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Javier E

The Scary Future of the American Right - The Atlantic - 0 views

  • The movement has three distinctive strains. First, the people over 50 who have been hanging around conservative circles for decades but who have recently been radicalized by the current left.
  • The second strain is made up of mid-career politicians and operatives who are learning to adapt to the age of populist rage:
  • people like Ted Cruz (Princeton, Harvard), J. D. Vance (Yale Law), and Josh Hawley (Stanford and Yale).
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  • The third and largest strain is the young. They grew up in the era of Facebook and MSNBC and identity politics. They went to colleges smothered by progressive sermonizing. And they reacted by running in the other direction
  • I couldn’t quite suppress the disturbing voice in my head saying, “If you were 22, maybe you’d be here too.”
  • Conservatives have always inveighed against the cultural elite—the media, the universities, Hollywood. But in the Information Age, the purveyors of culture are now corporate titans.
  • The national conservatives thus describe a world in which the corporate elite, the media elite, the political elite, and the academic elite have all coagulated into one axis of evil, dominating every institution and controlling the channels of thought.
  • At the heart of this blue oligarchy are the great masters of surveillance capitalism, the Big Tech czars who decide in secret what ideas get promoted, what stories get suppressed
  • In the NatCon worldview, the profiteers of surveillance capitalism see all and control all
  • “Big Business is not our ally,” Marco Rubio argued. “They are eager culture warriors who use the language of wokeness to cover free-market capitalism.”
  • The “entire phalanx of Big Business has gone hard left,” Cruz said. “We’ve seen Big Business, the Fortune 500, becoming the economic enforcers of the hard left. Name five Fortune 500 CEOs who are even remotely right of center.”
  • The idea that the left controls absolutely everything—from your smartphone to the money supply to your third grader’s curriculum—explains the apocalyptic tone
  • “We are confronted now by a systematic effort to dismantle our society, our traditions, our economy, and our way of life,” said Rubio.
  • The first great project of the national conservatives is to man the barricades in the culture war. These people have certainly done their homework when it comes to cultural Marxism—how the left has learned to dominate culture and how the right now needs to copy their techniques
  • The first interesting debate among the NatCons is philosophical: Should we fight to preserve the classical-liberal order or is it necessary to abandon it?
  • Some of the speakers at the conference were in fact classical liberals, who believe in free speech, intellectual debate, and neutral government
  • If conservatives want to stand up to the pseudo-religion of wokeism, they have to put traditional religion at the center of their political project.
  • But others argued that this sort of liberalism is a luxury we cannot afford. The country is under assault from a Marxist oligarchy that wants to impose its own pseudo-religious doctrine.
  • If you try to repulse that with pallid liberalism, with weak calls for free speech and tolerance, you’ll end up getting run over by those who possess fanatical zeal, economic power, and cultural might.
  • Yoram Hazony, the chief intellectual architect of national conservatism, is an Orthodox Jew who went to Princeton before moving to Israel. He argues that you can’t have a society that embraces government neutrality and tries to relegate values to the private sphere.
  • Glenn Loury gave an impassioned speech against cancel culture, the illiberal left, and the hyper-racialized group consciousness that divides people into opposing racial camps.
  • Another Israeli political philosopher at the conference, Ofir Haivry, argued that Americans shouldn’t delude themselves into thinking that a nation is built out of high-minded liberal abstractions, like the Bill of Rights. A nation is, instead, a cultural tradition, a common language, a set of rituals and beliefs, and a religious order—a collective cultural identity.
  • For his part, Hazony argued that the American cultural identity is Christian—and has to be if it is not going to succumb to the woke onslaught. If 80 percent of Americans are Christian, Hazony reasoned, then Christian values should dominate.
  • Orbán, in Dreher’s view, understands the civilizational stakes of the culture war; he has, for instance, used the power of the state to limit how much transgenderism can be taught to children in schools. “Our team talks incessantly about how horrible wokeness is,” Dreher said at the conference. “Orbán actually does something about it.”
  • Hazony said. “Above all else we’ve got to get God and scripture back in the schools.”
  • Another interesting debate among the NatCons is political and economic.
  • Conservatives have got the culture-war act down. Trump was a culture-war president with almost no policy arm attached. The question conservatives at the conference were asking was how to move beyond owning the libs to effecting actual change.
  • Christopher Rufo, the architect of this year’s school-board-meeting protests against critical race theory, argued that conservatives had erred when they tried to slowly gain power in elite cultural institutions.
  • Instead, Rufo argued, they should rally the masses to get state legislatures to pass laws embracing their values. That’s essentially what’s now happening across red America.
  • My old friend Rod Dreher of The American Conservative argued that because the left controls the commanding heights of the culture and the economy, the only institution the right has a shot at influencing is the state.
  • “We need to quit being satisfied with owning the libs, and save our country,” Dreher said. “We need to unapologetically embrace the use of state power.”
  • The culture war merges with the economic-class war—and a new right emerges in which an intellectual cadre, the national conservatives, rallies the proletarian masses against the cultural/corporate elites.
  • This is national conservatism pursued to its logical conclusion: using state power to break up and humble the big corporations and to push back against coastal cultural values.
  • The problem in America, Hazony continued, is that LGBTQ activists today, like American Jews in the 1950s, are trying to expel Christianity from the public square.
  • Trump’s devastation of the old order produced a grand struggle on the right to build a new one on Trumpian populist lines.
  • They are wrong, too, to think there is a wokeist Anschluss taking over all the institutions of American life.
  • Furthermore, if Hazony thinks America is about to return to Christian dominance, he’s living in 1956.
  • there is something extremely off-putting about the NatCon public pose. In person, as I say, I find many of them charming, warm, and friendly. But their public posture is dominated by the psychology of threat and menace. If there was one expression of sympathy, kindness, or grace uttered from the podium in Orlando, I did not hear it. But I did hear callousness, invocations of combat, and whiffs of brutality.
  • One big thing the NatCons are right about is that in the Information Age, the cultural and corporate elites have merged.
  • Right-wing parties around the world are gradually becoming working-class parties that stand against the economic interests and cultural preferences of the highly educated.
  • Left-wing parties are now rooted in the rich metro areas and are more and more becoming an unsteady alliance between young AOC left-populists and Google.
  • NatCons are also probably right that conservatism is going to get a lot more statist.
  • Marco Rubio countered by, in effect, arguing that you can’t rally cultural populists if you are not also going to do something for them economically. Cultural populism leads to economic populism.
  • Over the past few decades there have been various efforts to replace the Reagan Paradigm: the national-greatness conservatism of John McCain; the compassionate conservatism of George W. Bush; the Reformicon conservatism of the D.C. think tanks in the 21st century
  • the Trumpian onslaught succeeded where these movements have so far fizzled because Trump understood better than they did the coalescence of the new American cultural/corporate elite and the potency of populist anger against it.
  • the alarming future of the American right: the fusing of the culture war and the class war into one epic Marxist Götterdämmerung.
  • the disconcerting reality is that America’s rarified NatCon World is just one piece of a larger illiberal populist revolt that is strong and rising.
Javier E

Big Companies Paid a Fraction of Corporate Tax Rate - NYTimes.com - 0 views

  • Using allowed deductions and legal loopholes, large corporations enjoyed a 12.6 percent tax rate far below the 35 percent tax that is the statutory rate imposed by the federal government on corporate profits.
Javier E

Why Only One Top Banker Went to Jail for the Financial Crisis - NYTimes.com - 0 views

  • Over the past year, I’ve interviewed Wall Street traders, bank executives, defense lawyers and dozens of current and former prosecutors to understand why the largest man-made economic catastrophe since the Depression resulted in the jailing of a single investment banker
  • Many assume that the federal authorities simply lacked the guts to go after powerful Wall Street bankers, but that obscures a far more complicated dynamic. During the past decade, the Justice Department suffered a series of corporate prosecutorial fiascos, which led to critical changes in how it approached white-collar crime. The department began to focus on reaching settlements rather than seeking prison sentences, which over time unintentionally deprived its ranks of the experience needed to win trials against the most formidable law firms. By the time Serageldin committed his crime, Justice Department leadership, as well as prosecutors in integral United States attorney’s offices, were de-emphasizing complicated financial cases — even neglecting clues
  • The Andersen case was supposed to embolden the Justice Department, but it quickly backfired. Chertoff’s chutzpah shocked much of the corporate world and even many prosecutors, who thought the department had abused its powers at the cost of thousands of innocent workers. Almost immediately, the Andersen verdict resulted not in more boldness but in more caution on the part of federal prosecutors
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  • Chertoff told Biern, according to attendees, that if the Justice Department “can’t bring these cases because it may bring harm, then maybe these banks are too big.” In the end, though, Chertoff and the Justice Department blinked.
  • From 2004 to 2012, the Justice Department reached 242 deferred and nonprosecution agreements with corporations, compared with 26 in the previous 12 years, according to a study by David M. Uhlmann, a former prosecutor and law professor at the University of Michigan. And while companies paid large sums in the settlements — the days of $7 million cost-of-doing-business fees were over — several veteran Justice Department officials told me that these settlements emboldened defense lawyers.
  • Indeed, the department now effectively outsources many of its investigations of corporate executives to outside firms, which invariably produce reports that exculpate those at the top.
  • Over the years, the KPMG debacle and the corporate revolt would lead the Justice Department to roll back the Thompson memo to nearly the point of reversal. Today prosecutors are prohibited from even asking companies to waive their attorney-client privilege. They are also prohibited from pushing a company to cut off the legal fees for indicted executives or pressuring it to forgo joint defense agreements.
  • In the decade since, the courts dulled other prosecutorial tools.
  • Breuer may have come with the right pedigree, but he now faced troubles that hurt as much as the debacles of Arthur Andersen and KPMG, or the retreat from the Thompson memo: austerity. The department faced periodic hiring freezes. The F.B.I., which assigned dozens of agents to Enron, had shifted resources to terrorism. The Postal Service wound down an elite unit that had specialized in complex financial investigations. President Obama’s Fraud Enforcement and Recovery Act, which was designed to give hundreds of millions to prosecute financial criminals, was able to deliver only $65 million in 2010 and 2011. Prosecutors reporting to Breuer proposed setting up a mortgage-fraud initiative, a “Prosecutorial Strike Force,” as one July 2009 memo put it, but the Justice Department dithered. Finally it set up the Financial Fraud Enforcement Task Force, an enormous coordinating committee with essentially no investigative operation.
Javier E

