The British refer to them as "Landed Gentry". In the Gilded Age, they were "Robber Barons". These days, they are the "Billionaire Class", although they much prefer the more genteel label, "Persons of Means", with its implied largesse.
America is supposedly a class-less society, but of course that is fiction. We have always had an upper class and they have always been privileged, spending some of their money to make more money. A good chunk is spent on buying influence. A recent example of this power was the 2017 Tax Bill, sold to us as a boon to the middle-class (there's that class-less thing again) but in actuality a trillion dollar gift to those with the least need.
Paul Ryan proudly tweeted the bill gave Pennsylvania teachers an extra $1.50 per week - while Warren Buffet reaped $680,000 in tax savings.
80% of the benefits went to the wealthy The corporate tax rate was cut from 35% to 21%. The trickle-down ruse succeeds once again.
Most of the Persons of Means clique have managed to remain pretty anonymous. Some super-ego names might ring a bell. Bezos, Ellison, Gates, Musk, Zuckerberg, Koch, ... And you would be surprised how little in taxes they pay. "The scandal is that these actions are perfectly legal. Bloomberg and Buffett, who have both supported raising tax rates for the wealthy, have both had $0 income tax bills. (Buffett, at least, has long acknowledged this, infamously saying he paid a lower tax rate than his secretary.)" If this doesn't make you angry, you must still harbor the delusion that you will someday join that select company.
Citizen's United has made American Corporations a powerhouse of influence peddling - you know, the SCOTUS ruling that corporations are people. Corporations now contribute huge sums to politicians and can do so anonymously through non-profit PACs.
And guess what. We are in a wave of the new old means of lining pockets. Inflation. It's easy go on a rant over higher prices - and blame it on the government. But the government generally does not set prices, other than in war time. Nixon tried
wage and price controls in the 70's, but when they ended, to Jimmy Carter's dismay, pent-up demand set inflation rocketing. Fed management of interest rates is about the only tool the government has, so you should expect interest rates to go up, up.
Rising gas prices always seem to be an explosive issue. But gas prices are based on the price of oil, which is now around $90/barrel. A year ago the price was around $47/barrel. Who's responsible for this doubling? It's about supply and demand - with some price manipulation thrown in for good measure. So if you want to rant, pick on OPEC, Exxon/Mobil, Aramco, BP. (I'm a climate change worrier and I believe higher gas prices are a good thing, motivating a faster transition to alternative energy options.)
But it is true, the cost of most everything going up. Common wisdom says, "it's supply chain problems", "it's the pandemic", "it's the drought/floods/fires”, "there’s a shortage of chips", "workers are getting $15/hr now", "there aren't enough workers", "shipping costs are way up", "war and rumors of war", ...
These are all true, but you know what? The major underlying cause behind these price increases is ... GREED. There seems an agreement among corporations that now is the time to capitalize, get to the levels of profitability shareholders expect, not to mention the bonuses the C-offices expect. So jack up the prices and blame, well, see above. (If you think Corporate America is concerned about your bank account, other that reducing it, you aren't paying attention.)
I actually don't begrudge the price increases by small businesses, especially restaurants. So many have gone under in the past couple years. My father owned a small hardware store and in the wacky inflationary early 80's, he'd say, "we lose money on every sale, but we'll make it up in volume."
Corporate gougers. Not so much
Ford and GM have warned dealerships to stop selling vehicles above MSRP, but such markups are now pervasive across the industry amid supply shortages
And the answer is: "U.S. billionaires have gotten about $1.2 trillion richer during the pandemic."
"The richest 400 Americans paid an average 8.2% federal income tax rate, which is “low” relative to other taxpayers ..."
"The firm's profits in the quarter also jumped, to $14.3bn - almost double the prior year."
Starbucks CEO Kevin Johnson—who saw his compensation soar by 39% to $20.4 million in 2021—told investors during the company's earnings call Tuesday that "supply-chain disruptions" and rising labor costs are to blame for the coming price increases
The Economic Policy Institute (EPI) estimates that CEO compensation has grown 1,332% since 1978, while typical worker compensation has risen just 18%. In 2020, CEOs of the top 350 firms in the U.S. made $24.2 million on average, 351 times more that the typical worker.
Heralding its financial comeback after several years of mediocre returns and criticism over its environmental performance, the company said it would resume buying back its stock to the tune of $ 10 billion over the next two years
We have a Statue of Liberty. We also need a Statue of Responsibility. Will the billionaire class ever have enough? When John D Rockefeller was asked this, his reply was .. "just a little bit more", an insight into the thirst of the 1% and a bleak harbinger of the prospects of a change in the status quo. Thems whats gots, keeps. They will not yield quietly.
So I have low expectations for Congressional action, but, unless you have a Swiss bank account, I'm asking you to write your Member of Congress. Tell them that you too are a person of means and you're not going to take it anymore. #fairshare #levelplayingfield. Maybe include a check.
Copyright © 2022 Dave Hoplin
Apple’s Tim Cook’s 2021 pay package: $99 million
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