Showing posts with label wealth. Show all posts
Showing posts with label wealth. Show all posts

Saturday, February 27, 2010

BREAKING NEWS Tsunami warnings in place across New Zealand east coast ... Read more Sonny Bill tipped to join Counties Manukau

Sonny Bill Williams' football future is expected to be revealed in a fortnight, as sources in France suggest the superstar will join Tana Umaga at Counties Manukau for this season's NPC rugby competition.

Sunday News can reveal Umaga's deal to play for the Steelers from June is close to being completed, after the province put together an off-field package to set the former All Blacks' captain up for life after rugby.

Williams quit league and the Bulldogs to sign up for Toulon, mainly to be with Umaga – who mentored, coached and even played alongside him in the glamour French team.

Umaga and Williams made a private visit to the touring Kiwis side late last year and SBW told his old team-mates he was homesick in France.

All Blacks coach Graham Henry has been in touch with Williams, who needs to play in the 2011 Super 15 to make it into the black jersey for next year's World Cup.

To get a Super Rugby contract, the 24-year-old needs to play in this season's NPC. At Counties, the former league sensation would be close to his Auckland home and be able to experience New Zealand rugby without the pressures of being in a big team.

He would also be able to make the Chiefs next year, possibly linking with pin-up centre Richard Kahui to form a potential All Blacks mid-field – and certainly a marketing dream for attracting female fans.

French reporters are currently chasing the Williams-Umaga move to Counties story.

Asked about the rumour, Williams' agent Khoder Nasser, who has been in France for a fortnight, told Sunday News yesterday: "I'm back in Australia now. In regards to Sonny, I need two weeks and after that I will probably give an official statement on what he's doing."

Earlier this month, Nasser replied to a request to speak to Williams about his future with an email saying: "I have spoken to Sonny and he does not wish to do any interviews at the moment.

"He wants to concentrate on his rugby."

Yesterday, the Australian Rugby Union declared they had no interest in signing Williams.

"We certainly wouldn't be out there chasing him. He's not on our radar," Wallabies high performance director David Nucifora told the Sun Herald.

Sri Lankan Wins In India

And it was none other than Sri Lankan born Prathima Jayasuriya, a Diploma holder in Home Economics which she followed for two years in Allahabad, India which perhaps was what triggered her career to date. In 1979, Prathima followed a course conducted by International Executive Service Corps in USA in Responsibility and Effective Control in Food & Beverage, Front Office and Housekeeping Departments, after which, she followed a training course in 1983 in Hospitality Management Practices at Ceylon Intercontinental, Colombo conducted by the Divisional Director of Training.

Prathima had her beginnings at hotels in Colombo in the ’70s and overseas stints in Abu Dhabi at the Sheraton, followed by the Inter Continental as the Assistant Housekeeper. She was transferred to Colombo as the Executive Housekeeper and was in full control of the Housekeeping Department at the then Hotel Ceylon Inter Continental. Working under the different foreign general managers, she gained immense work experiences and attended numerous workshops which were held in the region. She remained in this position for 14 years until she was once again transferred to the Bahrain Inter Continental. Her main strengths were in leadership and direction to others and her wealth of knowledge which was why it was always she who was called in for various openings of new hotels in and around the region.

Once again, she was transferred to the Inter Continental Abu Dhabi where she was involved in a major renovation of the hotel and after a further 10 years with the Group decided to join the Leela Kempinski Hotel in Mumbai where she has been working for the past two years. She is the first expatriate Executive Housekeeper and the only Sri Lankan to work at this hotel since its opening 24 years ago. Her experience is sought-after going from her past records of being hired to assist in hotel openings and re-openings from Sydney to Bali, Korea and Singapore.

She was also one of the judges for the Host India Star Vendor Awards organised by H & FS Hospitality and the icing on the cake was when she was awarded The Most Admired Executive Housekeeper of the Year Award at a ceremony which was held at the Golden Awards Ceremony on February 10 at the Taj Lands End Hotel. Prathima has done her motherland proud and has certainly more hats to wear in the days ahead!

Prathima Jayasuriya has a total of over 35 years experience in the hotel industry, of which 28 years have been with the Inter Continental Group in Colombo and other countries. She has a vast knowledge in her field of work as an Executive Housekeeper and has been working overseas for over 14 years.

Charles Henry De Soysa

The commemoration of Charles Henry de Soysa’s birth anniversary falls on March 3. His memory lives on in the hearts and minds of his descendants and many others. They all revere him for his unsurpassed record of philanthropy.

Today we live in a country wrought apart by many man made divisions. Victory at war has not brought us peace. The fruit of the war victory is yet to reach the people and the majority has not yet learned to be magnanimous.

As his great granddaughter, I look back on Charles Henry’s vision which was far beyond his time; with a great deal of pride. It is interesting to note that his largesse to the country was mostly in the specified fields of religion, agriculture, education and health. Living at a time, when both prejudice and bias were the order of the day, he thought far beyond the peripheries of race, caste and religion and helped each and everyone who needed his help.

