American businesses devour themselves to enrich the 1%


A Goldman Sachs report on stock buybacks shows a suspicious clustering in the fourth quarter, just when management bonuses are being calculated.

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Paolo Bacigalupi's "The Doubt Factory"

From one of science fiction’s most versatile writers comes a caper novel about corporate sleaze and net-savvy guerrilla activists that is as thrilling as it is trenchant. Cory Doctorow reviews Paolo Bacigalupi’s The Doubt Factory.

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Umbrella Revolution's projector guerrillas splash huge messages on public buildings


The Add Oil project lets anyone in the world write a message of support to Hong Kong's protesters, which is then beamed in 16' tall letters on the sides of buildings near the protests.

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HK police arrest "triad gangsters" who attacked Umbrella Revolution camps


The protesters accuse the police of working with the thugs, who wore masks as they attacked the encampments; the violence has led to postponement of the planned talks between the Umbrella Revolution leaders and the Hong Kong administration.

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Walmart heirs' net worth exceeds that of population of a city the size of Phoenix


It's grown 6,700% since 1983, to $144.7B in 2013 -- greater than the net worth of 1,782,020 average Americans.

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Human beings are the gut flora of immortal, transhuman corporations

Daughter of Hong Kong leader thanks "taxpayers" for diamonds on Facebook


Chai Yan Leung thanked the taxpayers who paid for it, and then dismissed her critics as non-taxpayers, since employed people wouldn't have time to comment on Facebook.

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Hong Kong protest: drone flyover

The throngs of Hong Kong pro-democracy demonstrators, captured by Nero Chan's drone.

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Dear fellow zillionaires: they're coming for us with pitchforks


Nick Hanauer, a hereditary millionaire who increased the family fortune with some shrewd early dotcom inventions has written an open letter to his fellow "zillionaires" warning that their corruption of the US political system has given rise to an unstable situation of wealth inequality that has turned their potential customers into impoverished pitchfork-wielding revolutionaries who are coming for their heads.

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Thomas Piketty's Capital in the 21st Century

Thomas Piketty’s Capital in the 21st Century is a bestselling economics tome whose combination of deep, careful presentation of centuries’ worth of data, along with an equally careful analysis of where capitalism is headed has ignited a global conversation about inequality, tax, and policy. Cory Doctorow summarizes the conversation without making you read 696 pages (though you should).

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Best-paid CEOs perform the worst


In Performance for Pay? The Relation Between CEO Incentive Compensation and Future Stock Price Performance , a paper from U of Utah business-school professors, the relationship between executive performance and executive pay is intensively investigated. The authors carefully document that the highest-paid executives in the 1,500 companies with the biggest market cops from 1994-2013 perform the worst, and that the higher a CEO's pay, the more likely it is that he'll perform worse than his low-paid colleagues. The effect was most pronounced in the 150 highest-paid CEOs.

The authors propose that sky-high pay leads CEOs to be overconfident -- after all, if they're getting $37M for a year's work, they must be pretty damned smart, so anyone who disagrees with them is clearly an idiot, after all, look at how little that critic is paid! The longer a CEO is in office, the worse his performance becomes, because he is able to pack the board with friendly cronies who keep hiking his pay and overlooking his underperformance. And CEOs suck at figuring out when to exercise their stock options, generally getting less money than they would by following conventional financial advice.

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Oligopolistic America: anti-competitive, unequal, and deliberate


A brilliant, enraging op-ed in the Washington Post from analysts from the New America Foundation and the American Antitrust Institute shows how the Reagan-era policy of encouraging monopolistic corporate behavior has made America unequal and uncompetitive, creating a horror Gilded Age where the Congressional consensus is that laws cannot possibly put a check on bad corporate actors.

It's another look at the problems set out in Matt Taibbi's brilliant book The Divide, tracing the policies that created both the private prison industry and banks so big that even the most depraved criminality can't be punished lest the bank tremble and collapse on wider society.

Particularly galling and illuminating is a quote from a Goldman Sachs report that advises investors to seek out "oligopolistic market structure[s]" where there's "lower competitive intensity, greater stickiness and pricing power with customers due to reduced choice" as the ideal way to maximize your return on capital.

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The more your job helps people, the less you're paid (and vice-versa)


In this spectacular, long interview with Salon, David "Debt" Graeber builds on his bullshit jobs hypothesis and points out the horror of modern American work: if your job does some good, you are paid less; jobs that actively hurt people are paid more; and no one seems to want a world where no one has to work anymore. But have no fear: it ends on a high note: a proposed "revolt of the caring classes."

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Piketty's methods: parsing wealth inequality data and its critique

I've been writing about Thomas Piketty's magisterial economics bestseller Capital in the Twenty First Century for some time now (previously), and have been taking a close interest in criticisms of his work, especially the Financial Times's critique of his methods and his long, detailed response. I freely admit that I lack the stats and economics background to make sense of this highly technical part of the debate, but I think that Wonkblog's analysis looks sound, as does the More or Less play-by-play (MP3).

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Matt Taibbi's The Divide: incandescent indictment of the American justice-gap

Matt Taibbi’s
The Divide: American Injustice in the Age of the Wealth Gap
is a scorching, brilliant, incandescent indictment of the widening gap in how American justice treats the rich and the poor. Taibbi’s spectacular financial reporting for Rolling Stone set him out as the best running commentator on the financial crisis and its crimes, and The Divide — beautifully illustrated by Molly Crabapple — shows that at full length, he’s even better. Cory Doctorow reviews The Divide.

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