US corporations post 'near-historic' profits, as poverty and joblessness increase: Now what?

This week, the Huffington Post reported that corporate profits are at "near-historic" levels-- up 38% compared to the same time period a year ago.

It's a pretty disgusting article about how layoffs, outsourcing, and low interest rates have allowed corporatists to rake in the cash-- and hoard it-- rather than reinvest it, which would improve the nation's ecomomy.

"Since 2008, corporate profits increased 10 percent -- but revenue was down 6 percent, the WSJ [Wall Street Journal] says. To achieve the impressive quarterly results, companies have had, as the WSJ puts it, to "streamline" their operations. This means firing workers, outsourcing labor and shuttering unprofitable (or less profitable) divisions.

"The robust state of corporate profits presents a paradox: companies won't spend their money until the economy improves, but the economy won't improve until they spend their money. An increase in hiring, for example, would help drive a recovery. The New York Times reports this "chicken-and-egg" phenomenon, noting that near-zero interest rates have encouraged companies to borrow money and simply hoard it because, as the NYT puts it, 'they can.'"

This is a perfect example of how dysfunctional trickle down economic theory is.

Juxtapose this story about historic corporate profits with the stories about the widening wealth gap between rich and poor, rising poverty in most states, disappearing middle class, people living in vehicles, and states and cities going broke.

Given this scenario, how can Congressional Republicans continue to support tax cuts for the wealthiest Americans and balk any time they are asked to extend unemployment?

How can Tea Party/Republicans like Sharon Angle (Nevada), Joe Miller (Alaska), and Jesse Kelly (Arizona) call for privatization of Social Security, elimination of the health care safety net, and elimimation of the national minimum wage? Angle, Miller, and Kelly are puppets of the corporatists. I can't believe that they honestly think dissolution of these programs would help the majority of Americans.

Privatization of Social Security would just give Wall Street's corporate gamblers more money to play with and another way to boost their historic profits even higher. Elimination of the health care safety net and the minimum wage and continued outsourcing of jobs would through the US into third-world status. It would be end of life as we know it. The former US middle class would become economic refugees.

UPDATE, October 6: Blog for Arizona's AZ Blue Meanie posted Update III: The New Corporate Business Model: Increase Profits, Not Jobs.

UPDATE, October 8: Diane Rehm's Friday News Roundup covers this story. (Diane, honey, mention my blog next time, OK?)

The ramifications of wealth disparity: Robert Reich gets it

Robert Reich is one of my heroes. He gets it (unlike the delusional Tea Partiers who also were on National Public Radio [NPR] this morning, but more on those jokers later).

Here is a quote from his interview today on NPR. (Check out the link for the whole interview.)

"[The middle class] can't go deeper and deeper into debt. They can't work longer hours. They've exhausted all of their coping mechanisms," he says. "And people at the top are taking home so much that they are almost inevitably going to speculate in stocks or commodities or whatever the speculative vehicles are going to be. ... Unless we understand the relationship between the extraordinary concentration of income and wealth we have this in country and the failure of the economy to rebound, we are going to be destined for many, many years of high unemployment, anemic job recoveries and then periods of booms and busts that may even dwarf what we just had."

We want those 8 million jobs back

Don't forget, Ed Schultz's One Nation Working Together March is this Saturday, October 2, in Washington, DC.

The Nation recently posted a great background piece-- For Jobs, Justice, and Education. In a nutshell, the article talks about the plight of working families in America, tone-deaf Republican and Blue Dog Democrats who are fighting for the rich (instead of working for workers), and the rationale behind the march.

Here is a small excerpt.

"...we should be investing in rebuilding America, thereby helping to close the jobs gap, which will then help close the budget gap.

"Instead, as we careen toward a possible double-dip recession and a second round of devastating home foreclosures, the extreme right-wing media machine is desperately trying to discredit the idea that America's government can and should move aggressively to create more jobs...

"Nothing they say should persuade our leaders to throw America's working families under the bus. We are in the middle of the biggest economic crisis in half a century. Through its negligence and recklessness, Wall Street has already forced a brutal austerity program on Main Street. The role of America's government is to mitigate its effects and reverse the damage, not to make things worse by heaping suffering on top of suffering. This is not the time to abandon schools, shut down clinics, ignore crumbling infrastructure and forego job creation. This is not the time to take more away from families and communities that are already losing so much. We don't need a public austerity program on top of the private sector–imposed austerity that we are already enduring.

