They Warned Me Your Childhood Would Whizz By In A Flash

America’s Greatest Danger isn’t China. It’s Much Closer to Home.

China’s increasingly aggressive geopolitical and economic stance in the world is unleashing a fierce bipartisan backlash in America. That’s fine if it leads to more public investment in basic research, education, and infrastructure – as did the Sputnik shock of the late 1950s. But it poses dangers as well.

More than 60 years ago, the sudden and palpable fear that the Soviet Union was lurching ahead of us shook America out of a postwar complacency and caused the nation to do what it should have been doing for many years. Even though we did it under the pretext of national defense – we called it the National Defense Education Act and the National Defense Highway Act and relied on the Defense Advanced Research Projects Administration for basic research leading to semiconductors, satellite technology, and the Internet – the result was to boost US productivity and American wages for a generation. When the Soviet Union began to implode, America found its next foil in Japan. Japanese-made cars were taking market share away from the Big Three automakers. Meanwhile, Mitsubishi bought a substantial interest in the Rockefeller Center, Sony purchased Columbia Pictures, and Nintendo considered buying the Seattle Mariners. By the late 1980s and start of the 1990s, countless congressional hearings were held on the Japanese “challenge” to American competitiveness and the Japanese “threat” to American jobs.

A tide of books demonized Japan – Pat Choate’s Agents of Influence alleged Tokyo’s alleged payoffs to influential Americans were designed to achieve “effective political domination over the United States.“ Clyde Prestowitz’s Trading Places argued that because of our failure to respond adequately to the Japanese challenge “the power of the United States and the quality of American life is diminishing rapidly in every respect.” William S Dietrich’s In the Shadow of the Rising Sun claimed Japan “threatens our way of life and ultimately our freedoms as much as past dangers from Nazi Germany and the Soviet Union.“ Robert Zielinski and Nigel Holloway’s Unequal Equities argued that Japan rigged its capital markets to undermine American corporations. Daniel Burstein’s Yen! Japan’s New Financial Empire and Its Threat to America asserted that Japan’s growing power put the United States at risk of falling prey to a “hostile Japanese … world order.” And on it went: The Japanese Power Game,The Coming War with Japan, Zaibatsu America: How Japanese Firms are Colonizing Vital US Industries, The Silent War, Trade Wars. But there was no vicious plot. We failed to notice that Japan had invested heavily in its own education and infrastructure – which enabled it to make high-quality products that American consumers wanted to buy. We didn’t see that our own financial system resembled a casino and demanded immediate profits. We overlooked that our educational system left almost 80% of our young people unable to comprehend a news magazine and many others unprepared for work. And our infrastructure of unsafe bridges and potholed roads were draining our productivity. In the present case of China, the geopolitical rivalry is palpable. Yet at the same time, American corporations and investors are quietly making bundles by running low-wage factories there and selling technology to their Chinese “partners.” And American banks and venture capitalists are busily underwriting deals in China. I don’t mean to downplay the challenge China represents to the United States. But throughout America’s postwar history it has been easier to blame others than to blame ourselves. The greatest danger we face today is not coming from China. It is our drift toward proto-fascism. We must be careful not to demonize China so much that we encourage a new paranoia that further distorts our priorities, encourages nativism and xenophobia, and leads to larger military outlays rather than public investments in education, infrastructure, and basic research on which America’s future prosperity and security critically depend. The central question for America – an ever more diverse America, whose economy and culture are rapidly fusing with the economies and cultures of the rest of the globe – is whether it is possible to rediscover our identity and our mutual responsibility without creating another enemy.

Old Lighters 🤔

Why So Much Wealth at the Top Threatens the US Economy

Policymakers and the media are paying too much attention to how quickly the U.S. economy will emerge from the pandemic-induced recession, and not nearly enough to the nation’s deeper structural problem – the increasing imbalance of wealth that could enfeeble the economy for years.

Seventy percent of the US economy depends on consumer spending. But wealthy people, who now own more of the economy than at any time since the 1920s, spend only a small percentage of their incomes. Lower-income people, who were in trouble even before the pandemic, spend whatever they have – which has become very little.  

In a very practical sense, the U.S. economy depends on the spending of most Americans who don’t have much to spend. That spells trouble ahead.

It’s not simply a matter of an adequate “stimulus.” The $2,000 checks contained in the American Rescue Plan have already been distributed and extra unemployment benefits will soon expire. Consumer spending will be propped up as employers add to their payrolls. Biden’s spending plans, if enacted, will also help keep consumers afloat for a time.

