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greenthestral · 1 year ago

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The Global Divide Widens: How the Pandemic Caused the First Rise in Between-Country Income Inequality in a Generation

The COVID-19 pandemic, an unprecedented global crisis, has left no corner of the world untouched. As nations struggled to combat the virus and its economic fallout, an alarming consequence emerged: the first rise in between-country income inequality in a generation. The pandemic's impact on economies has been uneven, leading to significant disparities in wealth and prosperity among nations. This article delves into the factors behind this growing global divide, its consequences, and the urgent need for collective action to address income inequality on an international scale.

The Global Economic Shock

When the pandemic struck, nations scrambled to implement restrictions, shutdowns, and social distancing measures to contain the spread. These actions disrupted supply chains, hampered production, and forced many businesses to close temporarily or permanently. Consequently, economies experienced severe contractions, leading to widespread job losses and reduced consumer spending.

However, not all countries were affected equally. Advanced economies with robust healthcare systems and strong fiscal policies managed to weather the storm better than developing or low-income nations. They were able to provide extensive stimulus packages to support businesses and citizens, preventing a complete economic collapse. On the other hand, many developing countries lacked the resources and capacity to respond effectively, exacerbating their economic struggles.

The K-Shaped Recovery

As the pandemic raged on, a phenomenon known as the "K-shaped recovery" emerged, where different segments of society experienced divergent economic trajectories. This concept extended to the global level as well, highlighting the varying degrees of impact on countries.

Some developed nations witnessed a swift recovery due to their ability to adapt to remote work and technology-based solutions. At the same time, several emerging economies faced prolonged recessions and setbacks, pushing them further behind. The disparity in economic growth between these two groups of countries widened, contributing to the rise in between-country income inequality.

Trade and Travel Disruptions

International trade and travel restrictions during the pandemic significantly affected economies' interconnectedness. Many nations rely heavily on trade partnerships and tourism for economic growth, but the restrictions disrupted these crucial income streams.

For countries heavily reliant on exports, reduced global demand and logistical challenges hampered their economic recovery. Similarly, nations dependent on tourism suffered greatly as travel restrictions kept tourists away, leading to an acute downturn in revenue and employment in the hospitality sector.

Vaccine Inequality and Economic Recovery

Another critical factor influencing the between-country income inequality was vaccine distribution. Access to vaccines played a vital role in determining a nation's ability to control the virus, reopen their economies, and regain economic stability.

While some wealthier nations procured vaccines in abundance and achieved high vaccination rates, many developing countries struggled to secure sufficient doses. The resulting delay in reaching herd immunity and reopening their economies further widened the gap between countries' economic recoveries.

Tech Advancements and Disparities

During the pandemic, technological advancements and digitalization took center stage as businesses and individuals shifted to remote operations and online services. Developed countries, equipped with robust digital infrastructure and skilled workforces, were able to adapt more effectively to the changing landscape.

In contrast, digital disparities in developing countries limited their ability to capitalize on technology's potential for economic growth. The lack of access to high-speed internet and digital skills hindered their participation in the global digital economy, perpetuating income inequality between nations.

Environmental and Social Impact

The pandemic's impact on income inequality goes beyond just economic measures. Environmental and social factors also played a role in exacerbating global disparities.

As the focus shifted to combatting the virus, several environmental initiatives and climate change efforts took a backseat. Developing countries, often bearing the brunt of environmental challenges, lacked the resources to prioritize sustainability during the crisis.

Moreover, vulnerable communities, already facing social inequalities, were disproportionately affected by the pandemic. The lack of adequate healthcare, education, and social safety nets in some nations exacerbated the divide between the rich and poor, both within and between countries.

Urgent Call for Global Solidarity

The rise in between-country income inequality during the pandemic highlights the urgent need for global solidarity and cooperation. Addressing this issue requires collective efforts and inclusive policies that prioritize equitable economic recovery.

International organizations, governments, and businesses must come together to ensure fair vaccine distribution, support sustainable development goals, and promote digital inclusivity. Efforts to reduce trade barriers and foster fair trade practices can also contribute to bridging the income gap.

Conclusion

The COVID-19 pandemic has been a catalyst for unprecedented changes on a global scale. While economies are slowly recovering, the rise in between-country income inequality remains a significant concern. The pandemic exposed existing fault lines and disparities, emphasizing the need for a more equitable and resilient approach to global economic growth.

As we navigate the aftermath of the pandemic, it is crucial to prioritize international cooperation and sustainable solutions. Only through collective action and shared commitment can we hope to address the challenges posed by income inequality and build a more inclusive world for all nations.

Disclaimer: This article is for informational purposes only and does not constitute financial, medical, or legal advice. Please consult with a professional for personalized advice.

What's In It For Me? (WIIFM)

In this eye-opening blog article, you will gain a deeper understanding of the far-reaching consequences of the pandemic on global income inequality. Discover how the COVID-19 crisis has widened the gap between nations' economic prosperity, impacting both developed and developing countries. Learn about the factors behind this unprecedented rise in between-country income inequality and explore the urgent call for collective action to address this pressing issue. Whether you're concerned about the global economy, social justice, or sustainable development, this article will provide valuable insights that resonate with every global citizen.

Call to Action (CTA)

Ready to explore the impact of the pandemic on between-country income inequality? Click here to read the full blog article and be part of the conversation about building a more equitable and inclusive world. Together, we can drive change and work towards a brighter future for all nations.

Blog Excerpt

The COVID-19 pandemic has left an indelible mark on the world, and one of its most concerning consequences is the first rise in between-country income inequality in a generation. As economies faced unprecedented challenges, the disparity in economic growth between nations widened significantly. Developed economies with robust healthcare systems and fiscal policies seemed to fare better, while many developing countries struggled to respond effectively, exacerbating their economic struggles. This blog article delves deep into the factors contributing to this global divide, the K-shaped recovery phenomenon, and the impact of vaccine distribution. It emphasizes the urgent need for international cooperation and sustainable solutions to bridge the income gap and foster a more inclusive world.

Meta Description (320 characters)

Discover the first rise in between-country income inequality in a generation due to the pandemic. Learn about the impact, causes, and urgent call for collective action in this insightful blog article.

#Pandemic-induced global income inequality #Between-country wealth disparity #Economic impact of COVID-19 #First rise in income inequality #Global economic divide #Income inequality between nations #K-shaped economic recovery #COVID-19 and income disparity #Developing countries' economic struggles #Pandemic's unequal economic impact #Wealth gap during COVID-19 #Vaccine distribution and economic recovery #Economic consequences of the pandemic #Global financial inequality #Sustainable solutions for income inequality #Addressing between-country wealth gap #COVID-19's impact on emerging economies #Digital divide and economic inequality #Social justice and pandemic aftermath #Environmental challenges and income inequality #Economic resilience during COVID-19 #Bridging global income gap #International cooperation for economic recovery #Impact of trade disruptions on economies #Inclusive growth post-pandemic #Income security in a pandemic-hit world #Between-country prosperity divide #The pandemic and developing nations #Post-COVID-19 economic disparities #Building a fairer global economy

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capitalism-is-a-psychopathy · 1 month ago

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Billionaires destroy more than they create

In a land often championed for its economic opportunity and equality, the American Dream promises that anyone who works hard can rise to prosperity. But for many in today’s middle and lower economic classes, that dream is fading, shadowed by a reality that feels increasingly rigged. At the heart of this issue lies a stark and glaring imbalance: billionaires, a minuscule fraction of the population, wield a staggering concentration of wealth and influence. This is not just an issue of economics but one that touches the foundations of democracy and fairness.

Imagine the economy as a massive machine, built to churn wealth throughout society. In an ideal world, this wealth would cycle effectively, where each part contributes and benefits in turn. But as billionaires amass wealth at unprecedented levels, this machine has come to function more like a funnel, siphoning resources from the broader society and concentrating them at the very top. This dynamic, driven by complex financial structures and tax strategies, isn’t merely an accumulation of personal fortunes but a systematic extraction from the economic potential of others. The capital that could have flowed through wages, education, and public infrastructure is often diverted into private bank accounts and shell companies, rarely benefiting the people who drive and build the economy day by day.