A Christian Nation? Since When? - NYTimes.com - 0 views

  • For all our talk about separation of church and state, religious language has been written into our political culture in countless ways. It is inscribed in our pledge of patriotism, marked on our money, carved into the walls of our courts and our Capitol. Perhaps because it is everywhere, we assume it has been from the beginning.
  • the founding fathers didn’t create the ceremonies and slogans that come to mind when we consider whether this is a Christian nation. Our grandfathers did.
  • Back in the 1930s, business leaders found themselves on the defensive. Their public prestige had plummeted with the Great Crash; their private businesses were under attack by Franklin D. Roosevelt’s New Deal from above and labor from below. To regain the upper hand, corporate leaders fought back on all fronts. They waged a figurative war in statehouses and, occasionally, a literal one in the streets; their campaigns extended from courts of law to the court of public opinion.
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  • But nothing worked particularly well until they began an inspired public relations offensive that cast capitalism as the handmaiden of Christianity.The two had been described as soul mates before, but in this campaign they were wedded in pointed opposition to the “creeping socialism” of the New Deal
  • Accordingly, throughout the 1930s and ’40s, corporate leaders marketed a new ideology that combined elements of Christianity with an anti-federal libertarianism.
  • Powerful business lobbies like the United States Chamber of Commerce and the National Association of Manufacturers led the way, promoting this ideology’s appeal in conferences and P.R. campaigns. Generous funding came from prominent businessmen
  • In a shrewd decision, these executives made clergymen their spokesmen.
  • businessmen worked to recruit clergy through private meetings and public appeals. Many answered the call
  • Uncoupling the language of “freedom under God” from its Christian libertarian roots, Eisenhower erected a bigger revival tent, welcoming Jews and Catholics alongside Protestants, and Democrats as well as Republicans. Rallying the country, he advanced a revolutionary array of new religious ceremonies and slogans.
  • In his initial ministry, in the early 1950s, Mr. Graham supported corporate interests so zealously that a London paper called him “the Big Business evangelist.” The Garden of Eden, he informed revival attendees, was a paradise with “no union dues, no labor leaders, no snakes, no disease.” In the same spirit, he denounced all “government restrictions” in economic affairs, which he invariably attacked as “socialism.”
  • Dwight D. Eisenhower fulfilled that prediction. With Mr. Graham offering Scripture for Ike’s speeches, the Republican nominee campaigned in what he called a “great crusade for freedom.
  • Elected in a landslide, Eisenhower told Mr. Graham that he had a mandate for a “spiritual renewal.”
  • Although Eisenhower relied on Christian libertarian groups in the campaign, he parted ways with their agenda once elected. The movement’s corporate sponsors had seen religious rhetoric as a way to dismantle the New Deal state.
  • But the newly elected president thought that a fool’s errand. “Should any political party attempt to abolish Social Security, unemployment insurance, and eliminate labor laws and farm programs,” he noted privately, “you would not hear of that party again in our political history.”
  • Unlike those who held public spirituality as a means to an end, Eisenhower embraced it as an end unto itself.
  • The most important clergyman for Christian libertarianism, though, was the Rev. Billy Graham.
  • The rest of Washington consecrated itself, too. The Pentagon, State Department and other executive agencies quickly instituted prayer services of their own. In 1954, Congress added “under God” to the previously secular Pledge of Allegiance. It placed a similar slogan, “In God We Trust,” on postage that year and voted the following year to add it to paper money; in 1956, it became the nation’s official motto.
  • During these years, Americans were told, time and time again, not just that the country should be a Christian nation, but that it always had been one. They soon came to think of the United States as “one nation under God.” They’ve believed it ever since.
Javier E

Corporate panic about capitalism could be a turning point  - The Washington Post - 0 views

  • the Business Roundtable, which represents the chief executives of 192 of the nation’s largest companies. Most of its members signed a statement declaring that making profits for shareholders isn’t a corporation’s sole responsibility. Instead, companies have a broader mission to serve customers, employees, suppliers and communities, too, the statement said.
  • Jamie Dimon, the chief executive of JPMorgan Chase and chairman of the Business Roundtable, led the signers who agreed: “Many Americans are struggling. Too often hard work is not rewarded.” Dimon had warned earlier this year in his annual letter to his company’s shareholders that the American Dream was “fraying for many” because of stagnant wages and income inequality.
  • Corporate America fears the system is failing. As Dalio wrote, this is an “existential” moment. The guardians of capitalism seem to realize that they must respond to right-wing populists and left-wing progressives alike or face a worsening political crisis that is already hobbling the country.
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  • The corporate panic about capitalism could be a turning point, opening the way for a future president to begin fixing the problems of stagnant wages and inequality that are at the core of America’s disarray
  • Dalio has even questioned the profit motive, the capitalist holy of holies, arguing that while “usually an effective motivator and resource allocator . . . it is now producing a self-reinforcing feedback loop that widens the income/wealth/opportunity gap to the point that capitalism and the American dream are in jeopardy.”
  • Today’s corporate reformers share the same concern about saving a broken capitalist system as did President Franklin D. Roosevelt in the New Deal era and President Theodore Roosevelt in the Progressive era. Dalio made the historical analogy in his manifesto: “We are now seeing conflicts between populists of the left and populists of the right increasing around the world in much the same way as they did in the 1930s when the income and wealth gaps were comparably large.”
  • America’s historical experience teaches us that economic reform succeeds when it goes mainstream, and that’s what’s happening now.
  • Calm, reassuring, Roosevelt saved capitalism by reforming it, redeeming his campaign pledge to “the forgotten man at the bottom of the economic pyramid.” Who in the current Democratic field can claim this role in 2020? The ground is ready. Even the moguls know it’s time for change.
Javier E

