WELFARE MYTHS & REALITY

Here are six welfare myths that your drunk, stupid, or race-baiting friends might like to use. Short responses are in italics ...

1. We spend over a trillion dollars a year on welfare ... Yeah, sure, if you want to categorize virtually form of government spending as welfare (I debunked this one here back in March). 

2. We are living in a welfare state created by President Obama and his socialist policies ... The percentage of Americans on welfare has actually gone down since the mid-1990s (while Wall Street and the S&P are breaking records). 

3. Illegal immigrants come to this country to qualify for welfare ... No undocumented immigrant can qualify for welfare benefits. Ever. 

4. Welfare recipients don't look for work (or don't want to work) ... The vast majority of those receiving Medicaid, SNAP, and other kinds of financial assistance already have a job. 

5. People receiving benefits become dependent on them, reducing their incentive to work ... Survey after survey debunk this myth, as does #4 above. 

6. Women receiving benefits have more and more children to receive more money ... The reality is the average family receiving assistance has 2.8 kids, with the real number being 2 kids (only 1 in 10 families has more than 3 kids).

If you want more information for those who use these six welfare myths click here, here, here, here, and here. For the record, here's a couple of points on the $17.6 billion we spend on food stamps.

Then we have the reality behind welfare in America ...

Specifically, if you want to turn the tables on the topic you can start with these three points that help us understand the dynamics behind crony capitalism and corporate welfare in America ...

1. TAX GIFTS: Over one trillion dollars in tax expenditures are granted by Congress to corporate America and the rich (who still like to think they're "go it alone" rugged individualists).
2. FAVORABLE LEGISLATION: America's biggest banks would likely go bust without taxpayer bailouts and other legislative gifts.
3. MARKET INTERVENTIONS: Bailouts, the Greenspan Put, favorable legislation, and other market interventions have effectively made America's market players wards of the state, on so many levels. 

And, for the heck of it, you might want to remind your friends how we redistribute wealth in America, from the richer Blue states to the poorer Red states. Here's a partial explanation of how the wealth transfer happened.

- Mark

READING FOR THE WEEK (9-10-13)

How people manipulate language to convince others of things they shouldn't believe (Information is Beautiful).

The world's biggest ship, and what it will hold (Bloomberg).

Russia issues travel warning to its citizens about United States and extradition (NY Times).

Liberation Theology finds new welcome in Pope Francis' Vatican (Religion News Service).


Our Evolving National Security State
Nice. Florida man murders two neighbors in public then cites 'Bush Doctrine' and 'Stand Your Ground' laws as his defense. Worse, his lawyers are building a legal defense around the argument (AATP).

The NSA can access anything on your iPhone, Android, and Blackberry (Talking Points Memo).

An all powerful military isn't what it used to be (Bloomberg Business).

On the fence about Syria? Read this (Truth Out).


Health and Your Intelligence
Life expectancy has more than doubled over the past 150 years. Why you're not dead yet (Slate).

In U.S. Health in International Perspective: Shorter Lives, Poorer Health we learn why the U.S. is so unhealthy and why we don't have the best healthcare in the world (National Academies Press, 2013).

Eleven intelligence killing products that we consume, which you should avoid (Fitnea).

Speaking of intelligence, check out the brain training program that claims to make you significantly smarter (How Life Works).


Stuff Tied to the Economy
Happy Anniversary Wall Street ... they're back to the same old games too (Robert Reich).

The financial crisis and the myth of the second Great Depression ... or, the prospect of a second Great Depression was not a warning in 2008, it was a threat from the bad guys who continue to hold our economy hostage to their outdated ideas about markets (Truth Out).

The 20 best and worst states for pension funding (Think Advisor).

It's the middle class, stupid ... they are the real job creators (Robert Reich).

Think Advisor posts on how the 401(k) is not only a poorly designed substitute for traditional defined benefit plans, but is actually exacerbating the gaps between the rich and poor (Think Advisor).

Related, here's what the Economic Policy Institute has to say about growing inequality gap(s) in America. It's not good (EPI).

Secret Swiss accounts are no longer safe for tax dodgers (Bloomberg).

This is why the unemployment rate is less relevant than ever (EPI).