As wealth accumulates at the top, so too does political influence. Billionaires, with vast financial resources, can fund political campaigns, lobbyists, and entire networks of think tanks dedicated to shaping policy. Through these channels, they push for tax policies, regulations, and trade agreements that benefit the ultra-wealthy at the expense of middle- and lower-income families. Politicians, indebted to these donors, increasingly look to billionaire interests rather than to constituents’ needs. This creates a disturbing feedback loop: billionaires influence politics to further policies that reinforce their own wealth and power, leaving the broader populace with dwindling opportunities to influence their own government.

This concentrated power extends far beyond campaign finance and lobbying. With ownership over significant segments of media networks, billionaires control the narratives that millions consume daily. Through these media outlets, they shape public opinion, diverting attention from policies that would challenge wealth accumulation and pushing narratives that frame the ultra-wealthy as essential “job creators” or “innovators” rather than acknowledging their role in widening economic divides. Issues that might threaten their economic stranglehold are often buried, while others, that create division and distract, are amplified.

For the middle and lower classes, this confluence of wealth, media, and political power has a real impact. Stagnant wages, diminishing job security, and rising costs of living aren’t natural outcomes of a complex economy—they’re symptoms of a system shaped to benefit those at the top. Policies that could lift working-class Americans, like raising the minimum wage, universal healthcare, or better labor protections, are often stifled in legislative deadlock, thanks in part to the political influence of the ultra-wealthy who stand to lose from them.

So, as this cycle continues, the gap between billionaires and everyone else widens. The billions accumulated at the top no longer signify mere success but a barrier to mobility for everyone else. The middle and lower classes find themselves carrying the economic burdens, often working harder for less. Meanwhile, billionaires remain insulated, living in a different economic reality, one far removed from the struggles of the average American. This isn’t just an economic imbalance but a distortion of democracy itself, as the machinery of power and influence is pulled further from the reach of ordinary citizens and held more tightly by those whose interests rarely align with theirs.

Without addressing this imbalance, the promise of opportunity, the cornerstone of the American Dream, becomes less attainable with each passing year, not just for the lower and middle classes but for the nation’s future as a whole.

Addressing their manipulation

Billionaires and their advocates often employ a familiar set of narratives to justify their wealth and the structures that enable it. These arguments, framed in terms of the free market, capitalism, or fear of socialism, are not only misleading but often serve to distract from the deeper systemic issues at play. Below is a breakdown of these claims and the counterarguments that expose their flaws:

1. “It’s Just the Free Market at Work”

The myth of the “free market” implies that billionaires achieve their wealth purely through talent, innovation, and competition in a market where everyone has equal opportunity. But in reality, the U.S. economy is far from a genuinely “free” market.

Counterpoints:

• Government Subsidies and Tax Breaks: Many billionaires’ businesses rely heavily on taxpayer-funded subsidies, special tax breaks, and other forms of government assistance. Large corporations frequently lobby for policies that grant them tax advantages, including offshore loopholes and capital gains tax breaks. This creates an environment where they aren’t competing on equal ground but rather with significant state support, distorting the market in their favor.

• Anti-Competitive Practices: Many large corporations, especially in tech and finance, engage in monopolistic behavior, buying out competitors or using aggressive tactics to drive them out of the market. This concentration of power stifles competition, contradicting the notion of a “free” market where anyone can succeed if they work hard.

• Inherited Wealth and Privilege: A significant portion of billionaire wealth is inherited rather than self-made. Generational wealth compounds, giving the ultra-wealthy an enormous head start over those without similar family resources. This challenges the idea that wealth accumulation is simply the product of individual merit or a fair market.

2. “This Is What Capitalism Is Supposed to Look Like”

The argument here suggests that capitalism is an inherently competitive system, where the most successful rise to the top, benefiting everyone through innovation and job creation. This narrative hinges on the idea of “trickle-down economics,” where the wealth of the richest eventually spreads throughout society.

Counterpoints:

• Trickle-Down Economics Doesn’t Work: Decades of evidence show that wealth rarely “trickles down” to the rest of society in any meaningful way. Income inequality has only widened, with wages stagnating for most workers while billionaire wealth has soared. Billionaires tend to reinvest wealth in ways that concentrate their holdings, like in stocks, rather than in ways that benefit the broader economy.

• Wealth Extraction, Not Wealth Creation: Many billionaires achieve and maintain their fortunes through rent-seeking behavior—extracting wealth from existing resources rather than creating new value. Hedge funds, private equity, and real estate empires often profit by cutting costs (like labor) rather than by innovating or producing new goods and services. This dynamic benefits investors but hurts workers and consumers.

• Capitalism Can Take Other Forms: The capitalism practiced in the U.S. today, sometimes called “neoliberal capitalism,” focuses on minimal regulation, tax cuts for the wealthy, and privatization. However, other countries demonstrate that capitalism can function with stronger social safety nets, wealth redistribution policies, and tighter regulations on corporate power. Nordic countries, for example, balance capitalism with robust welfare systems, ensuring a more equitable distribution of wealth and services.

3. “Without Billionaires, There Would Be No Innovation or Job Creation”

A popular myth is that billionaires are essential “job creators” and “innovators” whose wealth ultimately benefits society by funding new businesses and creating employment. This claim positions billionaires as indispensable to economic growth.

Counterpoints:

• Public Funding Fuels Innovation: Many of the biggest technological advances, including the internet, GPS, and medical breakthroughs, were developed with public funding rather than billionaire investments. Government research grants and subsidies often lay the groundwork for major innovations that billionaires later profit from. In other words, society bears much of the financial risk, while billionaires reap the rewards.

• Small Businesses Create Most Jobs: Small businesses, not billionaires or large corporations, are responsible for most job creation in the United States. Big corporations often eliminate jobs through automation, outsourcing, or consolidation. They may employ a large workforce, but they also tend to exploit workers through low wages, precarious employment, and cost-cutting measures.

• Billionaires Accumulate Wealth Through Wealth, Not Innovation: Many billionaires maintain their wealth not by creating jobs or innovating but by using their existing capital to generate more wealth, often through financial instruments that have little to do with actual economic productivity. Stock buybacks, dividends, and passive investments grow their fortunes without necessarily contributing to broader economic prosperity.

4. “Any Alternative Is Socialism or Communism”

When calls arise for higher taxes on the wealthy, stricter regulations, or broader social programs, the response is often to invoke the fear of “socialism” or “communism.” This argument seeks to paint any attempt at wealth redistribution or regulation as a slippery slope toward total government control.

Counterpoints:

• Social Safety Nets and Regulations Are Not Socialism: Social safety nets, progressive taxation, and regulations do not equate to socialism or communism; they’re features of a balanced capitalist system that seeks to prevent extreme inequality and protect public welfare. Countries like Germany, Canada, and Denmark combine regulated capitalism with strong social programs, resulting in healthier economies and greater well-being for citizens without abandoning capitalism.

• Inequality Threatens Capitalism: Growing inequality and economic instability can undermine the foundations of capitalism. A healthy capitalist economy requires a strong middle class with buying power, which excessive wealth concentration undermines. Reforms like progressive taxation, labor protections, and universal healthcare aren’t a rejection of capitalism but rather a means of stabilizing it.

• Historical Success of Mixed Economies: Many of the most successful and prosperous countries practice a mixed economy, where capitalism coexists with social policies that promote equality. The U.S. itself has employed a mixed economy model in the past, particularly after the New Deal, which implemented social safety nets, labor protections, and financial regulations that led to a period of unprecedented growth and prosperity for the middle class.

5. “They Earned It Fair and Square”

Finally, the idea persists that billionaires deserve their wealth because they “earned” it. This argument suggests that any policy aiming to redistribute wealth is fundamentally unfair, penalizing those who worked hard to succeed.