As far back as his time, he reached out to all communities and religions in his philanthropy which is still unequalled by anyone else. Great Grandpa Charles Henry lived in an era of gracious living, elegance, gentility, peace and contentment. He inherited great wealth, which he worked hard to increase and could have lived in an ivory tower; serene, inviolable and far removed from less fortunate beings and reality.

One wonders what he would have thought of our world today. We live in a world where corruption reigns supreme, amidst constant danger from violence, plunder, rape and fire; a desire for conquest, an urge for conflict, often resulting in the desolation of loss. Peace to us is flimsy and tenuous; hanging with frailty to a crumbling fabric. To us, death, horror, abductions and destruction of the most horrific kind are daily experiences, living as we do, in this turbulent age made so by greed and cruelty to man by man.

A Fairy Tale

My father once wrote that his grandfather’s life read like an incredible fairy tale; yet although he gave lavishly to those who deserved help or requested it, he never sought publicity or fame for his generosity. His example inspired loyalty from those who worked for him which enabled them to contribute meaningfully to their role in his enterprises. In his own life and mode of living, he set incredibly high standards of punctuality, integrity and dedication.

There are many legends related time and time again, about him. Many of them were related to me by my father. I would listen, wide eyed to these tales. One is that ten percent of his vast income was used for contributions to all religions, while the rest went towards development of his empire of interests. Another was that, at the precise time that Great Grandpa Charles Henry was born on March 3, 1836, just before 10 p.m., a cock had crowed which was rare. This was later surmised to mean that a very fortunate person must have been born at that time. Still another legend is that when his father, Jeronis de Soysa, purchased his first estate in Hanguranketha, which he later proceeded to plant with coffee, he had found some buried treasure, which led to the beginning of his wealth. This is said to be only partly true, as apparently, he did find a large receptacle of gold under a massive stone slab there. But Jeronis had insisted on putting it back, and went on to put more soil on the slab and to erect a pillar to support a building which he built above it. He had firmly told his employees that it was inappropriate to take anything which did not belong to him and that bad luck would befall him if he did take it.

Death of C.H. de Soysa

Other legends include one which says that C.H. de Soysa while out riding on his horse one day, had come across a woman in labour, crying out in pain on the road side. He immediately saw to it that she had swift medical aid, and it was this that inspired him to build the De Soysa Maternity Hospital, which has proved a boon to so many women through the years. My favourite story about my revered ancestor, is one I never tired of. This was about the banquet he held in honour of Prince Alfred, the then Prince of Wales, when he visited Ceylon in April, 1870.

Alfred House was specially built just before this visit and The prince and his entourage were served on plates of pure gold with cutlery encrusted with precious stones. It is sad for all of us that what remains of this palatial and historic mansion no longer belongs in the family, and that there are just a few pieces of the crockery and cutlery.

The other interesting legend about him is about his death. When he was ailing with his fatal illness, he had shifted from Alfred House back to De Soysa Walauwa, Moratuwa. One night, he had dreamt that some of the animals he loved, who were at Alfred House were dying. He asked his wife to send someone to Colombo to check on his pets. The story was confirmed that they were indeed very ill and dying. His sorrow knew no bounds and he had told his wife that his end was near; he died soon after that.

It is interesting to note that although he sent all his sons to Cambridge, they lived their lives like Victorian gentlemen and lacked his foresight and business acumen. Perhaps if he had lived longer, this would not have been so. He saw to it though, that his daughters all married professionals — most of his sons in law achieved fame, and reached great heights in their respective professions.

His generosity knew no bounds. He gave 10,000 sterling pounds and 87 acres in Kanatte, to the state for a model farm. His largesse to one and all was wide and varied and reached out to all parts of the country. This includes gifting paddy fields and houses to 100 poverty stricken farmers in Walapane, building several churches and temples, Hindu kovils and Tamil schools in Jaffna, The De Soysa Hospital for Women and hospitals in Lunawa, Marawila and Panadura. The Medical Research Institute, Prince and Princess of Wales Colleges in Moratuwa, all these were built and endowed by him. He did not build the Eye Hospital, but gave a sizable donation to it.

His philanthropy reached outside Sri Lanka too. The Great Ormond Street Hospital for Children in London, Brompton Hospital, Royal Free Hospital, Victoria Chest Hospital, the Hospital for Accidents to Dock Labourers, all benefited through his generosity. My father, while doing an internship at The Great Ormond Street Hospital, was pleasantly surprised to see his grandfather’s name on a plaque, stating his generosity.

Charles Henry’s example is an inspiration to one and all. He was a path finder with a vision far beyond his time; who blended economic progress with human welfare. His desire for economic success went hand in hand with a deep personal concern for everyone he met on his journey through life. The fact that he is still spoken of and revered today, as one of our country’s greatest philanthropists, shows that his spirit does linger on, despite this materialistic and violent age we live in.