The Geography of Trumpism - The New York Times - 0 views

  • We examined what factors predict a high level of Trump support relative to the total number of registered voters.The analysis shows that Trump counties are places where white identity mixes with long-simmering economic dysfunctions.
  • What they have in common is that they have largely missed the generation-long transition of the United States away from manufacturing and into a diverse, information-driven economy deeply intertwined with the rest of the world.
  • “It’s a nonurban, blue-collar and now apparently quite angry population,” said William Frey, a demographer at the Brookings Institution. “They’re not people who have moved around a lot, and things have been changing away from them, but they live in areas that feel stagnant in a lot of ways.”
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  • in the places where support for Mr. Trump runs the strongest, the proportion of the white population that didn’t finish high school is relatively high. So is the proportion of working-age adults who neither have a job nor are looking for one. The third-strongest correlation among hundreds of variables tested: the preponderance of mobile homes.
  • Trump counties include places that have voted for both Republicans and Democrats, and the strongest predictors of Trump support include how a county responded to two very different third-party candidates: Trump territory showed stronger support for the segregationist George Wallace in the 1968 election than the rest of the country, and substantially weaker support for the centrist former Republican John B. Anderson in 1980.
  • the economic problems that line up with strong Trump support have long been in the making, and defy simple fixes.
  • have any of the individuals commenting ever met or talked to the uneducated trailer dwellers referred to in this article. I think not. This poor pitiful underclass that we must now fix as true liberals has been making poor decisions for decades. Serial children withe serial mothers and resulting large child support payments. Job hopping and laying around the house all winter when laid off while waiting for the Wife to get home from work and make dinner. Gun purchases for thousands of dollars and 45,000 dollar trucks on an annual income of 35,000. Cashing in 401ks. To buy the latest 4 Wheeler. Oh and don't forget the biannual trips to Disney world or to hunt out west on credit cards. I sprang from uneducated people of another generation and the men by and large did not engage in self destructive behavior like this. sorry you make your bed and don't expect me to cry about it.
  • I think at least half of the American political class, the republican half, wants Americans to be ignorant. The ignorant are easily duped and manipulated. The GOP establishment clearly knows that, but they never expected someone like Trump to beat them at their own game. That explains why the GOP is generally unwilling to adequately fund public education and is content to punish the non-rich who seek higher education by burying them in debt.
  • Until now I had deceived myself into believing that I am a college educated hard working East coast Caucasian with moderate views and a penchant for reading a multi-faceted world class newspaper. However, the continued biased reports concerning Mr. Trump and his campaign are quite distasteful and have completely lost objectivity.Now, the journalistic attacks have moved toward his supporters and potential voters. Well, as with many of my fellow unintelligent white trash friends this only cements my unwavering support for the Trump campaign.
  • I have seen technology take jobs from people more than immigrants. It is a terrible feeling. Most of my peers and I are now working freelance jobs. Sometimes its voluntary but often times it is because we can't find full time jobs with benefits. For those of us over 60 it is the only work available. If you have never been independent you are in for a shock at how hard it can be to run a small sole proprietor business from scratch.
  • Enormous advances in technology have made the trans-oceanic distances disappear. Foreign-based administrative jobs are now transparent, meaning that "back-room" corporate jobs such as payroll, accounting and corporate management can be off-shored. Jobs in this category also include computer software development and computer system help-line support. The concept of the "virtual corporation", which maintains low levels of "project managers" can scale up or down, and only a small "corporate core" needs to be physically in the USA.
  • Trump has said that he hires people from other countries over American citizens and thinks Americans are already overpaid. So, why is he so popular with the angry voters who are living from paycheck to paycheck or were forced to retire? Trump is part of the problem, not the solution. The working class voters need wage insurance or a living wage solution and they need the government to step in and help them. Remember the WPA programs from the 30s? My guess is that Trump's supporters don't want to be the takers after years of thinking they were above that and were the makers. Surprise, we are all in the same boat.
  • there is a much bigger issue than creating jobs for these people. It is figuring out why so many are incapable of learning at a college level and beyond. I refuse to believe that it is nature dictating such a limitation. My money is on nurture; therefore, my money is on being able to solve that problem too.
  • Until we as a country stop treating intelligence as a disease and take steps to improve education across the board, this is what the fall-out will be. It was only a matter of time before someone figured out they could get to the White House by courting the angry white people vote.
  • among high school or less, 40% some college, but 33% among college graduates, and 19% among the post-graduates. In no election did Trump get the vote of the majority of college graduates or postgraduates. The education gap is consistent and steady. The gender gap is equally consistent.
  • The jobs engine the drove the US to its post war boom was the manufacturing sector. That has been gutted - by US consumer decisions.FDR did not practice racial identity politics.
  • Racism lurks - always - near the surface for ALL human beings. Don't believe me? Go take Harvard's Project Implicit tests (free) and learn about your own racist proclivities!By nature, all human beings tend toward tribalism; we are *wired* to notice and react to "difference". Civilization is the mass awareness of that proclivity towards shunning or rejecting "the other" and creating laws to stop it from becoming reality.When people become stressed, the veneer of civilization starts to break down - our more primitive, wired behaviors take over. That's what is happening now.We also have a huge propensity - as a species - towards cooperation. We have to somehow keep pursuing that "Better Angel of Our Nature" to keep the tide from turning permanently ugly.
  • As I read this article I began to confront an uncomfortable reality. We, as a society are to blame for Mr. Trump's support. Apparently we have ignored or overlooked the tragic plight faced by a sizable minority. Imagine the unemployed coal minor in West Virgina. His financial life is probably a shambles and he has no realistic prospect of recovering. He feels hopeless and abandoned. He sees publicized efforts to address problems of ethnic minorities and immigrants, yet he sits cold and jobless without anyone clamoring to address his situation. He starts getting angry and frustrated.Then, out of nowhere someone comes who appears to want to fight for him. Finally, someone who might champion his cause. Bring back jobs. Stop cheap labor from coming in.
  • Nationally, 23 percent of the 25-to-54-year-old population was not working in March, up from 18 percent in 2000. The areas where Trump is most popular appear to be at the forefront of that trend.
  • Don't people realize that technology, computers, automation and especially robots have replaced more manufacturing and more factories than all the illegal immigrants ever have? On many factory floors you hardly see any human beings at all. Every product is whisked along conveyor belts and assembled (or cooked), and then inspected, labeled, packaged and shipped with a minimum of human intervention. That's today's world. What are we to do? Protest against computers and robots.Also, American corporations have zero loyalty to the USA. Their loyalty is to their bottom line. They take advantage of every tax loophole they can; and if their product is labor intensive they would much rather pay 5000 workers a dollar a day with no benefits rather than stay in America and have to pay someone $18 an hour will vacation time, holiday time off, Soc Sec taxes and Medicare taxes.
  • This is the Party of Stupid the Republican carefully constructed through painstaking racism, defunding of public education, defunding of infrastructure, hate radio, Fox-Henhouse News and trickle-down poverty.Donald Trump's supporters are the direct result of the Republican's decades-long efforts at dumbing down a large swath of Americans.The Republican Party needs to take a giant proud bow as their electorate walks down the runway of nationally-assisted-suicide.
  • The irony of all this is that, yes, the world is shifting out from under the feet of the less-educated poor, but none of us face a really BIG or YUGE problem like slavery, Civil War, total war, a Great Depression, or even a gold/silver conflict. Yet Ken Lay and others can seriously muse over the possibility of secession from the union.The goals that so many of T's supporters are crying for are already in the process of being achieved -- the debt is too high but the national deficit has been cut in half under Obama. Millions now have health care that they didn't have before. "Taxed Enough Already" couldn't be more of an inept slogan.I wonder sometimes if the collapse of the USSR was such a good thing. Having a common enemy provided a kind of glue that held us together. Now some of us seem -- recklessly., hysterically, feverishly -- anxious to find an equally powerful enemy in our own ranks.
  • I can't count the number of my husband's uneducated white southern relations who have taken extensive advantage, repeatedly, of both state and federal programs, including unemployment, food stamps, occasional welfare, and (sometimes specious) "disability." (My husband's mother was one of 11 born to poor sharecroppers, and the only one to leave her subculture
  • Oh, and about the "myth" that opposition to Islam is only is by simplistic Islamophobes. Let me suggest for those who didn't get to it, this article about about the premier public intellectual of France: "Once Hopeful for Harmony, a Philosopher Voices Discord in France" It said that he has concluded that Islam is not comparable with 'Western enlightenment values."
  • It's obvious that the changing economy has structurally disadvantaged many less educated people across America. But, it is also true that economically distressed whites enjoy access to exactly the same programs that assist minorities. They just don't "feel" like this is true.
  • Truth be told, Trump is supported by numerous highly educated people who choose not to support known liars and/or socialists. These same people are tired of candidates who are bought and paid for by secret and evil Super PACs-- Trump is not controlled by these groups. Rubio, Kasich, Cruz and C;inton are.
  • The counties where Trump is most popular also have the lowest employment participation rates. Ordinarily, those folks would be expected to vote Democratic, which is more likely to continue the government spending that sustains them. Trump followers are willing to support him even though it is probably against their economic interest.So how to explain this? The strong correlation to previous support for George Wallace suggests it's about identity. A certain segment of the population does not accept diversity and change. They cling to white supremacy. The irony, as the article notes, is that these are the same folks who self-identify their heritage as "American," rather than, say "English" or "German." However, to me, they seem very un-American.
  • If policy hadn't been influenced by campaign funding, perhaps we would be in a better situation. Maybe congress would have paid more attention to improving the education system. It's a shame that most people don't understand that their only true weapon is voting for someone that isn't in debt to an industry. If we don't change our campaign finance system, nothing will change. Our voices will never be heard, our needs will never be met and policy will continue to favor profit, not people.
  • You are misinterpreting the analysis. This is a correlation analysis and what it says is that there is a moderately strong positive correlation between the % of people in a county that are white and have no high school and the % of people that support Trump. The 61 number is the correlation coefficient. The analysis does NOT show that folks in mobile homes vote for Trump.
  • There is only one interesting question regarding Trump: can he win Ohio and Florida in the national elections? Otherwise his campaign will turn into a footnote in American history like the campaign of many other unsuccessful candidates (Dukakis someone?). His voters, then, will be forgotten, as they usually are, until the next elections. That's the only time America's, winner takes it all culture, remembers those people exist.
  • However crude his message, on trade Trump has a legitimate point, which is that the US (not US companies, which don't care about international boundaries, but US workers) has got the short end of trade deals for decades. Whatever benefits the US has gleaned from these deals, they are minuscule compared to their utterly transformative effects on India, Mexico and especially China, which begs the question of why we couldn't have negotiated a better deal, one less devastating to old-line manufacturing. It often seems US negotiators are driven more by a religious belief in and devotion to free-trade principles, than by national self-interest. Trump may be unfit to be president, but I don't doubt he would have driven a harder bargain and come out with a better deal, if only because, unlike US negotiators, he'd be fully prepared to walk away from a deal he didn't like.
  • It's high time we re-engage in our communities with love and empathy. We need less talk of the theoretical economics underpinning trade deals and the credibility of climate science. It's not because these things are unimportant or irrelevant to governing in a complex world, but because our neighbors are afraid we've forgotten them in all our sophistication. They need to hear and see that we care about them. Our ideas about common efforts to improve their lives need to be less about class and more about community. We need to be clear that even the least among us are important to our common future
  • So many of the comments on this piece seem to fall into the category of subliminal rationales for long held prejudices that many of us have but don't understand.
  • this analysis didn’t show a particularly powerful relationship between the racial breakdown of a county and its likelihood of voting for Trump. There are Trump-supporting counties where very high proportions of the population are African-American and others where it was very low, for example.
  • There's a very powerful stigma associated with being poor in this country. Frankly, it makes it nearly impossible for an elite institution like the Times to write about poor populations without those same people perceiving a condescending tone. At the first mention of trailer parks--even if that is an apt descriptor for a type of housing--the words begin to cut and defenses rise. When spoken by a rich person, those words demean, even if they're not meant to by the speaker
  • The problem is that "Thug Trump," just so happens to touch on some truths, and existing bi-partisan defects that we ignore. Funny, as different as they are, Ralph Nader made the same point, that the major defects of our country are supported by both parties and thus untouchable. I guess the nature of a revolutionary is part misfit but also sensing the time is ripe for a drastic change. It may be better to look less at the person, and more that the endemic defects that he promises to change. From Huey Long to Norman Thomas, outsiders have had positive effects.
  • These relatives, who are very pleasant to talk to on a one-to-one basis, are the same people who send us rabid chain emails about how Obama hates America, how we need to "take back our country," etc. "The blacks" are "parasites and takers" and the real reason they invariably vote Republican. They see no relationship between their own "taking" and the "taking" by blacks and Hispanics.
  • Whether Trump can appeal to enough independent or even blue collar Democrats is problematic absent some sensational catastrophe in the economy or in government. But you never know. Recall the charge of "Rum, Romanism, and rebellion" late in the 1884 election. It changed history
  • I bought into that "it's the fault of freeloaders" shtick for years, until i was laid off at age 50. Suddenly, I was one of those "freeloaders" with a 30 year impeccable work history and it changed my mind drastically. I've run into people like me from all walks of life; people with degrees and skills who lost jobs and are cut out of returning to the world of employment. I found something eventually, but at half the pay with no benefits. I don't support Trump but he's tapped into the lives of people like me. Globalization has showed us that for those at the very top, the elites, our country and it's workers don't matter much as long as the money keeps flowing. Unfortunately, I can't see that Trump would do much to change that
  • racism in the US is complicated. Some people who say the right things do the worst things, and vice versa. What gets you in trouble is saying blue-collar stuff like "nappy-headed ho's" White liberals are the most politically correct and the most critical of crude speech. But white liberals often have less contact with blacks than any other whites. Bigotry is not easily identified.
  • One of the strongest predictors of Trump support is the proportion of the population that is native-born. Relatively few people in the places where Trump is strong are immigrants — and, as their answers on their ancestry reveal, they very much wear Americanness on their sleeve.
  • The point is that now, the entire middle class and working class have been fleeced by the Repubs AND the Dems, elected representatives who have shirked their duties and spent their time helping their billionaire puppetmasters.
  • Bernie supporters and Trump supporters have something big in common: their basic grievance, which is that the economy is rigged for the 1%. It's helpful to understand our differences, but then we should be finding common ground, not calling each other names. We're all people; we all deserve dignity and respect.
  • We are in the early throes of another revolution now, and this one will even more dramatically favor those with superior cognitive abilities and education over those with average or below average cognitive abilities and education. Yet all people at all levels need to eat, have shelter, and pursue lives of dignity and meaning. It remains unclear what kind of society will emerge from the current disruptions, but it is increasingly obvious that the transition will not be pretty.
Javier E