Counterpoints:

• Systemic Advantages and Wealth Hoarding: As previously mentioned, many billionaires begin with advantages—like family wealth or elite educational opportunities—that aren’t available to most people. Additionally, billionaires often employ complex strategies to avoid taxes, lobby for favorable regulations, and capitalize on government subsidies. These factors mean they haven’t earned wealth solely through hard work or merit.

• Billionaires Didn’t Build Alone: No billionaire operates in isolation; they rely on infrastructure, public education, and the work of thousands or millions of employees. A CEO’s wealth is made possible by a web of collective contributions, yet that wealth is rarely shared equitably. While billionaires might be rewarded for their role, their fortune is far from the result of individual effort alone.

In short, these narratives around billionaires often mask a more uncomfortable truth: today’s system is structured in ways that favor the ultra-wealthy at the expense of the broader population. Economic reform, rather than a threat to capitalism, is a necessary step to ensure a more just, equitable society where wealth accumulation doesn’t depend on privilege, influence, or systemic manipulation.

Making a change

Addressing the economic imbalance and the unchecked power of the ultra-wealthy presents a unique challenge, especially given the intense political polarization in the United States. For the middle and lower classes to push back effectively, they will need to build a coalition that transcends party lines and focuses on shared economic interests rather than divisive rhetoric.

1. Build Awareness Through Shared Issues, Not Ideology

The rhetoric around “free markets” and “socialism” often obscures real issues of economic struggle that affect both conservative and progressive working- and middle-class citizens alike. Instead of framing the issue in ideological terms, framing it in terms of tangible, shared grievances can help bridge the divide:

• Focus on Economic Inequality: Income stagnation, unaffordable healthcare, and housing insecurity are felt across the political spectrum. By shifting the narrative from “class warfare” to “economic fairness,” advocates can sidestep partisan language and emphasize the shared experience of economic struggle.

• Highlight the Impact of Corporate Power on Local Communities: Framing issues around how large corporations hurt small, local businesses can resonate strongly with both sides of the political spectrum. This approach often taps into conservative values around community and self-reliance, while also aligning with progressive critiques of corporate overreach.

2. Organize Around Labor Rights and Worker Protections

Historically, unions have been instrumental in improving working conditions and advocating for fair wages, and labor movements transcend political divisions. Many Americans—left, right, and center—share concerns about the erosion of workers’ rights, stagnant wages, and the declining influence of the average worker.

• Expand Union Participation and Labor Movements: Reinvigorating unions and expanding labor protections could give workers a stronger collective voice. New labor movements that focus on economic rights without overtly partisan language could attract support across the political spectrum, particularly when they champion issues like fair wages, workplace safety, and job security.

• Support Worker Cooperatives and Employee-Owned Businesses: Promoting models like worker cooperatives or employee-owned businesses can offer a compelling alternative to the current structure of corporate ownership without resorting to divisive rhetoric. These models prioritize local control and shared economic benefits, appealing to values of self-sufficiency and fairness.

3. Pressure Politicians on Key Economic Policies

A key to bridging the partisan gap is to focus on policies that benefit the broader populace rather than framing them as part of any ideological agenda. The majority of Americans, regardless of political affiliation, support policies like fair taxation, healthcare reform, and increased access to education when framed in terms of fairness and opportunity.

• Promote Tax Reform as “Fairness,” Not Redistribution: Instead of advocating for “redistribution,” proponents can push for tax policies that ensure everyone pays their fair share. Policies like a wealth tax or higher taxes on capital gains can be framed as holding the ultra-wealthy accountable rather than demonizing them, a stance that resonates with people who value fairness and personal responsibility.

• Advocate for Antitrust Legislation: Pushing for stronger antitrust laws to break up monopolies and prevent anti-competitive practices can appeal to both sides. For conservatives, this aligns with the values of market competition; for progressives, it aligns with corporate accountability and consumer protection.

4. Engage in Alternative Media and Independent Journalism

The ultra-wealthy often own or influence major media outlets, which can shape public opinion in ways that protect their interests. For the middle and lower classes to gain a clearer view of economic issues, alternative media sources and independent journalism that aren’t beholden to billionaire interests are crucial.

• Support Independent News Outlets: A growing number of independent news organizations are dedicated to in-depth economic reporting without catering to corporate interests. Supporting these outlets allows individuals to access a range of perspectives that help reveal the true impact of policies on ordinary people.

• Utilize Social Media Responsibly to Build Cross-Party Awareness: Social media, while often a divisive force, can also be used to spread information about economic injustice. When used responsibly to share facts, case studies, and stories of economic hardship, it can cut through the rhetoric and provide people across the political spectrum with a shared understanding of the issues.

5. Prioritize Voting Reform and Campaign Finance Reform

Money in politics is one of the core reasons why economic policies favor the wealthy. Bipartisan support for reducing corporate influence in politics is possible, especially when the focus is on fairness, transparency, and accountability in government.

• Promote Campaign Finance Reform as an Anti-Corruption Effort: Campaign finance reform, which seeks to limit the influence of wealthy donors and corporations on elections, can appeal to conservatives and liberals alike who are frustrated with the influence of money in politics. Instead of framing it as an anti-capitalist measure, framing it as an anti-corruption measure can attract broader support.

• Support Voting Reforms for a More Representative Democracy: Reforms like ranked-choice voting, ending gerrymandering, and preventing voter suppression can help create a political environment that more accurately represents the will of the people rather than special interests. By creating a more representative democracy, policies that reflect the economic needs of the middle and lower classes have a better chance of being enacted.

6. Create Cross-Partisan Grassroots Coalitions Focused on Economic Issues

Many grassroots organizations are focused on economic justice, but they tend to align themselves with one side of the political spectrum, often losing potential support in the process. Building cross-partisan coalitions that emphasize shared economic challenges rather than ideological differences could foster stronger, more united advocacy for middle- and working-class issues.

• Organize Around Issues, Not Parties: Groups like the Poor People’s Campaign, which focuses on poverty and economic justice, have successfully united people across political lines around issues that transcend party loyalty. This approach allows people to focus on their shared struggles, making the movement harder for politicians to ignore.

• Build Community-Level Alliances: Many economic issues are felt acutely at the local level. By focusing on community-level initiatives that address healthcare, affordable housing, and education, people can create practical, on-the-ground solutions that don’t require alignment with national politics. These local successes can serve as models for broader change.

7. Emphasize Civic Education on Economic Policies

Finally, bridging the gap will require education and awareness. Many people accept billionaire-fueled rhetoric because they lack exposure to alternative perspectives. Civic education efforts that focus on teaching economic principles, tax policy, and the influence of corporate power can empower people to understand the real impacts of current policies on their lives.

• Create Accessible Educational Resources: Podcasts, documentaries, workshops, and community discussions can all serve as tools for demystifying economic issues. When people have a clearer understanding of how things like tax policies and wage laws work, they are better equipped to make informed decisions.

• Promote Financial Literacy and Empower Individuals: Financial literacy programs that help individuals understand budgeting, credit, and investments empower people to navigate the economy more effectively. While this doesn’t directly address systemic issues, it gives individuals a greater understanding of the forces shaping their lives and can be a first step toward broader engagement.

By approaching these issues with a focus on shared struggles, fairness, and practical solutions, the middle and lower classes can work together to build a movement that transcends political divides. This movement can challenge the status quo without becoming mired in divisive ideological battles. The real strength of such an effort lies in its ability to unite ordinary people around a common vision for a fairer, more just economic system—one that serves all citizens, not just the wealthiest few.

#capitalism #reality #billionaires #middle class #trickle down economics #facts #economy #economics #wealth #ultra wealthy

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the-asexuality-blog · 1 year ago

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Just to make my position on the subject of Crab Day clear, since word is going around that the idea came from a highly objectionable person, I’m going to quote rather than reblog @skaldish:

This I agree with. I've seen other posts go around about it, so it wasn't just that one person.

But to make it clear, I'll take the time to explain to people why participating in Crab Day (and financially supporting Tumblr in general) is important:

It's unfortunate, but in this day and age, large websites like this one can't function without an exorbitant amount of income. For other social medias, the bulk of this income comes from Business-to-Business (B2B) transactions, often in the form of selling user data.

