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I have no problem with hitting billionaires with a much higher tax bill than they now face. The deeper issue is how to prevent the creation of billionaires in the first place.
A coalition of unions and other progressive groups is trying to get an initiative on California’s ballot this fall which would impose a 5 percent tax on the wealth of the 200-250 billionaires living in the state. The tax would be retroactive, so it applies to billionaires who lived in the state as of January 1 of this year. The supporters estimate that it could raise $100 billion, almost 30 percent of the state’s annual budget, although the tax could be paid over five years.
Many people have asked me what I thought about the tax. I confess to originally being hesitant. I have no problem with hitting billionaires with a much higher tax bill than they now face. After all, they are the ones with the money.
The right likes to push the story that billionaires won’t have incentive to become ridiculously rich if we tax them more. I always found that absurd, but even taken seriously what would it mean? Will Elon Musk spend less money and effort bribing politicians to get government contracts and favorable regulatory treatment if we tax him too much?
But that aside, I do take seriously concerns about evasion and avoidance. Billionaires care a lot about their money, and they are prepared to go to great lengths to avoid having to surrender it to the government. There clearly is some point at which we get less tax revenue by raising rates, as a result of evasion and avoidance. And that point is lower at the state and local level than the national level, since it’s much easier for billionaires to move out of New York City or California than to leave the United States.
On this point, I was influenced by research by Joshua Rauh and Ryan Shyu showing that the state lost 60 percent of the revenue anticipated by California’s 2012 Proposition 30. This raised the marginal tax rate on people earning more than $1 million a year from 10.3 percent to 13.3 percent. This suggested to me that California was very close to this tipping point. (It got closer when Trump’s 2017 tax bill limited the deduction for state and local taxes on the federal taxes.)
Rauh works at the conservative Hoover Institute, so I naturally viewed the work with suspicion, but I could not see anything wrong with it. (If anyone can tell me where they messed up, I’m all ears.)
Anyhow, recognizing that avoidance and evasion are real, I have always been cautious about efforts to whack the rich with very large taxes. I am open to the California wealth tax because its structure seems to minimize this risk.
By making the date at which the wealth tax applies in the past, rich people cannot leave going forward. I was concerned about some billionaires fleeing when the tax was being discussed in the fall, and it seems some did, but at this point that’s water under the bridge.
To be clear, I’m absolutely certain that many of the people facing the tax will do everything they can to try to escape the tax, starting with defeating the initiative, and then tying it up in the courts as long as they can. With the ultimate decision likely to rest with the Republican Supreme Court, I’m not at all confident that the state will see the money, but we can’t preemptively surrender. At this point it seems worth going full speed ahead with the initiative.
The Longer Term: Let’s Not Have Billionaires
My bigger complaint with the effort to tax back some of the billionaires’ billions is that we should be more focused on not letting them be billionaires in the first place. There is an incredibly lazy view that we just have a market sitting there, which generates inequality, and then we need the government to step in to redistribute income.
More than a decade ago, Elizabeth Warren, who I greatly admire, did a viral video that was dubbed “you didn’t build that.” The gist of it was that the success of rich people depended on a social and physical infrastructure that was paid for by the whole of society, not just the hard work and ingenuity of the person who happened to get rich.
This is very true. To be profitable, a factory needs the roads and ports to bring their materials in and ship their finished product out. It also needs a skilled workforce to be both on the factory flaw and to handle business operations. No one can get rich by themselves.
Elizabeth Warren Doesn’t Go Far Enough
But this is only part of the story. In addition to the physical and social infrastructure, we have a massive set of rules that determine who gets to keep the goodies. I keep harping on government-granted patent and copyright monopolies, both because there is a huge amount of money at stake (easily over $1 trillion a year or $8k per household) and because they so obviously could be different.
We can make these monopolies shorter and weaker, allowing their holders to profit much less from them. Also, we can rely more on alternative mechanisms, like direct public funding of research, as we do currently with more than $50 billion a year in biomedical research at the National Institutes of Health. Many of today’s yacht-loving billionaires would still be working for a living with different rules on intellectual property.