But the underlying imbalance will remain. Most peoples’ wages will still be too low and too much of the economy’s gains will continue to accumulate at the top, for total consumer demand to be adequate.  

Years ago, Marriner Eccles, chairman of the Federal Reserve from 1934 to 1948, explained that the Great Depression occurred because the buying power of Americans fell far short of what the economy could produce. He blamed the increasing concentration of wealth at the top. In his words:

“A giant suction pump had by 1929-1930 drawn into a few hands an increasing portion of currently produced wealth. As in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.”

The wealthy of the 1920s didn’t know what to do with all their money, while most Americans could maintain their standard of living only by going into debt. When that debt bubble burst, the economy sunk.

History is repeating itself. The typical Americans’ wages have hardly increased for decades, adjusted for inflation. Most economic gains have gone to the top, just as Eccles’s “giant suction pump” drew an increasing portion of the nation’s wealth into a few hands before the Great Depression.

The result has been consumer spending financed by borrowing, creating chronic fragility. After the housing and financial bubbles burst in 2008, we avoided another Great Depression only because the government pumped enough money into the system to maintain demand, and the Fed kept interest rates near zero. Then came the pandemic.

The wealth imbalance is now more extreme than it’s been in over a century. There’s so much wealth at the top that the prices of luxury items of all kinds are soaring; so-called “non-fungible tokens,” ranging from art and music to tacos and toilet paper, are selling like 17th-century exotic Dutch tulips; cryptocurrencies have taken off; and stock market values have continued to rise even through the pandemic.  

Corporations don’t know what to do with all their cash. Trillions of dollars are sitting idle on their balance sheets. The biggest firms have been feasting off the Fed’s corporate welfare, as the central bank obligingly holds corporate bonds that the firms issued before the recession in order finance stock buybacks.

But most people have few if any assets. Even by 2018, when the economy appeared strong, 40% of Americans had negative net incomes and were borrowing money to pay for basic household needs.

The heart of the imbalance is America’s wealthy and the corporations they own have huge bargaining power – both market power in the form of monopolies, and political power in the form of lobbyists and campaign contributions.

Most workers have little or no bargaining power – neither inside their firms because of the near-disappearance of labor unions, nor in politics because political parties have devolved from giant membership organizations to fundraising machines.

Biden’s “stimulus” programs are fine but temporary. The most important economic reform would be to correct this structural imbalance by reducing monopoly power, strengthening unions, and getting big money out of politics.

Until the structural imbalance is remedied, the American economy will remain perilously fragile. It will also be vulnerable to the next demagogue wielding anger and resentment as substitutes for real reform.

going thru phone pics and found this thing that was tacked up next to the toaster at my old job, if anyone needs some light toast eating reading material

Average global temperatures per year since 1880 until 2023.

Jon Stewart, hitting the nail on the head once again.

“In case you haven’t noticed … When they say “woke,” they mean Black. When they say “Soros” or “globalist,” they mean Jewish. When they say “parents’ rights,” they mean Christian zealots’ rights to overrule all other parents, ban books, and dictate lessons. When they say “freedom,” they mean freedom to inspect your son’s genitals and log your daughter’s periods. Freedom to indoctrinate and impose an agenda, just like they accuse their opponents of doing. Freedom to restrict voting and overturn elections. Freedom to deny medical treatment so women die and kids kill themselves. Freedom to wield the power of the state and applaud vigilante violence against anyone who disagrees or looks different. Today’s Republican Party serves exactly three groups: the NRA, untaxed billionaires, and bigots who want white supremacist theocracy. To say you’re a Republican is to say you have exactly two values: privilege and hate.”

— Paid for by Eric Grevstad, Bradenton, Florida

A panoramic view of Mars made by Curiosity

“People might be confused about how a Republican Party that once worried about government overreach now seeks to control medical care for transgender children and retaliate against a corporation for objecting to a bill targeting LGBTQ students. And why is it that the most ambitious Republicans are spending more time battling nonexistent critical race theory in schools than on health care or inflation? To explain this, one must acknowledge that the GOP is not a political party anymore. It is a movement dedicated to imposing White Christian nationalism. The media blandly describes the GOP’s obsessions as “culture wars,” but that suggests there is another side seeking to impose its views on others. In reality, only one side is repudiating pluralistic democracy — White, Christian and mainly rural Americans who are becoming a minority group and want to maintain their political power.”

— The GOP is no longer a party. It’s a movement to impose White Christian nationalism.