The thing y'all need to understand is that wealth is VASTLY different in the B2B economy than it is with B2C (business-to-consumer) economy. In fact, this is a huge reason why we're in an economic crisis...because the US is a nation with two economies, and the power of the dollar is astronomically different between the two of them.

Tech's standard of wealth is based in the B2B economy. Because Tumblr is in the Tech sector, it needs to play according to Tech wealth. Unfortunately, the way you earn Tech wealth is by selling Tech-related B2B products, and for social media websites, that product is user data.

It's a competitive market that sets a new standard of rotten with every transaction. In order to acquire data that's more valuable than your competitor's data, you have to be less ethical about how you source it...and also be willing to cross moral boundaries in regards to who you sell it to.

If Tumblr finds no other way of sourcing income, they have no choice but to participate in this data market or shut down.

However, Tumblr is the home of the secret third thing. In this case, this secret third thing is to work with the community rather than exploit it.

(That's what it looks like to me, anyway. I nether trust nor doubt Tumblr's words; that's not what's winning me over. Instead, I'm curious to know where they plan to go with this, because this is unusual as far as business practices go and I think it would be cool if they're trying to set a more holistic precedent for the social media of the future. I won't be able to see that conclusion if they go bankrupt though.)

So yes, participate in Crab Day. Just because one unpleasant person also condones it doesn't mean it's a bad idea.

#crab day #why crab day #how to save tumblr

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mostlysignssomeportents · 7 months ago

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How finfluencers destroyed the housing and lives of thousands of people

For the rest of May, my bestselling solarpunk utopian novel THE LOST CAUSE (2023) is available as a $2.99, DRM-free ebook!

The crash of 2008 imparted many lessons to those of us who were only dimly aware of finance, especially the problems of complexity as a way of disguising fraud and recklessness. That was really the first lesson of 2008: "financial engineering" is mostly a way of obscuring crime behind a screen of technical jargon.

This is a vital principle to keep in mind, because obscenely well-resourced "financial engineers" are on a tireless, perennial search for opportunities to disguise fraud as innovation. As Riley Quinn says, "Any time you hear 'fintech,' substitute 'unlicensed bank'":

https://pluralistic.net/2023/05/01/usury/#tech-exceptionalism

But there's another important lesson to learn from the 2008 disaster, a lesson that's as old as the South Seas Bubble: "leverage" (that is, debt) is a force multiplier for fraud. Easy credit for financial speculation turns local scams into regional crime waves; it turns regional crime into national crises; it turns national crises into destabilizing global meltdowns.

When financial speculators have easy access to credit, they "lever up" their wagers. A speculator buys your house and uses it for collateral for a loan to buy another house, then they make a bet using that house as collateral and buy a third house, and so on. This is an obviously terrible practice and lenders who extend credit on this basis end up riddling the real economy with rot – a single default in the chain can ripple up and down it and take down a whole neighborhood, town or city. Any time you see this behavior in debt markets, you should batten your hatches for the coming collapse. Unsurprisingly, this is very common in crypto speculation, where it's obscured behind the bland, unpronounceable euphemism of "re-hypothecation":

https://www.coindesk.com/consensus-magazine/2023/05/10/rehypothecation-may-be-common-in-traditional-finance-but-it-will-never-work-with-bitcoin/

Loose credit markets often originate with central banks. The dogma that holds that the only role the government has to play in tuning the economy is in setting interest rates at the Fed means the answer to a cooling economy is cranking down the prime rate, meaning that everyone earns less money on their savings and are therefore incentivized to go and risk their retirement playing at Wall Street's casino.

The "zero interest rate policy" shows what happens when this tactic is carried out for long enough. When the economy is built upon mountains of low-interest debt, when every business, every stick of physical plant, every car and every home is leveraged to the brim and cross-collateralized with one another, central bankers have to keep interest rates low. Raising them, even a little, could trigger waves of defaults and blow up the whole economy.

Holding interest rates at zero – or even flipping them to negative, so that your savings lose value every day you refuse to flush them into the finance casino – results in still more reckless betting, and that results in even more risk, which makes it even harder to put interest rates back up again.

This is a morally and economically complicated phenomenon. On the one hand, when the government provides risk-free bonds to investors (that is, when the Fed rate is over 0%), they're providing "universal basic income for people with money." If you have money, you can park it in T-Bills (Treasury bonds) and the US government will give you more money:

https://realprogressives.org/mmp-blog-34-responses/

On the other hand, while T-Bills exist and are foundational to the borrowing picture for speculators, ZIRP creates free debt for people with money – it allows for ever-greater, ever-deadlier forms of leverage, with ever-worsening consequences for turning off the tap. As 2008 forcibly reminded us, the vast mountains of complex derivatives and other forms of exotic debt only seems like an abstraction. In reality, these exotic financial instruments are directly tethered to real things in the real economy, and when the faery gold disappears, it takes down your home, your job, your community center, your schools, and your whole country's access to cancer medication:

https://www.theguardian.com/world/2012/jun/08/greek-drug-shortage-worsens

Being a billionaire automatically lowers your IQ by 30 points, as you are insulated from the consequences of your follies, lapses, prejudices and superstitions. As @[email protected] says, Elon Musk is what Howard Hughes would have turned into if he hadn't been a recluse:

https://mamot.fr/@[email protected]/112457199729198644

The same goes for financiers during periods of loose credit. Loose Fed money created an "everything bubble" that saw the prices of every asset explode, from housing to stocks, from wine to baseball cards. When every bet pays off, you win the game by betting on everything:

https://en.wikipedia.org/wiki/Everything_bubble

That meant that the ZIRPocene was an era in which ever-stupider people were given ever-larger sums of money to gamble with. This was the golden age of the "finfluencer" – a Tiktok dolt with a surefire way for you to get rich by making reckless bets that endanger the livelihoods, homes and wellbeing of your neighbors.

Finfluencers are dolts, but they're also dangerous. Writing for The American Prospect, the always-amazing Maureen Tkacik describes how a small clutch of passive-income-brainworm gurus created a financial weapon of mass destruction, buying swathes of apartment buildings and then destroying them, ruining the lives of their tenants, and their investors:

https://prospect.org/infrastructure/housing/2024-05-22-hell-underwater-landlord/

Tcacik's main characters are Matt Picheny, Brent Ritchie and Koteswar “Jay” Gajavelli, who ran a scheme to flip apartment buildings, primarily in Houston, America's fastest growing metro, which also boasts some of America's weakest protections for tenants. These finance bros worked through Gajavelli's company Applesway Investment Group, which levered up his investors' money with massive loans from Arbor Realty Trust, who also originated loans to many other speculators and flippers.

For investors, the scheme was a classic heads-I-win/tails-you-lose: Gajavelli paid himself a percentage of the price of every building he bought, a percentage of monthly rental income, and a percentage of the resale price. This is typical of the "syndicating" sector, which raised $111 billion on this basis:

https://www.wsj.com/articles/a-housing-bust-comes-for-thousands-of-small-time-investors-3934beb3

Gajavelli and co bought up whole swathes of Houston and other cities, apartment blocks both modest and luxurious, including buildings that had already been looted by previous speculators. As interest rates crept up and the payments for the adjustable-rate loans supporting these investments exploded, Gajavell's Applesway and its subsidiary LLCs started to stiff their suppliers. Garbage collection dwindled, then ceased. Water outages became common – first weekly, then daily. Community rooms and pools shuttered. Lawns grew to waist-high gardens of weeds, fouled with mounds of fossil dogshit. Crime ran rampant, including murders. Buildings filled with rats and bedbugs. Ceilings caved in. Toilets backed up. Hallways filled with raw sewage:

https://pluralistic.net/timberridge

Meanwhile, the value of these buildings was plummeting, and not just because of their terrible condition – the whole market was cooling off, in part thanks to those same interest-rate hikes. Because the loans were daisy-chained, problems with a single building threatened every building in the portfolio – and there were problems with a lot more than one building.

