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Corporate America Fleeced Us Again!

29 Mar

The coronavirus bill is an orgy of corporate welfare that rivals the 2008 bailout.
BY Moe Tkacik

Boeing’s CEO of Commercial Airplanes Stanley Deal speaks at the annual Aviation Summit in Washington, D.C., on March 5. Boeing, its business floundering after a a series of debacles, was quick to ask for a coronavirus bailout–before the pandemic affected it at all. It’s an audacious power grab by the same bunch of monstrous grifters who’ve spent the past 20 years reverse mortgaging the American economy to finance Third World dictator lifestyles.

The fundamental spirit of the CARES Act, the diabolical plutocrat bailout the Senate just passed, is summed up by the fact that it was inspired by the 60 billion dollar demand of a company whose business had not yet even been impacted by coronavirus.
You read that right. When Boeing made its humble plea for $60 billion in coronavirus relief funds on Saint Patrick’s Day 2020, leading the pack of corporate supplicants, all its assembly lines unrelated to its notorious self-hijacking 737 Max jets, whose production halted in January, were still operating at normal capacity. They were still open in spite of the fact that Seattle public schools had been closed for six days at that point, in spite of the fact that every restaurant and bar in the state had been closed the weekend earlier, and in spite of the fact that the disease was quickly spreading among the factory workers, one of whom, a 27-year veteran of the company, would die within days.
And they were still running in spite of the fact that demand for Boeing planes, thanks to the 737 crashes, is at an all-time low, with the company in January, a month in which its archrival Airbus sold 274 planes, reporting its first month in history without a single order. Which is to say, I can think of a lot of reasons Boeing might need a bailout. In December a space capsule the company designed to transport astronauts to the International Space Station failed to launch into orbit during a test mission because its timer was eleven hours off, a potentially half billion dollar mistake that may cost the company billions more in lost NASA business to Elon Musk’s SpaceX. In January, the company revealed that its attempts to load a software fix onto the 737s was repeatedly crashing the planes’ computers. Not long after that, the company finally admitted that the three-year-delay on its KC-46 aerial refueling tanker was going to be, at minimum, another three years. And then of course there’s the $70 billion the company has squandered over the past decade on stock buybacks and dividend checks.
What all of these problems have in common is that none of them has shit to do with coronavirus. And neither does the $500 billion corporate bailout the Senate appended to an otherwise vitally important relief package. It’s an audacious power grab by the same bunch of monstrous grifters who’ve spent the past 20 years reverse mortgaging the American economy to finance Third World dictator lifestyles. It’s just like the secret multitrillion dollar scramble to throw money at insolvent banks in 2008, only a hundred times more craven, and even though the American public is also considerably less naive than we were when we assumed programs with words like “home affordable relief” might actually, you know, offer some relief to homeowners hit with extortionate mortgage payments, it doesn’t matter. We don’t matter. We don’t matter because we don’t have lobbyists.

 

 

 

 