How to Fight Back and Win: Common Ground Issues That Must Be Won

Throughout this report, I have presented statistical and fact-based evidence to demonstrate that a strategic attack has been launched against 99% of Americans. Despite the efforts of the mainstream media and most current politicians, awareness of this reality is spreading throughout the United States. A recent Rasmussen poll found that only 21% of Americans think that the government has the consent of the governed. An Opinion Research Corp. survey revealed that 86% believe “the system of government is broken.”

An overwhelming majority of the population has come to the realization that our government doesn’t effectively represent us anymore. It is just a matter of time before people start taking it upon themselves to begin organizing on a mass scale. Our survival instinct will soon overwhelm our conditioned passivity and erupt into a powerful countervailing force. However, the longer we hesitate and delay action, the harder it will be to obtain economic and political justice.

We cannot continue to stand by and watch our nation be raped and pillaged like this. We can no longer remain idle and passive while our families’ futures are destroyed as we are sentenced to a slow death.

It’s time for 99% of Americans to mobilize and aggressively move on common sense political reforms.

We will obviously have many differences on how our country should be run, but we can all come together to dismantle the Economic Elite by making several pivotal political reforms. As long as the game is rigged in favor of the Economic Elite, we will all lose. So let’s find common ground and focus on several obvious battles that we need to win, and can win:

Election Reform

The right of voting for representatives is the primary right by which all other rights are protected. To take away this right is to reduce a man to slavery.
– Thomas Paine, Dissertation on the First Principles of Government

* Electronic Voting: First and foremost, no private corporation should be able to tell us who has won an election without providing an auditable paper trail. Many Democrats felt that Bush stole the 2000 and 2004 elections, and many Republicans felt Obama stole the 2008 election. Of course people are going to feel that elections are stolen when you have a private corporation secretly counting the votes; it is the inevitable result when you can’t verify the election results. In the past few years companies that count the votes have been consolidating, and one company, ES&S, now secretly controls the majority of all our votes. As voting watchdog Brad Friedman stated, “With the ES&S takeover of Diebold/Premier, their nearest competitor, the privately-run election Goliath now has an un-overseeable lock on virtually every election in the United States of America.” It is common sense to say that this is way too much power to be put into one private corporation.

* Campaign Finance: The stunning ruling by the Supreme Court to allow unlimited political spending by the Economic Elite has made a bad situation even worse. We must level the playing field by enacting laws to prevent the overwhelming influence of big money interests in controlling politicians who are forced to pander to them for the ever-increasing need to raise more and more money to have any shot at winning public office. Statistics show how much the Economic Elite already dominate this process: over 90% of the time the candidate who simply spends more money on their campaign wins the election.

* The Two-Party Oligarchy: We must end the two-party system by funding and voting for alternative parties. It is absurd and completely outdated to only have two dominant political parties in a technologically advanced nation of 309 million people. The two-party paradigm is obsolete and creates a system easily manipulated, as the past decade proves with the co-option of the Democratic and Republican parties. We can give our money and support to whomever we like – Libertarians, Tea Party, Progressives, Greens, Independents and the many soon-to-be-created political groups. However, it is pivotal that we immediately cease support for both the Republican and Democratic parties. We understand that there are representatives from both parties who are fighting for our interests, but they are very few and easily marginalized by paid-off party leaders.

* Getting on the Ballot: Republicans and Democrats have created rules to make it increasingly difficult for opposing political parties to even get on the voting ballot. We must make this process easier and invite new parties onto the ticket.

* Debate Commission: The Democratic and Republican control over who is allowed to participate in the nationally televised debates gives the two parties an insurmountable advantage over any other parties. If you are not even allowed to participate in them, you have no shot at winning. Along with this,all candidates should be given a fair share of television coverage.

* Voter Registration: If you are a citizen, you should be automatically registered to vote.

Governmental Policy Formation

* Secrecy, Transparency and Accountability: Government secrecy is at the root of most of our current societal and economic problems. When decisions are made in secrecy, corruption will most often be the result. By throwing light and investigation on the government policy process, we can easily expose the Economic Elite’s agenda and limit their influence. As part of this, all legislation and conference reports must be posted online prior to Congressional debate and vote.

* Lobbying: Along with campaign finance, political lobbying is another way the Economic Elite can easily manipulate our political process financially, in what amounts to legalized bribery. In 2009, a record amount of money was spent lobbying Congress, and now with the new Supreme Court ruling, lobbyists will have even more power to manipulate the political process with what amounts to buying the laws of our nation. Lobbying activities behind closed doors must cease entirely and equal time must be given, transparently, to all the parties directly affected by the law being written.

* Shutting the Revolving Door: No politician should be allowed to profit from government laws or policies which they have written or supported. The practice of leaving a major company to become a politician who then creates and/or supports laws that directly benefit the corporation he or she used to work for, or, conversely, politicians who leave public office to take a high-paying job for a company they have benefited, is a grotesque abuse and manipulation of the democratic process. The revolving door between politics and big business is worse than it has ever been and has corrupted the government like never before.