This ruination wasn't limited to Gajavelli's holdings. Arbor lent to multiple finfluencer grifters, providing the leverage for every Tiktok dolt to ruin a neighborhood of their choosing. Arbor's founder, the "flamboyant" Ivan Kaufman, is associated with a long list of bizarre pop-culture and financial freak incidents. These have somehow eclipsed his scandals, involving – you guessed it – buying up apartment buildings and turning them into dangerous slums. Two of his buildings in Hyattsville, MD accumulated 2,162 violations in less than three years.

Arbor graduated from owning slums to creating them, lending out money to grifters via a "crowdfunding" platform that rooked retail investors into the scam, taking advantage of Obama-era deregulation of "qualified investor" restrictions to sucker unsophisticated savers into handing over money that was funneled to dolts like Gajavelli. Arbor ran the loosest book in town, originating mortgages that wouldn't pass the (relatively lax) criteria of Fannie Mae and Freddie Mac. This created an ever-enlarging pool of apartments run by dolts, without the benefit of federal insurance. As one short-seller's report on Arbor put it, they were the origin of an epidemic of "Slumlord Millionaires":

https://viceroyresearch.org/wp-content/uploads/2023/11/Arbor-Slumlord-Millionaires-Jan-8-2023.pdf

The private equity grift is hard to understand from the outside, because it appears that a bunch of sober-sided, responsible institutions lose out big when PE firms default on their loans. But the story of the Slumlord Millionaires shows how such a scam could be durable over such long timescales: remember that the "syndicating" sector pays itself giant amounts of money whether it wins or loses. The consider that they finance this with investor capital from "crowdfunding" platforms that rope in naive investors. The owners of these crowdfunding platforms are conduits for the money to make the loans to make the bets – but it's not their money. Quite the contrary: they get a fee on every loan they originate, and a share of the interest payments, but they're not on the hook for loans that default. Heads they win, tails we lose.

In other words, these crooks are intermediaries – they're platforms. When you're on the customer side of the platform, it's easy to think that your misery benefits the sellers on the platform's other side. For example, it's easy to believe that as your Facebook feed becomes enshittified with ads, that advertisers are the beneficiaries of this enshittification.

But the reason you're seeing so many ads in your feed is that Facebook is also ripping off advertisers: charging them more, spending less to police ad-fraud, being sloppier with ad-targeting. If you're not paying for the product, you're the product. But if you are paying for the product? You're still the product:

https://pluralistic.net/2021/01/04/how-to-truth/#adfraud

In the same way: the private equity slumlord who raises your rent, loads up on junk fees, and lets your building disintegrate into a crime-riddled, sewage-tainted, rat-infested literal pile of garbage is absolutely fucking you over. But they're also fucking over their investors. They didn't buy the building with their own money, so they're not on the hook when it's condemned or when there's a forced sale. They got a share of the initial sale price, they get a percentage of your rental payments, so any upside they miss out on from a successful sale is just a little extra they're not getting. If they squeeze you hard enough, they can probably make up the difference.

The fact that this criminal playbook has wormed its way into every corner of the housing market makes it especially urgent and visible. Housing – shelter – is a human right, and no person can thrive without a stable home. The conversion of housing, from human right to speculative asset, has been a catastrophe:

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

Of course, that's not the only "asset class" that has been enshittified by private equity looters. They love any kind of business that you must patronize. Capitalists hate capitalism, so they love a captive audience, which is why PE took over your local nursing home and murdered your gran:

https://pluralistic.net/2021/02/23/acceptable-losses/#disposable-olds

Homes are the last asset of the middle class, and the grifter class know it, so they're coming for your house. Willie Sutton robbed banks because "that's where the money is" and We Buy Ugly Houses defrauds your parents out of their family home because that's where their money is:

https://pluralistic.net/2023/05/11/ugly-houses-ugly-truth/#homevestor

The plague of housing speculation isn't a US-only phenomenon. We have allies in Spain who are fighting our Wall Street landlords:

https://pluralistic.net/2021/11/24/no-puedo-pagar-no-pagara/#fuckin-aardvarks

Also in Berlin:

https://pluralistic.net/2021/08/16/die-miete-ist-zu-hoch/#assets-v-human-rights

The fight for decent housing is the fight for a decent world. That's why unions have joined the fight for better, de-financialized housing. When a union member spends two hours commuting every day from a black-mold-filled apartment that costs 50% of their paycheck, they suffer just as surely as if their boss cut their wage:

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

The solutions to our housing crises aren't all that complicated – they just run counter to the interests of speculators and the ruling class. Rent control, which neoliberal economists have long dismissed as an impossible, inevitable disaster, actually works very well:

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

As does public housing:

https://jacobin.com/2023/10/red-vienna-public-affordable-housing-homelessness-matthew-yglesias

There are ways to have a decent home and a decent life without being burdened with debt, and without being a pawn in someone else's highly leveraged casino bet.

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/2024/05/22/koteswar-jay-gajavelli/#if-you-ever-go-to-houston

Image: Boy G/Google Maps (modified) https://pluralistic.net/timberridge

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robertreich · 11 months ago

Video

youtube

Biden vs. Trump: Whose Economic Plan Is Better for You?

Trump failed to deliver on his number one campaign promise:

President Trump presided over a historic net loss of nearly 3 million American jobs, the worst jobs numbers ever recorded under an American president.

This is no fluke. America’s economy has almost always done worse under Republican presidents. A New York Times analysis found that since 1933, the U.S. economy has grown nearly twice as fast on average under Democrats.

Now Trump’s defenders claim it’s not his fault that the economy collapsed under his watch. It was the pandemic. But there are two big things wrong with this.

First, the pandemic recession was as bad as it was because of Trump. His failure to lead with any national strategy left America in chaos throughout 2020, long after other nations had developed coordinated testing, tracing, and social distancing plans that allowed them to reopen their economies.

But secondly, even before the pandemic, Trump failed to deliver on his economic promises. Job growth slowed under Trump.

America added more jobs in President Obama’s last three years than in Trump’s first three.

Even before the pandemic most middle-class American households saw their incomes go down under Trump.

Trump’s major economic policy was cutting taxes on the rich and big corporations. He promised it would result in $4,000 annual raises for workers. How did that work out? Did you get a $4,000 raise?

Republicans keep claiming that if we just cut enough taxes on the rich, the wealth will “trickle down.” But it never works. Wage growth slowed after Reagan’s tax cuts for the rich and big corporations. And the Bush and Trump tax cuts didn’t trickle down either.

These giveaways to the wealthy came at the expense of investments in infrastructure, education, and health care, making life more expensive and difficult for everyone who isn’t rich.

They also exploded the debt and deficit. Reagan oversaw a 186% increase in the national debt — the biggest percentage increase in over 70 years. The Bush and Trump tax cuts, that mostly benefited corporations and the rich, are the main reasons why America’s debt is growing faster than the economy.

Republican presidents have led us into the three worst economic crises of the last century, and Democrats led us out of them.

Republicans talk about running the country like a business, but they want to run it the way Trump ran his businesses: with massive debts, a string of failures, and payouts for the folks at the top, while workers get shafted again and again. Given Republicans’ track record, why would any hard-working American put their financial security in the hands of a Republican president ever again?

#youtube #economics #politics #economy #election #videos #video #Donald Trump #Joe Biden

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houseofbrat · 1 month ago

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Bernie Would Have Won

By Krystal Ball

There are a million surface-level reasons for Kamala Harris’s loss and systematic underperformance in pretty much every county and among nearly every demographic group. She is part of a deeply unpopular administration. Voters believe the economy is bad and that the country is on the wrong track. She is a woman and we still have some work to do as a nation to overcome long-held biases.

But the real problems for the Democrats go much deeper and require a dramatic course correction of a sort that, I suspect, Democrats are unlikely to embark upon. The bottom line is this: Democrats are still trying to run a neoliberal campaign in a post-neoliberal era. In other words, 2016 Bernie was right.