"But some members of Congress apparently think they should focus on closing the federal budget gap, even if it means letting millions more American families tumble. They are mistaken. America's workers find themselves in a deep hole. You don't cut your way out of a hole. You grow your way out of a hole. We can afford to invest more in America's long-term success. We are the wealthiest nation in the world. We should not be giving billions of dollars to companies like Halliburton abroad, while closing hospitals at home.

"...the American people finally will be able to choose between two movements: one that wants to demagogue problems and divide us, and another that wants to promote solutions and unite America."

Is this the end of communism? Or the end of capitalism?

This week news outlets reported that a Chinese company may buy part of General Motors (GM). Apparently, GM sells more cars in China than in the US.

I don't know if this is some bizarre PR move or if GM just wants to show its connection with Chinese consumers or both, but National Public Radio reported that GM's Cadillac brand will be financing a film commemorating the Chinese Communist Revolution.

Ronald Reagan and Chairman Mao are rolling in their graves.

John McCain and Jon Kyl, who are you representing? Cuz, it ain't us

Here are 2 headlines from today:

Jobless rate for Arizona highest in 27 years

Arizona is now No. 2 in poverty

Given the dire employment situation in Arizona, you'd think that our do-nothing Senatorial duo-- John Sidney McCain III and Jon Kyl-- would have supported President Obama's jobs bill yesterday.

But no. Rather than voting to help Arizona's unemployed, Arizona's small businesses, and Arizona's community banks, they both voted in lock step with other obstructionists in the Party of No.

McCain and Kyl have a long (and identical) records of voting against workers. For their complete voting records, check Project Vote Smart- McCain and Kyl. When are we going to put them out of work?

Have Arizonans finally realized that the wing-nuts in the Legislature are just nuts?

Arizona has been groaning under the stress of Republican leadership for decades, but the last few years of their draconian financial management have been devastating.

This week new research from Arizona State University's Morrison Institute for Public Policy reveals that 68% of Arizona voters disapprove of the way that the Arizona Legislature has been handling the state's finance.

Yippee! Does this mean that Arizonans have finally woken up to just how crazy our legislature is? I sure hope so.

According to a very concise synopsis on the Random Musings blog, "In the poll, 61% of Republicans, 76% of Democrats, 67% of Independents and 68% overall disapproved or strongly disapproved of the job that the Arizona legislature has done with the state's budget."

For the full report, check out this ASU link.

I hope the government-in-a-bathtub people are paying attention.

What's up with Chase Bank's website?

Officially, J. P. Morgan Chase's online banking website went down in the early hours of Tuesday, September 14-- affecting 16.6 million customers, including me. (Well, my employer, actually, since my money is in a local credit union.)

I have not been able to sign on to our small business Chase Bank account all week, and it's now Thursday-- day 4 of my personal Chase outage.

What's up with that?

Hey, Chase, I'm sure there are thousands of unemployed webmasters and web security experts out there. Maybe you need to hire more staff? Or different staff? Or English-speaking American staff? Or pay them better?

Get it together!

P.S., Chase, I don't believe that you don't know what caused this.

P.S.S., Also, while I have your attention, you need to hire more people for your "customer service" telephone lines. I have called you multiple times, and your "customer service" lines either ring and ring or are busy. Again, there are plenty of people looking for work. Hire someone! You obviously need more competent staff.

Save the middle class: Big Ed wants you to march on DC

Ed Schultz, homespun radio progressive from Fargo, ND and now an MSNBC pundit, is organizing the One Nation March, to be held on October 2 at the Lincoln Memorial in Washington DC.

According to Big Ed's website, "The march aims to bring working people, young people, retirees, civil rights activists and many others together on the Mall to show the obstructionists in Congress that we are many and diverse, strong and that united-and we will fight together for the American Dream...

"Working people can make a difference when we rely on ourselves and act collectively. We are America. And together we can make our voices heard."

Let's fight for the middle class. DC is quite a ways from Tucson. Maybe we could have a local march?

Here are the details from Big Ed's website.

ONE NATION WORKING TOGETHER

Our nation stands at a critical crossroads. The 30-year drive for a low-wage, high-consumption society that imports more and more of what it consumes has hit the wall.