- Mark

CATCHING UP WITH THE GLOBAL PLUTOCRACY ... These Are Not the Economic Titans of the Past

Income inequality is surging around the world, and not just in the United States. What we're seeing is the rise of a global plutocracy that is much different from the national plutocrats we saw over 100 years ago.

Generally speaking globalization and technology, which was supposed to have helped reduce inequality, have made things worse. More specifically, crony capitalism in the west - lower taxes, deregulation, privatization, and weaker legal protections for labor - have had a big hand in the rise of the global plutocrats, as writer Chrystia Freeland points out in this TED talk ...

The end result is that it is more and more difficult for the rest of us to catch up. As Freeland points out, the world needs a new New Deal.

- Mark 

SYRIA, RUSSIA AND THE OBAMA DOCTRINE

After canceling a pre-summit meeting with Vladimir Putin President Obama arrived in St. Petersburg, Russia today for the G-20 Summit.

While discussions over pending global economic issues are what bring the world's economic superpowers together - the G-20 nations account for 80 percent of global economic production - tensions in Syria will override all economic discussions. And they should.

With Russia's decision to send a permanent warship fleet to the Mediterranean 5 months ago, the United States and Russia were already playing Naval Stratego in the Mediterranean. Syria has only complicated things.

Lost in the myopic, and seemingly never ending, Republicans vs.Obama drama-fest news cycle here in the U.S. are the very real geopolitical issues that Russia sees (and has) in the region.

1. ECONOMIC: Russia's various oil and gas pipeline interests in the area are threatened by both NATO's expansion into Turkey and the region-wide Sunni opposition to the "Shi'ite pipeline" that Russia supports for economic reasons.
2. STRATEGIC: Since before the time of Peter of the Great Russia has needed access to ports that aren't frozen over half the year, which access to the Syrian port of Tartus offers.
3. MILITARY: An increasingly heightened U.S. interest, and presence, in Gaza, Israel, and Syria (which is Iran's "route to the Sea" [sic], according to the GOP's last presidential candidate).

Throw in the fact that the Europe recently intervened in Cyprus against Russian oligarchic interests (the "bail-in"), and we begin to see a much larger picture of the tensions behind U.S.-Russian movements in the region.

With these financial and strategic issues at stake it's clear that Russia, for a lack of a better term, has some very legitimate geopolitical interests in Syria. Unfortunately, in the U.S., the pundits and the talking heads are more concerned with petty point scoring games played in Congress than they are with presenting the general public with tangible issues for Americans to discuss about the region.

I'm not going to participate in the U.S. medias Republican-Democrat point scoring currently going on (for now). The real key is the long term policy and security issues that will be affected by what's happening today.

For my money it appears that what President Obama is proposing - limited strategic strikes - doesn't fall in line with the Obama Doctrine: Peace through cooperation, order through strength. There is very little cooperation to speak of for President Obama to push for the type of intervention that he's asking for now.

The humanitarian interest position doesn't sit well with me either. Simply put, there are too many abusive governments doing too many ugly things to their people around the world for me to buy into the moral crusading American values angle here. We can't be the world's policeman.

Without backing for intervention from the American public, Britain, China, or any other major players it appears that the only real reason for confronting Bashir Assad in Syria is to protect short-term U.S. oil interests in the region, and to curry favor with the far right, who has a penchant for wanting to militarize virtually every issue it sees abroad.

Without more information - and unless I'm missing something here - I can't say that I support limited strikes in Syria, at this time.

Stay tuned.

- Mark

FYI: For those who need some more background on the region, the Washington Post has an informative "nine questions about Syria that you were afraid to ask" piece.

Also, if you're looking for a good book on what happened the last time we decided to stick our toe into the region - that doesn't involve George W. Bush - check out this one.

VACATION PICTURES (political posts start tomorrow)

Just returned from vacation. As dramatic as these pictures are, being there was even more stunning. Guess where ...

- Mark

VACATION BREAK

I'm getting away for a bit. I'll be back during the first week of September. Here are a couple places that I'd like to visit ...

- Mark 

POPE FRANCIS AND THE LAWS OF JUSTICE

Pope Francis is bringing a good deal of attention to economic inequality, injustice, human dignity, and the poor. His approach is distinct from his predecessors, and has caught many by surprise. Bishop Robert McElroy has put together a nice article that outlines several topics that Pope Francis has consistently discussed, which include the poor and issues tied to economic inequality.