Let’s think a little bit about how we got here. The combination of the Iraq War and the housing collapse exposed the failures and rot that were the inevitable result of letting the needs of capital predominate over the needs of human beings. The neoliberal ideology which was haltingly introduced by Jimmy Carter, embraced fully by Ronald Reagan, and solidified across both parties with Bill Clinton embraced a laissez-faire market logic that would supplant market will for national will or human rights, but also raise incomes enough overall and create enough dynamism that the other problems were in theory, worth the trade off. Clinton after all ran with Reagan era tax cutting, social safety net slashing and free trade radicalism with NAFTA being the most prominent example.

Ultimately, of course, this strategy fueled extreme wealth inequality. But for a while this logic seemed to be working out. The Soviet Union collapsed and the Cold War ended. Incomes did indeed rise and the internet fueled tech advances contributing to a sense of cosmopolitan dynamism. America had a swaggering confidence that these events really did represent a sort of end of history. We believed that our brand of privatization, capitalism, and liberal democracy would take over the world. We confidently wielded institutions like the World Bank, IMF, and WTO to realize this global vision. We gave China most-favored nation trade status.

Underneath the surface, the unchecked market forces we had unleashed were devastating communities in the industrial Midwest and across the country. By the neoliberal definition NAFTA was a roaring success contributing to GDP growth. But if your job was shipped overseas and your town was shoved into economic oblivion, the tradeoff didn’t seem like such a great deal.

The underlying forces of destruction came to a head with two major catastrophes, the Iraq War and the housing collapse/Great Recession. The lie that fueled the Iraq war destroyed confidence in the institutions that were the bedrock of this neoliberal order and in the idea that the U.S. could or should remake the world in our image. Even more devastating, the financial crisis left home owners destitute while banks were bailed out, revealing that there was something deeply unjust in a system that placed capital over people. How could it be that the greedy villains who triggered a global economic calamity were made whole while regular people were left to wither on the vine?

These events sparked social movements on both the right and the left. The Tea Party churned out populist-sounding politicians like Sarah Palin and birtherist conspiracies about Barack Obama, paving the way for the rise of Donald Trump. The Tea Party and Trumpism are not identical, of course, but they share a cast of villains: The corrupt bureaucrats or deep state. The immigrants supposedly changing your community. The cultural elites telling you your beliefs are toxic. Trump’s version of this program is also explicitly authoritarian. This authoritarianism is a feature not a bug for some portion of the Trump coalition which has been persuaded that democracy left to its own devices could pose an existential threat to their way of life.

On the left, the organic response to the financial crisis was Occupy Wall Street, which directly fueled the Bernie Sanders movement. Here, too, the villains were clear. In the language of Occupy it was the 1% or as Bernie put it the millionaires and billionaires. It was the economic elite and unfettered capitalism that had made it so hard to get by. Turning homes into assets of financial speculation. Wildly profiteering off of every element of our healthcare system. Busting unions so that working people had no collective power. This movement was, in contrast to the right, was explicitly pro-democracy, with a foundational view that in a contest between the 99% and the 1%, the 99% would prevail. And that a win would lead to universal programs like Medicare for All, free college, workplace democracy, and a significant hike in the minimum wage.

These two movements traveled on separate tracks within their respective party alliances and met wildly different fates. On the Republican side, Donald Trump emerged as a political juggernaut at a time when the party was devastated and rudderless, having lost to Obama twice in a row. This weakened state—and the fact that the Trump alternatives were uncharismatic drips like Jeb Bush—created a path for Trump to successfully execute a hostile takeover of the party.

Plus, right-wing populism embraces capital, and so it posed no real threat to the monied interests that are so influential within the party structures. The uber-rich are not among the villains of the populist right (see: Elon Musk, Bill Ackman, and so on), except in so much as they overlap with cultural leftism. The Republican donor class was not thrilled with Trump’s chaos and lack of decorum but they did not view him as an existential threat to their class interests. This comfort with him was affirmed after he cut their taxes and prioritized union busting and deregulation in his first term in office.

Meanwhile, the Democratic Party put its thumb on the scales and marshaled every bit of power they could, legitimate and illegitimate, to block Bernie Sanders from a similar party takeover. The difference was that Bernie’s party takeover did pose an existential threat—both to party elites who he openly antagonized and to the party’s big money backers. The bottom line of the Wall Street financiers and corporate titans was explicitly threatened. His rise would simply not be allowed. Not in 2016 and not in 2020.

What’s more, Hillary Clinton and her allies launched a propaganda campaign to posture as if they were actually to the left of Bernie by labeling him and his supporters sexist and racist for centering class politics over identity politics. This in turn spawned a hell cycle of woke word-policing and demographic slicing and dicing and antagonism towards working class whites that only made the Democratic party more repugnant to basically everyone.

This identity politics sword has also been wielded within the Democratic Party to crush any possibility of a Bernie-inspired class focused movement in Congress attempted by the Justice Democrats and the Squad in 2018. My colleague Ryan Grim has written an entire book on this subject so I won’t belabor the point here. But suffice it to say, the threat of the Squad to the Democratic Party’s ideology and order has been thoroughly neutralized. The Squad members themselves, perhaps out of ideology and perhaps out of fear of being smeared as racist, leaned into identitarian politics which rendered them non-threatening in terms of national popular appeal. They were also relentlessly attacked from within the party, predominately by pro-Israel groups that an unprecedented tens of millions of dollars in House primaries, which has led to the defeat of several members and has served as a warning and threat to the rest.

That brings us to today where the Democratic Party stands in the ashes of a Republican landslide which will sweep Donald Trumpback into the White House. The path not taken in 2016 looms larger than ever. Bernie’s coalition was filled with the exact type of voters who are now flocking to Donald Trump: Working class voters of all races, young people, and, critically, the much-derided bros. The top contributors to Bernie’s campaign often held jobs at places like Amazon and Walmart. The unions loved him. And—never forget—he earned the coveted Joe Rogan endorsement that Trump also received the day before the election this year. It turns out, the Bernie-to-Trump pipeline is real! While that has always been used as an epithet to smear Bernie and his movement, with the implication that social democracy is just a cover for or gateway drug to right wing authoritarianism, the truth is that this pipeline speaks to the power and appeal of Bernie’s vision as an effective antidote to Trumpism. When these voters had a choice between Trump and Bernie, they chose Bernie. For many of them now that the choice is between Trump and the dried out husk of neoliberalism, they’re going Trump.

I have always believed that Bernie would have defeated Trump in 2016, though of course there is no way to know for sure. What we can say for sure is that the brand of class-first social democracy Bernie ran on in 2016 has proven successful in other countries because of course the crisis of neoliberalism is a global phenomenon. Most notably, Bernie’s basic political ideology was wildly successful electorally with Andrés Manuel López Obrador and now his successor Claudia Sheinbaum in Mexico, Lula Da Silva in Brazil, and Evo Morales in Bolivia. AMLO, in fact, was one of the most popular leaders in the entire world and dramatically improved the livelihoods of a majority of his countrymen. Bernie’s basic ideology was also successful in our own history.

In the end, I got this election dead wrong. I thought between January 6th and the roll back of human rights for women, it would be enough. I thought that the overtly fascist tendencies of Donald Trump and the spectacle of the world’s richest man bankrolling him would be enough strikes against him to overcome the problems of the Democratic Party which I have spoken out about for years now–problems Kamala Harris decided to lean into rather than confront. Elevating Liz Cheney as a top surrogate was not just a slap in the face to all the victims of American imperialism—past and ongoing; it was a broad signal to voters that Democrats were the party of elites, playing directly into right-wing populist tropes. While the media talked about it as a “tack to the center,” author and organizer Jonathan Smucker more aptly described it as “a tack to the top.” And as I write this now, I have zero hope or expectation that Democrats will look at the Bernie bro coalition and realize why they screwed up. Cable news pundits are already blaming the left once again for the failures of a party that has little to do with the actual left and certainly not the populist left.

Instead, Trump’s victory represents a defeat of social democratic class-first politics in America—not quite final, but not temporary either. The Democrats have successfully smothered the movement, blocked the entranceways, salted the earth. Instead they will, as Bill Clinton did in the ‘90s, embrace the fundamental tenets of the Trumpist worldview.