The airlines have faced an avalanche of criticism for their bailout ask for good reason: They took the spoils of a decade spent gouging passengers with fees for baggage and chips and wifi and ticket changes and four extra inches of legroom, and spent 96% of them on stock buybacks. But the strings attached to the airlines’ bailout are quite possibly the sole redeeming lines in the slush fund section of the bill. Thanks no doubt in large part to lobbying by the Association of Flight Attendants-CWA under the leadership of Sara Nelson, the airline bailout is structured to avoid layoffs, including those of contract employees, who are targeted in a special $3 billion loan program. In exchange for cash, airlines must keep their staff and pay full salaries through September 30.
And in their defense, the airlines can at least claim to have been legitimately done in by the coronavirus. Can the same really be said for the cargo carriers? Just last week, an air cargo travel consultant told Wired the cargo carriers were charging twice the typical per-kilogram fee to transport cargo from China to Chicago—and yet there they are in Section 4003, earmarked for a dedicated loan guarantee program totaling $4 billion.
And what about the provision lowering capital reserves for small banks, who say loosened reserve ratios will free up capital for emergency lending to small businesses (because that’s what they always say) but will invariably end up plowing the funds into real estate speculation (because that’s what they always do, and, also, the CARES Act just made real estate speculation $170 billion more profitable.)
You might have heard about the special provisions for abstinence-only education and for-profit colleges and the Kennedy Center. But in the end it’s probably the general free money programs that haven’t been earmarked yet that threaten to inflict the gravest injustices upon our already grievously unbalanced economy. There are the myriad special crisis era lending programs the Fed has resurrected to halt the stock market selloff, as well as Mnuchin’s $350 billion slush fund to the special Small Business Administration program, which forgives the loans of companies that retain or re-hire employees. Under the CARES Act, any individual Marriott or Hilton or Cheesecake Factory qualifies as a “small business” if it employs fewer than 500 people; the applications otherwise involve “very few borrower requirements,” according to an overview of the legislation prepared by law firm Steptoe & Johnson. But the federal government has demonstrated time and again, most recently with its pathetic student loan forgiveness programs and before that during the foreclosure crisis, that it has no real appetite or aptitude for processing large amounts of loan paperwork on behalf of hundreds of thousands of new applicants, and literally no one thinks the woefully neglected Small Business Administration is remotely up to the task. And so we can only assume the loans will go to he who hires the best lobbyists. Do not be surprised over the coming weeks when genuine small businesses begin getting swallowed by such ersatz small businesses, flush with private equity dry powder and lobbyist-secured government cheddar.
And don’t be surprised when in a few years someone reveals, as TARP watchdog Neil Barofsky did of then-Treasury Secretary Tim Geithnner’s comments about using the fiction of foreclosure relief programs as a ploy to “foam the runway” for the banks, that another corporate welfare orgy was the plan all along.

 

A Morally Corrupted Capitalist System holds no future for Workers – Political Revolution Does! New & Used Left-Wing & Progressive Books, http://www.facebook.com/Fahrenheit451bookstore/

 

 

 

US capitalism’s response to the pandemic: Nothing for health care, unlimited cash for Wall Street!

16 Mar

 

Over the weekend the coronavirus pandemic continued to rise throughout the world’s population, with the number of cases in Italy and the United States doubling and infections reported in 146 countries.

On Sunday, Italy announced a staggering 3,590 new cases, and 368 new deaths, while the United States added 834 new cases and 12 new deaths. Worldwide, the number of cases hit 170,000, with more than 6,500 deaths.

Over the weekend, Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, warned that “it’s possible” that millions of people in the United States may die from the pandemic.

A disaster of unprecedented dimensions is unfolding in the US and all over the world. Precious time and lives are being squandered by the failure of governments to respond to the crisis.

Throughout Europe and America, the message is the same: the ill are being turned away from hospitals. Testing for the virus—the only way to seriously contain the pandemic—is unavailable for most people who request it, with less than 15,000 tests performed in the United States.

Countless viral social media statements from around the country document the Catch-22 of doctors and patients pleading for coronavirus testing, only to be told that they cannot be tested because they have not come into contact with anyone who had tested positive.

Beyond worrying about being infected with the deadly disease, millions of families in the US are worried over how they will take care of their children, with schools closing throughout much of the country, and how they will feed their families with store shelves emptied.

As the pandemic mounted, two developments over the weekend made clear the real priority of the capitalist class in responding to the crisis.

On Friday, House Speaker Nancy Pelosi falsely claimed that the House of Representatives had voted for legislation that “secures… two weeks of paid sick leave and paid medical leave for those affected by the virus.”

In fact, the paltry bill does nothing for 80 percent of workers, exempting both large employers and small companies that claim hardship. Members of Congress argued that allowing paid sick leave would encourage sick employees to stay home—which is precisely the purpose of the program. As a result, workers will be forced to choose between going to work sick and endangering their coworkers or forcing their families to go hungry.

Nothing will be done for workers threatened by the deadly pandemic. But when it comes to bailing out the banks and propping up share values, there is no limit to the resources the government is willing to mobilize.

On Sunday US President Donald Trump announced that the Federal Reserve had just slashed interest rates to zero percent, in yet another hand out to the financial oligarchy. “I would think there are a lot of people on Wall Street that are very happy, and I’m very happy,” Trump beamed.

From the beginning, the Trump administration, speaking for the entire US political establishment, made clear that it sees the pandemic not as a public health crisis, but as a threat to the wealth of the financial oligarchy.

