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hellyeahscarleteen · 3 months

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New donors needed to help keep Scarleteen’s queer, trans and gender nonconforming sex educators going!

We, the queer and trans, staff & volunteers at Scarleteen spend the vast majority of our time giving support. We very actively maintain a friendly and accessible website full of resources, advice and information, and provide a caring, safe and patient environment in all of our direct services. We continue to make a massive contribution towards sexuality education as a whole, as we have for the whole of our 25 year tenure. Everywhere we go we receive thanks from educators and service workers for the motivation we, and our founder Heather Corinna, have given them to do incredible work in their communities. However, for our daily survival and our dreams of the future, we need support too!

Unless our current trajectory changes we will not have the funding this year to give our volunteers end-of-year stipends to reward their generous efforts, nor bring our codirectors’ wages any closer to industry standard or even industry average rates of pay for their positions and tenure - averages which we continue to undershoot by quite some margin, nor will we be able to reimburse those staff for the many hours they have worked in excess of their basic 30 hours a week. We will also be unable to increase their healthcare benefits which for one disabled member of our team, will have been exceeded 4 times over by actual healthcare costs by the end of the year, which they have had to pay for out-of-pocket.

As part of our annual Pride celebration we are asking you to consider becoming one of the 50 (and fabulous) new recurring donors we are determined to find this week! Please consider supporting a few good queer & trans people to help us continue to deliver queer sex and relationships education, info and support, which remains free and open to all.

Recurring monthly donations of $10 or more are part of the treasured community of donors who give us peace of mind like nothing else can. We will need a further 250 recurring donors at that level or the financial equivalent to keep us on-track for our most modest projections through the coming years, so whatever help you can give us today to exceed our initial target of 50 will be cherished by us more than you can know.

Here’s some ways to help:

If you can become a new monthly donor, please do! We would love to welcome you to our valued bunch of fabulous supporters!

If you are already a donor, please consider tacking on an extra $10 per month, even temporarily, if you can!

If you cannot currently afford to donate an increased amount, or cannot donate at all, please consider reaching out to someone who you think can, so that eventually we can find that new donor. (And if you manage to sign someone up, do let us know so we can thank you!)

If you only want to or can give us a one-time donation we will still be incredibly grateful for that help at any level. We know a thing or 12 about deep financial limitations and having to choose very carefully where you give.

Please go to scarleteen.com/donate to begin your monthly donation, or if you have further questions head to scarleteen.com/contact drop us a message.

Thank you once more for your support and for being your queer/trans/allied/otherwise-awesome self,

Yours sincerely,

The Scarleteam …

of Scarleteen: queer sex ed for all since 1998❤️

#pride #fundraising #sex ed #support #queer sex education #zine #lgbtq community #queer sex ed forever #queer sex ed for all

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mostlysignssomeportents · 10 months

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Housing is a labor issue

There's a reason Reagan declared war on unions before he declared war on everything else – environmental protection, health care, consumer rights, financial regulation. Unions are how working people fight for a better world for all of us. They're how everyday people come together to resist oligarchy, extraction and exploitation.

Take the 2019 LA teachers' strike. As Jane McAlevey writes in A Collective Bargain, the LA teachers didn't just win higher pay for their members! They also demanded (and got) an end to immigration sweeps of parents waiting for their kids at the school gate; a guarantee of green space near every public school in the city; and on-site immigration counselors in LA schools:

https://pluralistic.net/2023/04/23/a-collective-bargain/

Unionization is enjoying an historic renaissance. The Hot Labor Summer transitioned to an Eternal Labor September, and it's still going strong, with UAW president Shawn Fain celebrating his members victory over the Big Three automakers by calling for a 2028 general strike:

https://www.teenvogue.com/story/uaw-general-strike-no-class

The rising labor movement has powerful allies in the Biden Administration. NLRB general counsel Jennifer Abruzzo is systematically gutting the "union avoidance" playbook. She's banned the use of temp-work app blacklists that force workers to cross picket lines:

https://pluralistic.net/2023/07/30/computer-says-scab/#instawork

She's changed the penalty for bosses who violate labor law during union drives. It used to be the boss would pay a fine, which was an easy price to pay in exchange for killing your workers' union. Now, the penalty is automatic recognition of the union:

https://pluralistic.net/2023/09/06/goons-ginks-and-company-finks/#if-blood-be-the-price-of-your-cursed-wealth