Information Platforms

* Media Concentration: Having a few large multinational corporations dominating the overwhelming majority of our news and information system will never lead to an informed citizenry. Only ten multinational corporations dominate our mainstream media system. These companies are run by 118 individuals who actively work to propagate Economic Elite rule. The people who run these media companies also sit on other corporate boards that often represent a major conflict of interest. Having only 118 people in ten companies dominating a system that creates public opinion for 309 million people is absurd. We must break up this information cartel and support a more diverse and vibrant independent press that fosters real investigative journalism.

* Net Neutrality: The free and open architecture of the Internet is vital to our success. Without an open Internet our most powerful medium for research and communication, and key organizing tool, will be lost. The Internet must be protected from growing forces that seek to control it by limiting our access to information and our ability to communicate on a mass scale.

Healthcare

* Medical Costs: We have disagreements on how to best provide healthcare, but we all agree that whatever the method, the result needs to be lower costs. We have the most expensive healthcare system in the world and we now pay twice as much as other nations. Other than creating huge salaries for health industry-related executives, there isn’t any reason why we should be forced to pay such outrageous sums of money for second-rate care. No American should die due to lack of money, or have to face bankruptcy in order to get life-sustaining treatments.

* Food and Water Supply: Our food and water supply systems have become a major health hazard. The amount of harmful chemicals found in both our food and water have reached record levels and is causing alarming levels of sickness in a growing number of people.

Real Economic Competition

* Most Americans Believe in Competition: If a person works hard, is productive and good at what they do, most everyone believes that they should make more than a person who sits around looking for handouts. However, just as in sports, to maintain a competitive environment you have to have rules in place that prevent people from having an unfair advantage. For those who believe in competition, in capitalism and free markets, you have to acknowledge that what we have now is not a free market based on fair competition. It is a rigged market, where larger institutions like Goldman Sachs and JP Morgan have an unfair advantage. We cannot allow them to be beyond the law, manipulate the market and then receive taxpayer funds to increase profits and risk-taking while smaller companies, outside of Economic Elite circles, have to play by a much stricter set of rules.

You can’t have free market capitalism when you have government policies favoring companies that have more political clout than others. What we have is socialism for the rich and trickle down economics for the rest of us. We have a market systemically designed to funnel money into the pockets of the richest. If the past few years have proved anything, they have proved that our economy is much more like a pyramid scheme than a free market, where the more money you have, the more money you make. So whatever your economic beliefs and theories might be, let’s all come together to admit that our “free market” is an illusion. We need to make the economic playing field fair so we that can have real competition.

* Redistribution of Wealth: Due to the rigging of our economic and political system, vast sums of wealth have been hoarded by the Economic Elite over the past 40 years. This money must be redistributed to the 99% of Americans who have been robbed and exploited. There will be much heated debate over how this money should be distributed, but we all need to agree that we must first hold the Economic Elite accountable and our wealth must be seized from them.

* Investigations and Prosecutions: The Financial Crisis Inquiry Commission has the power to reveal the inner workings of the financial coup. We must apply intense public pressure and scrutiny to force the Commission into conducting a real investigation. Another urgent priority needs to be a much wider-ranging look at war profiteering. There has been some investigation, but not nearly enough and hardly any prosecution. These are just two of the many investigations that need to be launched. As long as we keep letting the Economic Elite get away with outright theft in broad daylight, we will never be able to restore a nation of law.

There are obviously other vital issues that need to be addressed, but these are the core common-ground issues that we must urgently rally around and support. Unless we organize and take decisive action on all these issues, we will all suffer the consequences of our collective inaction. Any politician who does not urgently move on these issues must be voted out of office and replaced by people who will aggressively fight on these fronts.

These are the core issues that keep the Economic Elite in power. As famed military strategist Carl von Clauswitz wrote in his study “On War,” it is pivotal to strike at this core structure, at “the hub of all power and movement, on which everything depends.”

To those Americans who feel powerless to change things, I say that your feelings are only a result of your induced delusion. You have become so propagandized that you do not even understand the significant position that you are in. We are not peasants trapped in a Third World existence. We are still a mass of people who have the power to change the course of history. The Economic Elite realize this, which is why they are attacking us with an increased intensity.

Why We Must Take Mass Organized Action Now:
The Devastation Ahead

Market Watch recently ran an article entitled, “Death of American Capitalism: The 10 final scenes.” The article references Charlie Munger, Warren Buffett’s long-time investment partner, stating: “Munger is warning us ‘It’s Over’ for America. Yes, ‘o-v-e-r,’ America’s in decline, at the end-of-days, coming to ‘financial ruin,’ says Munger.”

As a result of the Economic Elite’s attack on us, the inequality of wealth between the economic top one percent and the remaining 99% of the population is the highest it has ever been in our nation’s history. The Robber Barons of the Gilded Age have now been overtaken as America’s most depraved and despotic class.

As this attack continues, social safety nets and important public functions that are already reaching a breaking point will collapse under the weight of prolonged decline. With the national deficit now at an all-time high, economists are expecting major cutbacks in vital government programs and tax increases “that aren’t even imaginable.” President Obama has recently put together a “Deficit Commission” and is prepared to make “painful choices.” Many state economies are already running high deficits and preparing fordeep cuts in Medicaid and retirement pensions. Major cuts in Social Security payments are also a real possibility.