How Index Funds May Hurt the Economy - The Atlantic - 0 views

  • Thanks to their ultralow fees and stellar long-term performance, these investment vehicles have soaked up more and more money since being developed by Vanguard’s Jack Bogle in the 1970s
  • as of 2016, investors worldwide were pulling more than $300 billion a year out of actively managed funds and pushing more than $500 billion a year into index funds. Some $11 trillion is now invested in index funds, up from $2 trillion a decade ago. And as of 2019, more money is invested in passive funds than in active funds in the United States.
  • Indexing has also gone small, very small. Although many financial institutions offer index funds to their clients, the Big Three control 80 or 90 percent of the market. The Harvard Law professor John Coates has argued that in the near future, just 12 management professionals—meaning a dozen people, not a dozen management committees or firms, mind you—will likely have “practical power over the majority of U.S. public companies.”
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  • Indexing has gone big, very big. For nine in 10 companies on the S&P 500, their largest single shareholder is one of the Big Three. For many, the big indexers control 20 percent or more of their shares. Index funds now control 20 to 30 percent of the American equities market, if not more.
  • The problem is that the public markets have been cornered by a group of investment managers small enough to fit at a lunch counter, dedicated to quiescence and inertia.
  • Passively managed investment options do not just outperform actively managed ones in terms of both better returns and lower fees. They eat their lunch.
  • Let’s imagine that a decade ago you invested $100 in an index fund charging a 0.04 percent fee and $100 in a traditional mutual fund charging a 1.5 percent fee. Let’s also imagine that the index fund tracked the S&P 500, and that the mutual fund ended up returning what the S&P 500 returned. Your passively invested $100 would have turned into $356.66 in 10 years. Your traditionally invested $100 would have turned into $313.37.
  • Actively managed investment options could make up for their higher fees with higher returns. And some do, some of the time. Yet scores of industry and academic studies stretching over decades show that trying to beat the market tends to result in lower returns than just buying the market. Only a quarter of actively managed mutual funds exceeded the returns of their passively managed cousins in the decade leading up to 2019,
  • What might be good for retail investors might not be good for the financial markets, public companies, or the American economy writ large, and the passive revolution’s scope has raised all sorts of hand-wringing and red-flagging. Analysts at Bernstein have called passive investing “worse than Marxism.” The investor Michael Burry, of The Big Short fame, has called it a “bubble,” and a co-head of Goldman Sachs’s investment-management division has warned about froth too. Shortly before his death in 2019, Bogle himself warned that index funds’ dominance might not “serve the national interest.”
  • One primary concern comes from the analysts at Bernstein: “A supposedly capitalist economy where the only investment is passive is worse than either a centrally planned economy or an economy with active, market-led capital management.”
  • Active managers direct investment dollars to companies on the basis of those companies’ research-and-development prospects, human capital, regulatory outlook, and so on. They take new information and price it into a company’s stock when buying and selling shares.
  • Passive investors, by contrast, ignore annual reports and market rumors. They do nothing with trading-floor gossip. They make no attempt to research what to invest in and what to skip. Whether holding international or domestic assets, holding stocks or bonds, or using a mutual-fund structure or an ETF structure, they just mirror the market. Big U.S.-stock index funds buy big U.S. stocks just because they’re big U.S. stocks.
  • At least in a Soviet-type centrally planned economy, apparatchiks would be making some attempt to allocate resources efficiently.
  • Passive management is merely a giant phenomenon, not an all-encompassing one. Hundreds of actively managed mutual funds are still out there, as are legions of day traders, hedge funds, and private offices buying and selling and buying and selling. Stock prices still move around, sometimes dramatically, on the basis of new data and new ideas.
  • Still, passive investing may well be degrading the informational content of the markets, messing up price signals and making business decisions harder as a result.
  • When one of these commodities ends up on an index, the firms that use that commodity in their business see a 6 percent increase in costs and a 40 percent decrease in operating profits, relative to firms without exposure to the commodity, the academics found
  • Their theory is that ETF trading shifts prices in subtle ways, making it harder for businesses to know when to buy their gold and copper. Corporate executives “are being influenced by what happens in the futures market, and what happens in the futures market is being influenced by ETF trading,”
  • More broadly, the Bernstein analysts, among others, worry that index-linked investing is increasing correlation, whereby the prices of stocks, bonds, and other assets move up or down or sideways together.
  • the price fluctuations of a newly indexed stock “magically and quickly” change. A firm’s shares begin to move “more closely with its 499 new neighbors and less closely with the rest of the market. It is as if it has joined a new school of fish.”
  • A far bigger concern is that the rise of the indexers might be making American firms less competitive, through “common ownership,” in which the mega-asset managers control large stakes in multiple competitors in the same industry. The passive firms control big chunks of the airlines American, Delta, JetBlue, Southwest, and United, for instance
  • The rise of common ownership might be perverting corporate behavior in weird ways, academics argue. Think about the incentives like this: Let’s imagine that you are a major shareholder in a public widget company. We’d expect you to desire—insist, even—that the company fight for market share and profits. But now imagine that you are a major shareholder in all the important widget companies. You would no longer really care which one succeeded, particularly not if one company doing better meant another company doing worse. You’d just care about the widget sector’s corporate profits, which would go up if the widget companies quit competing with one another and started raising prices to pad their bottom line.
  • one major paper showed that common ownership of airline stocks had the effect of raising ticket prices by 3 to 7 percent.
  • A separate study showed that consumers are paying higher prices for prescription medicines because generic-drug makers have less incentive to compete with the companies making name-brand drugs.
  • Yet another study showed that common ownership is leading retail banks to charge higher prices.
  • Across firms, executive compensation seems to be more closely linked to a company’s performance when its shareholders are not invested in the company’s rivals, the study found. In other words, firms stop paying managers for performance when owned by the same people who own their rivals.
  • The market clout of the indexers raises other questions too. The actual owners of the stocks—not the index-fund managers but the people putting money into index funds—have little say over the companies they own. Vanguard, Fidelity, and State Street, not Mom and Dad, vote in shareholder elections
  • In fact, the Big Three cast roughly 25 percent of the votes in S&P 500 companies.
  • In an interview with The Wall Street Journal, the chief executive officer of State Street said he thought it was “almost inevitable, when you see this kind of concentration, that it probably will make sense to do something about it.”
  • But figuring out what the appropriate restrictions are depends on determining just what the problem with the indexers is—are they distorting price signals, raising the cost of consumer goods, posing financial systemic risk, or do they just have the market cornered? Then, what to do about it? Common ownership is not a problem the government is used to handling.
  • , thanks to the passive revolution, a broad variety and huge number of firms might have less incentive to compete. The effect on the real economy might look a lot like that of rising corporate concentration. And the two phenomena might be catalyzing one another, as index investing increases the number of mergers and makes them more lucrative.
  • In recent decades, the whole economy has gone on autopilot. Index-fund investment is hyperconcentrated. So is online retail. So are pharmaceuticals. So is broadband. Name an industry, and it is likely dominated by a handful of giant players. That has led to all sorts of deleterious downstream effects: suppressing workers’ wages, raising consumer prices, stifling innovation, stoking inequality, and suffocating business creation
  • The problem is not just the indexers. It is the public markets they reflect, where more chaos, more speculation, more risk, more innovation, and more competition are desperately needed.
Javier E

