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This time of year reminds me of his anxious dependence on holiday sales (and in the days after Christmas, the frantic returns). Between Thanksgiving and Christmas, he needed to earn enough to pay the bills and have a sufficient sum to carry us through the first part of the following year.

We weren’t rich but never felt poor, and our standard of living rose steadily through the 1950s and 1960s — as factory workers and their spouses did better and better.

This was an era when the income of a single factory worker or schoolteacher or baker or salesman or mechanic was enough to buy a home, have two cars, and raise a family.

FOR THREE DECADES after World War II, America created the largest middle class the world had ever seen. During those years, the earnings of the typical American worker doubled, just as the size of the American economy doubled.

Over the last 40 years, by contrast, the size of the economy has more than doubled again, but the earnings of the typical American have barely budged (adjusted for inflation). Most of the gains have gone to the top. 

In the 1950s and 1960s, the CEOs of large corporations earned an average of about 20 times the pay of their typical worker. Now they rake in over 300 times the pay of an average worker.

In the 1950s and 1960s, the richest 1 percent of Americans took home about 10 percent of the nation’s total income. Today they take home more than the bottom 90 percent put together.

Then, the economy generated hope. Hard work paid off. The living standards of most people improved through their working lives. Their children enjoyed better lives than they had. Most felt that the rules of the economic game were basically fair.

Although many women, Black people, and Latinos were still blocked from getting a fair share of the economy’s gains, the nation committed itself to changing this. New laws guaranteed equal opportunity, barred discrimination, promoted affirmative action, and expanded educational opportunity for all.

Today, confidence in the economic system has sharply declined. Its apparent arbitrariness and unfairness have undermined the public’s faith in it. Cynicism abounds. Equal opportunity is no longer high on the nation’s agenda.

As you’ll see in “The Big Picture” video on this page, recent American history can be divided into five periods:

1. 1946-1979, we grew together. Almost everyone gained ground.

2. 1980-2008, the great U-turn. Most economic gains began going to the top.

3. 2008-2010, the financial crisis. The banks were bailed out but millions of Americans lost their jobs, homes, and savings. The experience revealed the gross inequalities of wealth and power that underlay the new economy. This caused widespread disillusionment with the system.

4. 2010-2016, anger at the establishment. Both Bernie Sanders and Donald Trump emerged as anti-establishment candidates — although Trump’s anti-establishment persona was fake (and still is). 

5. 2016-2050, the choice between oligarchy and democracy. The 2024 election represented a lurch toward oligarchy, but I believe Trump and his oligarchy will overreach, and we’ll choose a more robust democracy. 

***

WHEN MOST PEOPLE STOP BELIEVING that they and their children have a fair chance to make it, the tacit social contract begins to unravel. And a nation becomes susceptible to demagogues such as Donald Trump peddling the politics of hate. 

Many of the most vocal proponents of the “free market” — including Elon Musk, executives of large corporations and their ubiquitous lawyers and lobbyists, denizens of Wall Street and their political lackeys, and numerous multimillionaires and billionaires — have been actively reorganizing the market for their own benefit.

The consequence has been a market created by those with great wealth for the purpose of further increasing their wealth.

This has resulted in ever-larger upward distributions inside the market, from the middle class, working class, and poor to a wealthy minority at the top. 

Because these distributions occur inside the market, they have largely escaped notice. We tend to debate only downward “redistributions” that occur outside the market, through taxing the rich and transferring some benefits to the poor and working class. 

Musk and Trump want to reduce such redistributions. 

But the hidden upward redistributions inside the market are arguably larger.

This is why it’s so important that those of us who care about social justice speak out and explain what has happened. And why it’s crucial that Democrats focus on reversing the staggering inequalities of this era and getting big money out of politics. 

Otherwise, the only explanation most Americans receive for what has happened comes from Trump authoritarians who falsely blame immigrants, “socialists,” the “deep state,” “woke”ism, Democrats, Black people, women, and other countries. 

And the only agenda most Americans receive for remedying what has occurred is by backing Trump and Musk and their lurch toward fascism. 

My friends, the underlying issue is not the size of government. It’s whom the government is for. The fundamental choice is democracy or oligarchy. 