And while the law doesn't allow Abruzzo to impose a contract on companies that refuse to bargain their unions, she's set to force those companies to honor other employers' union contracts until they agree to a contract with their own workers:

https://onlabor.org/gc-abruzzo-just-asked-the-nlrb-to-overturn-ex-cell-o-heres-why-that-matters/

She's also nuking TRAPs, the deals that force workers to repay their employers for their "training expenses" if they have the audacity to quit and get a better job somewhere else:

https://pluralistic.net/2023/09/14/prop-22-never-again/#norms-code-laws-markets

(As with every aspect of the Biden White House, its labor policy is contradictory and self-defeating, with other Biden appointees working to smash worker power, including when Biden broke the railworkers' strike:)

https://pluralistic.net/2023/09/18/co-determination/#now-make-me-do-it

A surging labor movement opens up all kinds of possibilities for a better world. Writing for the Law and Political Economy Project, UNITE Here attorney Zoe Tucker makes the case for unions as a way out of America's brutal housing crisis:

https://lpeproject.org/blog/why-unions-should-join-the-housing-fight/

She describes how low-waged LA hotel workers have been pushed out of neighborhoods close to their jobs, with UNITE Here members commuting three hours in each direction, starting their work-days at 3AM in order to clock in on time:

https://twitter.com/MorePerfectUS/status/1669088899769987079

UNITE Here members are striking against 50 hotels in LA and Orange County, and their demands include significant cost-of-living raises. But more money won't give them back the time they give up to those bruising daily commutes. For that, unions need to make housing itself a demand.

As Tucker writes, most workers are tenants and vice-versa. What's more, bad landlords are apt to be bad bosses, too. Stepan Kazaryan, the same guy who owns the strip club whose conditions were so bad that it prompted the creation of Equity Strippers NoHo, the first strippers' union in a generation, is also a shitty landlord whose tenants went on a rent-strike:

https://pluralistic.net/2023/05/20/the-missing-links/#plunderphonics

So it was only natural that Kazaryan's tenants walked the picket line with the Equity Stripper Noho workers:

https://twitter.com/glendaletenants/status/1733290276599570736?s=46

While scumbag bosses/evil landlords like Kazaryan deal out misery retail, one apartment building at a time, the wholesale destruction of workers' lives comes from private equity giants who are the most prolific source of TRAPs, robo-scabbing apps, illegal union busting, and indefinite contract delays – and these are the very same PE firms that are buying up millions of single-family homes and turning them into slums:

https://pluralistic.net/2022/02/08/wall-street-landlords/#the-new-slumlords

Tucker's point is that when a worker clocks out of their bad job, commutes home for three hours, and gets back to their black-mold-saturated, overpriced apartment to find a notice of a new junk fee (like a surcharge for paying your rent in cash, by check, or by direct payment), they're fighting the very same corporations.

Unions who defend their workers' right to shelter do every tenant a service. A coalition of LA unions succeeded in passing Measure ULA, which uses a surcharge on real estate transactions over $5m to fund "the largest municipal housing program in the country":

https://unitedtohousela.com/app/uploads/2022/05/LA_City_Affordable_Housing_Petition_H.pdf

LA unions are fighting for rules to limit Airbnbs and other platforms that transform the city's rental stock into illegal, unlicensed hotels:

https://upgo.lab.mcgill.ca/publication/strs-in-los-angeles-2022/Wachsmuth_LA_2022.pdf

And the hotel workers organized under UNITE Here are fighting their own employers: the hoteliers who are aggressively buying up residences, evicting their long-term tenants, tearing down the building and putting up a luxury hotel. They got LA council to pass a law requiring hotels to build new housing to replace any residences they displace:

https://www.latimes.com/california/story/2023-11-28/airbnb-operators-would-need-police-permit-in-l-a-under-proposed-law

UNITE Here is bargaining for a per-room hotel surcharge to fund housing specifically for hotel workers, so the people who change the sheets and clean the toilets don't have to waste six hours a day commuting to do so.

Labor unions and tenant unions have a long history of collaboration in the USA. NYC's first housing coop was midwifed by the Amalgamated Clothing Workers of America in 1927. The Penn South coop was created by the International Ladies Garment Workers’ Union. The 1949 Federal Housing Act passed after American unions pushed hard for it:

http://www.peterdreier.com/wp-content/uploads/2014/07/Labors-Love-Lost.pdf

It goes both ways. Strong unions can create sound housing – and precarious housing makes unions weaker. Remember during the Hollywood writers' strike, when an anonymous studio ghoul told the press the plans was to "allow things to drag on until union members start losing their apartments and losing their houses?"