Jimmy Dore and the Left's Naïve Cynics Have Turned on AOC - 0 views

  • The fact that this decision has earned AOC the enmity of some influential progressive commentators reflects a pathological tendency within a small subset of the U.S. left — namely, a habit of mining anti-political cynicism out of its own naïveté.
  • A political tactic is only as moral as it is effective.
  • To see what I mean by this, it’s worth examining the most thoughtful case for Dore’s strategy in some detail.
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  • Her argument can be summarized as follows:
  • • The pandemic has made Medicare for All more substantively necessary — and politically possible — than ever before.
  • • Although AOC argues that the “opportunity cost” is “too high to waste on a floor vote for a bill that wouldn’t ultimately pass,” the extraordinary circumstances of the COVID pandemic make this the best chance that progressives are going to get to win Medicare for All for the foreseeable future
  • • Even if the vote fails, forcing the debate “could spark a referendum on our failing health-care system at a moment when no other issue takes credible priority,” heightening the salience of the left’s signature policy demand — and the contradictions between a corrupt Democratic leadership and its base,
  • • Ultimately, “the moral case for action requires no strategic justification.
  • If one posits that the strategic wisdom of a political tactic has no bearing on the morality of pursuing it, then whether Dore’s proposal would achieve what he says it would is immaterial. But that’s a strange thing to stipulate!
  • Like most ardent Sanders supporters, they draw their moral fervor from a consequentialist analysis of public policy. Time and again, Berniecrats have accused opponents of universal health care of complicity in preventable deaths, as such loss of life is a predictable consequence of failing to extend health coverage to all Americans
  • But if Gray and Kulinski are indeed consequentialists, then they should recognize that “strategic justification” is the only measure of a political tactic’s moral worth. If politics is a tool for minimizing needless suffering — rather than a theater for performing one’s personal convictions — then a tactic is only as morally sound as it is likely to succeed.
  • whether it is in AOC’s power to effect the outcome Kulinski demands is precisely the object of contention! And that question can only be answered by a debate over strategy.
  • The core premise of Gray’s column is that single-payer health care enjoys overwhelming popular support
  • Lamentably, support for single-payer simply is neither as widespread nor intense as Gray suggests. Medicare for All does poll well — but it polls best when respondents are given few details about what the policy actually entails.
  • Even when pollsters spell out the meaning of single-payer in explicit terms, voters still have a tendency to interpret the proposal as a strong public option
  • This point is made plain by a KFF survey from September 2019, which found a majority of Democrats voicing approval for single-payer — but also favoring “building on the Affordable Care Act” over “replacing the Affordable Care Act with Medicare for All.”
  • Big money can corrupt Democratic politicians. But it can also buy off public opinion.
  • Democratic voters were treated to a nationally televised debate over Medicare for All about a dozen times during the 2020 primary — and they proceeded to vote for the candidate with the least progressive health-care policy in the field
  • Progressives may argue that the primary debates over Medicare for All were distorted by the biases of corporate media (I would argue this). But where do we think most voters are going to get their information about a House vote on Medicare for All if not from corporate-media entities?
  • This gets at a conspicuous tension in progressive electoral analysis. Some left-wing pundits posit that (1) big money exerts a profound influence on American politics, (2) corporate media influences how voters see the world, (3) big money and corporate media are profoundly hostile to left-wing policies, and yet (4) Democrats have no electoral incentive to spurn left-wing policies, and only do so because they are personally reactionary or corrupt.
  • he left’s critique of corporate media implies that it is not necessarily irrational for Democrats to believe that antagonizing powerful interest groups might cost them elections
  • they can also influence voter behavior through propaganda campaigns. And on Medicare for All specifically, the health-care industry has demonstrated success in turning voters against the policy.
  • In Colorado four years ago, progressives and health-care lobbies did battle over a ballot referendum that would have brought a single-payer health-care system to the Rocky Mountain State. The referendum went down by a margin of 79 to 21 percent.
  • the collapse of Vermont’s attempt to establish single-payer through legislative action – and the subsequent election of a Republican to its governorship –lends further credence to this notion.
  • The reality that big money can thwart progressive aims — even when Democratic officials are supportive — was made plain by some of this year’s ballot measures. In Illinois, Democratic governor J.B. Pritzker backed a referendum that would have lifted the state’s constitutional prohibition on progressive taxation. Specifically, the measure would have enabled the state to raise taxes on residents who earn over $250,000 so as to limit budget cuts in the midst of a fiscal crisis. Opponents spent over $100 million propagandizing against the policy. Supporters spent roughly as much, but the combination of well-funded propaganda and the public’s aversion to higher taxes led to 53 percent of the deep-blue state’s voters opting to make it impossible for their representatives to tax the rich at a higher rate than the poor.
Javier E

Opinion | The Crypto Collapse and the End of Magical Thinking - The New York Times - 0 views

  • I have come to view cryptocurrencies not simply as exotic assets but as a manifestation of a magical thinking that had come to infect part of the generation who grew up in the aftermath of the Great Recession — and American capitalism, more broadly.
  • magical thinking is the assumption that favored conditions will continue on forever without regard for history.
  • It is the minimizing of constraints and trade-offs in favor of techno-utopianism and the exclusive emphasis on positive outcomes and novelty.
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  • It is the conflation of virtue with commerce.
  • Where did this ideology come from? An exceptional period of low interest rates and excess liquidity provided the fertile soil for fantastical dreams to flourish.
  • Cryptocurrency is the most ideal vessel of these impulses. A speculative asset with a tenuous underlying predetermined value provides a blank slate that meaning can be imposed onto
  • Anger after the 2008 global financial crisis created a receptivity to radical economic solutions, and disappointment with traditional politics displaced social ambitions onto the world of commerce.
  • The hothouse of Covid’s peaks turbocharged all these impulses as we sat bored in front of screens, fueled by seemingly free money.
  • The unwinding of magical thinking will dominate this decade in painful but ultimately restorative ways — and that unwinding will be most painful to the generation conditioned to believe these fantasies.
  • Pervasive consumer-facing technology allowed individuals to believe that the latest platform company or arrogant tech entrepreneur could change everything.
  • illusory and ridiculous promises share a common anti-establishment sentiment fueled by a technology that most of us never understood. Who needs governments, banks, the traditional internet or homespun wisdom when we can operate above and beyond?
  • Mainstream financial markets came to manifest these same tendencies, as magical thinking pervaded the wider investor class. During a period of declining and zero interest rates, mistakes and mediocrities were obscured or forgiven, while speculative assets with low probabilities of far-off success inflated in value enormously.
  • For an extended period, many investors bought the equivalent of lottery tickets. And many won.
  • The real economy could not escape infection. Companies flourished by inflating their scope and ambition to feed the desire for magical thinking.
  • Most broadly, many corporations have come to embrace broader social missions in response to the desire of younger investors and employees to use their capital and employment as instruments for social change.
  • Another manifestation of magical thinking is believing that the best hope for progress on our greatest challenges — climate change, racial injustice and economic inequality — are corporations and individual investment and consumption choices, rather than political mobilization and our communities.
  • Every business problem, I am told, can be solved in radically new and effective ways by applying artificial intelligence to ever-increasing amounts of data with a dash of design thinking. Many graduates coming of age in this period of financial giddiness and widening corporate ambition have been taught to chase these glittery objects with their human and financial capital instead of investing in sustainable paths — a habit that will be harder to instill at later ages.
  • The fundamentals of business have not changed merely because of new technologies or low interest rates. The way to prosper is still by solving problems in new ways that sustainably deliver value to employees, capital providers and customers.
  • What comes next? Hopefully, a revitalization of that great American tradition of pragmatism will follow. Speculative assets without any economic function should be worth nothing. Existing institutions, flawed as they are, should be improved upon rather than being displaced
  • Corporations are valuable socially because they solve problems and generate wealth. But they should not be trusted as arbiters of progress and should be balanced by a state that mediates political questions
  • Trade-offs are everywhere and inescapable. Navigating these trade-offs, rather than ignoring them, is the recipe for a good life.
Javier E

"You're supporting a bigot. That makes you part of the bigotry." Charles Blow's master ... - 0 views