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The American Oligarcy is Back, and it's out of control

 

The American oligarchy is back, and it’s out of control

It’s the third time in the nation’s history that a small group of hyper-wealthy people have gained political power over the rest of us. Here’s what we must do. 

ROBERT REICH

https://robertreich.substack.com/p/the-american-oligarchy-is-out-of?

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What Is the Insurrection Act ?

What is the Insurrection Act?

The Insurrection Act authorizes the president to deploy military forces inside the United States to suppress rebellion or domestic violence or to enforce the law in certain situations. The statute implements Congress’s authority under the Constitution to “provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions.” It is the primary exception to the Posse Comitatus Act, under which federal military forces are generally barred from participating in civilian law enforcement activities.

 

The Insurrection Act, in principle, only allows the American president to use the armed forces to assist civilian authorities to enforce some law in the presence of an insurrection. But the language of the law is quite vague. Trump makes it clear that he has in mind invoking the Insurrection Act to very broad purposes, essentially to change the regime.

 

Brennan Center for Justice

Democrats Must Choose: The Elites or the Working Class

Democrats Must Choose: The Elites or the Working Class

Bernie Sanders.  November 12, 2024.

 

The results of the 2024 election have confirmed a reality that is too frequently denied by Democratic Party leaders and strategists: The American working class is angry — and for good reason.

They want to know why the very rich are getting much richer, and the CEOs of major corporations make almost 300 times more than their average employees, while weekly wages remain stagnant and 60 percent of Americans live paycheck to paycheck.

They want to know why corporate profits soar while companies shut down factories in America and move to low-wage countries.

They want to know why the food industry enjoys record breaking profits, while they can’t afford their grocery bills.

They want to know why they can’t afford to go to a doctor or pay for their prescription drugs, and worry about going bankrupt if they end up in a hospital.

Donald Trump won this election because he tapped into that anger.

Did he address any of these serious issues in a thoughtful or meaningful way? 

 

Absolutely not.

What he did do was divert the festering anger in our country at a greedy and out-of-touch corporate elite into a politics that served his political goals and will end up further enriching his fellow billionaires.

Trump’s “genius” is his ability to divide the working class so that tens of millions of Americans will reject solidarity with their fellow workers and pave the way for huge tax breaks for the very rich and large corporations.

While Trump did talk about capping credit card interest rates at 10 percent, and a new trade policy with China, his fundamental explanation as to why the working class was struggling was that millions of illegal immigrants have invaded America and that we are now an “occupied country.”

In his pathologically dishonest world, undocumented immigrants are illegally participating in our elections and voting for Democrats. They are creating massive amounts of crime, driving wages down, and taking our jobs. They are getting free health care and other benefits that are denied to American citizens. They are even eating our pets.

That explanation is grossly racist, cruel, and fallacious. But it is an explanation.

And what do the Democrats have to say about the crises facing working families? What is their full-throated explanation, pounded away day after day in the media, in the halls of Congress, and in town meetings throughout the country as to why tens of millions of workers, in the richest country on earth, are struggling to put food on the table or pay the rent? Where is the deeply felt outrage that we are the only major country on earth not to guarantee health care for all as a human right while insurance and drug companies make huge profits?

How do they explain supporting billions of dollars in military aid to the right-wing extremist government of Prime Minister Benjamin Netanyahu, which has created an unprecedented humanitarian disaster in Gaza that is causing massive malnutrition and starvation for thousands of children?

In my view, the Democrats lost this election because they ignored the justified anger of working class America and became the defenders of a rigged economic and political system.

This election was largely about class and change and the Democrats, in both cases, were often on the wrong side. As Jimmy Williams Jr., the president of the Painters Union, said, “The Democratic Party has continued to fail to prioritize a strong, working-class message that addresses issues that really matter to workers. The party did not make a positive case for why workers should vote for them, only that they were not Donald Trump. That’s not good enough anymore!”

As an Independent member of the US Senate, I caucus with the Democrats. In that capacity I have been proud to work with President Biden on one of the most ambitious pro-worker agendas in modern history.

