizes individual liberty. A closer look at the case and the events surrounding it will demonstrate, however, that the majority in Munn actually based its opinion on the traditional emphasis on rights of the community. It will further demonstrate that for more than a decade after the opinion the Supreme Court steadfastly clung to that traditional view. Even under persistent pressure to change.

Fear of the Few: John Adams and the Power Elite
Luke Mayville [Polity, Volume 47, Number 1, January 2015]

Abstract:The political thought that informed the design of the United States Constitution largely neglected the danger posed by socioeconomic elites. The writings of John Adams, I contend, are exceptional in this regard. Using Adams’s writings as a vantage point, this article exposes two important blind spots in mainstream Founding-era thought and the Constitution it informed. Whereas the likes of Hamilton and Madison insisted that majorities held the clear preponderance of power in republican America, Adams maintained that an elite of wealth, birth, and beauty retained overwhelming power even after the abolition of formal distinctions. And whereas Federalists sought security against the threat of majority tyranny, Adams’s principal fear was of aristocratic tyranny—specifically, the tendency of the elite few to undermine both popular representation and effective government.

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Week-end Wrap – Political Economy – February 7, 2021
by Tony Wikrent

Strategic Political Economy

If There’s No Fear of Inflation, Why is GOP Against More Stimulus? – Rana Foroohar and Mark Blyth — Transcript here

​​​​​​​Mark Blyth. ….arguing about deficits is just a footnote on the wider agenda of power for the sake of power. Why do they do this? Because they know that existentially Republicanism has run its course. As Rana just said, there’s only so much you can give to business before they’ve got everything, which is pretty much where we are now. There’s nothing more to give. We need huge amounts of infrastructure repair. We need huge amounts of social investment in the economy and elsewhere. And this is anathema to everything the Republicans have stood for and delivered on for the past 30 years, which is simply more money for me and to hell with the rest of you. So they’re not going to turn this around….

Rana Foroohar. I completely agree with that. And I think it actually brings up something I’m quite worried about, which is the fine line that the Biden administration has to walk right now in executing even part of their Build Back Better, Reward Work Not Wealth strategy, without creating such a bumpy ride from here to there that the Republicans can say, well, look, look what Joe Biden did. Now the markets have crashed… because if you think about what we’re trying to do, if we pull way back, this administration is trying to shift the American economy structurally from being an economy that is based on debt and asset price bubbles to one that is based on income and wage growth. And that’s a laudable goal. But it’s also like turning the Titanic.

….you might actually know when the markets crash that things are getting better in the U.S. economy because certain things have to be done. Raising taxes on companies, the labor share rising, some of the push for union labor that’s coming with the Defense Production Act. All of that is going to dampen profits. It’s going to frighten investors and the hot money is going to run.

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