Robert H. Richards IV, a wealthy heir to the du Pont fortune, has been spared prison after being convicted of raping his three year old daughter. Delaware Superior Court Judge Jan Jurden sentenced the admitted serial child-rapist to probation on the ground that he "would not fare well" in prison. The case echoes the affluenza scandal in which a judge spared a rich child a prison sentence after he had killed four people on the grounds that he was so rich that he couldn't distinguish right from wrong.
As the long, excellent article in the News Journal notes, it's nice to hear judges focusing on the rehabilitative dimension of the justice system, but it's enraging and offensive to see that this kind of mercy is disproportionately dispensed to the wealthiest members of society, especially as America sinks further into its decades-old scandal of mass-incarceration, becoming one of history's most prolific imprisoners of poor people and people of color.
The prosecutor bears some responsibility here too, having agreed to a plea bargain for a lesser charge without a mandatory minimum sentence -- the kind of prosecutorial discretion that we'd have loved to have seen in the Aaron Swartz case and many other cases involving people who are not trust-fund multi-millionaires.
Richards is a healthy, imposing man in early middle age. Many others who would "not fare well" in prison, including trans* people and people with disabilities are routinely sentenced to long, brutal incarceration. It would be nice to see the American judicial system extend this mercy to them. In particular Judge Jurden has a reputation as a "tough sentencing judge" (except when confronted with child-rapists from one of America's largest family fortunes).
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Hang the Bankers has a set of photos from 1972 surrealist ball hosted by Marie-Hélène de Rothschild at the Château de Ferrières, with Salvador Dali in attendance. Hang the Bankers cites this as evidence of "the underlying ideology and the mind state of the occult elite," which sounds like hogwash to me. I mean, I'm all for reflexively condemning the hyper-rich, but if you're a weird shadowy billionaire aristo, better you should be spending your unimaginable riches on cool dress-up parties than tacky mega-yachts or sabotaging health care bills.
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The Catholic Archdiocese of Newark is shutting down its schools due to lack of funding, but it still has a fortune it can use to build a small palace
for its archbishop John J Myers, who is soon to retire after a career whose highlights include dismissing victims of sexual abuse and shielding abusing priests. Also, he insists on being addressed as "Your Grace." He's a made-in-America version of Germany's disgraced "Luxury Bishop
In the process of writing his just-released book Young Money, an investigative look at the bankers who've joined Wall Street since the crash of 2008, author Kevin Roose snuck into a meeting of the secretive Kappa Beta Phi club -- an organization of hyper-rich Wall Street bankers.
Roose recorded the captains of of industry, whose shady dealing had crashed the world economy and plunged millions into untold misery, cavorting on stage, making jokes about poor people and Hillary Clinton, dressing up in drag, and singing an anthem about how much bailout money they'd suckered out of the feds, to the tune of Dixie: "In Wall Street land we’ll take our stand, said Morgan and Goldman. But first we better get some loans, so quick, get to the Fed, man."
New York Magazine has a membership roll of the Kappa Beta Phis, which is a who's who of the richest, most powerful men on Wall Street.
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If you've ever dreamed of owning a bank-vault mounded high with shiny coins in which you can bathe like Scrooge McDuck, now is your chance. A Swiss bank-vault filled with 8 million Swiss 5-cent pieces is up for auction. The vault was made in 1913 for the Schweizer Volksbank. The coins -- 15 tons' worth -- were used in a 2013 installation in which they were dumped in a public square, with no security, as an exercise in public trust. The coins and the safe are presently in Basel. You will have to relocate them.
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Remember when HSBC got caught laundering billions for Mexican narco-terror cartels? Remember how they offered to pay five weeks' profits in fines and to defer their executive bonuses to escape criminal charges?
The crime-fighting legal eagles at the Department of Justice approved the settlement last week. Remember, though, if you are suspected of laundering money or selling drugs, the DoJ will take your house away and put you in jail for the rest of your life. Nice to be "too big to jail." Still, deferring multimillion-dollar bonuses has gotta hurt, huh?
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Yesterday, the Wall Street Journal published a letter by Tom Perkins (the "Perkins" in the venture capital firm "Kleiner Perkins") in which he compared rhetoric about the unjust riches of the "1 percent" to the events of Kristallnacht, the overture to the Holocaust. In a terrific editorial, Josh Marshall explains why the hyper-rich turn into such crybabies when it's pointed out that they've gamed the system so that they grow richer and richer while everyone else gets poorer:
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A new Oxfam report entitled Working for the Few (PDF), documents a "power grab" by the world's wealthy super-elite, who have amassed astonishing assets while the rest of the world grew poorer. Not only do the top 1% of the world's richest own 65 times more than the world's poorest 50%, but the 85 richest people own more than half the world. Oxfam is clear that this wealth expansion at the top is the result of a horribly corrupt political process by which elected representatives end up making policies to enrich the already-wealthy.