We passed the American Rescue Plan to pull us out of the COVID-19 economic downturn; made historic investments in rebuilding our infrastructure and in transforming our energy system; began the process of rebuilding our manufacturing base; lowered the cost of prescription drugs and forgave student debt for five million Americans. Biden promised to be the most progressive president since FDR and, on domestic issues, he kept his word.

But, unlike FDR, these achievements are almost never discussed within the context of a grossly unfair economy that continues to fail ordinary Americans. Yes. In the past few years we have made some positive changes. We must acknowledge, however, that what we’ve done is nowhere near enough.

In 1936, in his second inaugural address, FDR spoke not only of his administration’s enormous achievements in combatting the Great Depression, but of the painful economic realities that millions of Americans were still experiencing.

Roosevelt’s words remain relevant today: “I see millions of families trying to live on incomes so meager that the pall of family disaster hangs over them day by day … I see millions denied education, recreation, and the opportunity to better their lot and the lot of their children … I see one-third of a nation ill-housed, ill-clad, ill-nourished.”

Of course, the world is today profoundly different than it was in 1936. We are not in an economic depression. Unemployment is relatively low. People are not facing starvation.

But the Democratic leadership must recognize that, in a rapidly changing economy, working families face an enormous amount of economic pain, anxiety and hopelessness — and they want change. The status quo is not working for them.

In politics you can’t fight something with nothing. The Democratic Party needs to determine which side it is on in the great economic struggle of our times, and it needs to provide a clear vision as to what it stands for. Either you stand with the powerful oligarchy of our country, or you stand with the working class. You can’t represent both.

While Democrats will be in the minority in the Senate and (probably) the House in the new Congress, they will still have the opportunity to bring forth a strong legislative agenda that addresses the needs of working families.

If Republicans choose to vote those bills down, the American working class will learn quickly enough as to which party represents them, and which party represents corporate greed.

In my view, here are some of the working class priorities that Democrats must fight for:

• We must end Citizens United and stop billionaires from buying elections.
• We must raise the $7.25 federal minimum wage to a living wage — at least $17 an hour.
• We must pass the Protecting the Right to Organize Act to make it easier for workers to form unions and end illegal union busting.
• We must protect senior citizens by increasing Social Security benefits and extending the solvency of the program by lifting the cap on taxable income.
• We must bring back defined benefit pension plans so that workers can retire with security.
• We must do what every other wealthy nation does and guarantee health care to all as a human right, beginning with the expansion of Medicare to cover home health care, dental, hearing, and vision.
• We must cut prescription drug prices in half, no more than is paid in other countries.
• We must provide guaranteed paid family and medical leave.
• We must guarantee equal pay for equal work.
• We must create fair trade policies that work for workers, not just corporate CEOs.
• We must build 3 million units of low income and affordable housing.
• We must make public colleges and universities tuition free, childcare affordable for all, and strengthen public education by paying teachers the salaries they deserve.
• We must adopt a progressive tax system which addresses the massive income and wealth inequality we are experiencing by demanding that the very wealthy start paying their fair share of taxes.
• We must save taxpayer dollars by ending the massive waste, fraud and abuse that exists in the Pentagon.

These are extremely popular ideas. The Democratic Party would do well to listen to the clear directive of American voters, and deliver. The simple fact is: if you stand with working people, they will stand with you. In my view, if Democrats deliver on an agenda like this, they can win back the working class of our country and the White House.

Bernie Sanders is an Independent US senator from Vermont.

See his book. It is OK to be Angry About Capitalism. 