On top of the 160 banks that have already failed in the past year, the Federal Deposit Insurance Corporation (FDIC) has listed another 702 banks as being in danger of failing. These banks “collectively hold more than $400 billion in assets” and the FDIC is already operating at “a deficit of nearly $21 billion as of Dec. 31, or more than double the previous quarter.”

With 30 million Americans now unemployed and underemployed, over the next few months five million people will lose the unemployment benefits which they have been surviving off of. Unemployment benefits in 27 states have already gone into the red. In total 40 state programs are expected to go broke. Even the most optimistic economists believe high unemployment rates will continue for the foreseeable future.

Millions more will be added to the five million families who have already been kicked out of their homes, as the number of foreclosures is expected to reach13 million within the next few years. Food and homeless shelters are already overwhelmed, and there will be millions more in need of these life-sustaining services. 50 million Americans are currently in need of food stamps for survival and approximately 20,000 new people are added to this total every day.

Despite all the healthcare reform talk, the bill still being discussed will do littleto reduce costs and extend coverage to those who urgently need it, as insurance rates continue to rise. The number of Americans without health insurance continues to skyrocket to now well over 50 million, with 45,000 preventable US citizen deaths occurring per year. Due to economic hardship, the number of people suffering from psychological depression has hit an all-time high, as suicide rates keep rising.

With a prison population of 2.3 million people, we now have more people incarcerated than any other nation in the world. Our per capita rate of 700 people imprisoned per 100,000 citizens is higher than the darkest days of the Soviet Union. On top of this, the prison industry is expecting major growth over the next few years, as a “new prison opens every week somewhere in America” and Obama commits more tax dollars for the federal Bureau of Prisons.

All told, the death and destruction wrought by this economic crisis is equivalent to a 9/11 attack every single week! And the attacks continue unabated, with no significant measures taken to defend against them and hold those responsible accountable.

With almost 200 million Americans now living paycheck to paycheck, and over 50 million already living in poverty, people are quickly running out of options. The clock is ticking loudly for them, and time delayed is time closer to death.

At the same time, Americans are arming themselves at an alarming rate. The demand for guns and ammunition has hit a record high, and the gun industry cannot produce enough bullets to keep up with orders. In the past year, 100 new armed militia groups have been formed, as militia members havedoubled in numbers. Federal authorities are gravely concerned about the “uptick in militia activities.” One federal authority recently said, “All it’s lacking is a spark. I think it’s only a matter of time before you see threats and violence.”

The recent suicide-bomber who hit the IRS building in Texas will be the first of many violent acts if we don’t demonstrate that justice and the rule of law can be restored in a non-violent manner. Suicide-bombers have already reeked havoc in many countries across the globe. As the last act of revenge and desperation, people throughout the world have increasingly resorted to this method of violence and terror.

Fate has placed us in our nation’s most pivotal moment. If we do not take it upon ourselves to lead in decisive non-violent mass action, our country will soon be torn apart by violence and destruction.

In our nation’s history, the stakes have never been higher. It is vital that we recognize the urgent gravity of the situation. What happens over the next few years will determine the fate of our very way of life, of our families’ very existence. We have been attacked, and we are now at war. This is the unfortunate reality of our current crisis.

Our enemy is extraordinarily powerful. However, we are 99% of the US population, and they are only 1%. If we fight, we win!

TOP US INCOMES OVER THE CENTURY

Noted Marxist economists Gerard Dumenil and Dominique Levy have studied the changing patterns of income and wealth under neoliberalism in great detail . [1] Drawing on the extensive research on income and wealth inequality around the world by Emmanuel Saez [2] and Thomas Piketty [3], Dumenil and Levy clearly show: (a) that the neoliberal regime was preceded by falling income shares of the top income groups in the US for an extended period of time, (b) that the so-called neoliberal turn has clearly reversed the trend towards progressive redistribution of income of the post-War years, (c) that the income shares of the top income groups have climbed back up to pre-War levels, and even surpassed them, and (d) that ownership of the productive resources of society remains as skewed as before making claims of the development of middle-class capitalism in the U.S. totally baseless.

Below, we reproduce some of the striking trends that Dumenil and Levy’s presented in their article in the New Left Review (Volume 30, November-December, 2004) and also extend the analysis to the year 2007 (by using an extended data set that Saez and Piketty has made publicly available). [4] The picture that emerges from such an analysis clearly show that the trends identified by Dumenil and Levy (2004) have continued operating unhindered right until the end of 2007, i.e., right till the onset of the Great Contraction of 2008. Did the current crisis have anything to do with this worsening distribution of income in society? Will the Great Contraction turn into the Great Depression of the 21st century? Will the current crisis unleash progressive social forces that will reverse the horrific neoliberal income trends? Will the working class regain its social and political strength? These are important and interesting questions, but I do not wish to address them in this article.

