Tuesday, August 12, 2014

Other America. Still.

Been following the Ferguson, MO shooting and aftermath (on Twitter, since it seems below the radar of cable news).  The whole situation is unimaginable for those of us in the quiet, homogenous naivety of Utah and the west.  The clip that has stuck with me from weekend coverage most is the police officer on camera, heard clearly, speaking to protestors, growling "Bring it on, you fucking animals."

A lot hasn't changed.  MLKjr, 1967, The Other America:

Let me say as I've always said, and I will always continue to say, that riots are socially destructive and self-defeating. I'm still convinced that nonviolence is the most potent weapon available to oppressed people in their struggle for freedom and justice. I feel that violence will only create more social problems than they will solve. That in a real sense it is impracticable for the Negro to even think of mounting a violent revolution in the United States. So I will continue to condemn riots, and continue to say to my brothers and sisters that this is not the way. And continue to affirm that there is another way.

But at the same time, it is as necessary for me to be as vigorous in condemning the conditions which cause persons to feel that they must engage in riotous activities as it is for me to condemn riots. I think America must see that riots do not develop out of thin air. Certain conditions continue to exist in our society which must be condemned as vigorously as we condemn riots. But in the final analysis, a riot is the language of the unheard. And what is it that America has failed to hear?

Vox has a collection of Twitter coverage if you're just catching up.

Wednesday, June 4, 2014

WWII policy remade the economy

The hidden history of prosperity:

The war was, first, a massive macroeconomic stimulus. Unemployment was still more than 14 percent in 1940. Thanks to more than $100 billion of war-production orders in the first six months of 1942—more than the entire gross domestic product of 1939—joblessness vanished. The war also recapitalized industry that had languished during the Great Depression, and it gave government a central place in developing science and technology. The war was not just a huge jobs program but an unprecedented job-training program. President Franklin Roosevelt also chose to use war production to increase the power of unions as full social partners. A company that wanted defense contracts had to recognize its unions. So the war transformed labor markets.

Second, the war altered incomes. Steeply progressive income taxes with marginal rates as high as 94 percent, limits on executive compensation, and strict controls on the bond market led to a compression of the income distribution that lasted more than a quarter-century. The need to finance the war led to emergency measures pegging the rate on government bonds at a maximum of 2.5 percent. The Federal Reserve simply bought whatever quantity of bonds the war effort required. This meant that a major category of financial industry profit—buying, selling, and speculating in Treasury bonds—was eliminated, at the expense of the rentier class. Economists even have a name for this process: repression of finance. We could use some of that today.