Millions are unemployed, with little recovery in sight. A record number of Americans who want desperately to work have been jobless for more than 6 months.

At the same time, Wall Street continues to roll up big profits. Banks and corporations have made off with trillions of public dollars, while small businesses can't get loans and cities are being forced to make cuts to public education and public safety, harming our children and our communities.

Obstructionists in Congress are doing everything they can to stop anything that helps working people, and they are scapegoating workers for the demise of the economy. Public sector workers are being cast as selfish, auto workers are being blamed for the troubles of the auto industry, and teachers are being blamed for an education system in need of support.

Working people are frustrated and angry-incensed by the government's inability to halt massive job loss and declining living standards on the one hand, and the comparative ease with which Republicans in Congress, with help from some Democrats, have done their best to make the world safe again for JP Morgan, Goldman Sachs and CitiGroup, on the other.

Just as we have seen through history, fear mongers in our country have seized on that anger and are working hard -- unfortunately with some success--to use justifiable anger about a failing economy to divide us.

We have to fight this hateful demagoguery that only benefits our foes, and we can't do it alone. History has taught us that the best way to fight the forces of hatred is to address the economic policies that led to our economic suffering, and that our fight must draw its strength from an alliance of the poor and the middle class-everyone who works for a living.

It is against this backdrop that we join ONE NATION.

ONE NATION is a multi-racial, civil and human rights movement whose mission is to reorder our nation's priorities to invest in our nation's most valuable resource - our people.

The organizations that have come together to form ONE NATION believe that our goal should be a future of shared prosperity, not stubborn unemployment and a lost generation. Workers should be able to share in the wealth they create, and everyone deserves the opportunity to achieve the American Dream - a secure job; the chance for our children to get a great public education and the opportunity to make their own way in the world; and laws that protect us, not oppress us.

ONE NATION is a long-term effort to reverse the dangerous economic course of our country over the past four decades. It brings together organizations from across the progressive spectrum-labor, civil rights, environmental, faith and many others-recognizing that none of us alone have been able to achieve our priorities, whether they are large-scale job creation, labor law reform, immigration reform, investing in public education or other concerns, and that we will not realize change until these priorities belong to all of us.

ONE NATION shares the labor movement's policy agenda: An economy that works for all; good jobs, fair jobs, safe jobs, and more jobs; reforming Wall Street; repairing our immigration system; quality education for every child; and ensuring that everyone in America has the opportunity to contribute to and strengthen our country. Restoring workers' rights to organize and bargain collectively is at the heart of the policy agenda.

The ONE NATION march on Washington on October 2, 2010 will charge up an army of tens of thousands of activists who will return to their neighborhoods, churches, schools and, especially, voting booths, with new energy to enact our common agenda. And on the same day, the labor movement will walk door-to-door in targeted states around the country, bringing the same message to union members exactly one month before the fall elections.

The march aims to bring working people, young people, retirees, civil rights activists and many others together on the Mall to show the obstructionists in Congress that we are many and diverse, strong and that united-and we will fight together for the American Dream.

Many of our unions are already committed to work as a part of ONE NATION. The unions of the AFL-CIO proudly join this coalition and pledge to work collectively to add our support to this great effort.

Working people can make a difference when we rely on ourselves and act collectively. We are America. And together we can make our voices heard.

Here is the FAQ about the march.
When is the March?
Saturday, October 2, 2010. We will begin at 12:00 noon and will end at approximately 4:00 pm.

Where is the March?
The March takes place on the steps of the Lincoln Memorial located on the National Mall in Washington DC.

Is the event open to the public?
Yes, this event is open to the public. This event is also a family friendly event.

Is this event open to the media?
Yes. Media credentials and other logistics information may be obtained from the ONWT Communications Office which can be reached at 202 263 4529 or by email at ONWTCommunications@gmail.com.

What happens if it rains?
The March will proceed rain or shine.

Will there be food, beverage and bathrooms available on site?
Yes, there will be portable bathrooms and water on site.

Can I bring signs?
Yes, you can bring signs that promote the values of One Nation Working Together.

What arrangements are being made for persons with disabilities?
Special accommodations will be made for persons with disabilities. Please contact ONWTlogistics@gmail.com with any questions.

