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. Read the rest
It's grown 6,700% since 1983, to $144.7B in 2013 -- greater than the net worth of 1,782,020 average Americans. Read the rest
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. Read the rest
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. Read the rest
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. Read the rest
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. Read the rest
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." Read the rest
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). Read the rest
I am cleaning out my family home in New York. Evicted. (police intelligence seems to have played a role.).— David Graeber (@davidgraeber) April 2, 2014
There is a pattern here: almost everyone mentioned in press as involved in early days of OWS has been getting administrative harassment— David Graeber (@davidgraeber) April 2, 2014
There have been evictions, visa problems, tax audits... Endless minor harassment arrests— David Graeber (@davidgraeber) April 2, 2014
David Graeber, author of Debt: the First 5000 Years, was evicted from the home that his family had lived in for 52 years yesterday. He says that the NYPD intelligence department played a role in establishing a "technicality" on which his family could be evicted, despite not having missed a single payment in 52 years. He blames the eviction on retaliation against high-profile Occupy Wall Street activists, whom he says have been targeted in a wide-ranging series of administrative attacks: "evictions, visa problems, tax audits..."
Here's a good writeup of Loomio, a collective decision-making tool that is raising funds to add features, stability and polish to its free/open source codebase. Loomio grew out of the experience of Occupy's attempt to create inclusive, democratic processes, and attempt to simplify the Liquid Feedback tool widely used by Pirate Parties to resolve complex policy questions.
I'm very interested in this kind of collective action tool -- I wrote about a fictionalized version in Lawful Interception that allowed crowds of people to coordinate their movement without leaders or hierarchy -- and Loomio seems to have a good mix of political savvy, technical knowhow, and design sense. Read the rest
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: Read the rest