  • As I explained in an earlier Salon piece, Donald Trump, with his background in reality TV and professional wrestling, created a spectacle that rewarded him with at least $3 billion in free media coverage. Trump’s sophisticated meta game also allowed him to exploit a risk-averse news-media establishment that operates according to a clear and predictable set of rules and conventions governing “the boundaries of the approved public discourse.”
  • These rules and conventions consist of maintaining the appearance of “objectivity” and “fairness,” perpetuating a “both sides do it” framework when discussing Republicans and Democrats, and an obsessive need to present “all sides of an issue.” Clear statements of fact and truth are treated as mere opinions though as Paul Krugman once said, “if one party declared that the earth was flat, the headlines would read ‘Views Differ on Shape of Planet.’”
  • The American corporate news media also prefers to feature generalists who understand these rules as opposed to real experts who will not obey said script. Ultimately, in covering political campaigns and elections, the American corporate news media is more interested in covering the “horse race” — because it is an easy story to communicate — than in critically evaluating the specific policy proposals and qualifications of a given candidate.
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  • When confronted by the Donald Trump phenomenon, the American corporate news media was flummoxed by his disregard for facts, inconsistency and willingness to rapidly change his positions on a given issue, overt racism and bigotry of his followers and movement, fascism-fueled hostility and contempt for journalists, and utter disregard for the rules of normal politics.
  • On Monday’s edition of “CNN Tonight with Don Lemon,” New York Times columnist and author Charles Blow refused to comply with Donald Trump’s political con job and an American corporate news media that has acted irresponsibly in aiding and abetting his presidential campaign.
  • In social psychology, the bystander effect is a phenomenon whereby a group or crowd of people will often ignore an individual person who is in distress. This dynamic changes when a member of the crowd or group decides to render aid to the person in distress. Other people will then follow the new rule — what is now one of care and concern — instead of ignoring and looking away
  • On Monday’s edition of “CNN Tonight with Don Lemon,” Charles Blow established a new rule for how journalists and other commentators should interact with Donald Trump’s agents and rabble
  • The question now becomes, Will other members of the Fourth Estate follow Charles Blow’s lead and the new rule that he has tried to establish or will they continue to be supplicants for Donald Trump?
Javier E

Donald Trump is actually a fascist - The Washington Post - 0 views

  • All this seemingly erratic behavior can be explained — if not justified — by thinking of Trump as a fascist. Not in the sense of an all-purpose bad guy, but in the sense of somebody who sincerely believes that the toxic combination of strong government and strong corporations should run the nation and the world.
  • The game has several names: “Corporate statism” is one. In Europe, they call it “dirigisme.” Those two other words for it — “Nazism” and “fascism” — are now beyond all respectability. It means, roughly, combining the power of the state with the power of corporations.
  • the deal Trump negotiated with Carrier and its parent company, United Technologies, to “save” hundreds of jobs is a prime example of the philosophy.
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  • If he actually has principles to guide him through those famous swamps he plans to drain, that’s alarming, not reassuring. Bad principles are not a good substitute for no principles. Four or eight years of bad principles may make no principles look pretty good.
Javier E

Charlatans, Cranks and Kansas - NYTimes.com - 0 views

  • The real lesson from Kansas is the enduring power of bad ideas, as long as those ideas serve the interests of the right people.
  • In 1998, in the first edition of his best-selling economics textbook, Harvard’s N. Gregory Mankiw — very much a Republican, and later chairman of George W. Bush’s Council of Economic Advisers — famously wrote about the damage done by “charlatans and cranks.” In particular, he highlighted the role of “a small group of economists” who “advised presidential candidate Ronald Reagan that an across-the-board cut in income tax rates would raise tax revenue.”
  • the Brownback tax cuts didn’t emerge out of thin air. They closely followed a blueprint laid out by the American Legislative Exchange Council, or ALEC, which has also supported a series of economic studies purporting to show that tax cuts for corporations and the wealthy will promote rapid economic growth
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  • what is ALEC? It’s a secretive group, financed by major corporations, that drafts model legislation for conservative state-level politicians. Ed Pilkington of The Guardian, who acquired a number of leaked ALEC documents, describes it as “almost a dating service between politicians at the state level, local elected politicians, and many of America’s biggest companies.” And most of ALEC’s efforts are directed, not surprisingly, at privatization, deregulation, and tax cuts for corporations and the wealthy.
  • While ALEC supports big income-tax cuts, it calls for increases in the sales tax — which fall most heavily on lower-income households — and reductions in tax-based support for working households. So its agenda involves cutting taxes at the top while actually increasing taxes at the bottom, as well as cutting social services.
  • But how can you justify enriching the already wealthy while making life harder for those struggling to get by? The answer is, you need an economic theory claiming that such a policy is the key to prosperity for all. So supply-side economics fills a need backed by lots of money, and the fact that it keeps failing doesn’t matter.
Javier E

Volkswagen, Johnson & Johnson, and Corporate Responsibility - The Atlantic - 0 views

  • The sociologist Diane Vaughan coined the phrase the normalization of deviance to describe a cultural drift in which circumstances classified as “not okay” are slowly reclassified as “okay.”
  • In the case of the Challenger space-shuttle disaster—the subject of a landmark study by Vaughan—damage to the crucial O‑rings had been observed after previous shuttle launches. Each observed instance of damage, she found, was followed by a sequence “in which the technical deviation of the [O‑rings] from performance predictions was redefined as an acceptable risk.”
  • Repeated over time, this behavior became routinized into what organizational psychologists call a “script.” Engineers and managers “developed a definition of the situation that allowed them to carry on as if nothing was wrong.” To clarify: They were not merely acting as if nothing was wrong. They believed it, bringing to mind Orwell’s concept of doublethink, the method by which a bureaucracy conceals evil not only from the public but from itself.
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  • If that comparison sounds overwrought, consider the words of Denny Gioia, a management professor at Penn State who, in the early 1970s, was the coordinator of product recalls at Ford. At the time, the Ford Pinto was showing a tendency to explode when hit from behind, incinerating passengers. Twice, Gioia and his team elected not to recall the car—a fact that, when revealed to his M.B.A. students, goes off like a bomb. “Before I went to Ford I would have argued strongly that Ford had an ethical obligation to recall,” he wrote in the Journal of Business Ethics some 17 years after he’d left the company. “I now argue and teach that Ford had an ethical obligation to recall. But, while I was there, I perceived no strong obligation to recall and I remember no strong ethical overtones to the case whatsoever.”
  • Executives are bombarded with information. To ease the cognitive load, they rely on a set of unwritten scripts imported from the organization around them. You could even define corporate culture as a collection of scripts.
  • back to Volkswagen. You cannot unconsciously install a “defeat device” into hundreds of thousands of cars. You need to be sneaky, and thus deliberate.
  • The most troubling thing, says Vaughan, is the way scripts “expand like an elastic waistband” to accommodate more and more divergence.
  • Embarrassed and unable to overturn the script they themselves had built in the preceding years, Morton-Thiokol’s brass buckled. The “no launch” recommendation was reversed to “launch.”
  • “It’s like losing your virginity,” a NASA teleconference participant later told Vaughan. “Once you’ve done it, you can’t go back.” If you try, you face a credibility spiral: Were you lying then or are you lying now?
  • Scripts are undoubtedly efficient. Managers don’t have to muddle through each new problem afresh, Gioia wrote, because “the mode of handling such problems has already been worked out in advance.” But therein lies the danger. Scripts can be flawed, and grow more so over time, yet they discourage active analysis
  • the final decision to deceive was, on an individual level, rational—the logical end to a long sequence.
  • This sequence of events fits a pattern that appears and reappears in corporate-misconduct cases, beginning with the fantastic commitments made from on high.
  • All of which placed personnel in a position of extreme strain.
  • We know what strain does to people. Even without it, they tend to underestimate the probability of future bad events. Put them under emotional stress, some research suggests, and this tendency gets amplified. People will favor decisions that preempt short-term social discomfort even at the cost of heightened long-term risk. Faced with the immediate certainty of a boss’s wrath or the distant possibility of blowback from a faceless agency, many will focus mostly on the former.
  • What James Burke, Johnson & Johnson’s CEO, did was anticipate the possible results of these pressures, well before they built up. He shared Henry James’s “imagination of disaster.” And it’s why he introduced, if you will, a set of counterscripts. It was a conscious effort to tinker with the unconscious criteria by which decisions at his company were made. The result was an incremental descent into integrity, a slide toward soundness, and the normalization of referencing “Our Credo” in situations that might otherwise have seemed devoid of ethical content.
  • This reaction isn’t excusable. But it is predictable.
  • What we know of Ferdinand Piëch, Volkswagen’s chairman before the scandal, is that he was no James Burke. At a 2008 corruption trial that sent one VW executive to jail, Piëch referred to alleged widespread use of VW funds on prostitutes as mere “irregularities,” and chided a lawyer for mispronouncing Lamborghini. (“Those who can’t afford one should say it properly” were his precise words.) This was around the time the emissions cheating began.
  • “Culture starts at the top,” a businessman recently said in an interview with the Association of Certified Fraud Examiners. “But it doesn’t start at the top with pretty statements. Employees will see through empty rhetoric and will emulate the nature of top-management decision making … A robust ‘code of conduct’ can be emasculated by one action of the CEO or CFO.”
Javier E

Spreading hate has backfired on right-wing media: How Fox News unwittingly destroyed th... - 0 views