Labor law is another obvious case where governments set the rules, and they could be structured in a way far more beneficial to workers. In the early post-World War II era it was widely recognized that large corporations with monopolistic power dominated the economy, but that was not necessarily seen as a bad thing, because their workers also benefited from higher wages. This was due to the fact that they were unionized and able to demand their share of the benefits from monopolistic power.
This is much less the case today because unions are far weaker. But that is not a natural outcome, the rules on labor-management relations were written to make workers weaker. There is no natural market in this story, the government writes the rules to make them more beneficial to one side or the other.
Just to give a few examples: the prohibition on secondary boycotts in the US is a regulation that unambiguously weakens unions. A secondary boycott would mean Elon Musk’s suppliers could be struck over sending him steel, if he didn’t give the auto workers at Tesla a big pay hike.
The ban on union shops (“right-to-work”) in most states, where all the workers who benefit from a union pay their share of the union’s costs, is a government intervention against freedom of contract. This also weakens workers. Restrictions or outright bans on collective bargaining by gig workers is another example. In addition, there could be serious penalties for violating labor laws, as in millions of dollars in fines from real courts, rather than joke sanctions from the National Labor Relations Board.
None of this is “the market.” This is a story of government policy designed to give more money to the oligarchs.
The list goes on. Mark Zuckerberg, and now Larry Ellison, would be much poorer without Section 230, which protects their massive social media platforms from the same sort of liability for spreading lies that print and broadcast media face. Different bankruptcy laws that made private equity firms liable for the debts of the companies they take over and then push into bankruptcy would likely have prevented many of today’s billionaires, as would applying a sales tax on financial transactions similar to the sales tax people pay when they buy clothes or shoes.
This is the topic of my now dated book Rigged (it’s free). The point is that the market is infinitely malleable. We can structure it in a way that leads to far more equality or in ways that gives all the money to billionaires, as we have done in the last half century.
In that context, by all means we should try to find creative ways to tax back some of the wealth we have allowed them to accumulate, but it makes much sense, and it’s much more efficient, not to structure the market in a way that gives them all the money in the first place.
We have arrived at a critical juncture in the history of this country and the world beyond, which is being buffeted by reactionary forces.
In principle, extremists primarily seek to harm people who do not share their race, religion, or nationality. In practice, they often harm the very people they claim to serve and protect, people with whom they share some supposedly sacred demographic.
Consider Minnesota, currently under siege by anti-immigrant extremists in the employ of the federal government, with ICE and CBP at the forefront. Immigrants have indisputably suffered the most from this program of harm, but we have seen a recent turn toward harming non-immigrants.
This change was starkly illustrated with the January 7 slaying of Renee Good by anti-immigration forces, which was followed by an escalating crackdown on protesters, observers, and people simply trying to go about their lives. On Saturday, January 24, ICE killed another Minnesotan, Alex Pretti, a registered nurse who worked to help veterans, who put his body between immigration officials and other citizens targeted for violence, as clearly seen in multiple videos of the slaying. Federal government agents are shown shooting Pretti in the back while he was pinned to the ground, immobilized, and disarmed.
It goes without saying that citizens and immigrants alike should be equally entitled to live with dignity and free of state violence, and it should be emphasized that citizens are not “more important” victims than immigrants. However, these recent attacks highlight an important dynamic and key vulnerability in any extremist movement.
Through their courage and solidarity, Minnesotans from all walks of life are asserting an authentic American identity based on inclusive ideals in the face of adversity and escalating violence.
To make sense of this, we must first discuss how and why extremists classify people according to their social identity. The broadest categories of identity are in-groups and out-groups. An in-group is the group to which one belongs, and an out-group is anyone excluded from that in-group. As defined in my MIT Press book on the subject, extremism is the belief that an in-group’s success or survival can never be separated from the need for hostile action against an out-group.
Enacting harm on out-groups is risky, difficult, and costly, so extremists almost always seek to make the task easier by enlisting the entire in-group. To understand how this works, it’s useful to break the in-group down into subcategories.
In the extremist context, eligibility refers to the traits that make someone eligible for in-group membership. For instance, according to the KKK, light-colored skin is the minimum requirement for eligibility in the category of “white people.” But eligibility implies a counterpart: ineligibility. To continue with the same example, the most obviously ineligible people are members of an out-group, such as those with dark-colored skin.
