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Trump offers socialism for the rich, capitalism for everyone else


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2019 Feb 11, 8:59am   1,475 views  18 comments

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To a conservative mind, socialism is getting something for nothing. Yet this is what the president promotes for the wealthy

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 $21bn 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 $83bn a year, because creditors facing less risk accept lower interest on deposits and loans. Last year, Wall Street’s bonus pool was $31.4bn. 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. GM has got more than $600m in federal contracts, plus $500m 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 $25m 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 $2.5m. The PG&E executive in charge of gas operations when records were allegedly falsified left in 2017 with $6.9m.

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 $18m 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 $125m exit package after being in charge of the unit that opened more than 2 million unauthorized customer accounts.

Around 60% 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 $22m 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 $30tn 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.

https://www.theguardian.com/commentisfree/2019/feb/11/trump-offers-socialism-for-the-rich-capitalism-for-everyone-else

#Socialism #Capitalism #Policy

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1   anonymous   2019 Feb 11, 9:31am  

A democracy lost to corporate socialism

"Corporate socialism is where we socialize losses and privatize gains. Companies that have failed in the marketplace stick the taxpayers with their losses, but when they make money they get to keep it, and secondly, huge amounts of capital are given to companies by taxpayers,"

One major example of corporate socialism in the past few decades has been the use of tax havens abroad by multinational companies to avoid corporate income tax; smaller, domestic companies are unable to use tax havens, giving multinational companies an additional edge over smaller competitors. A 2015 study conducted by the Citizens for Tax Justice and the U.S. Public Interest Research Group Education Fund found that the largest 500 companies in the U.S. keep more than $2.1 trillion in tax havens. And according to Johnston, large multinational corporations often pay licensing fees and royalties to their offshore subsidiaries for logos and patents under the guise of a business expense, in order to legally transfer the money from the United States while using the payments as tax deductions.

The proposals and empty promises for reforms to close loopholes that benefit corporations and the wealthy have come up empty because these special interests have infiltrated politics to the extent that government is no longer working with the public good in mind, but the interests of wealthy campaign contributors. Thousands of lobbyists flood Washington and state capitals on a regular basis to push for legislators to support rules and regulations that favor the corporations they represent, while those same corporations send large campaign donations to the politicians who vote in their interests. S

So far in the 2016 presidential primaries, Democratic candidate Hillary Clinto has received $47.9 million from super-PACs;

The Winners ! - Republican candidates former Florida Gov. Jeb Bush, Sen. Ted Cruz (Texas) and Sen. Marco Rubio (Fla.) have received $123.7 million, $42.8 million and $31.7 million through super-PACs, respectively, according to the New York Times.

Nearly half of the money contributed to presidential bids for the White House in 2016 has come from 158 families. Those donations are attached with strings to the interests of the wealthy who donated to them.

"Many of the regulations are written by businesses that want to insulate themselves from the rigors of the competitive market," said Johnston. "They have unequal access. If you are a member of Congress, you have to think about who is going to either fund you or your opponent. You don't have much time to think about what's in the public interest."

https://thehill.com/blogs/pundits-blog/economy-budget/268947-a-democracy-lost-to-corporate-socialism
2   anonymous   2019 Feb 11, 9:33am  

How corporate socialism destroys

A proposal to spend $250 million of taxpayer money on a retail project here illustrates the damage state and local subsidies do by taking from the many to benefit the already rich few.

Nationwide state and local subsidies for corporations totaled more than $70 billion in 2010, as calculated by Professor Kenneth Thomasof the University of Missouri-St. Louis

In a country of 311 million, that’s $900 taken on average from each family of four in 2010. There are no official figures, but this one is likely conservative because — as documented by Thomas, this column and Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations — these upward redistributions of wealth keep increasing.

http://blogs.reuters.com/david-cay-johnston/2012/06/01/how-corporate-socialism-destroys/
3   Bd6r   2019 Feb 11, 9:55am  

Sad but very true.

My only point here would be that "socialism for rich, capitalism for poor" started long before Trump. Bank and car company bailouts in Bush/Obama era, where the owners/stockholders should have walked away with $0.00, ended with massive bonuses for the same people who screwed up. I believe GM was bailed out also in 1970's. Cities subsidize sports teams - this also is an example of idiotic shoveling money from poor to rich via taxes.
4   HeadSet   2019 Feb 11, 10:16am  

A better example than companies paying golden parachutes is Frank Raines. This gentleman paid himself over $100 million in bonuses running Fannie Mae, and then left the subprime mortgage mess he created for the taxpayers to bail out. This was in 2004.
5   MrMagic   2019 Feb 11, 11:17am  

Kakistocracy says
To a conservative mind, socialism is getting something for nothing.


To an intelligent mind, that's what socialism means, to brain dead Liberals, it's Christmas!