To that end, the White House and Federal Reserve have made effectively unlimited funds available to Wall Street, while doing nothing to actually combat the disease or provide resources for workers who fall ill.

In addition to slashing interest rates a full percentage point—faster than it had ever cut rates before—the Federal Reserve also announced that it would restart its quantitative easing program, pumping an additional half-a-trillion dollars into the financial markets.

 

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The move followed an 0.5 percentage point rate cut earlier in the month, which was followed just 10 days later by an additional infusion of $1.5 trillion into the financial markets on Thursday—a figure two times higher than the original bank bailout implemented in 2008.

The message to Wall Street was clear: The White House and Federal Reserve will do whatever is necessary to prop up stock values. No matter the cost, investors will be made whole.

As usual, Trump expressed no sympathy for the 700 people who lost their lives worldwide on Sunday. He did not express sympathy for those suffering from the disease or those who have lost loved ones, and told people desperately seeking to find supplies on picked-over store shelves to “relax.”

As the World Socialist Web Site argued Friday, the ruling classes are carrying out a policy of “malign neglect” in response to the pandemic:

On the surface, this response appears to be chaotic, disorganized, and improvised. All of this is true. But out of this chaos a definite policy emerges, which can be defined as malign neglect. That is, governments are making a deliberate decision to minimize their response, to adopt an attitude of indifference to the spread of the virus.

Over the weekend, the British government made this unspoken policy explicit, with Sir Patrick Vallance, the Johnson government’s chief scientific adviser, declaring: ‘It’s not possible to stop everyone getting it, and it’s also not desirable.”

This is in line with a growing number of statements in the press advocating the infection of more people, with British Telegraph columnist Jeremy Warner declaring that “COVID-19 might even prove mildly beneficial in the long term by disproportionately culling elderly dependents.”

On Sunday, William Hanage, a Harvard epidemiology professor, excoriated the British government’s policy, commenting: “Your house is on fire, and the people whom you have trusted with your care are not trying to put it out.”

But when it comes to the financial crisis sparked by the pandemic, the government is carrying out an unprecedented and massive intervention, putting all of society’s wealth at the disposal of the capitalist class.

Sunday’s developments make clear the urgent need for workers to intervene politically in the present crisis. The working class must demand that the trillions of dollars being funneled into shoring up the stock markets and banks be used to fund a massive expansion of testing and an unprecedented investment in public health. The necessary resources must be urgently allocated to building hospitals, buying respirators and ensuring medical workers and their support staff are provided with a safe environment.

The pandemic is exposing capitalism in the eyes of millions of workers and young people as a system whose only aim is to enrich the capitalist minority at the expense of the overwhelming majority.

Yet in Sunday’s Democratic presidential debate between Bernie Sanders and Joe Biden, which was dominated by discussion of the pandemic, neither man said the two words critical to understand the disease and its impact: “capitalism” and “socialism.”

The fact is that the demand for a serious effort to fight the pandemic is inseparable from the struggle to end the capitalist system and reorganize society on a socialist basis.

Andre Damon

Published by the International Committee of the Fourth International; World Socialist Web Site; WSWS.ORG

 

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A Corrupted Capitalist System holds no future for the Working Masses – Political Revolution Does! New & Used Left-Wing & Progressive Books, www.facebook.com/Fahrenheit451bookstore/

Corona-virus Shows Capitalism Is a Razor’s Edge!

13 Mar

THURSDAY, MAR 12, 2020, 10:20 AM BY SARAH LAZARE Sarah Lazare is web editor at In These Times.
She comes from a background in independent journalism for publications including The Intercept, The Nation, and Tom Dispatch. She tweets at @sarahlazare.

 

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My best friend works as a standardized patient, which means she is a practice patient for medical schools to train and test students. One day she’ll play an older woman with a pulmonary embolism, her face stricken with worry, the next someone with depression, limp and listless. Each workday medical students fumble at her bedside, and at her body, some nervous and gentle, others over-confident and brusque, as she guides them through learning their craft. It’s not bad for wage work, with each gig paying somewhere between $16 and $25 an hour, although this doesn’t always cover the time spent learning the part, let alone biking miles through Chicago’s potholed streets so she can make it from one 3-hour gig to the next.