But eligible in-groups often rebuke the extremists who claim to represent them, throwing the extremist movement’s legitimacy into crisis. If the extremist movement can’t persuade the eligible in-group to enact harm on out-groups, it may try to change the composition of the in-group by declaring that dissenters have forfeited the right to their in-group identity.
Extremist movements are at their most dangerous during times of uncertainty or upheaval.
The ineligible in-group thus consists of people who possess the canonical qualifications for membership but whose actions put them at risk of expulsion. In white supremacist extremism, for example, the ineligible in-group usually includes white people who have sexual relations with non-white people and are therefore subjected to even harsher treatment than the out-group. For instance, the infamous “Day of the Rope” massacre described in the neo-Nazi novel “The Turner Diaries” refers to the gruesome public execution of white “race traitors,” while racial out-group members are killed without fanfare “off camera.”
Extremist movements are at their most dangerous during times of uncertainty or upheaval, when group boundaries can be suddenly redrawn, with control of the in-group hanging in the balance. An extremist movement that hasn’t consolidated control of the in-group often declares war against “ineligible” dissenters. We saw this play out in the mid-2010s, when the Islamic State organization (IS) attempted to consolidate its control of a large swath of Iraq and Syria. Sunni Muslims who opposed IS control were massacred mercilessly under the principle “nine bullets for the traitors, one for the crusader.”
Disturbingly, we’re seeing the early stages of this dynamic right now in Minnesota, although we can hope it will not evolve into atrocities of the same scale. Anti-immigrant extremists in the U.S. federal government have increasingly menaced and used violence against dissenters and observers who are U.S. citizens — members of the in-group that the extremists claim to serve and protect. In addition to the Good and Pretti shootings, federal agents have roughed up and detained observers without provocation, and have repeatedly used pepper spray on peaceful gatherings, sometimes at close range and in violation of safe operation guidelines. In one horrific incident, a car full of children was exposed to tear gas while their parents tried to drive them home from a school event. The extremists continue to escalate their program of harm against the ineligible in-group, with no end in sight.
One of the most important ways extremists seek control of the eligible in-group is by exploiting the socially constructed nature of reality. The theory of social construction is popularly understood as “consensus reality,” and its premise is simple enough: The world is too big and complicated for people to experience in its entirety. We can only understand the world through consultation with trusted others, who tell us what happens out of our sight and help us determine right from wrong. Put simply, we can only understand the world in dialogue with others.
In-groups and out-groups come into play during social construction. We tend to trust people whose experience of life is most like our own, typically those with whom we share some concept of identity — anything from race and religion to neighborhood and nationality. When this normal instinct congeals into an excessive attachment to a specific identity and a mandate to harm people who don’t share that identity, it becomes extremism. Almost everything done by authoritarians and fascists (for whom extremism is an essential tool) can be understood as an effort to control the social construction of reality by amplifying selected in-group views and entirely suppressing the views of out-groups through methods that range from discrimination to segregation to genocide.
To this end, the current generation of anti-immigration extremists is navigating turbulent waters, in part because its coalition is complex and not exclusively focused on immigration writ large. The alliance includes often-overlapping categories of racists, antisemites, misogynists, homophobes, and transphobes, and the priorities of its factions are not always aligned. This increasingly fractious coalition is ill-equipped to face down an increasingly cohesive coalition of Americans united by anger that our nation’s peace, progress, and safety have been intentionally undermined.
Minnesotans are courageously demonstrating this unity, mobilizing to defend neighbors whose race or national origin puts them at risk. In the process, they are communicating a strong in-group consensus to their persecutors by turning out in large numbers and loudly asserting their condemnation through shouting, blowing whistles, giving sermons, honking horns, posting signs, and painting graffiti. These expressions of in-group disapproval can help defuse the psychological drivers of violence and undermine competing narratives and political power structures that seek to validate an extremist orientation and the repressive tactics that it justifies.
In a globalized media environment like America’s, the in-group is never just local. People around the country can support Minnesotans using many of the same tactics — by speaking out and showing up in large numbers, both online and offline, as so many have already done. In conjunction — and perhaps even more importantly — we can fight the tide of hate by demanding that institutions, including politicians and the media, recognize the severity of the current crisis in American democracy and respond proportionately.