Where can I stay in the DC area?
There are many hotels in the D.C. area that are close to the March event site. To learn more about union hotels in the Washington, D.C. area, visit the Unite Here website.

Additional information about Washington, D.C. can be found at www.washington.org.

Can I make a donation to support the March or ONWT?
Please send any donations by check to:
One Nation Working Together Campaign
1825 K Street, NW Suite 210
ATTN: Matt Reents
Washington DC, 20006

53,000 a day: Brother can you spare a dime?

53,000 people are losing their unemployment benefits a day, according to the Ed Schultz Show on Thursday.

While the Senate quibbles about how or if unemployment benefits should be extended, people's lives are being destroyed.

It's time that we ask everyone who is running for statewide or federal office:
How will you prevent joblessness from becoming homelessness?

A great follow-up question for candidates like J.D. Hayworth, who relies heavily on his "Christian values" in his advertising, would be:
What would Jesus do?

A follow-up question for the Republicans would be:
Do you really want to push unemployment higher to improve your election chances? (If so, that's despicable.)

Here is a list of candidates' websites. Go ahead, ask 'em! Call them! Write to them! Or better yet, ask them at a public event!

US Senate
Rodney Glassman(D)
Randy Parrez (D)
John Dougherty (D)
John McCain (R)
J.D. Hayworth (R)
Jim Deakin (R)

Arizona Governor
Terry Goddard (D)
Jan Brewer (R)
Buz Mills (R)
Dean Martin (R)

Congressional District 8
Gabrielle Giffords (D)
Johnathan "Payday Loan" Paton (R)
Jesse Kelly (R)
Andy Gross (R) (This guy needs a new webmaster. His campaign website doesn't come up.)
Brian Miller (R)

Congressional District 7
Raul Grijalva (D)
Ruth McClung (R)
Christopher Flowers (R)
Robert Wilson (R)

Senate Republicans block extension of unemployment benefits... again

Senate Republicans-- including Arizona's John McCain and Jon Kyl-- have repeatedly blocked extension of unemployment benefits in recent weeks.

Since benefits started to expire in May, more than 1 million Americans have lost their unemployment benefits.

Ironically, the same people, who spent like drunken sailors and cut taxes for the rich (thus reducing the country's revenue) during the Bush years, now use the we-must-live-within-our-means excuse when asked to support measures that will help working class Americans.

"The debate has little to do with economic reality and everything to do with political posturing," according to the NY Times.

At the same time they were ignoring millions of jobless Americans, Republicans worked to preserve loopholes in the banking reform legislation that would benefit wealthy money mangers and stopped moves which would halt tax avoidance by some small businesses-- thus ignoring 2 strategies that would nip away at the deficit.

The Republicans don't care about reducing the deficit; they're just using it as an excuse to say, "no" to Main Street Americans, while continuing to say "yes" to Wall Street.

The Congress has now left DC for an Independence Day break. Too bad McCain doesn't have any campaign events planned for this weekend. It would have been a great opportunity for jobless Arizonans to ask him about his vote.

We're #5 but it's nothing to cheer about

All too often we Arizonans hear that our state is competing for the bottom in many nationwide statistics--particularly in public health and education. For example, Arizona was already ranked #50 in per student educational funding before the latest round of budget cuts in 2010.

This week Georgetown University released a report that ranked Arizona #5 in at least one national statistic-- the percentage of jobs available to people without a high school diploma. According to the report, 14 percent of Arizona's future jobs will not require a high school diploma. According to Projections of Jobs and Education Requirements through 2018, only 61 percent of Arizona's workforce will require a post-secondary education.

This statistic is disappointing but not surprising. According to the National Center for Education Statistics, only 70.7 percent of Arizona's high school freshmen will graduate from high school. This year, Arizona's Republican Governor Jan Brewer and the Republican-controlled state Legislature eliminated the state's GED and adult education programs. These budget cuts eliminated educational lifelines for the state's high school dropouts and adult illiterates.

Is our state's Governor and Legislature-- in their infinite wisdom-- funding our educational system to the appropriate level given that we are a state of maids, busboys, wait staff, and construction workers? On some level, it's convenient to have a high dropout rate and a large number of low-skill jobs.Not that there is anything wrong with those jobs except that you can't make a living on such low wages.