Vienna has the most successful housing in any major city in the world. It's the city where people of every income and background live in comfort without being rent-burdened and without worry about eviction, mold, or leaks. That's the legacy of Red Vienna, the Austrian period of Social Democratic Workers' Party rule and built vast tracts of high-quality public housing. The system was so robust that it rebounded after World War II and continues to this day:

https://www.politico.eu/article/vienna-social-housing-architecture-austria-stigma/

Today, the rest of the world is mired in a terrible housing crisis. It's not merely that the rent's too damned high (though it is) – housing precarity is driving dangerous political instability:

https://pluralistic.net/2021/06/06/the-rents-too-damned-high/

Turning the human necessity of shelter into a market commodity is a failure. The economic orthodoxy that insists that public housing, rent control, and high-density zoning will lead to less housing has failed. rent control works:

https://pluralistic.net/2023/05/16/mortgages-are-rent-control/#housing-is-a-human-right-not-an-asset

Leaving housing to the market only produces losers. If you have the bad luck to invest everything you have into a home in a city that contracts, you're wiped out. If you have the bad luck into invest everything into a home in a "superstar city" where prices go up, you also lose, because your city becomes uninhabitable and your children can't afford to live there:

https://pluralistic.net/2021/09/27/lethal-dysfunction/#yimby

A strong labor movement is the best chance we have for breaking the housing deadlock. And housing is just for starters. Labor is the key to opening every frozen-in-place dysfunction. Take care work: the aging, increasingly chronically ill American population is being tortured and murdered by private equity hospices, long-term care facilities and health services that have been rolled up by the same private equity firms that destroyed work and housing:

https://pluralistic.net/2023/04/26/death-panels/#what-the-heck-is-going-on-with-CMS

In her interview with Capital & Main's Jessica Goodheart, National Domestic Workers Alliance president Ai-jen Poo describes how making things better for care workers will make things better for everyone:

https://prospect.org/labor/2023-12-13-labor-leader-ai-jen-poo-interview/

Care work is a "triple dignity investment": first, it makes life better for the worker (most often a woman of color), then, it allows family members of people who need care to move into higher paid work; and of course, it makes life better for people who need care: "It delivers human potential and agency. It delivers a future workforce. It delivers quality of life."

The failure to fund care work is a massive driver of inequality. America's sole federal public provision for care is Medicaid, which only kicks in after a family it totally impoverished. Funding care with tax increases polls high with both Democrats and Republicans, making it good politics:

https://www.dataforprogress.org/blog/2021/4/7/voters-support-investing-in-the-care-economy

Congress stripped many of the care provisions from Build Back Better, missing a chance for an "unprecedented, transformational investment in care." But the administrative agencies picked up where Congress failed, following a detailed executive order that identifies existing, previously unused powers to improve care in America. The EO "expands access to care, supports family caregivers and improves wages and conditions for the workforce":

https://www.whitehouse.gov/briefing-room/presidential-actions/2023/04/18/executive-order-on-increasing-access-to-high-quality-care-and-supporting-caregivers/

States are also filling the void. Washington just created a long-term care benefit:

https://apnews.com/article/washington-long-term-care-tax-disability-cb54b04b025223dbdba7199db1d254e4

New Mexicans passed a ballot initiative that establishes permanent funding for child care:

https://www.cwla.org/new-mexico-votes-for-child-care/

New York care workers won a $3/hour across the board raise:

https://inequality.org/great-divide/new-york-budget-fair-pay-home-care/

The fight is being led by women of color, and they're kicking ass – and they're doing it through their unions. Worker power is the foundation that we build a better world upon, and it's surging.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/12/13/i-want-a-roof-over-my-head/#and-bread-on-the-table

#pluralistic #labor #hot labor summer #eternal labor september #jane mcalevey #los angeles #weaponized shelter #housing #airbnb #equity strip noho #tenants unions #red vienna #jennifer abruzzo #nlrb #the rent's too damned high

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mesetacadre · 1 month

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Any resources you would recommend about why proletarians would be against worker's rights? It's a topic that has been interesting to me lately

