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Donald Trump speaks to Paul Ryan at the White House, May 2017. (Photo: AP/Evan Vucci)
"America will never be a socialist country," Donald Trump declared in his State of the Union address. Someone should alert Trump that America is now a hotbed of socialism. But it is socialism for the rich. Everyone else is treated to harsh capitalism.
In the conservative mind, socialism means getting something for doing nothing. That pretty much describes the $21 billion saved by the nation's largest banks last year thanks to Trump's tax cuts, some of which went into massive bonuses for bank executives. On the other hand, more than 4,000 lower-level bank employees got a big dose of harsh capitalism. They lost their jobs.
Banks that are too big to fail - courtesy of the 2008 bank bailout - enjoy a hidden subsidy of some $83 billion a year, because creditors facing less risk accept lower interest on deposits and loans. Last year, Wall Street's bonus pool was $31.4 billion. Take away the hidden subsidy and the bonus pool disappears.
Trump and his appointees at the Federal Reserve are easing bank requirements put in place after the bailout. They'll make sure the biggest banks remain too big to fail.
Trump is promoting socialism for the rich and harsh capitalism for everyone else in other ways. Since he was elected, GM has got more than $600 million in federal contracts plus $500 million in tax breaks. Some of this has gone into the pockets of GM executives. Chairman and CEO Mary Barra raked in almost $22m in total compensation in 2017 alone.
But GM employees are subject to harsh capitalism. GM is planning to lay off more than 14,000 workers and close three assembly plants and two component factories in North America by the end of 2019.
When he was in business, Trump perfected the art of using bankruptcy to shield himself from the consequences of bad decisions - socialism for the rich at its worst - while leaving employees twisting in the wind.
Now, all over America, executives who run their companies into the ground are getting gold-plated exit packages while their workers get pink slips.
Sears is doling out $25 million to the executives who stripped its remaining assets and drove it into bankruptcy, but has no money for the thousands of workers it laid off.
As Pacific Gas and Electric hurtles toward bankruptcy, the person who was in charge when the deadly infernos roared through northern California last year (caused in part by PG&E's faulty equipment) has departed with a cash severance package of $2.5 million. The PG&E executive in charge of gas operations when records were allegedly falsified left in 2018 with $6.9 million.
Under socialism for the rich, you can screw up big time and still reap big rewards. Equifax's Richard Smith retired in 2017 with an $18 million pension in the wake of a security breach that exposed the personal information of 145 million consumers to hackers.
Wells Fargo's Carrie Tolstedt departed with a $125 million exit package after being in charge of the unit that opened more than 2 million unauthorized customer accounts.
Around 60 percent of America's wealth is now inherited. Many of today's super rich have never done a day's work in their lives.
Trump's response has been to cut the estate tax to apply only to estates valued at over $22 million per couple. Mitch McConnell is now proposing that the estate tax be repealed altogether.
What about the capitalist principles that people earn what they're worth in the market, and that economic gains should go to those who deserve them?
America is on the cusp of the largest inter-generational wealth transfer in history. As rich boomers expire over the next three decades, an estimated $30 trillion will go to their children.
Those children will be able to live off of the income these assets generate, and then leave the bulk of them to their own heirs, tax-free. (Capital gains taxes don't apply to the soaring values of stocks, bonds, mansions and other assets of wealthy people who die before they're sold.)
After a few generations of this, almost all of the nation's wealth will be in the hands of a few thousand non-working families.
To the conservative mind, the specter of socialism conjures up a society in which no one is held accountable, and no one has to work for what they receive. Yet that's exactly the society Trump and the Republicans are promoting for the rich.
Meanwhile, most Americans are subject to an increasingly harsh and arbitrary capitalism in which they're working harder but getting nowhere, and have less security than ever.
They need thicker safety nets and deserve a bigger piece of the economic pie. If you want to call this socialism, fine. I call it fair.
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
"America will never be a socialist country," Donald Trump declared in his State of the Union address. Someone should alert Trump that America is now a hotbed of socialism. But it is socialism for the rich. Everyone else is treated to harsh capitalism.
In the conservative mind, socialism means getting something for doing nothing. That pretty much describes the $21 billion saved by the nation's largest banks last year thanks to Trump's tax cuts, some of which went into massive bonuses for bank executives. On the other hand, more than 4,000 lower-level bank employees got a big dose of harsh capitalism. They lost their jobs.
Banks that are too big to fail - courtesy of the 2008 bank bailout - enjoy a hidden subsidy of some $83 billion a year, because creditors facing less risk accept lower interest on deposits and loans. Last year, Wall Street's bonus pool was $31.4 billion. Take away the hidden subsidy and the bonus pool disappears.
Trump and his appointees at the Federal Reserve are easing bank requirements put in place after the bailout. They'll make sure the biggest banks remain too big to fail.
Trump is promoting socialism for the rich and harsh capitalism for everyone else in other ways. Since he was elected, GM has got more than $600 million in federal contracts plus $500 million in tax breaks. Some of this has gone into the pockets of GM executives. Chairman and CEO Mary Barra raked in almost $22m in total compensation in 2017 alone.
But GM employees are subject to harsh capitalism. GM is planning to lay off more than 14,000 workers and close three assembly plants and two component factories in North America by the end of 2019.
When he was in business, Trump perfected the art of using bankruptcy to shield himself from the consequences of bad decisions - socialism for the rich at its worst - while leaving employees twisting in the wind.
Now, all over America, executives who run their companies into the ground are getting gold-plated exit packages while their workers get pink slips.
Sears is doling out $25 million to the executives who stripped its remaining assets and drove it into bankruptcy, but has no money for the thousands of workers it laid off.