They already are, in fact. Democrats have dropped their resistance to Trump’s mass deportation policies and immigrant scapegoating. The most ambitious politician in the Democratic coalition, Gavin Newsom, is making a big show of being tough-on-crime and dehumanizing the homeless. Democrat-leaning billionaires like Jeff Bezos who not only owns Amazon but the Washington Post have already abandoned their resistance.

Maybe I will be just as wrong as I was about the election but it is my sense that with this Trump victory, authoritarian right politics have won the ideological battle for what will replace the neoliberal order in America. And yes, I think it will be ugly, mean, and harmful—because it already is.

#krystal ball #bernie sanders #election 2024 #USA #politics #democratic party #critique #kamala harris #joe biden #donald trump

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scottiestoybox · 1 month ago

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Let's talk about finding out fast, tariffs, and Trump....

youtube

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#Economics / Economy / Income / Financial #Tariffs #US Politics #Youtube

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ladydeath-vanserra · 4 months ago

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Inequality + Slums in Velaris

kinda 👀 at the people who think slums and designated Poor™️ areas are supposed to be normal, especially in acotar w Velaris. They *shouldn't* to be normal especially for VeLAriS

The UN Definition of a slum:

.... individuals living under the same roof lacking one or more of the following conditions: access to improved water, access to improved sanitation, sufficient living area, housing durability, and security of tenure

Slums form and grow in different parts of the world for many different reasons. Causes include rapid rural-to-urban migration, economic stagnation and depression, high unemployment, poverty, informal economy, forced or manipulated ghettoization, poor planning, politics, natural disasters, and social conflicts.

Rural–urban migration

Many people move to urban areas primarily because cities promise more jobs, better schools for poor's children, and diverse income opportunities than subsistence farming in rural areas.

this doesn't really apply to Velaris as it is a closed in separated city from the rest of the night court

Urbanization

Some scholars suggest that urbanization creates slums because local governments are unable to manage urbanization, and migrant workers without an affordable place to live in, dwell in slums.

Rapid urbanization drives economic growth and causes people to seek working and investment opportunities in urban areas.

However, as evidenced by poor urban infrastructure and insufficient housing, the local governments sometimes are unable to manage this transition. This incapacity can be attributed to insufficient funds and inexperience to handle and organize problems brought by migration and urbanization.

again, I don't see thus happening due to it being a private and secluded city unless they're taking in a rapid amount of SA survivors- the only outsiders brought into the city

Poor house planning

Insufficient financial resources and lack of coordination in government bureaucracy are two main causes of poor house planning.

This would mean that Rhysand is not paying attention to evenly distributed wealth or mindful government oversight in poor house planning. If there are low income folks, adequate housing is not being provided

Colonialism and segregation

Some of the slums in today's world are a product of urbanization brought by colonialism. For instance, the Europeans arrived in Kenya in the nineteenth century and created urban centers such as Nairobi mainly to serve their financial interests. They regarded the Africans as temporary migrants and needed them only for supply of labour.

The housing policy aiming to accommodate these workers was not well enforced and the government built settlements in the form of single-occupancy bedspaces. Due to the cost of time and money in their movement back and forth between rural and urban areas, their families gradually migrated to the urban centre. As they could not afford to buy houses, slums were thus formed.

I wouldn't say this qualified for Velaris, internally, but as for the Nightcourt as a whole, the separation of the CoN and Illyria from the golden city that is Velaris is very telling

The citizens of the CoN aren't allowed to leave the city and as we have seen from Rhysand, they will have businesses turn CoN citizens away in Velaris

Illyria is full of war torn camps where inequality thrives and there is not adequate housing or supplies, as we see when Cassian said he fought other children for supplies. We also see it when Cassian brings blankets for the Illyrians

Poor infrastructure, social exclusion and economic stagnation

Social exclusion and poor infrastructure forces the poor to adapt to conditions beyond his or her control. Poor families that cannot afford transportation, or those who simply lack any form of affordable public transportation, generally end up in squat settlements within walking distance or close enough to the place of their formal or informal employment.

This overall I feel best exemplifies Velaris. As far as we're made aware there aren't vehicles in Velaris and we don't make notice of any other forms of transportation besides winnowing. The closest we get is flying and we've only seen Cassian, Azriel, Rhysand and Feyre. With Winnowing, it's only Mor and Rhysand and Feyre.

Winnowing is not a common practice ability that all faeries have. There does seem to be a suggestion that there are people who can Winnow, though this is based on Rhysand telling Feyre about his dad being unable to Winnow into the HoW

This leaves many people being unable to have any form of transportation outside of walking.

Informal economy

Many slums grow because of growing informal economy which creates demand for workers. Informal economy is that part of an economy that is neither registered as a business nor licensed, one that does not pay taxes and is not monitored by local, state, or federal government.

There are very few businesses we see in Velaris. We see Rita's, the dive bar and some art studios. There isn't enough shown about legitimate businesses to really show much about an informal economy

Poverty

Urban poverty encourages the formation and demand for slums. With rapid shift from rural to urban life, poverty migrates to urban areas. The urban poor arrives with hope, and very little of anything else. They typically have no access to shelter, basic urban services and social amenities. Slums are often the only option for the urban poor.

Poverty has been witnessed with especially the Illyrians. But within Velaris, it stands to reason that the "grimy part of the city" where Nesta lives, and the bar she frequents, does not have the adequate infrastructure in place for proper wages- which would be Rhysands responsibility to make sure a minimums wage where people could thrive would exist

tldr: Velaris has slums and it's through Rhys' shitty job as a high lord by not creating adequate social systems or infrastructure where poor folks can live without being designated to the "grimy parts of the city"

#a court of thorns and roses #acotar #sjm critical #anti sjm #anti rhysand #anti cassian #anti inner circle

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darkmaga-returns · 1 month ago

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by Tyler Durden

Former Wall Street money manager Ed Dowd is a skillful financial analyst who said in May the economy was skidding. Now, Dowd predicts the economy is poised to “roll over” and soon.

Why is the Fed cutting rates with a record high DOW? Maybe they see the same thing he does. Dowd explains, “Real weekly wage growth was minus 2% going into the election. It is also interesting to know that minus 2% number of wage growth was also in 1980 when Ronald Reagan won in a landslide and also in 1992 when Bill Clinton won in a landslide…"

"I have never seen such blatant manipulation of government statistics.

There is government spending and government hiring to paper over what is truly a bad economy for the average man. When I was asked prior to the election who do you think will win the election, I said Trump has already won, according to the economic statistics. That’s why he won. Bobby Kennedy helped along with Elon Musk, Joe Rogan, lots of people switching and what have you. What really got Trump in was the economy, the real economy, not the stock market.

It was not the ‘everything is hunky-dory’ pablum from the mainstream media.

The real economy has been rolling over, and we are just waiting for the financial markets to figure this out.

When they do, Trump is going to inherit a turd of a financial market crisis.

Government statistics will be updated, and it will show we started a recession sometime this year…

The incoming Trump Administration has to get out in front of the narrative. This was already baked into the cake. They just got handed fraudulent books. So, they are basically going to get blamed for what is coming.

They have to get in front of the narrative and talk about what they were handed. They need to talk about how the stock market is not a real indicator of economic health like it was before the days of raw manipulation.”

[ZH: We have been endlessly reminding readers for the last six months that the 'always positive' macro headlines that appear every day after almost ubiquitously revised down in later months, hiding the reality that set the scene for Trump's almost unprecedented victory in the election - despite the endless charade promoted by legacy media that 'everything was awesome', it clearly wasn't (and isn't) and the rug-pull is coming.]

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dreaminginthedeepsouth · 2 months ago

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Matt Wuerker, Politico

* * * * *

LETTERS FROM AN AMERICAN

October 30, 2024

Heather Cox Richardson

Oct 31, 2024

On Friday, October 25, at a town hall held on his social media platform X, Elon Musk told the audience that if Trump wins, he expects to work in a Cabinet-level position to cut the federal government.