I don't know any specific resources, maybe Lenin touches on this in What is to be Done but I'm not sure. I think a better way to phrase the question is to ask why workers would go against their class interests, even in the most economicist and immediate struggles. Essentially, I'd say it's a concatenation of two facts: most workers lack actually consistent politico-economic education, and the propaganda of liberalism works more like an invisible mold than anything explicit you can point to and single out as a Propaganda Piece. No matter how angry a worker is at their own bad situation (which they might not even conceive of as exploitation), if they've spent all their lives soaking in liberal ideology everywhere from school to the generally accepted trains of thought to even the most innocent piece of media, it's not that surprising they might oppose, say, a rise in the minimum wage. Maybe they've bought into smart-sounding liberal economics and have some vague notion or memorized slogan about inflation rising. Or maybe they've internalized the narrative of individual achievement, they feel like they've "earned" having a better salary than minimum wage and feel it's unfair for others to begin at a better place than them.

Typically the first and only type of class consciousness that workers develop, what Lenin defined as economic-spontaneous consciousness, or consciousness from within (and the type of consciousness most anarchists love to praise), is the one that arises from the daily happenings of class antagonism. But this is a highly subjective and imprecise class consciousness. Without further education and a scientific approach (acquiring political-revolutionary consciousness, or consciousness from without), spontaneous consciousness can be easily misguided by the aforementioned liberal state of affairs or by the worker's own biases. Someone predisposed to racism for whichever environmental reason might take that imprecise, spontaneous class consciousness and assign the cause of their felt exploitation to the presence of migrant workers in the economy, and therefore support measures that harm that specific minority while also greatly benefitting the capitalists exploiting both. The worker aristocracy is also very vulnerable to supporting the imperialist system when their spontaneous consciousness, especially in regards to trade unions, aligns with imperialist interests. And besides all of this, some workers never develop any sort or consciousness and believe themselves potential equals to their exploiters

#ask #anon #seriousposting

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socialjusticeinamerica · 1 month

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#hotel workers go on strike #UNITE HERE union #organized labor #Union labor #worker dignity #fair pay #full time work #maga morons #republican assholes #republicans hate unions #republicans support the rich and big business #democrats support the people #f—k the oligarchy #f—k the corporations #corporate greed #Labor Day

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zvaigzdelasas · 8 months

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Iran is now a “legitimate target” for Israeli missile strikes, one of the country’s most senior ministers has told the Telegraph, raising the prospect of an all-out war with Tehran.

In a wide-ranging interview, Nir Barkat, Israel’s economy minister, also said Palestinians from the West Bank would never be allowed to work in the country again and would be replaced by more than a quarter of a million imported foreign workers.

He also complained that the war in Gaza had not been fought aggressively enough.

Mr Barkat, who is favourite to succeed Benjamin Netanyahu as leader of the ruling Likud party, said Israel could afford to keep fighting and open up a new front with Lebanon, despite the billion shekel (£200 million) a day cost of the conflict.

He said that as “big as the crisis is, it is also a really big opportunity”, with governments around the world needing Israel’s technical expertise to combat global jihadism.[...]

The risk of the war spreading to Lebanon and as far as Iran will alarm Western leaders, with Mr Barkat becoming increasingly influential in the ruling party.

Polls suggest the economy minister would win five more seats than Mr Netanyahu if he replaced him as Likud’s leader.

Mr Barkat, 64, said: “Iran is a legitimate target for Israel. They will not get away with it. The head of the snake is Tehran. My recommendation is to adopt the strategy that President Kennedy used in the Cuban missile crisis. What he basically said then was a missile from Cuba will be answered with a missile to Moscow.[...]

Israel is edging towards a full-blown war with Hezbollah in southern Lebanon, having evacuated the north of the country. Mr Barkat said a second war was affordable while “the threat of Hezbollah must be eliminated”.

“Whatever it takes,” he said[...]

The economy is expected to grow by two per cent this year, down from five per cent forecast prior to the war.[...]

As the country lurches to the Right in the aftermath of October 7 and with Mr Netanyahu’s personal ratings plummeting, Mr Barkat appears to be making a play to replace the prime minister as party leader.[...]

Mr Barkat rejected any suggestion that Palestinian labourers, who previously came into Israel daily to work in the construction and other industries, would be allowed to return. Daily crossings for labourers into Israel from the West Bank have been on hold since October 7.