As Pacific Gas and Electric hurtles toward bankruptcy, the person who was in charge when the deadly infernos roared through northern California last year (caused in part by PG&E's faulty equipment) has departed with a cash severance package of $2.5 million. The PG&E executive in charge of gas operations when records were allegedly falsified left in 2018 with $6.9 million.
Under socialism for the rich, you can screw up big time and still reap big rewards. Equifax's Richard Smith retired in 2017 with an $18 million pension in the wake of a security breach that exposed the personal information of 145 million consumers to hackers.
Wells Fargo's Carrie Tolstedt departed with a $125 million exit package after being in charge of the unit that opened more than 2 million unauthorized customer accounts.
Around 60 percent of America's wealth is now inherited. Many of today's super rich have never done a day's work in their lives.
Trump's response has been to cut the estate tax to apply only to estates valued at over $22 million per couple. Mitch McConnell is now proposing that the estate tax be repealed altogether.
What about the capitalist principles that people earn what they're worth in the market, and that economic gains should go to those who deserve them?
America is on the cusp of the largest inter-generational wealth transfer in history. As rich boomers expire over the next three decades, an estimated $30 trillion will go to their children.
Those children will be able to live off of the income these assets generate, and then leave the bulk of them to their own heirs, tax-free. (Capital gains taxes don't apply to the soaring values of stocks, bonds, mansions and other assets of wealthy people who die before they're sold.)
After a few generations of this, almost all of the nation's wealth will be in the hands of a few thousand non-working families.
To the conservative mind, the specter of socialism conjures up a society in which no one is held accountable, and no one has to work for what they receive. Yet that's exactly the society Trump and the Republicans are promoting for the rich.
Meanwhile, most Americans are subject to an increasingly harsh and arbitrary capitalism in which they're working harder but getting nowhere, and have less security than ever.
They need thicker safety nets and deserve a bigger piece of the economic pie. If you want to call this socialism, fine. I call it fair.
"America will never be a socialist country," Donald Trump declared in his State of the Union address. Someone should alert Trump that America is now a hotbed of socialism. But it is socialism for the rich. Everyone else is treated to harsh capitalism.
In the conservative mind, socialism means getting something for doing nothing. That pretty much describes the $21 billion saved by the nation's largest banks last year thanks to Trump's tax cuts, some of which went into massive bonuses for bank executives. On the other hand, more than 4,000 lower-level bank employees got a big dose of harsh capitalism. They lost their jobs.
Banks that are too big to fail - courtesy of the 2008 bank bailout - enjoy a hidden subsidy of some $83 billion a year, because creditors facing less risk accept lower interest on deposits and loans. Last year, Wall Street's bonus pool was $31.4 billion. Take away the hidden subsidy and the bonus pool disappears.
Trump and his appointees at the Federal Reserve are easing bank requirements put in place after the bailout. They'll make sure the biggest banks remain too big to fail.
Trump is promoting socialism for the rich and harsh capitalism for everyone else in other ways. Since he was elected, GM has got more than $600 million in federal contracts plus $500 million in tax breaks. Some of this has gone into the pockets of GM executives. Chairman and CEO Mary Barra raked in almost $22m in total compensation in 2017 alone.
But GM employees are subject to harsh capitalism. GM is planning to lay off more than 14,000 workers and close three assembly plants and two component factories in North America by the end of 2019.
When he was in business, Trump perfected the art of using bankruptcy to shield himself from the consequences of bad decisions - socialism for the rich at its worst - while leaving employees twisting in the wind.
Now, all over America, executives who run their companies into the ground are getting gold-plated exit packages while their workers get pink slips.
Sears is doling out $25 million to the executives who stripped its remaining assets and drove it into bankruptcy, but has no money for the thousands of workers it laid off.
As Pacific Gas and Electric hurtles toward bankruptcy, the person who was in charge when the deadly infernos roared through northern California last year (caused in part by PG&E's faulty equipment) has departed with a cash severance package of $2.5 million. The PG&E executive in charge of gas operations when records were allegedly falsified left in 2018 with $6.9 million.
Under socialism for the rich, you can screw up big time and still reap big rewards. Equifax's Richard Smith retired in 2017 with an $18 million pension in the wake of a security breach that exposed the personal information of 145 million consumers to hackers.
Wells Fargo's Carrie Tolstedt departed with a $125 million exit package after being in charge of the unit that opened more than 2 million unauthorized customer accounts.
Around 60 percent of America's wealth is now inherited. Many of today's super rich have never done a day's work in their lives.
Trump's response has been to cut the estate tax to apply only to estates valued at over $22 million per couple. Mitch McConnell is now proposing that the estate tax be repealed altogether.
What about the capitalist principles that people earn what they're worth in the market, and that economic gains should go to those who deserve them?
America is on the cusp of the largest inter-generational wealth transfer in history. As rich boomers expire over the next three decades, an estimated $30 trillion will go to their children.
Those children will be able to live off of the income these assets generate, and then leave the bulk of them to their own heirs, tax-free. (Capital gains taxes don't apply to the soaring values of stocks, bonds, mansions and other assets of wealthy people who die before they're sold.)
After a few generations of this, almost all of the nation's wealth will be in the hands of a few thousand non-working families.
To the conservative mind, the specter of socialism conjures up a society in which no one is held accountable, and no one has to work for what they receive. Yet that's exactly the society Trump and the Republicans are promoting for the rich.
Meanwhile, most Americans are subject to an increasingly harsh and arbitrary capitalism in which they're working harder but getting nowhere, and have less security than ever.
They need thicker safety nets and deserve a bigger piece of the economic pie. If you want to call this socialism, fine. I call it fair.