Below are three of the key issues that Pope Francis is bringing attention to around the world:


GREAT INEQUALITY GAPS & ARBITRARY TAKINGS 
The tyrants of the market have replaced the tyrants of the state. Here's what Pope Francis says ...
"While the income of a minority is increasing exponentially, that of the majority is crumbling. This imbalance results from ideologies which uphold the absolute autonomy of markets and financial speculation, and thus deny the right of control to States, which are charged with providing for the common good. A new, invisible and at times virtual, tyranny is established, one which unilaterally and irremediably imposes its own laws and rules." --Address to new Vatican ambassadors, May 16


OPPORTUNITY
The state creates the conditions under which opportunity and great wealth are created. This should not be undermined. But it is under our current market system. Here's what Pope Francis says ... 
"Every economic and political theory or action must set about providing each inhabitant of the planet with the minimum wherewithal to live in dignity and freedom, with the possibility of supporting a family, educating children, praising God and developing one's own human potential. This is the main thing; in the absence of such a vision, all economic activity is meaningless." -- Letter to Prime Minister David Cameron for the G8 Meeting, June 17-18


LAWS OF JUSTICE VIOLATED 
Shifting state resources to sectors that don't deserve them, while ignoring the needs of larger segments of society. Here's what Pope Francis says ... 
"This happens today: if the investments in the banks fall slightly... a tragedy... what can be done? But if people die of hunger, if they have nothing eat, if they have poor health, it does not matter! This is our crisis today!" -- Address at Vigil of Pentecost, May 18


There's more, which you can read here.

One thing is clear, though. The Pope understands the role of the state in creating opportunities. But he also understands that the resources of the state have been hijacked by market players who now threaten "market collapse" whenever they want to extort favorable legislation, or secure taxpayer funded bailouts from the state. All of this caught my attention because these are the issues that I feature prominently in my book, The Myth of the Free Market.

In a few words, the prerogative(s) and authority of the state have been hijacked by market players. They are using the state to reach their market goals. History's military and political tyrants have been replaced by today's market tyrants. And, it would appear, Pope Francis sees that it's happening.

What this means for his followers, and in the economic swamplands that we call our market place, remains to be seen. Stay tuned.

- Mark

SOUTH CAROLINA'S "HOMELESS ZOO"

The city of Columbia, South Carolina just passed an ordinance that makes it illegal to be homeless. The Emergency Homeless Response ordinance allows the city to remove the homeless from the down town business district so that they can be relocated to an encampment area.

The area will be patrolled by police.

The new homeless residents - an oxymoron if there ever was one - of the zoned space will be confined to the city emcampment area ... you know, kind of like animals in a zoo.

You can read the details here.

- Mark

WARRIORS OF THE RAINBOW

Given my previous post, this fits ...

- Mark 

ARE WE SLOWLY COMMITTING GLOBAL SUICIDE?

A few years ago I posted on an underwater garbage flotilla that's lurking right below the surface of the Pacific Ocean. It now covers an area twice the size of the continental United States and is, effectively, the world's largest garbage dump.

At the time I thought that this was about as bad as it could get. That was until Japan's Fukushima Daiichi nuclear disaster occurred in 2011. Two years later one Japanese government official is now saying that about 300 tons of contaminated water is leaking into the Pacific Ocean every day (which the Japanese government won't officially acknowledge).

Cleaning up the nuclear mess is expected to take 40 years, and will cost about $11 billion. No word on how long it will take to clean up the floating garbage dump.

In the mean time, over the last two years large numbers of fish in the Pacific Ocean are turning up dead with bleeding from their eyes, bellies, fins, and tails. There's no confirmed link between the fish and the two environmental disasters. But most of us don't need a road map here to tell us we're on the wrong road, and moving into uncharted ecological territory.

For my purposes, I'm tempted to talk about all the economists who tell us that we shouldn't worry about externalities (costs absorbed by unwilling third parties) because every good produced has the costs associated with its production built into the price. Only the buyer and seller need to be concerned about the creation, purchase, and exchange of a product. But having this discussion (at this time) would be tedious, and even distracting.

The real point is that if we look at what's happening to bee colonies and other environmental disasters, like the one caused by BP in the Gulf of Mexico, the larger issue is more dramatic. Simply put, are we slowly committing global suicide?

- Mark

Hat tip to Tom for the Fukushima piece.