Let us instead study the evolution of income distribution in some detail. Chart 1 presents data relating to the shares of total income going to various “top” income earning groups in the U.S. for the period 1917-2007. Even a cursory glance reveals the most striking feature shared by all the graphs, their U-like shapes. The U-shape implies the following: the share of total income garnered by the “top” group was historically high in the 1930s (the pinnacle of the original liberal era of capitalism); the share steadily declined after the second World War, through the “Golden Age of Capitalism” (because of the struggle of the working class); the trend reversed course around the late 1970s (with the onset of the neoliberal counter-revolution), and steadily gained lost ground in the next three decades. This general feature is true of all the graphs and is the remarkable feature about income distribution that emerges from all serious studies.

The first graph on the left-top of Chart 1 displays the share of income going to the top 10 per cent of income earners in the U.S. Towards the end of the 1920s, the share of the top 10 percent had nudged 50 per cent (from below); it recovered that level by 2006. The top 10 per cent of the population takes half of all the income created during any year; isn’t that remarkable? Well, that is (neo) liberal capitalism.

The second graph of Chart 1, the one on the right-top, displays the share of income going to the group of income earners running from the top 5 to the top 1 per cent of the population. Much like the top 10 percent, their income fell through the Golden Age and then started the ascent in the neoliberal era, without as yet reaching the historically high levels in the late 1920s.

CHART 1

The third graph at the bottom-left of Chart 1 displays the share of income going to the top 1 percent of the U.S. population. Quite astonishingly, they get more than a fifth of all the income generated in society now: just a nice throwback to the glorious late-1920s, they would point out. Thus, in 1928, the top 1 per cent of the income earners in the U.S. got about 24 per cent of the total income; in 2006, the top 1 per cent of the population was once again receiving about the same share: 24 per cent of the total income generated in the economy.

What about the scenario at the very top, the top of the top so to say? The fourth graph in Chart 1, the one at the bottom-right, provides some clues. As can be seen, the share of income garnered by the top 0.01 per cent of the income earners was about 5 per cent of the total income during the 1920s; that figure had already been reached by the end of the 1990s. The dip in the share at the end of the 2000 is a reflection of the bursting of the dot-com bubble and the ensuing short recession in the early parts of 2001. They got their act together pretty quickly, and the share of total income going to this group rapidly climbed up in the “boom” of the 2000s, surpassing the figure for the heyday of liberal capitalism. In 1928, the top 0.01 per cent of the income earners in the U.S. garnered about 5 per cent of the total income; by 2006 their share of total income was back at that level: 6.04 per cent. Neoliberalism triumphs liberalism!

What do we take away from these striking graphs? I would suggest the following three. First, we can safely make the claim that income and wealth are awfully concentrated in capitalism; a capitalism that caters to the middle class is a myth. To understand the import of this simple proposition recall that the mainstream media never tires of portraying the U.S. economy as a haven for the middle class, where anyone, even Joe the Plumber, can easily climb up the economic ladder with grit, determination and hard work; or, so the story goes. Aggregate trends in the distribution of income over the last three decades that have been presented in Chart 1 clearly makes nonsense of this oft-repeated fairy tale.

Second, the concentration of wealth and income under capitalism is nothing new; it is rather the normal state of affairs in capitalism, as the data for the last 90 years show. When one takes a long and historical view, the so-called Golden Age of capitalism, based on the compromise between capital and labour, and buttressed by re-distributive policies of a welfare state, seems to be the exception rather than the rule. The workings of welfare state capitalism quickly led to the creation of a situation, endogenous it must be remembered, that militated against the core principles and institutional features of welfare state capitalism.

And third, that the concentration of income, wealth and power keeps increasing as we move up the income pyramid, so that the buck really stops at the top. What about the very top of the top of the top? Well, let us see.

TOP OF THE TOP

Tucked away in an obscure corner of the business section of the New York Times on February 18, 2010 is a small article with some very striking facts relating to the important issues of income, class and power in the U.S. that we have been discussing. [5] The article discusses interesting facts relating to income and taxation of the top 400 income earning families in the U.S., the families sitting on the very top of the income and wealth pyramid in the U.S. Data about the earnings of the top 400 families, based on tax return information, was first made public by the Clinton Administration. Much along expected lines, the Bush Administration cut off access to this report, the so-called “top 400 report”; the Obama Administration has again made it public. [6]

Writing on Tax.com, a Web site run by Tax Analysts, David Cay Johnston provides a wealth of information about the top 400 families that might be worth looking at carefully; the NY Times report drew on Johnston’s article, and we will also use data that he has made available on-line along with his article. [7]

Here are some facts to get started with. Average annual income of the top 400 income-earning families was $131.1 million in 2001; it had more than doubled within the next 6 years, reaching $345 million in 2007. That was a whopping 17.5 per cent annual compound rate of growth over that 6 year period. In 2007, the total income of the top 400 families was $138 billion, rising from $105.3 billion a year ago. Adjusted for inflation, the top 400 families witnessed a 27 per cent increase in their income between 2006 and 2007; the bottom 90 per cent of U.S. families saw their income rise by a mere 3 per cent during the same period. If we go back a little further we see the divergence taking shape more clearly. Between 1992 and 2007, the real income of the bottom 90 per cent of the U.S. families increased by 13 per cent; during the same period, the real incomes of the top 400 increased by 399 per cent.