He likened the Palestinian Authority running the West Bank to the Hamas leadership in Gaza.

“You know what the difference is? Nothing,” said Mr Barkat. [...]

Israel has long been reliant on workers coming into the country from Gaza and the West Bank, but Mr Barkat, whose ministry is responsible for the construction industry, said: “We are done with Palestinian employees. The rationale behind it is very simple: we only want foreign employees from peaceful countries. We don’t want employees from enemies.[...]

India is the likeliest target for a recruitment drive with the promise of wages seven to ten times higher than at home. “Everybody wins,” said Mr Barkat.

“If you don’t do what I proposed, it’s as if we didn’t learn the lessons of October 7.”[...]

On the conduct of the war in Gaza and in the face of international condemnation of Israel’s tactics, Mr Barkat said: “Israel is being very cautious[...]

The reality is at certain points in time I prefer a much more aggressive approach.”[...]

["]This is a religious war.” [he said]

24 Jan 24

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phoenixyfriend · 7 months

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An interesting and somewhat infuriating development in California:

The minimum wage for fast food workers has been raised from $16/hr to $20/hr, with a VERY specific exception for Panera. Turns out a major donor of Gavin Newsom's is a high school friend who now owns 24 Panera locations.

I first heard about this on Morning Brew Daily 2/29/24, where they go into detail on how the legislation impacts California, what induced it, and how the exception works. In text format, the story is also available here.

California's minimum wage in all fields is currently $16/hr, with certain cities and counties having much higher minimum wages. Unfortunately, despite legal protections, undocumented workers and other minorities are often paid at less than that, which is a lasting problem. Paying subminimum wages to disabled workers will also not be fully banned until 2025, a process that has been in the works since 2021.

If you live in Cali, I'd suggest calling your state reps (not federal) to express that you applaud the raise in minimum wage, but not the exception carved out for Panera specifically.

#California #current events #minimum wage #united states #Phoenix Politics #morning brew #economics #corruption

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fangirltothefullest · 1 year

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I am dead serious when I say I want EVERYONE to strike. I want our entire economy upset, I want corporations, ceos, millionaires and billionaires to understand that they can’t keep doing this any more. I want them to squirm, to hurt, to panic, to frantically BEG.

I want everyone calling for a union and every established union to strike like crazy. I want teachers in unions, I want janitors in unions, I want second hand store workers in unions, I want bakers in unions I want coffee chains in unions I want waste disposal unions and park upkeep unions and animator unions and streaming unions and all worker unions everywhere because it makes them panic-

And I want unions already in existence to strike like hell all at once be it in solidarity or because it’s a good time to do so.

Ants vs Grasshoppers baby, there are more workers than ceos and we deserve respect, decent wages, fair treatment, job protections, affordable living, decent paid vacations, paid medical, the lot!

I want the wealthy to PANIC.

I want them to realize what they’ve done, I want them to realize their wealth is dependent on US. I want them HEMORRHAGING money.

If it takes losing the majority of movies and shows and package deliveries and literally anything else, we’ll fucking manage because we already live that daily. But I want the millionaires and billionaires and CEOs who think they can get away with treating people like trash to panic and lose it all.

TOPPLE IT, CRASH IT TO PIECES, BURN IT ALL TO THE GROUND UNTIL THEY TREAT EVERYONE RIGHT.

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jackoshadows · 2 years

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Shein: Fast-fashion workers paid 3p per garment for 18-hour days, undercover filming in China reveals

It is the biggest fast-fashion company in the world, making billions of pounds by unveiling thousands of new designs on its addictive website every day and selling them cheaper than anyone else. Now the first undercover investigation into factories supplying Shein, the Chinese retailer loved by millions of young women in the UK and around the globe, has exposed the disturbing experiences of workers making its clothes. Garment manufacturers in China are often working up to 18 hours a day, being paid as little as 3p per item, with no weekends and only one day off per month, a Channel 4 team has found.