Those institutions are critically important precisely because America’s consensus reality is, again, too big and too diverse to observe directly. You could spend your entire life talking to Americans and still understand only a tiny fragment of the American experience. For in-groups larger than a neighborhood, the consensus is therefore described and defined by institutions and individuals in journalism, politics, and the arts. These portraits of the in-group consensus are distributed through traditional and new media platforms, and none of them are neutral.
The winner of this struggle will define what values the American in-group stands for, perhaps for generations to come.
It is no accident that the purveyors of hate have moved to take control of major news and social media platforms through a combination of money and pressure tactics, and to discredit and defund those they can’t control. In some cases, these platforms have been bought outright and subjected to blunt and obvious manipulation. In other cases, reporters have succumbed to flawed journalistic conventions, such as providing “both sides” of every controversy with equal weight, even when one side is obviously lying or otherwise detached from reality. This practice misleads the public by inflating the extremists’ appearance of strength and credibility under the guise of “balance.” (Imagine news programs inviting a flat-earth believer to weigh in whenever the subject of the globe comes up. That’s what happens now when the topic is immigration or vaccines.)
The in-group consensus can never be determined with perfect objectivity. The tools for measuring it, such as polls, are complex and subject to bias. Even if polls were perfectly composed and executed, they would still be open to wildly divergent interpretations. Look through the archives and ask which presidents won “with a mandate” over the last 100 years. Then compare their vote counts.
In other words, the consensus is won through perception. And when an authority figure, an institution, or an algorithm creates the perception that extremists are winning, it can become a self-fulfilling prophecy. People have a well-documented tendency to justify the legitimacy of the status quo as they perceive it.
Although we can reject those who would assign us to an out-group or an ineligible in-group, we cannot assume that our voices will be acknowledged. If America is to climb out of this era of rage and hate, those who stand against the extremist wave cannot just show up and expect to be counted. They must loudly demand their voices be acknowledged in every setting and institution of civic life, from business to politics, from news to the creative arts. With every death at the hands of anti-immigrant extremists, this assertion becomes more necessary and potentially more powerful.
Even so, a winning narrative or communication strategy may not be enough to defeat those who seek to control the in-group consensus using state violence. If the extremists can’t persuade the ineligible in-group to surrender, they will seek to intimidate and perhaps kill its members, an escalation that is now well underway. That is why the eligible in-group must defend its relevance with all available methods, including the courts, the ballot box, mutual aid, and more. Justice must be pursued, regardless of whether accused murderers wear a badge. And all of these in-group actions will build and reinforce support and mobilization networks that will be sorely needed before this is over.
We’ve arrived at a critical juncture in the history of this country and the world beyond, which is being buffeted by the same reactionary forces. The winner of this struggle will define what values the American in-group stands for, perhaps for generations to come. Through their courage and solidarity, Minnesotans from all walks of life are asserting an authentic American identity based on inclusive ideals in the face of adversity and escalating violence. For those values to prevail, we must stand together in their defense.
This piece was originally published by The MIT Press Reader and appears here at Common Dreams with permission.
A letter from business leaders about the uprising against Donald Trump's lawless tactics in Minneapolis is remarkable not for what it says, but for what it refuses to acknowledge.
One of the many remarkable and lasting ideas the Rev. Dr. Martin Luther King Jr. placed into the national conversation was the concept of something he called “negative peace.”
Although the phrase began appearing in the writings of the civil rights leader in the late 1950s, King made the idea famous in his 1963 “Letter From Birmingham Jail,” where he was locked up for fighting segregation in Alabama’s largest city. He was annoyed by a letter from eight local white clergymen, titled a “Call for Unity,” that begged King to end a civil disobedience crusade for racial integration and seek progress through negotiations and the courts.
When an aide smuggled the newspaper into King’s cell, he began furiously scribbling his response in the margins of the ad before writing more on any scrap of paper he could find. His key passage argues that the white moderate was a greater threat to Black freedom than the KKK, because he was someone “more devoted to ‘order’ than to justice; who prefers a negative peace which is the absence of tension to a positive peace which is the presence of justice,” and who wants African Americans to wait for a “more convenient season.”
Flash-forward 63 years, and the grand pooh-bahs of US capitalism have learned nothing from this. On Sunday, 60 major corporations based in Minnesota — feeling caught in the crossfire of the federal immigration raids tearing apart Greater Minneapolis and the growing resistance movement — issued a cowardly and pathetic call for a negative peace to reduce the tensions.