Or, has our state's paltry education funding facilitated our de-evolution and the creation of a low-wage, low-literacy, right-to-work state? Low-wage, low-skill jobs and a poor public education system go hand-in-hand with an uneducated workforce (and a gullible electorate who can be manipulated to vote against their own interests).
Continuing to cut public education won't help Arizona solve it's current economic crisis-- not to mention the long-term harm it will cause to future generations of Arizonans.

US Department of Labor statistics show that education pays. Not only do people with college degrees or advanced degrees earn more money, but they also have significantly lower unemployment rates.

Poor decisions by Arizona's Republican leadership have hurt our economy, crippled our educational system, and now (with the passage of SB1070) destroyed the state's image as an engaging place to visit and a quality place to live and do business.

Referring to the Georgetown study and the state Legislature's decisions, an editorial in today's Arizona Daily Star today stated that "Arizona is on a crash course toward poverty and economic stagnation..." I couldn't agree more.

But where do we go from here?

I urge our more moderate elected officials-- regardless of party affiliation-- to look at budget-balancing alternatives that will help our state grow and prosper. The plans detailed on the Stronger Arizona website were repeatedly suggested to the Republican-controlled leadership but never given consideration in 2010.

I urge moderate voters to band together to oust extremist (and dare I add racist?) ideologues from our state government in the November elections. Many districts are not competitive, thanks to gerrymandering, but Legislative Districts 26 and 30 -- both on the outskirts of Tucson-- are.

Let's take back our state. Extremists have been in control too long.

This article originally appeared in my Progressive Examiner column.

Honk if you can read!

If honks were votes, Arizona would have a strong public education system.

Rush hour motorists honked and cheered for protesters challenging education cuts made by Arizona's Republican governor and Republican-controlled legislature.

More than 100 teachers, parents, children and other activists joined in the March 4 Schools on Thursday, March 4 at the corner of Alvernon Way and Broadway Blvd. in Tucson. This was one of three protests sponsored by the Arizona Education Association in Tucson and one of several protests organized statewide.

Judging by the honks, many Tucsonans support public education and disagree with the Legislature's short-sighted, draconian approach to a balanced budget. Pictures speak louder than words, so check out the slide show below to learn more about today's event.

The rallies across Arizona were part of a national day of protests against cuts in public education. Here is a report from Democracy Now on the nationwide efforts.

This article and the accompanying slide show originally appeared in my Progressive Examiner column. Click on the link to see more photos from the event.

Tea Partiers: Show us the money

Thanks to the original Boston Tea Party in 1773--when revolutionary patriots dumped English tea into the Boston Harbor rather than pay the tax-- the US became a country of coffee drinkers. "Taxation without representation," was the battle cry to rally the colonialists against the English monarchy. Civil unrest continued for two years after the Tea Party until the Revolutionary War began in 1775.

What will come of the current Tea Party movement, which started as a corporate media-inspired publicity stunt on Tax Day 2009?

Whether they realize the historical significance of the original anti-tax Tea Party movement, a smattering of disgruntled voters across the country identify with the idea that they are being taxed, but the government does not represent them. On some level I agree that what is best for the American people is often lost once lobbyists get involved in legislation. I believe that our state and federal governments are controlled by multi-national corporations--not the people-- and that this trend toward corporatism could get worse, thanks to the Supreme Court's recent ruling.

We all know that campaigns are run with money. How is the Tea Party funded? According to National Public Radio, the national Tea Party is setting up a fund raising structure. The party is forming the Ensuring Liberty Corp., a tax-exempt 501(c)(4) and the Ensuring Liberty Political Action Committee.

Ironically, Tea Party organizer Mark Sokda told the attendees at the recent Tea Party convention that the fundraising would be totally transparent, but according to NPR, 501(c)(4) organizations like the Ensuring Liberty Corp. "can raise as much money as it can get-- no limits-- from wealthy donors and from corporations. And there's no disclosure."

This does not sound transparent; it sounds ominous. Multi-national corporations have a history of funding conservative organizations with warm-and-fuzzy names like Americans for Prosperity and FreedomWorks. Will the Tea Party become a mechanism for corporations to further control government? After all, the Tea Party's original event was heavily promoted by the country's most conservative corporate media outlet.

On the local level, the Tucson Tea Party's very sophisticated website rails against the Democratic-controlled City Council on the main page, but the "about" page focuses on anger over the corporate bailouts and gives no information about their funding.