This treatment of workers – who are fined two thirds of their daily wage if they make a single mistake – breaks not only Shein's code of conduct for suppliers but also Chinese labour laws. The company says it will investigate. A woman using the false name of Mei secretly filmed inside two factories where she took on jobs producing the kinds of tops that British shoppers can buy for as little as £1.49. The footage has been shared with i ahead of Untold: Inside the Shein Machine, streaming on All4 from Monday. Women in one factory are found to be washing their hair during their lunch breaks, as they have so little spare time outside of their long shifts. A man who started work at 8am, but is filmed sitting shirtless at his sewing machine after midnight, says he will not finish until 2am or 3am because he needs to complete his batch

Woods says Shein is "head and shoulders" above other fashion brands in the number of "dark patterns" it uses online. "These are behaviours on the website that force you into actions that you might not choose yourself," he explains. "Data is making marketing like a loaded weapon." Shein was contacted for comment by the documentary makers but did not respond on this matter. Data published on 6 April by The Business of Fashion showed that in the year to date, Shein had launched 314,877 separate designs in the US market, compared to 18,343 in the same period by Boohoo. This relentless onslaught suggests customers have more than 3,000 new styles to potentially view every day

The contact arranged for "Mei", one of the journalists in his network, to infiltrate the Shein supply chain in Guangzhou, a south-eastern city with a population of 14 million. Having seen what she discovered, he says: "I have been doing investigative stories in China for 15, 16 years – still [they] exploit workers like dogs. Basically it's worse than years ago."

#Shein #fashion #Labour exploitation #Capitalism #China #Slave Labor

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ancient-string · 1 year

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Join comrades on the picket line against Coles and Woolworths. They make billions in profits while paying workers poverty wages and raising costs of daily necessities.

https://raffwu.org.au/nationalsuperstrike7oct/

After the strike was announced, which included a partial work ban, Coles announced they would stand down and refuse to pay any employee who took part in any single action. That includes wearing a union shirt and handing union materials to customers. Even talking about the strike is enough.

The Greens are organising a contingent to go down and support the striking workers. The more people who join the picket line, the better.

You can also contribute to the strike fund, to pay the workers taking part, who are being screwed over by Coles.

https://chuffed.org/project/superstrike

#Auspol #union strong #pro union #support unions

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mostlysignssomeportents · 1 year

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Private equity ghouls have a new way to steal from their investors

Private equity is quite a racket. PE managers pile up other peoples’ money — pension funds, plutes, other pools of money — and then “invest” it (buying businesses, loading them with debt, cutting wages, lowering quality and setting traps for customers). For this, they get an annual fee — 2% — of the money they manage, and a bonus for any profits they make.

On top of this, private equity bosses get to use the carried interest tax loophole, a scam that lets them treat this ordinary income as a capital gain, so they can pay half the taxes that a working stiff would pay on a regular salary. If you don’t know much about carried interest, you might think it has to do with “interest” on a loan or a deposit, but it’s way weirder. “Carried interest” is a tax regime designed for 16th century sea captains and their “interest” in the cargo they “carried”:

https://pluralistic.net/2021/04/29/writers-must-be-paid/#carried-interest

Private equity is a cancer. Its profits come from buying productive firms, loading them with debt, abusing their suppliers, workers and customers, and driving them into ground, stiffing all of them — and the company’s creditors. The mafia have a name for this. They call it a “bust out”:

https://pluralistic.net/2023/06/02/plunderers/#farben

Private equity destroyed Toys R Us, Sears, Bed, Bath and Beyond, and many more companies beloved of Main Street, bled dry for Wall Street:

https://prospect.org/culture/books/2023-06-02-days-of-plunder-morgenson-rosner-ballou-review/

And they’re coming for more. PE funds are “rolling up” thousands of Boomer-owned business as their owners retire. There’s a good chance that every funeral home, pet groomer and urgent care clinic within an hour’s drive of you is owned by a single PE firm. There’s 2.9m more Boomer-owned businesses going up for sale in the coming years, with 32m employees, and PE is set to buy ’em all:

https://pluralistic.net/2022/12/16/schumpeterian-terrorism/#deliberately-broken

PE funds get their money from “institutional investors.” It shouldn’t surprise you to learn they treat their investors no better than their creditors, nor the customers, employees or suppliers of the businesses they buy.