Even though it’s not bad, she’s living—like most people in this country—on a razor’s edge. One of her gigs this week was cancelled because of the COVID 19 outbreak, which is now officially a global pandemic. Her employer paid her for the job, because she got less than 24-hours notice, but she will receive no pay for the other upcoming events this and next week that have been cancelled. One of her other gigs (all her jobs are non-union) has a two-week cancellation policy, a source of comfort to her. But what if that workplace gets shut down for more than two weeks? What if all of her jobs are shut down for six? If her income dries up, there’s no designated person to swoop in and help her, no bailout or government agency that has her number and will make sure she’s okay. She’s about two months out from not being able to pay rent or buy food.

My friend’s situation is unremarkable. She’s slightly better off than many Americans, 40% of whom don’t have enough money in the bank to weather a $400 emergency. She’s got $1,960 in her checking account, and $2,010 in her savings—although the latter will all go to her taxes, which are high because she’s classified as an independent contractor at some of her jobs. Perhaps most critically, she has access to extended networks of white wealth that people of color don’t have, and she can call on them in a pinch.

But like 27 million Americans, she doesn’t have health insurance. Of the last two bike accidents she got in, one was serious, but she couldn’t afford to go to the doctor, so she instead relied on friends who are nurses. One diagnosed her with a concussion over the phone. According to a Gallup poll from 2019, 25% of people in the United States say they or a family member “put off treatment for a serious medical condition in the past year because of the cost.” My friend, like all these people, can’t afford to miss work due to sickness, let alone treat what’s wrong with them when there’s not a global pandemic. What will she do if she gets COVID 19?

 

12. Pacific Garbage Dump—Did You Really Think Your Plastic Was Being Recycled? | Project Censored

 

The GOP just blocked an emergency paid sick leave bill from advancing in the Senate. Oil and gas companies are pressing the White House to grant them a bailout from a downturn linked to COVID 19, and at the same time urging the Trump administration to avoid supporting any paid sick leave policy. Just like we lack a federal paid sick leave law, we have no guaranteed paid bereavement leave in this country. And in case we’d forgotten our precarity, Joe Biden just reminded us by suggesting that if he were president he’d veto Medicare for All—a universal, single-payer healthcare program—because it’s too expensive.

According to the Economic Policy Institute, higher-earning wage workers are “more than three times as likely to have access to paid sick leave as the lowest paid workers.” But only 30% of the lowest paid workers—who are more likely to have contact with the public in restaurants, daycares and retail outlets—get paid sick leave. Workers are not taking this sitting down. In New York, Chipotle employees are walking off the job and publicly protesting the company for allegedly penalizing workers who call in sick. “They want us to shut up,” worker Jeremy Pereyra, who says he was written up by Chipotle for calling in sick, told Gothamist. “They want us to stop. But we’re not going to stop until things get better.”

The first round of job losses is already here. The Washington Post reports that some drivers at the Port of Los Angeles were sent home without pay, others laid off. Travel agencies in Atlanta and Los Angeles let people go, as did a hotel in Seattle, a stage-lighting company in Orlando, and Carson’s Cookie Fix bakery in Omaha, hit by declining customers. “If my job’s laying off people, I can only imagine other employers are as well,” said Baiden King, who lost her job at the bakery, telling the Post she plans to move back in with her parents. “I’m not sure anyone will be hiring.”

Even before this crisis, workers were held captive by the stock market—most gaining nothing directly from its rise, which largely lines the pockets of rich people and distributes wealth upwards when it’s doing well. But workers feel its decline in the form of lost jobs and increased precarity. Now that stocks are tumbling amid the virus outbreak, this extortion racket is escalating, and the fundamental instability and savagery of capitalism is being laid bare.

The systems that are breaking down in this crisis were already broken before it began, and a radical reimagining of what could replace them is the best and only option—for this public health crisis, and for the ordinary, everyday crises that go unremarked. Universal income, Medicare for All, an immediate end to the brutal sanctions regime worsening the outbreak in Iran and around the world, a moratorium on evictions, the freeing of prisoners: Anything less than full social mobilization in the name of solidarity will leave us falling without a net. Or biking without health insurance, to a job that could evaporate.

 

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A Corrupted Capitalist System holds no future for the Working Masses A Political Revolution Does! New & Used Left-Wing & Progressive Books,         www.facebook.com/Fahrenheit451bookstore/

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