To put these numbers into some perspective, let us compare the incomes of the top 400 U.S. families with some figures for the whole U.S. economy. Median real income, i.e., income adjusted for inflation, for U.S. families in 2007 was $52,163. According to the U.S. Census Bureau, 37.3 million persons were below the poverty line in 2007 (i.e., about 12.7 per cent of the population was deemed “poor”), where the poverty line was defined (in 2008) as follows: it was $22,025 for a family of four; for a family of three, it was $17,163; for a family of two, $14,051; and for unrelated individuals, $10,991. While the incomes of the top 400 families increased to astronomical amounts, there were 45.7 million people without health insurance coverage in the U.S. in 2007. [8]

To make the comparison a little more systematic and to get an idea of the true nature of the income generation process under neoliberalism, we have summarized some data in Chart 2. [9] The graph on the top-left in Chart 2 plots the inflation adjusted average income of the top 400 U.S. income-earning families from 1992 to 2007. Average real income increased from $71.6 million in 1992 to $356.7 million in 2007, a 399 per cent increase over the 15 year period, which translates into a real income increase of $285.2 million.

The graph on the top-right of Chart 2 plots the ratio of the average income of the top 400 families and the average income of the bottom 90 percent of U.S. families (arranged in terms of household income). In 1992, the ratio was 2419; in 2007, it had become 10634. Think about these numbers again. In 1992, the average income of the top 400 U.S. families was 2419 times the average income of the bottom 90 per cent; in the next 15 years, that ratio had seen a more than 4 fold increase. That is neoliberalism in a nutshell.

The next graph, the one on the bottom-left of Chart 2 plots the share of total income (what the IRS calls the adjusted gross income) that went to the top 400 families. In 1992, the figure was 0.52 per cent; by 2007, it had increased to 1.59 per cent. Now think about that again. During the period under consideration, the U.S. economy had about 105 million households; thus in 2007, the top 400 out of these 105 million households were getting 1.59 dollars for every 100 dollars generated in the economy. (If you divide 400 by 105 million, you get a 0.0000038!)

The last graph, the one on the bottom-right of Chart 2, shows the policy response of the U.S. governments to this rising inequality. What should the state do when faced with this enormous concentration of wealth at the very top of the income pyramid? Why, aid that process. Effective tax rates for the top 400 families saw a remarkable secular decline over this 15 year period, starting at 26 per cent in 1992 and falling to about 17 per cent by 2007. So, as the incomes started flowing up, tax rates started going down. Result: disposable real income, i.e., after-tax real income, of the top 400 U.S. families shot through the roof.

CHART 2

EVOLUTION OF WAGE INCOME

How did this huge income inequality get built up? The simple answer: neoliberal counter-revolution. The whole institutional set-up and policy framework that characterized the so-called Golden Age of capitalism was the result of the class struggle of labour against capital; the power of the working class had managed to institute policies that resulted in the re-distribution of income away from capital and towards labour. The neoliberal counter-revolution reversed this historical trend and got the re-distribution to start working the other way round: move income away from labour and towards property owners and the top wage-earners (managers, technocrats, CEOs, etc.). Probably nothing demonstrates this better than the evolution of wage income, i.e., the income of the working people in the U.S. over the last few decades. Let us take a look.

Chart 3 presents some relevant data on wage income. The first graph in Chart 3, the top-left graph, plots the time series of the average annual real wage in the US economy for the period 1970 to 2005. Average annual real wage is computed from the National Income and Product Account data as the ratio of total wages and salaries and the number of full-time employees; to take account of inflation over the years, the wage has been expressed in 2006 prices. [12] The average annual wage, as shown in the graph, increased from about $38,000 (2006 $) to $47,670 (2006 $). So, did workers really increase their average incomes during the last three decades? The answer is no.

The picture presented in the graph is misleading. The average annual wage in the graph has been computed by including the wages and salaries not only of production workers but also of supervisory workers and managers and CEOs. The “wages and salaries” that accrue to the latter category of “workers” cannot be considered wages in the strict sense of the word; this income comes out of the economic surplus created by production workers. Thus, from a societal viewpoint, income of managers, bureaucrats, CEOs and other such employees are a deduction out of the the total social surplus. Hence, to get a better and more accurate picture of the evolution of what would normally be called wage income, we need to look at the wages of production workers. [13]

The second graph in Chart 3, the top-right graph, plots the time series of weekly real wages of production and non-supervisory workers in the nonfarm business sector of the US economy for the period 1964 to 2009. This data - relating to the production workers in mining, logging and manufacturing, construction workers in construction and non-supervisory workers in the service sector - is taken from the website of the U.S. Bureau of Labour Statistics and is expressed in 1982 prices to remove the effect of price increases (i.e., has been deflated by the consumer price index for all urban consumers with a base year of 1982). Here, we see a remarkable trend, a trend that really explains the secret of neoliberalism: real weekly wages of production and non-supervisory workers fell between 1964 and 2009. True, there was a slight recovery starting from the mid-1990s, but that has not managed to take the real wage back to the level of 1964, let alone the higher level of the early 1970s. Real weekly wages in 1964 was about $314 (1982 $); in 2009, it was about $287 (1982 $). Moreover it is clear that the recovery that had started in the mid-1990s will be pretty difficult to sustain in the midst of the deepest recession since the Great Depression.