They're at Davos this week, asking the world's elites to pledge support for progressive taxation; an end to tax-avoidance; an end to financial corruption of legislation and policy; transparency in their own fortunes; universal healthcare, education and social protection; and a living wage for all.
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Brian sez, "Lawrence Lessig, former EFF board member, chair of the Safra Center for Ethics at Harvard University, founder of the Center for Internet and Society, founding board member of Creative Commons, and former board member of the Free Software Foundation is taking on a new project -- walking across New Hampshire.
"The idea is to raise awareness of the massive amount of political corruption in the American democratic system, and make it the #1 issue in New Hampshire in time for the 2016 Presidential Primaries. This three-minute video (from the guy who did the Windows 8 and Data Caps animations) explains the project, called the New Hampshire Rebellion, in cartoon form."
Animated: How the New Hampshire Rebellion will make corruption the #1 issue of 2016
America's billionaires are able to avoid paying millions in inheritance taxes by renting empty storefronts in South Dakota in order to give their trust-funds an SD address, from which they can exploit a deliberate loophole in state tax-law. Over $121 billion in trust-funds is administered through South Dakota, mostly for out-of-state families -- a figure that's tripled in four years. South Dakota's corrupt tax laws also allow for avoiding millions in tax from ordinary investments by the richest people in NY and MA.
South Dakota itself has some dire poverty -- two of the 10 poorest counties in America are in SD -- and lawmakers describe their project to turn the state into "the Bermuda of the prairie" as an economic development project, creating jobs for lawyers and bankers, and "[forging] ties with prosperous families that may one day decide to build a factory or a warehouse here."
The project has failed. The entire trust industry only employs about 100 South Dakotans, but Republican Governor Dennis Daugaard, a former banker, says it's worth it: "If you've got several hundred well-paying jobs, it's worth it to us."
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The OObject 2013 Gift Guide contains nothing affordable -- instead, it's a collection of one-of-a-kind, four-to-seven-figure fetish objects ranging from a faithful replica of the Sputnik to a decommissioned British remote control sub.
OObject 2013 Gift Guide
Economist Tim Harford answers my question: How would you short the London property bubble? in a column that also asks the important question: should you?
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This 2012 video from Politizane does an excellent job of illustrating the massive, well-documented gap between the wealth-distribution that Americans believe they have, the distribution they would favor (regardless of political affiliation), and what America actually has: a system that rewards CEOs at 380 times the rate of their average employees.
Wealth Inequality in America
(Thanks, Fipi Lele!)
Britain's harsh austerity measures have produced a sharp decline in real income and quality of life for the majority of the country; but the number of people earning £1M+ has doubled and is at an all-time high.
Official figures reveal that 18,000 people now earn at least £1m – the highest number recorded by HM Revenue & Customs. In 2010-11, 10,000 earned more than £1m, and in 1999-2000 there were only 4,000 earning such a salary.
There is also growth further down the salary brackets, with 5,000 more earning £500,000 to £1m in 2012-13 compared with 2010-11, an extra 31,000 earning £200,000 to £500,000, and 7,000 more earning £150,000 to £200,000.
The figures will increase concerns that the trends of the 1990s and early 2000s are continuing, with a growing disparity between the top-earning 1%, many of whom work in finance, and the rest of the workforce. In sectors such as manufacturing, construction and hospitality salaries have been squeezed in recent years. A recent report showed that if low to middle earnings were to rise by the 1.1% a year above inflation achieved in the past, average annual household incomes in this group would take until 2023 to reach £22,000 – the equivalent of where they stood in 2008.
Super-rich on rise as number of £1m-plus earners doubles [Daniel Boffey/The Observer]
Linda McMahon (a wrestling magnate who built up the WWE with her husband Vince McMahon) is a failed Republican Senate candidate in Connecticut with a reported net worth of $500M, who has spent a reported $100M on a pair of failed Senate bids. She has also reportedly stiffed her staffers, who claim that they were sent bounced checks from the campaign, and, when they complained, were sent more rubber checks, along with a condom and a message saying "you're screwed." From CBS:
Campaign staffer Twaine Don Gomes was reportedly among the first to make the matter of the bad checks public knowledge through local news media – an action which allegedly inspired the campaign to send a second check with something extra.
“Basically he handed me a check with a condom in it, told me I was screwed,” Gomes told WTNH. “That’s the rudest gesture you can ever do to a person, it’s like spitting in a person’s face.”
Checks Issued By McMahon Campaign Reportedly Bounce