Kakistocracy says
That pretty much describes the $21bn 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.


More TDS...
Many employees received bonuses and pay raises due to the tax cut plan.

https://www.usatoday.com/story/money/2018/01/11/list-companies-paid-bonuses-boosted-pay-since-tax-bill-passed/1023848001/
https://www.foxbusiness.com/markets/tax-reform-windfall-these-companies-are-hiking-pay-delivering-bonuses

Imagine that, there are bunch of banks on that list!

Kakistocracy says
Trump is promoting socialism for the rich and harsh capitalism for everyone else in other ways. GM has got more than $600m in federal contracts, plus $500m 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.


More TDS and ignorance.

But we'll blame Trump for really BAD management practices at GM, a crappy Board and for making shitty products people don't want.

Kakistocracy says
Nationwide state and local subsidies for corporations totaled more than $70 billion in 2010, as calculated by Professor Kenneth Thomasof the University of Missouri-St. Louis

In a country of 311 million, that’s $900 taken on average from each family of four in 2010.


Wow, I didn't realize Trump was President way back in 2010. Does he have a time machine?

Oh, wait..... Obama was President at that time.... Oops.... you posted the wrong Trump hit piece...
6   Heraclitusstudent   2019 Feb 11, 11:25am  

Kakistocracy says
Banks that are too big to fail – courtesy of the 2008 bank bailout – enjoy a hidden subsidy of some $83bn a year


You're perfectly right. Except it has absolutely nothing to do with Trump.
The rich had the power in the country under the previous establishment, including Obama.
It's under Obama the banks got their bailouts, banksters got their bonuses while people were thrown out of houses and onto the street.
It's Obama that signed a healthcare law that is essentially a giveaway to big insurance companies.
It obviously has nothing to do with the president, and much more to do with the nature of congress, lobbyists and money in politics.

There is enough to reproach Trump without blaming him for things he can't change.
7   FortwayeAsFuckJoeBiden   2019 Feb 11, 11:28am  

Usual TDS. Soon they'll blame him for cancer, provided they haven't already.
8   ForcedTQ   2019 Feb 11, 11:35am  

Kakistocracy says
A democracy lost to corporate socialism


A Democracy? What are you talking about? Are you referring to what you think our government structure was/is? You're incorrect.

The United States of America, formed by the states, is a constitutional Republic. Now you know.
9   anonymous   2019 Feb 11, 11:56am  

ForcedTQ says
The United States of America, formed by the states, is a constitutional Republic.


Amazing....

ForcedTQ says
Now you know.


And I am to be entertained and or interested by that bit of historical drivel that adds nothing to the subject matter at hand because ?

Now you know
10   FuckTheMainstreamMedia   2019 Feb 11, 12:10pm  

Lol. Tax cuts/reductions are not socialism. What an incredibly silly premise.
11   MrMagic   2019 Feb 11, 12:34pm  

CovfefeButDeadly says
Lol. Tax cuts/reductions are not socialism. What an incredibly silly premise.


Exactly..

@Kakistocracy

Tax cuts are letting people/corporations keep MORE of their OWN money.

Now you know.
12   anonymous   2019 Feb 11, 2:55pm  

d6rB says
My only point here would be that "socialism for rich, capitalism for poor" started long before Trump


Totally agree and Potus is offering more of the same to the same.
13   anonymous   2019 Feb 11, 2:55pm  

14   Bd6r   2019 Feb 11, 3:05pm  

Kakistocracy says
Potus is offering more of the same to the same

Probably. His middle class tax cut phases out in some years (8?) yet tax cuts for companies do not. He also increases military spending, which is a handout to large companies. I'd like to see what happens when banks start failing - will he bail them out also. My bet is that he will.
15   MrMagic   2019 Feb 11, 3:43pm  

Kakistocracy says
d6rB says
My only point here would be that "socialism for rich, capitalism for poor" started long before Trump


Totally agree and Potus is offering more of the same to the same.


Funny, the new crew of Democrat candidates are the ones offering more socialism for EVERYONE. Anyone paying attention can see that. Are you paying attention?

16   Bd6r   2019 Feb 11, 4:44pm  

MrMagic says
Funny, the new crew of Democrat candidates are the ones offering more socialism for EVERYONE.

I think it will be socialism for the very poor and very rich (Bezos will do well under both R's and D's). Middle class will be hosed.
17   FortWayneAsNancyPelosiHaircut   2019 Feb 11, 4:52pm  

Under Teump economy improved. So OP is just TDSing.
18   Bd6r   2019 Feb 11, 4:55pm  

FortWayneIndiana says
Under Teump economy improved. So OP is just TDSing.

Real test will be if some systemic bank/company fails. If Trump will save them with taxpayer money, he will be like Obama/Bush. If he lets them eat their losses, then not.

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