 

 

 

The Lessons of the 2024 Election; Robert Reich

The lesson of this election is that Democrats must attack inequality – and not cede working-class voters to Trump

"IMG_4023", by cornstalker (CC BY 2.0)

A political disaster such as what occurred last Tuesday gains significance not simply by virtue of who won or lost, but through how the election is interpreted. This is known as the Lesson of the election. The Lesson explains what happened and why. It deciphers the public’s mood, values, and thoughts. It attributes credit and blame. And therein lies its power. When the Lesson of the election becomes accepted wisdom – when most of the politicians, pundits and journalists come to believe it – it shapes the future. It determines how parties, candidates, political operatives and journalists approach coming elections. What’s the Lesson of the 2024 election? According to exit polls, Americans voted mainly on the economy – and their votes reflected their class and level of education. While the US economy has improved over the last two years according to standard economic measures, most Americans without college degrees – that’s the majority – have not felt it. In fact, most Americans without college degrees have not felt much economic improvement for four decades, and their jobs have grown less secure. The real median wage of the bottom 90% is stuck nearly where it was in the early 1990s, even though the economy is more than twice as large now as it was then. Most of the economy’s gains have gone to the top. This has caused many Americans to feel frustrated and angry. Trump gave voice to that anger. Harris did not. The real lesson of the 2024 election is that Democrats must not just give voice to the anger, but also explain how record inequality has corrupted our system, and pledge to limit the political power of big corporations and the super-rich. The basic bargain in America used to be that if you worked hard and played by the rules, you’d do better, and your children would do even better than you. But since 1980, that bargain has become a sham. The middle class has shrunk. Why? While Republicans steadily cut taxes on the wealthy, Democrats abandoned the working class. Democrats embraced Nafta and lowered tariffs on Chinese goods. They deregulated finance and allowed Wall Street to become a high-stakes gambling casino. They let big corporations gain enough market power to keep prices (and profit margins) high. They let corporations bust unions (with negligible penalties) and slash payrolls. They bailed out Wall Street when its gambling addiction threatened to blow up the entire economy but never bailed out homeowners who lost everything. They welcomed big money into their campaigns, and delivered quid pro quos that rigged the market in favor of big corporations and the wealthy. Joe Biden redirected the Democratic party back toward its working-class roots, but many of the changes he catalyzed – more vigorous actions against monopolies, stronger enforcement of labor laws and major investments in manufacturing, infrastructure, semiconductors and non-fossil fuels – wouldn’t be evident for years. In any event, he could not communicate effectively about them. The Republican party says it’s on the side of working people, but its policies will hurt ordinary workers even more. Trump’s tariffs will drive up prices. His expected retreat from vigorous anti-monopoly enforcement will allow giant corporations to drive up prices further. If Republicans gain control over the House as well as the Senate, as looks likely, they will extend Trump’s 2017 tax law and add additional tax cuts. As in 2017, these lower taxes will benefit mainly the wealthy and enlarge the national debt, which will give Republicans an excuse to cut Social Security, Medicare and Medicaid – their objective for decades. Democrats must no longer do the bidding of big corporations and the wealthy. They must instead focus on winning back the working class. They should demand paid family leave, Medicare for all, free public higher education, stronger unions, higher taxes on great wealth, and housing credits that will generate the biggest boom in residential home construction since the second world war. They should also demand that corporations share their profits with their workers. They should call for limits on CEO pay, eliminate all stock buybacks (as was the SEC rule before 1982) and reject corporate welfare (subsidies and tax credit to companies and industries unrelated to the common good). Democrats need to tell Americans why their pay has been lousy for decades and their jobs less secure: not because of immigrants, liberals, people of color, the “deep state”, or any other Trump Republican bogeyman, but because of the power of large corporations and the rich to rig the market and siphon off most of the economy’s gains. In doing this, Democrats should not retreat from their concerns about democracy. Democracy goes together with a fair economy. Only by reducing the power of big money in our politics can America grow the middle class, reward hard work and reaffirm the basic bargain at the heart of our system. If the Trump Republicans gain control of the House, they will have complete control of the federal government. That means they will own whatever happens to the economy and will be responsible for whatever happens to America. Notwithstanding all their anti-establishment populist rhetoric, they will become the establishment. The Democratic party should use this inflection point to shift ground – from being the party of well-off college graduates, big corporations, “never-Tumpers” like Dick Cheney and vacuous “centrism” – to an anti-establishment party ready to shake up the system on behalf of the vast majority of Americans. This is and should be the Lesson of the 2024 election. Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com. The Guardian is globally renowned for its coverage of politics, the environment, science, social justice, sport and culture. Scroll less and understand more about the subjects you care about with the Guardian's brilliant email newsletters, free to your inbox.