He told people to expect “temporary hardship” but that cuts would “ensure long-term prosperity.” At the Trump rally at New York City’s Madison Square Garden on Sunday, Musk said he plans to cut $2 trillion from the government. Economists point out that current discretionary spending in the budget is $1.7 trillion, meaning his promise would eliminate virtually all discretionary spending, which includes transportation, education, housing, and environmental programs.

Economists agree that Trump’s plans to place a high tariff wall around the U.S., replacing income taxes on high earners with tariffs paid for by middle-class Americans, and to deport as many as 20 million immigrants would crash the booming economy. Now Trump’s financial backer Musk is factoring in the loss of entire sectors of the government to the economy under Trump.

Trump has promised to appoint Musk to be the government’s “chief efficiency officer.” “Everyone’s going to have to take a haircut.… We can’t be a wastrel.… We need to live honestly,” Musk said on Friday. Rob Wile and Lora Kolodny of CNBC point out that Musk’s SpaceX aerospace venture has received $19 billion from the U.S. government since 2008.

An X user wrote: “I]f Trump succeeds in forcing through mass deportations, combined with Elon hacking away at the government, firing people and reducing the deficit—there will be an initial severe overreaction in the economy…. Markets will tumble. But when the storm passes and everyone realizes we are on sounder footing, there will be a rapid recovery to a healthier, sustainable economy. History could be made in the coming two years.”

Musk commented: “Sounds about right[.]”

This exchange echoes the prescription of Treasury Secretary Andrew Mellon, whose theories had done much to create the Great Crash of 1929, for restoring a healthy economy. “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate,” he told President Herbert Hoover. “It will purge the rottenness out of the system. High costs of living and high living

will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.”

Mellon, at least, was reacting to an economic crisis thrust upon an administration. Musk is seeking to create one.

Today the Commerce Department reported that from July through September, the nation’s economy grew at a solid 2.8%. Consumer spending is up, as is investment in business. The country added 254,000 jobs in September, and inflation has fallen back almost to the Federal Reserve’s target of 2%.

It is extraordinarily rare for a country to be able to reduce inflation without creating a recession, but the Biden administration has managed to do so, producing what economists call a “soft landing,” rather like catching an egg on a plate. As Bryan Mena of CNN wrote today: “The US economy seems to have pulled off a remarkable and historic achievement.”

Both President Joe Biden and Democratic presidential nominee Vice President Kamala Harris have called for reducing the deficit not by slashing the government, as Musk proposes, but by restoring taxes on the wealthy and corporations.

As part of the Republicans’ plan to take the country back to the era before the 1930s ushered in a government that regulated business and provided a basic social safety net, House speaker Mike Johnson (R-LA) expects to get rid of the Affordable Care Act.

At a closed-door campaign event on Monday in Pennsylvania for a Republican House candidate, Johnson told supporters that Republicans will propose “massive reform” to the Affordable Care Act, also known as “Obamacare,” if they take control of both the House and the Senate in November. “Health-care reform’s going to be a big part of the agenda,” Johnson said. Their plan is to take a “blowtorch to the regulatory state,” which he says is “crushing the free market.” “Trump’s going to go big,” he said.” When an attendee asked, “No Obamacare?” he laughed and agreed: “No Obamacare…. The ACA is so deeply ingrained, we need massive reform to make this work, and we got a lot of ideas on how to do that.”

Ending a campaign with a promise to crash a booming economy and end the Affordable Care Act, which ended insurance companies’ ability to reject people with preexisting conditions, is an unusual strategy.

A post from Trump last night and another this morning suggest his internal polls are worrying him. Last night he claimed there was cheating in Pennsylvania’s York and Lancaster counties. Today he posted: “Pennsylvania is cheating, and getting caught, at large scale levels rarely seen before. REPORT CHEATING TO AUTHORITIES. Law Enforcement must act, NOW!”

Trump appears to be setting up the argument he used in 2020, that he can lose only if he has been cheated. But it is increasingly apparent that the get-out-the-vote, or GOTV, efforts of the Trump campaign have been weak. When Trump’s daughter-in-law Lara Trump and loyalist Michael Whatley became the co-chairs of the Republican National Committee in March 2024, they stopped the GOTV efforts underway and used the money instead for litigation. They outsourced GOTV efforts to super PACs, including Musk’s America PAC.

In Wired today, Jake Lahut reported that door-knockers for Musk’s PAC were driven around in the back of a U-Haul without seats and threatened with having to pay their own hotel bills if they didn’t meet high canvassing quotas. One of the canvassers told Lahut that they thought they were being hired to ask people who they would be voting for when they flew into Michigan, and was surprised to learn their actual role. The workers spoke to Lahut anonymously because they had signed a nondisclosure agreement (a practice the Biden administration has tried to stop).

Trump’s boast that he is responsible for the Supreme Court’s overturning of the 1973 Roe v. Wade decision recognizing the constitutional right to abortion is one of the reasons his support is soft. In addition to popular dislike of the idea that the state, rather than a woman and her doctor, should make decisions about her healthcare, the Dobbs v. Jackson Women’s Health Organization decision is now over two years old, and state examinations of maternal deaths are showing that women are dying from lack of reproductive healthcare.

Cassandra Jaramillo and Kavitha Surana of ProPublica reported today that at least two pregnant women have died in Texas when doctors delayed emergency care after a miscarriage until the fetal heartbeat stopped. The woman they highlighted today, Josseli Barnica, left behind a husband and a toddler.

At a rally this evening near Green Bay, Wisconsin, Trump said his team had advised him to stop talking about how he was going to protect women by ending crime and making sure they don’t have to be “thinking about abortion.” But Trump, who has boasted of sexual assault and been found liable for it, did not stop there. He went on to say that he had told his advisors, “I’m going to do it whether the women like it or not. I am going to protect them.”

The Trump campaign remains concerned about the damage caused by the extraordinarily racist, sexist, and violent Sunday night rally at Madison Square Garden. Today the campaign seized on a misstatement President Biden made when condemning the statement from the Madison Square Garden event that referred to Puerto Rico as a “floating island of garbage.” They tried to turn the tables to suggest that Biden was calling Trump supporters garbage, although the president has always been very careful to focus his condemnation on Trump alone.

In Wisconsin today, when he disembarked from his plane, Trump put on an orange reflective vest and had someone drive him around the tarmac in a garbage truck with TRUMP painted on the side. He complained about Biden to reporters from the cab of the truck but still refused to apologize for Sunday’s slur of Puerto Rico, saying he knew nothing about the comedian who appeared at his rally.

This, too, was an unusual strategy. Like his visit to McDonalds, where he wore an apron, the image of Trump in a sanitation truck was likely intended to show him as a man of the people. But his power has always rested not in his promise to be one of the people, but rather to lead them. The pictures of him in a bright orange vest and unusually dark makeup are quite different from his usual portrayal of himself.

Indeed, media captured a video of Trump’s stunt, and it did not convey strength. MSNBC’s Katie Phang watched him try to get into the truck and noted: “Trump stumbles, drags his right leg, almost falls over, and tries at least three times to open the door…. Some transparency with Trump’s medical records would be nice.”

The Las Vegas Sun today ran an editorial that detailed Trump’s increasingly obvious mental lapses and concluded that Trump is “crippled cognitively and showing clear signs of mental illness.” It noted that Trump now depends “on enablers who show a disturbing willingness to indulge his delusions, amplify his paranoia or steer his feeble mind toward their own goals.” It noted that if Trump cannot fulfill the duties of the presidency, they would fall to his running mate, J.D. Vance, who has suggested “he would subordinate constitutional principles for personal profit and power.”

LETTERS FROM AN AMERICAN

HEATHER COX RICHARDSON

#political cartoon #Matt Wuerker #Politico #Heather Cox Richardson #Letters From an American #Las Vegas Sun #MAGA extremism #garbage truck stunt #women's health #reproductive rights #Musk #Affordable Care Act #Obamacare #project 2025 #MAGA's plans for you

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