  • spewing hate has a significant impact upon society. It is the equivalent of modern-day propaganda where the population is barraged with a stream of consistent messaging.  As ordinary people go about their daily lives, they are exposed repeatedly, day in and day out, to the same messages in numerous forms and by numerous people. Pretty soon, these messages begin to sink in and take effect.  The audience begins to adopt a worldview consistent with these messages, regardless of the degree of truth. 
  • Propaganda is powerful stuff.  Many people are susceptible to it and can be swayed by it, especially the less educated.
  • In America today, right-wing media is engaged in this very same activity through Fox News and extremist talk radio. 
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  • The messaging consists of common themes that recur in various forms. One central theme is a fierce opposition to government, especially so-called “big government.” This reappears in various sub-forms as well, such as rage against bureaucracy, regulations, Washington, D.C., the IRS, the Environmental Protection Agency, and federal politicians.
  • Another big theme is fear and victimization. You had better watch out because government is gonna getcha! “They,” whoever that may be, are about to take away your rights.  Your freedom is about to disappear.  Your religious liberties will be stripped away.  You won’t be able to make your own healthcare decisions.  Free choice will be gone.  Your children will suffer.
  • Another common theme is the fear of foreigners, or outsiders. We must protect our own in-group from the vague and mysterious threats posed by those who are a little bit different from us.
  • And, of course, someone from the Democratic Party, or some “liberal,” is to blame for all of this wreckage. Demonizing a specific target is powerful.  If a Democrat is in the White House, then the president becomes the favorite bullseye.
  • why would the Republican Party devise such a strategy that has no hope of success? Well, it turns out that they did not devise this strategy. I
  • t’s not even a strategy at all. It emerged not as a result of a grand Republican master plan, but of market economics.
  • The extremist right-wing network of Fox News and talk radio was not created by politicians, and it is not funded by a political party.  It is not supported by donations from people seeking political expression.  It was created for one central purpose: to make money.
  • the business of peddling hate and anger is a fantastically profitable one.
  • An unholy alliance was formed.  The Republican Party would allow the extremist right-wing network to promulgate its destructive propaganda throughout society in order to generate its enormous profits, and in exchange, the network would direct its audience to vote for the Republican Party.
  • Fox News has dominated the ratings as the number one cable news channel for the last 14 years and reportedly earns over $1 billion in profits annually, making it a golden goose in the overall Fox corporate empire.  Fox itself is one of the most valuable brands in the world with sales of over $13 billion.  And the tycoon behind Fox News, Rupert Murdoch, is personally worth $12 billion.
  • Corporate profits are greatly impacted by governmental policies.  Corporations, therefore, desire the government to be controlled by whichever political party is the most favorable to corporate profits.  And this, of course, is the Republican Party.
  • it is indeed a cozy little business model.  The network builds an audience by appealing to people’s fear, insecurity and anger, and simultaneously directs its audience to support the right-wing political party that best protects the network’s own profits.
  • From a political perspective, it is certainly not healthy to incite anger and hate within a nation’s own population.  And it is not very wise to inflame hostility and rage against a nation’s own government
  • from a political perspective of creating a cohesive society and maintaining peace and harmony among the population, this is disastrous.
  • politicians in the Republican Party could not resist.  The extremist right-wing network of Fox News and talk radio had built up an audience that could easily be exploited for political support. 
  • Rush Limbaugh raked in $80 million for himself in 2015 alone. Sean Hannity was paid $30 million. Glenn Beck is personally worth over $100 million. Bill O’Reilly’s prime-time show, “The O’Reilly Factor,” generates over $100 million per year in advertising revenue.
  • So for years and years, the extremist right-wing media network spewed out content full of anger, hate, and division.  And Republican politicians jumped on the bandwagon.  They began preaching the same destructive messages and appearing on the extremist right-wing network all across the nation.
  • It worked.The base of the Republican Party grew more and more angry.  Their resentment against our very own government grew ever greater.  Their sense of victimization became ever more acute.  Their fury at the establishment boiled over.
  • The base of the Republican Party became a Frankenstein. It became radicalized into an extreme movement that turned against the established order, including the leadership of the Republican Party itself. 
  • This is the reason behind the rise of candidates like Donald Trump and Ted Cruz.  The Republican Party establishment despises these candidates, but the party has no idea how to slay these dragons.
Javier E

Laura Ingraham's advertisers aren't really staging a boycott. It's a capital strike. - ... - 0 views

  • it’s unlikely that these companies suddenly grew a collective conscience and decided to bring their expenditures into accord with their morals. It’s more likely that Ingraham is the victim of a capital strike, when investors withdraw or withhold investments en masse because they’ve determined that potential hazards outweigh potential gains.
  • Capital is capital; it is not your friend.
  • “Corporate activism on social issues isn’t in tension with corporate self-interest on tax policy and corporate stinginess in paychecks. Rather, the activism increasingly exists to protect the self-interest and the stinginess — to justify the ways of C.E.O.s to cultural power brokers, so that those same power brokers will leave them alone.”
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  • It also foregrounds a key imbalance in our politics: While capital can strike on a whim and effectively shut down a political program or initiative, labor’s ability to similarly assert itself in the public sphere is comparatively limited.
  • There are no regulations or laws preventing or even restricting capital strikes. This means that the social and political aspirations of capital always have an effective instrument on hand. But the same can’t be said for labor
  • All over the United States, euphemistically titled right-to-work laws strangle organized labor, preventing the kind of coordination among workers that allows for effective striking. Then there are anti-strike laws, some of which fine public-sector unions huge amounts for going on strike, while others criminalize striking for individual workers. Meanwhile, the Supreme Court is in the midst of deciding a conservative-backed case against public-sector unions that, if successful, could weaken American labor even further
  • Normally, this capital-financed onslaught against labor is interpreted as capital just doing what it does: trying to squeeze maximal profits out of business transactions, workers be damned. And it is that
  • But in light of the power of capital strikes in public life, it should also be understood as something else: an effort to limit the ability of labor to exert the same kind of control over politics and discourse as capital itself does
Javier E

To understand today's global data economy, look to the Middle Ages - The Washington Post - 1 views

  • With Facebook’s announcement Friday that it has suspended more developer apps for misusing users’ data than previously identified, the company revealed how little we know about the life of our data, even when we already know it’s been breached.
  • The global data economy mines human information to predict and influence behavior in ways most of us are incapable of comprehending.
  • to better understand what this means for the future of privacy, we need to look back to a much older idea, one from the Middle Ages.
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  • Christians in the early European Middle Ages, between roughly the 5th and 11th centuries, believed that God knew all human secrets, yet God’s secrets remained fundamentally unknowable to human beings. This widespread and deep-seated belief in an omniscient and mysterious being shaped institutional structures and social behavior in profound ways, as human efforts at concealment were considered futile
  • Today, a new form of mysterious omniscience is having a similarly widespread and unpredictable effect on human social behavior. We know that data about us is being compiled at breathtaking speeds, but most of us have little way of knowing what information is being collected, how it is being used and, crucially, how the various algorithms, clouds, networks and devices even work
  • The belief in an omniscient God structured almost every part of medieval life, especially around the rapidly developing legal systems of the time. Law codes named God as a constant witness in legal disputes in which human witnesses were considered deficient and God’s judgment functioned as a compelling legal tool.
  • By the 18th century, new secular forms of institutional power and surveillance emerged. Jeremy Bentham, for example, theorized the panopticon, a prison structure designed to harness a prisoner’s belief that he was always being watched to shape his behavior in favor of docility. What makes the architecture of the panopticon work is the mysterious omniscience of the prison guards, who can see from their tower into every cell without ever being seen themselves.
  • Today’s global data economy is the new form of mysterious omniscience. And as the reach of these technologies expands, their mystery will be one of the greatest barriers to its regulation.
  • Indeed, as scholar Shoshana Zuboff has written, firms actively confuse the public about the data they process so that their capabilities “remain inscrutable to all but an exclusive data priesthood.”
  • tion of fear and a belief in the benevolence of the divine
  • Where people in the early Middle Ages assigned benevolence to and held tremendous fear in their omniscient God, we have been facing — indeed embracing with remarkably little fear — this mysteriously omniscient technology reasoned to be benevolent because it makes life more convenient.
  • The way medieval law used God’s omniscience in cases of unreliable testimony foreshadows a future — in some ways, one already here — in which the information collected into that mysteriously omniscient entity (including data recorded by devices and retained by corporations) can be harvested and harnessed as evidence in courts of law, particularly where no other human witnesses are available to testify
  • In these cases, corporations have so far resisted sharing the data with the state, with the exception of counterterrorism efforts. But it also contributes to the corporate entity’s growing omniscience and mysteriousness
  • the move from the panopticon to this future iteration of mysterious omniscience could potentially entail a more insidious form of discipline stripped of the fear of punishment and, with its godlike status, of the possibility of democratic regulation.
brickol

As Coronavirus Spread, Largest Stimulus in History United a Polarized Senate - The New ... - 0 views