The open letter that was released through the Minnesota Chamber of Commerce was signed by the CEOs or equivalents of almost every major Gopher State brand that you could think of — including Target, 3M, General Mills, Hormel, UnitedHealth (yes, that UnitedHealth), and all five major sports franchises. Some of these firms are beginning to see real economic fallout from the U.S. Immigration and Customs Enforcement raids and protest activities, which have kept some frightened Black and brown workers at home and triggered a large general strike last Friday.
The letter reads little differently from the Birmingham ministers’ “Call for Unity.”
“With yesterday’s tragic news”—a vague, bloodless reference to the 10 shots fired by federal officers into a 37-year-old intensive care nurse named Alex Pretti—“we are calling for an immediate deescalation of tensions and for state, local and federal officials to work together to find real solutions,” the letter states. It notes that Minnesota business leaders have been in touch with Gov. Tim Walz, the Donald Trump White House, and others in pleading for what it hopes would be a solution to the state’s crisis.
Pretti is never mentioned in the letter. Neither is Renee Nicole Good, the 37-year-old mother of three who was gunned down behind the wheel of her family SUV by an ICE agent as she attempted to drive away from a confrontation. In fact, ICE is never mentioned, nor are the federal agency’s most outrageous tactics, such as the seizure of a 5-year-old boy as “bait” to detain him and his father, or dragging a barely dressed Hmong refugee who is a U.S. citizen out of his home in frigid weather.
The entire letter is remarkable not for what it says—since it says very little beyond praying this whole mess somehow goes away so they can go back to making money without thinking about such dreadful things—than for what it doesn’t say.
There is no condemnation of the murders of two U.S. citizens who did nothing beyond legally monitoring the federal officers and their activities while on public streets. There is no condemnation of the ICE tactics in seizing hardworking migrants with no criminal records who are the backbone of the Minnesota community. There is nothing about what MLK would have called “positive peace”—a desire for real justice.
That’s probably because positive peace requires bold choices and displays of real courage—qualities that modern corporate America seems to have misplaced in a giant warehouse somewhere.
Exhibit A would have to be Target, the large national retailer that, with its hundreds of stores and its name slapped on the NBA’s Timberwolves’ arena, is now to many Americans the corporate face of Minnesota. Under pressure from demonstrators, including more than 100 clergy who protested outside Target’s Minneapolis headquarters on Friday, the retailer still said nothing — before the tepid group letter — about the ongoing ICE raids, or why agents have been allowed to stage operations in its parking lots and even inside stores.
There’s a bleak history here. In 2020, Minnesota became the epicenter of the fight for racial justice when the Minneapolis police murder of George Floyd was captured on video. That time, the state’s CEOs not only expressed moral outrage but pledged to spend heavily on diversity initiatives. Five years later, the local news site Racket reported many of these firms had backtracked, and that barely a third of the pledged $550 million had been spent.
This time, the business leaders just want the “tension” to disappear. That’s not so easy. Just ask Target. Its early 2025 move to end its diversity initiatives as Trump took office sparked calls from Black leaders for a boycott that has cut into store traffic and lowered Target’s stock price. It seems that moral surrender actually does have a price.
Also on Sunday, the team chaplain for the Timberwolves—ironically, one of the teams that signed onto the corporate letter—issued a personal statement with loud echoes of the “Letter from Birmingham Jail,” calling out any churches that had prayed that morning for peace and unity but not for justice.
“Peace is what the powerful ask for when they don’t want to be interrupted,” Matt Moberg wrote in a short piece that went viral on social media, adding, “Unity that refuses to name violence is just loyalty to the ones holding the weapons.”
This wouldn’t be the first time corporate America misread the room. Sunday’s statement suggested a continued deer-in-the-headlights reaction from the shock of Trump’s return to office—even as the CEOs ignore not just the power of the Target boycotts but the recent success of economic justice campaigns against firms from Disney to Avelo Airlines, not to mention the solidarity that drove the Minneapolis general strike.
Already, there is growing talk of a national general strike or expanded boycotts by millions of citizens who are also consumers, and who are both furious over the Good and Pretti murders and now flabbergasted by the corporate cone of silence. America’s business leaders don’t understand that cowardice has a steep cost attached.