Pension funds, in particular, are the perennial suckers at the poker table. My parent’s pension fund, the Ontario Teachers’ Fund, are every grifter’s favorite patsy, losing $90m to Sam Bankman-Fried’s cryptocurrency scam:

https://www.otpp.com/en-ca/about-us/news-and-insights/2022/ontario-teachers--statement-on-ftx/

Pension funds are neck-deep in private equity, paying steep fees for shitty returns. Imagine knowing that the reason you can’t afford your apartment anymore is your pension fund gambled with the private equity firm that bought your building and jacked up the rent — and still lost money:

https://pluralistic.net/2020/02/25/pluralistic-your-daily-link-dose-25-feb-2020/

But there’s no depth too low for PE looters to sink to. They’ve found an exciting new way to steal from their investors, a scam called a “continuation fund.” Writing in his latest newsletter, the great Matt Levine breaks it down:

https://news.bloomberglaw.com/mergers-and-acquisitions/matt-levines-money-stuff-buyout-funds-buy-from-themselves

Here’s the deal: say you’re a PE guy who’s raised a $1b fund. That entitles you to a 2% annual “carry” on the fund: $20,000,000/year. But you’ve managed to buy and asset strip so many productive businesses that it’s now worth $5b. Your carry doesn’t go up fivefold. You could sell the company and collect your 20% commission — $800m — but you stop collecting that annual carry.

But what if you do both? Here’s how: you create a “continuation fund” — a fund that buys your old fund’s portfolio. Now you’ve got $5b under management and your carry quintuples, to $100m/year. Levine dryly notes that the FT calls this “a controversial type of transaction”:

https://www.ft.com/content/11549c33-b97d-468b-8990-e6fd64294f85

These deals “look like a pyramid scheme” — one fund flips its assets to another fund, with the same manager running both funds. It’s a way to make the pie bigger, but to decrease the share (in both real and proportional terms) going to the pension funds and other institutional investors who backed the fund.

A PE boss is supposed to be a fiduciary, with a legal requirement to do what’s best for their investors. But when the same PE manager is the buyer and the seller, and when the sale takes place without inviting any outside bidders, how can they possibly resolve their conflict of interest?

They can’t: 42% of continuation fund deals involve a sale at a value lower than the one that the PE fund told their investors the assets were worth. Now, this may sound weird — if a PE boss wants to set a high initial value for their fund in order to maximize their carry, why would they sell its assets to the new fund at a discount?

Here’s Levine’s theory: if you’re a PE guy going back to your investors for money to put in a new fund, you’re more likely to succeed if you can show that their getting a bargain. So you raise $1b, build it up to $5b, and then tell your investors they can buy the new fund for only $3b. Sure, they can get out — and lose big. Or they can take the deal, get the new fund at a 40% discount — and the PE boss gets $60m/year for the next ten years, instead of the $20m they were getting before the continuation fund deal.

PE is devouring the productive economy and making the world’s richest people even richer. The one bright light? The FTC and DoJ Antitrust Division just published new merger guidelines that would make the PE acquire/debt-load/asset-strip model illegal:

https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-doj-seek-comment-draft-merger-guidelines

The bad news is that some sneaky fuck just slipped a 20% FTC budget cut — $50m/year — into the new appropriations bill:

https://twitter.com/matthewstoller/status/1681830706488438785

They’re scared, and they’re fighting dirty.

I’m at San Diego Comic-Con!

Today (Jul 20) 16h: Signing, Tor Books booth #2802 (free advance copies of The Lost Cause — Nov 2023 — to the first 50 people!)

Tomorrow (Jul 21):

1030h: Wish They All Could be CA MCs, room 24ABC (panel)

12h: Signing, AA09

Sat, Jul 22 15h: The Worlds We Return To, room 23ABC (panel)

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/07/20/continuation-fraud/#buyout-groups

[Image ID: An old Punch editorial cartoon depicting a bank-robber sticking up a group of businesspeople and workers. He wears a bandanna emblazoned with dollar-signs and a top-hat.]

#pluralistic #buyout groups #continuation fraud #pe #pyramid schemes #the sucker at the table #pension plans #continuation funds #matt levine #fiduciaries #finance #private equity #mark to market #ripoffs

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mesetacadre · 2 months

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Does socialist theory have any use for classes based on wealth/income? (rich/poor as opposed to bourgeoisie/proletariat)

Short answer: kinda but not really

Long answer: Classes in marxist theory are exclusively defined by the objective relationship of the subject to the property of the means of production and to the organization of labor, in capitalism it being mostly salary work. From these objective and economic relationships spring the classes of the proletariat, the bourgeoisie, the petit-bourgeoisie, the lumpen-proletariat, artisans...

Income, while highly correlated with one's position in class society, is not the defining trait of the subject, but the consequence's of the individual's conditions and specific relationship to their own work. Income itself is just the remuneration for a part of the labor-power that one exerts, or for the value created by others' labor-power that you exploit by virtue of having private ownership of the means of production. In neither of these cases is income the cause of one's class, but a consequence of it.