  • After 48 hours of intense bipartisan negotiations over a huge economic stabilization plan to respond to the pandemic, Republicans were insisting on a vote later that day to advance the package. Mr. Schumer, the Democratic leader, suspected Republicans would present Democrats with an unacceptable, take-it-or-leave it proposition and then dare them to stand in the way of a nearly $2 trillion measure everyone knew was desperately needed. As soon as he arrived at the Capitol, the choice was clear: Democrats would have to leave it.
  • In the end, Democrats won what they saw as significant improvements in the measure through their resistance, including added funding for health care and unemployment along with more direct money to states. A key addition was tougher oversight on the corporate bailout fund, including an inspector general and congressionally appointed board to monitor it, disclosure requirements for businesses that benefited, and a prohibition on any of the money going to Mr. Trump’s family or his properties — although they could still potentially benefit from other provisions.
  • What was worse, the corporate aid came with little accountability over dollars to be doled out unsupervised by the Treasury Department — a red flag to Democrats after the 2008 Wall Street bailout, and one that would be particularly hard to accept given President Trump’s disdain for congressional oversight.
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  • After days of intrigue, gamesmanship and partisan assaults, the Senate finally came together late Wednesday after nearly coming apart. As midnight was about to toll, lawmakers approved in an extraordinary 96-to-0 vote a $2 trillion package intended to get the nation through the crippling economic and health disruptions being inflicted on the world by the coronavirus.
  • With Democrats in control of the House and Republicans wielding a thin majority in the Senate, Mr. Schumer would have to be accommodated in any final bill.
  • Republicans had boosted to $500 billion the size of a bailout fund for distressed businesses, but failed to meet Democrats’ request to devote $150 billion to a “Marshall Plan” for hospitals on the front lines of the virus.
  • Republicans plunged ahead, pulling together their own ideas. On March 19, Mr. McConnell unveiled the Republican approach — a $1 trillion proposal that centered on $1,200 cash payments to working Americans to tide them over, guaranteed loans and large tax cuts for corporate America and a newly created program to provide grants to small businesses that kept their workers on the payroll.
  • Democrats had their own ideas, calling for a major infusion of cash to beleaguered hospitals and health care workers, more money for states and a major expansion of unemployment benefits — “unemployment on steroids” as Mr. Schumer called it — though they were not opposed to the cash payments. Democrats criticized the corporate aid in the Republican bill, saying they wanted restrictions on using the money for stock buybacks and raising executive pay among other conditions.
  • Democrats drew a particularly hard line on unemployment insurance, one Senate official said, with Mr. Schumer instructing his side to refuse to negotiate on the tax relief sought by Republicans until they had a deal on the jobless benefits. The idea was to boost the aid to the level of a laid-off worker’s pay, but when that proved logistically difficult, the two sides agreed on a $600 across-the-board supplement.
  • Republicans were further outraged when they saw the draft House bill, a $2.5 trillion measure that included an array of progressive policies well beyond the scope of emergency aid, saying Democrats were trying to use the crisis to advance a liberal agenda
  • And with members of the House falling ill and quarantine orders going into effect around the country, it was becoming clear that lawmakers from that chamber would not be returning to Washington to consider the plan. The emerging compromise would have to be acceptable enough to Democrats and Republicans that it could pass without a recorded vote.
brickol

$1,200 stimulus checks for all? All you need to know about the US coronavirus bailout |... - 0 views

  • With large areas of the US shut down, stock markets crashing, industries facing collapse and soaring unemployment, the US government is set to pass the most expensive bailout in US history in attempts to save the US economy.Democrat and Republican leaders of Congress, along with White House officials, have been scrambling to make a deal in around-the-clock negotiations and finally announced early on Wednesday that they have reached an agreement. The Senate is expected to vote on the bill on Wednesday.
  • The bill is worth about $2tn, which will go to businesses, corporations and directly into the pockets of Americans. It has six main components: Direct payment to most Americans. $250bn to bolster unemployment insurance. $350bn in loans for small businesses that may be forgiven if firms use them to keep workers on payroll. $500bn in aid for hard-hit industries and states and $50bn for airlines. $130bn in aid to hospitals. $150bn to help state and local governments.
  • There has been some compromise. Republicans agreed to some major changes from their original bill. More money will be given to large companies in hard-hit industries, but Democrats have also pushed for strict oversight of the loans. More aid will also be given to the healthcare sector and more funds will be earmarked for unemployment insurance after pushes from Democrats.
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  • The plan is for individuals to get up to $1,200 and married couples to get up to $2,400, including $500 for each child. The size of a check would diminish gradually for those whose income is above $75,000, while individuals earning more than $99,000 and couples earning more than $198,000 will not be getting any checks. The checks will be based on a household or individual’s 2018 tax return unless they filed their 2019 tax return, in which case it will be based of their 2019 return.
  • Democrats and even some Republicans are adamant that corporations are given fair assistance that will not end up in the pockets of wealthy shareholders or corporate executives.
  • Companies who receive government assistance will also see restrictions on stock buybacks, which is when a company buys shares of its own stock to increase the value of its shares, ultimately helping their wealthy stockholders and corporate executives. Commercial airlines have been known for buying back their own shares.
  • The deal extends unemployment insurance by 13 weeks and covers self-employed and furloughed workers, offering workers $600 a week for those additional four months in addition to what a state will provide through their own program.
  • The bill will relieve burden on the healthcare sector by including a “Marshall Plan” that will give $130bn in grants and assistance to hospitals. The bill also boosts Medicare payments for hospitals treating patients with Covid-19.
knudsenlu

Republicans Are Throwing Away Their Shot at Tax Reform - The Atlantic - 0 views

  • America badly needs corporate tax reform.
  • The United States pretends to tax corporations heavily. But those heavy tax rates are perforated by randomly generous rules such that many tax-efficient firms pay nothing at all, or even receive money back from the U.S. Treasury. The result is heavy unfairness between industries and firms, an unfairness that many economists believe systematically distorts investment decisions. U.S. productivity growth has been sluggish since the Great Recession—and had actually turned negative by the beginning of 2016.
  • Lowering the corporate rate while tightening collection—with a view to raising more revenue, in a more rational way—has been a good-government cause since the late 1980s. John Kerry campaigned on it in 2004, as NBC News reported at the time:
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  • Now, in 2017, the all-Republican federal government at last has a chance to make progress on this goal. And it is throwing that opportunity away.
katherineharron

Capitol riot tears GOP apart as it seeks a return to power in 2022 - CNNPolitics - 0 views

  • Florida Republican Sen. Rick Scott, the new chair of the National Republican Senatorial Committee, defended President Donald Trump on Wednesday when asked if his ally bore any responsibility for inciting a riot at the US Capitol, putting the onus of last week's death and destruction instead on the mob.
  • "He's not the one who made the decision to breach this Capitol," Scott said.
  • Scott's comments came as the pro-Trump riot has torn apart the Republican Party, setting off a backlash among some donors, a historic second impeachment of the President and a fight over how best to build a path back to power.
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  • Trump remains broadly popular within the GOP. But the riot has led a small group of House Republicans -- including Rep. Liz Cheney, the No. 3 in GOP leadership in the chamber -- to support his impeachment.
  • The Florida Republican told CNN that he wished Trump "responded faster" to quell the violence, calling the riot "unacceptable" and "un-American" and for some of the insurrectionists to be prosecuted.
  • he did not hold Trump accountable for the attack
  • The US Chamber of Commerce, corporate political action committees and major conservative donors are reevaluating whether they will donate to the 147 Republican members of Congress who objected to certifying the presidential election on the day of the attack in a deluded bid to overturn the results. Those members include Scott and House Republican Leader Kevin McCarthy, who cited voter integrity concerns.
  • The donor revolt is "going to make every Republican's job that much harder," said Ken Spain, a GOP strategist. Spain said the corporate pushback now under way illustrates a fissure between corporate America and rank-and-file Republicans on issues such as free trade that has only grown wider in recent years.
  • "Corporations, individuals, they have a choice," the senator said. "If you believe in a big government, less freedoms, socialism, you ought to actually put all your money into supporting the Democrats. If you want opportunity, and lower taxes and less government, you're going to support Republicans."
  • Some major American companies, including Amazon and CNN's owner AT&T, have announced they will withhold PAC donations to those who objected to certifying the election results.
  • Business PACs are significant players in politics, accounting for more than $360 million in federal contributions during the 2020 cycle -- with about 57% of the money flowing to GOP candidates, according to the nonpartisan Center for Responsive Politics.
  • "Lawmakers' actions leading up to and during last week's insurrection will weigh heavy in our evaluation of future support," said AFP CEO Emily Seidel in a statement.
  • "We will take into account the totality of what candidates and elected officials do, including the actions of last week, and importantly, the actions in the days ahead in determining whether or not we support them," said Neil Bradley, the chamber executive vice president, on Tuesday. "I actually want to be very clear: There are some members, who by their actions, will have forfeited the support of the US Chamber of Commerce."
  • Some major conservative donors have also focused their ire on the individual Republicans they view as having helped to instigate last week's events, particularly Hawley. Missouri businessman Sam Fox, who donated $300,000 to a super PAC that aided Hawley's election in 2018, said in a statement that the senator "can certainly forget about any support from me again" after last week's events.
  • The senator wrote an op-ed for the Southeast Missourian newspaper explaining why he continued to object after the violence in the Capitol. "The reason is simple: I will not bow to a lawless mob, or allow criminals to drown out the legitimate concerns of my constituents," Hawley wrote.
  • Dan Eberhart, an Arizona-based energy executive considering a bid against Democrat Sen. Mark Kelly in 2022, said, "I have been a big donor to Rick Scott in the past and plan to continue to be."
  • Eberhart said disaffected donors will "make up with Republicans pretty quickly" if the Democrats, who will soon control the White House and both chambers in Congress, "overreach" in their agenda. "Donors will want the counterweight that Republican provide. More money may go to the leadership PACs, but it will still go to Republicans if those are the policies donors support," he added.
  • After House Republicans picked up seats in 2020 and with the Senate split 50-50 -- and Vice President-elect Kamala Harris set to be the tiebreaker -- eyes will turn to next year's midterms. The party out of power typically does well in midterms, and in 2022, Senate Republicans will have more seats to defend than the Democrats, including in battleground states like Florida, Pennsylvania, North Carolina and Wisconsin.
  • But Trump and his legacy will continue to shape the perceptions of the party in the next election. Already, Ben Wikler, chair of the Democratic Party of Wisconsin, announced on Wednesday that the party is going up with a six-figure ad buy that blames Johnson for inciting the riot at the Capitol.
  • When asked if he blamed Trump for losing the Senate, Scott said, "My focus is on 'how do we go forward?' "
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