A breakdown of international nuclear norms, fueled by “us versus them” thinking and the newly termed “Donroe Doctrine” challenges our legitimacy around the world.
Today, the Bulletin of Atomic Scientists Science and Security Board presented the 2026 Doomsday Clock. At 85 seconds to midnight, this is the closest it has been since the original clock was presented 79 years ago by the Bulletin’s founders, scientists who were involved with the Manhattan Project and the development of the atomic bomb. The prophetic clock symbolizes the proximity of humanity to nuclear apocalypse at the strike of midnight. It is yet again a stark reminder of how close we are to nuclear Armageddon and the end of life as we know it. It is at great peril that we continue to ignore this pronouncement. The current board is composed of globally recognized leaders in science, academia and threat assessment who are charged with determining the potential of man-made existential threats.
In recent years, the movement forward of the minute hand has taken into account the nuclear risk accelerators of climate change, disruptive technologies, emerging threats and a breakdown of international cooperation.
This announcement comes as civil society and the majority of the world‘s population last week celebrated the fifth anniversary of the entry into force of the Treaty on the Prohibition of Nuclear Weapons which formally made nuclear weapons illegal to have, test, develop, stockpile, transfer and/or threaten to use. In defiance of international law and norms, the nuclear nine nations continue their arms race to develop and modernize their nuclear weapons under the gross fallacy of nuclear deterrence. In reality deterrence remains the greatest driver of the current arms race and threat to our survival. This year’s setting of the Doomsday Clock follows a year where global order has been shaken and conflict multipliers occur, seemingly on a daily basis, increasing nuclear proliferation and potential for use either by intent, miscalculation, accident, or cyber attack. In this past year, 5 of the 9 nuclear nations, Russia, the U.S., Israel, India and Pakistan, were at war, the last two with each other and China has made increasingly bellicose threats to occupy Taiwan.
Additionally, the push to resume nuclear power and the entire nuclear fuel cycle, setting aside environmental safeguards, is presented under the charade of nuclear power – totally ignoring the intimate connection between nuclear power and weapons development increases the availability of nuclear material and thus the risk of nuclear proliferation, increased contamination of our communities, and, of course, a nuclear war.
Finally, the last remaining nuclear arms treaty, New START, is set to expire February 5 with no follow on treaty in the works.
This breakdown of international nuclear norms, fueled by “us versus them” thinking and the newly termed “Donroe doctrine” challenges our legitimacy around the world.
These flashpoints coupled with the interconnected existential threat of climate change that moves forward with the failure to create any significant climate agreements this past year. This has worsened due to the U.S. withdrawal from 66 international organizations and treaties further isolating us around the world.
Currently global nuclear arsenals have approximately 12,321 weapons or roughly 267,000 times the firepower of the bomb dropped over Hiroshima. Therefore, when, and not if, nuclear deterrence fails, as it certainly will as long as these weapons exist, everyone and everything we care about will be destroyed. As Presidents Ronald Reagan and Mikhail Gorbachev stated in 1985, subsequently reaffirmed by Presidents Biden and Putin in 2021, “Nuclear war cannot be won and must never be fought.” We cannot outspend or outgun our way out of this. Our only hope for survival for our generation and future generations is the complete and verified elimination of these weapons.
Fortunately there is hope. The non-nuclear nations of the world have refused to be bullied any longer. The International Treaty on the Prohibition of Nuclear Weapons, signed by 99 nations, and ratified by 74 nations, is now international law. Here in the United States we have a growing grassroots movement, Back from the Brink, at all levels of our society, from civil society including faith-based organizations to cities, counties, states and bicameral resolutions in the U.S. House (H.Res.317) and Senate (S.Res.323) with 55 sponsors.
We can and must demand action now. Absent this we risk the reality expressed by Oppenheimer when he said, “Now I am become Death, the destroyer of worlds.” We must push back against the nuclear industrial complex and their captured elected officials. We must denounce the lie of deterrence whenever and wherever it is uttered. We must choose the path of hope, the hope and commitment to a world free of nuclear weapons. We will then be free to turn our global attention and our resources to fighting our other interconnected existential threat of climate change. The choice is ours.