What a "class" analysis based on income gets you is the inability to actually strike at the core of what organizes class society. For example, the income-based analysis most radical liberals and social-democrats prefer to use (while still choosing to appropriate marxist terminology like "owning class") does not allow them to properly identify the exploitative nature of small businesses, thus, you'll see them rallying against Big Capital while their beloved family-owned small business commits labor law violations on the daily with 11 hour workdays for minimum wage. The income of the petit-bourgeoise is not that great, it's still higher than an average salary worker, but small enough that recessions or the mere existence of concentrated capital is enough to render the small property owner into a worker, a process known as proletariatization. See this really good explanation of what that dynamic means for the political implications of this economic fact.

An income-based analysis would place the small business owner and their 3 employees on the same side with, supposedly, the same interests, because they don't get a lot of money. I don't need to harp on any more to explain why that is nonsense, I hope.

Furthermore, within the working class, there are contrasts in income. There are workers who have a lavish salary, and there are workers who don't even make enough to support their basic needs. The objective fact of their exploitation is the same: they generate value with their labor-power, and sell it to a capitalist for a fraction of what they generate. Exploitation in the marxist sense is not a moral judgement. This is not about whether it's morally wrong or not to extract value from workers. Exploitation creates alienation and a class antagonism that can only ever be resolved one way, which is through the overthrow of the exploiter class by the exploited, history shows that this antagonism is what has propelled it forwards.

It is another question, and one that concerns us less, whether the salary, the price with which a capitalist buys a fraction of the worker's labor-power, is enough for the worker to lead a relatively accommodated life or not. If this was the question, which it is for, say, social-democrats, then the mere reform of capitalism (which, to be clear, is not possible to enact for all workers and all countries) to ensure a decent livelihood under the system of salary work would be enough.

With a lavish income, some might argue, a worker ceases to share the same interests with the rest of the working class who can't afford the first's lifestyle. But what this is omitting is that, in the cases of some workers with a really high salary, it becomes possible for the worker to join the ranks of the bourgeoisie by acquiring capital. Here, top-rated actors and athletes comes to mind. Actors and athletes are paid a salary in exchange for their labor-power, but the highest rated ones generate so much value that the capitalists pay them a really high salary, and then, most of the time, these highly-paid workers acquire some property and become a part of the bourgeoisie. In the US, for example, a bunch of high-rated workers of the entertainment industry such as Oprah, with more than 2,000 acres, have become large landlords in Hawai'i, taking advantage of the colonization of the island chain.

The break in common interests between highly-paid workers and the rest of their class comes from the change in economic class that their income allows for, not the income itself.

There is one instance when income becomes more relevant, and that is in the case of the labor aristocracy. Because of the international division of labor created by and protected by imperialism, the workers of the imperial core, as much as they are still exploited by capitalists and have revolutionary interests, benefit directly or indirectly from the even greater exploitation placed on the workers of the imperial periphery and global south, allowing for a generalized improvement in the quality of life for the imperial core workers.

Two conclusions can be made from this fact:

First, that the social-democratic welfare state depends on the exploitation of vast swaths of the world, and thus, it is not an applicable system in the majority of the world. Second, that the working class of the imperial core can, by the objective fact of the improvement of their material conditions by the spoils of imperialism, can act in the interests of the imperialist bourgeoisie. Take as an example the SAG-AFTRA union, which decidedly supported the imperialist project of Israel after al-Aqsa Flood. This does mean that a greater effort is needed for most workers in the imperial core, the labor aristocracy, to achieve revolutionary-political consciousness. The spontaneous class consciousness that some people insist is enough to be revolutionary, is born of the daily class antagonisms one experiences, and also of the material conditions underlying one's existence, therefore, as we have seen a lot this past year, spontaneous consciousness can include attitudes that favor the bourgeoisie.

And still, even if the labor aristocracy is broadly defined by a higher income, it is still dependent on the relationship to the organization of labor. Even the most desperate and destitute homeless citizen of the imperial core benefits in a lot of ways from the system of imperialism. For example, they don't need to worry about the political instability most imperialized countries suffer, and to put a cruder example, they are never going to get shot by a 22-year-old USamerican soldier doing target practice.

#ask #anon #seriousposting

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