Ironically, the big corporations that received these bailouts may be secretly funding the "grassroots" Tea Party movement in the future.

This article originally appeared in my Progressive Examiner column.

Move your money, pay cash and buy local

Frustrated Americans are bankrolling bank bailouts and funding bonus checks for CEOs with poor performance appraisals, but what can we do about it? How can we voice our anger and frustration? The federal government thinks these banks are "too big to fail."

Arianna Huffington and her cohorts have given us a way to demonstrate our frustrations. If these non-performing banks are "too big to fail," make them smaller by moving our money out. The Move Your Money campaign began in December 2009 and has taken off through social media and the Internet. At least two Examiners have encouraged their audiences in Newark and LA to move their money.

For Tucson, I'd encourage people to not only move their money to sound local banks or credit unions but also to buy local and pay cash. These three simple strategies can help us invest in our community and our local businesses.

More money stays in your community if you bank locally and buy locally. The Local First movement has been progressing across the country, with chapters in many state and cities. Yes, Tucson has Starbucks, Target, Safeway, and national chain retail stores, but we also has Epic Cafe, Yikes Toys, several farmers' markets, and Bohemia. Shopping and dining locally makes economic sense. The Local First Tucson website lists locally owned businesses in every service category. Forty-five cents of every dollar you spend stays in Arizona, when you buy from Arizona businesses.

Pay cash is my third piece of advice. Why pay cash? Because it costs you and the retailer money when you pay with a debit or credit card. Retailers pay 2-5% of the purchase price to the card company when you use a VISA, MasterCard, American Express or other debit or credit card. Two percent of a $10 purchase is only 20 cents. Multiply 2% by millions of transactions each day across the world, and you realize that card companies are making truckloads of money-- even before they start charging you interest, annual fees, late fees, or ATM fees for the convenience of using cards. Check out the New York Times video that opened my eyes the insane amounts of money that are being made by cards companies-- particularly VISA, the industry leader. Cards are much more convenient than checks or cash, but we are paying dearly for that convenience.

How do we survive in tough economic times and still foster growth locally? Pull money out of those free-loading banks that are "too big to fail", cancel the credit cards with those mega-banks, and open up an account with a local community bank or credit union. Buy local, pay cash, and live within your means.

This article originally appeared in my Progressive Examiner column.

Unemployed in Arizona: State suffers largest job losses

The US economy has lost hundreds of thousands of jobs in the past year. Businesses of all sizes have closed their doors. In Tucson, signs of the recession are everywhere; empty auto dealership lots, vacant storefronts, and going-out-of-business signs abound.

One of the most telling signs of Arizona's weak economy is reflected in the job loss statistics. According to statistics released by the Economic Policy Institute, Arizona has lost the highest proportion of jobs in the US. Other states have lost more jobs, but their losses constitute a smaller percentage of their state's total economy.

As reported in the East Valley Tribune, Arizona has lost 9.9% of its jobs or 265,000. Most of the job loss has been in construction, which is down by 45%. These figures clearly reflect Arizona's dependence upon boom and bust cycles in the housing industry.

The statistics also reflect shortsightedness on the part of Arizona's political leaders--especially in state government. Rather than invest in education, job creation, and home-grown industries-- like solar power-- during boom times, the Republican-controlled state legislature offers tax cuts to businesses. In bust times, what do they do? They cut education (making Arizona less competitive in the long term). Cut social services. Cut financial support to cities. And cut anything else they can think of in order to avoid raising revenue. The thought of increasing revenue by relinquishing previous tax cuts is not even on their radar.

Last week, a Phoenix legislator was interviewed by John C. Scott, a Tucson radio talk show host. When asked about the state's financial crisis, including the job losses. His only suggestion was to offer further tax cuts to business--particularly homebuilders and developers to incentivize them to build more homes, which will create some construction jobs-- at least temporarily. (Scott should have asked who was going to buy these houses with so many Arizonans out of work.)

The myopia in the state legislature is frightening. The Republican ideologues continue to cling to Reaganomics. The trickle down theory-- giving tax cuts to the wealthy and thus incentivizing them to invest and create jobs-- has proven to be a failed economic policy. George Bush the First was right when he called it "voodoo economics." When will the Arizona legislature wake up?