Thus, the upward movement of average annual real wages that is depicted in the first graph of Chart 3 is really driven by increases of the “wages and salaries” of non-production and supervisory “workers”, the fraction of the working or middle class that derives its income as a deduction from the surplus value generated by production workers. This would imply a growing inequality even among the ranks of the wage earners.

And that is precisely what is depicted in the third and fourth graph in Chart 3, the bottom-left and bottom-right graphs. Let us look at them one at a time. The bottom-left graph plots the ratio of two quantities: (a) the average annual real pay of the top 100 CEOs in the Forbes survey of the top 800 CEOs (in terms of pay), and (b) the average annual real wage in the U.S. economy (the data that has been plotted in the top-left graph in Chart 3). [14] In 1970, the ratio was about 39; in 2005, it was about 768, coming by way of 1043 in 1999. Thus, in 1970, the average income of the top 100 CEOs was only about 39 times the average annual wage in the economy; in 1999, the average annual income of the top 100 CEOs had become 1043 times the average annual wage in the economy!

The bottom-right graph plots the average real pay of the rank 10 CEO (in 2006$), i.e., the pay of the 10th CEO from the top when all CEOs are ranked according to their incomes. The real pay of the rank 10 CEO in 1970 was about $1.87 million (2006$); in 2005, the corresponding figure was $73.24 million (2006$), having climbed down from an astronomical $109 million (2006$) in 1999. That is more than a 50 fold increase in 19 years!

CHART 3

Thus, neoliberalism not only increased the share of property income (in aggregate national income) but also increased the share of income that accrues to the hangers-on of capitalism, the managers, the supervisors, the technocrats, the bureaucrats, in short the class of people who oversee and facilitate the extraction of surplus value from the working class, and contribute to the reproduction of capitalist relations of production.

How did this impact on the working class and the macro economy? Since real wages were stagnant or even falling, the working class that had become used to increasing consumption levels over previous decades had to be fed with an ever exploding mountain of debt. First the dot-com bubble and then the housing bubble partly facilitated this process. The growing debt kept consumption levels of the working class growing even, but only at the cost of increasing the financial fragility of the macro economy. When the housing bubble burst towards the end of 2006, that started off the financial crisis.

Big Wednesday gets Donald Trump treatment

Big Wednesday is about to get bigger – well, with bigger hair, at any rate.

Donald Trump, the super-rich businessman and star of the original The Apprentice, famed as much for his bizarre bouffy haircut as his flamboyant displays of wealth, is putting his name to a one-off NZ Lotteries promotion to be launched on Thursday.

The winner gets to take three friends to New York and experience life "Trump-style" for a week – flash flights, flash digs (the brand new Trump Soho NYC hotel), $US10,000 ($14,500) spending money each, chauffeur-driven limo, personal shopper, hairstylist and photographer, and $100,000 for the winner on their return. Oh, and – subject to availability – a meeting with the man under that extraordinary hair himself.

Trump's Kiwi gig won't see him actually set foot in the country, but if he eventually does pay a visit, would he catch up with Terry Serepisos (the Wellington property developer taking the star role in the local version of The Apprentice)?

"Would I what?"

Trump clears his throat.

"Ahh..." There is a long pause. He can be heard conferring with Rona, his executive assistant.

"OK. I just... I couldn't hear you. But now I have. Umm, yes he's the Donald Trump of New Zealand. He's on The Apprentice and I hear he's doing a very nice job."

Trump won't divulge how much the New Zealand Lotteries Commission paid him. It doesn't matter, he says. "I gave it all to charity anyway." To Aids research, he says, and cancer.When he's not saying "you're fired" to over-confident would-be executives on the reality TV show, Trump still presides over a complex web of business interests, including hotels, casinos and property developments, some of which have been hit hard by the world financial crisis. So why did he want to put his name to a Down Under lottery promotion?

"It's something I'm doing because I really like New Zealand. I've been there a number of times. I think it's a great place. I have a lot of friends that live there."

For its part, the Lotteries Commission says the partnership was a natural fit.

"Big Wednesday stands for the ultimate lifestyle, so we searched the world to find a suitable personality to help make the luxury life real for four lucky Kiwis," says chief executive Todd McLeay. "As we would expect, the Trump Organisation and Mr Trump have been great to deal with and have demonstrated the utmost professionalism and enthusiasm to help make this happen."