Violence begins with cops or fascist agitators*. So far the students have had the discipline to not retaliate, which is what the violent agitators want.
Often the analysis we’re presented with in the media is often limited to GDP, which doesn’t really help us to understand why the US, for example, have lost its competitiveness, its industrial strength, its ability to compete, especially with the Chinese.
The idea of American economic growth from the 1990s on was, instead of producing manufactured goods, we will develop intellectual property monopolies, especially in information technology, in pharmaceuticals. And America will make its economic growth in GDP, not by making profits to employ labor to produce more and more goods and services, but to have monopoly rents for our pharmaceuticals. So we can make pills that cost 10 cents each and sell them for $500 each. We can make computer programs for automatic artificial intelligence and for computer chips and for all of the information technology we have at enormous markups. And we can live on our economic rents, live off the fat of the land, as they used to say. We don’t have to have blue-collar jobs. Everybody can work in an office and make money that way.
You have today, as the election for 2024 is being prepared, the bewilderment of the Democratic Party here. If you look at the GDP, President Biden says, you’re doing so well, look at GDP. And the vast majority of Americans, according to every poll in every part of the country says, we’re not doing well at all. We’re doing awful. And it turns out that when you look at what is the American GDP, well, almost all of it is the growth in prosperity, the growth in financial benefits for the 1%, maybe for the 10% of the population. And the 1% and the 10% has increased its wealth so much since 2008 led the Federal Reserve to slash interest rates that the 1% and the 10% gain is larger than the loss for the 90%. So all that the President Biden can say is, who are you going to believe? Are you going to look at the statistics or are you going to look at your own life and what you have to spend at the grocery store and what you have to spend on rent and housing as America turns away from a homeowner’s economy into a rental economy?
The main culprit for the economy’s falling growth rate and the general middle-class economic squeeze is debt – or more specifically, the burden of having to pay it back, with penalties, fees and lower credit ratings. The mainstream press depicts the rising market price of homes as a benefit to homeowners, a capital gain as if they almost were real estate speculators or capitalists in miniature, not wage-earners running up debt. GDP statisticians include the rise in valuation of owner-occupied real estate and the rising rents it saves homeowners from having to pay as adding to GDP. But homeowners do not receive a corresponding income for living in their homes, even if rents rise in their neighborhood. And debt-financed home-price inflation has become a major factor squeezing family budgets in today’s world.
When they fall behind in their payments and are subject to late fees and higher interest rates, these payments are treated as an addition to GDP (“financial services”), as if the economy is getting richer. So when the specific components of what seems to be empirical statistical evidence of affluence are analyzed, they consist not of real product and prosperity but transfer payments from the economy at large to the Finance, Insurance and Real Estate (FIRE) sector.
Payments on the economy’s rising debt should rightly be viewed as a subtrahend from national income. But the GDP accounting format treats this rising debt as a necessary cost of production. In this line of theorizing, creditors provide a productive service whose value is reflected in the rate of interest and the magnitude of fees and penalties. Ultra-low interest rates, resulting from financial lobbying pressures, have held down the cost of carrying this debt, but these low official rates mask the reality that many debtors fall behind and have to pay penalty fees and high penalty interest rates.
These payments are added to today’s GDP measure, even as they leave less family income available to be spent on products. The result is a statistical confusion concerning how much GDP growth is actual income and product growth, and how much is rent extracted from disposable personal and corporate income. That is the basic conceptual issue addressed in this paper.
The key to understanding the U.S. economy is not so much GDP as capital (asset-price) gains and the offsetting debt burden financing these gains. This financialized overhead is not real growth. It does not make the economy richer. This paper explains why, and provides a statistical format to measure the magnitude of rent extraction or the FIRE sector on the “product” side of the economy, deflating disposable personal income available to spend on goods and services, and capital gains on the “total returns” side, so as to show how most wealth is achieved not by actual production but by increasingly debt-financed asset-price inflation.
Once Obama got in office, Democrat stans suddenly didn’t care about the Global War(s) on Terrorism anymore. They were silent on his star chamber as well. It was a real wake-up call for me.
Oh I see, this conversation would just be a repeat of eight months ago, where no successful communist states have ever existed, the USSR was an ethnic cleanser, and Russia today is a fascist state. You also seemed to downplay Ukraine’s Nazi problem.
You were right on at least one account, though: Haz, Maupin, and Hinkle are patsocs and/or nazbol pieces of shit. But I don’t know why you thought anyone on Lemmy/Lemmygrad/Hexbear would give them the time of day. Where did you get that idea?
It’s so funny when a liberal crying about “western values” is lecturing me on what constitutes idiocy.
Yogthos is not defending Western/liberal values, he is pointing out the hypocrisy of liberalism.
Liberation of Ukrainian people must culminate in the destruction of the Ukrainian state, be it western- or Russian-backed, as is the case for all other peoples and states.
Yes.
On the other hand, destruction of only Ukraine serves only their imperialist oppressor - Russia.
Russia is not predominantly an imperialist state at the moment, though it is a capitalist state which should ultimately be destroyed. And being a capitalist state, in time it may well develop into a full-throated imperialist state. To elaborate I’ll copypasta myself:
Honest question from a non-communist, based on your reply here. Does one need to support Putin to be a Marxist?
In a word, no. In a few more words, support for Russia (not Putin, as historical materialists don’t subscribe to great man theory) is only a partial, temporary, tactical one, in the context of imperialist liberation. Russia is still a capitalist state, though, so it’s a two stage strategy: first liberate colonized bourgeois states from colonizer states, and second revolution within those liberated bourgeois states.
Russia is an interesting case: it has already liberated itself from the post-Soviet “shock therapy” neocolonizers. This occurred during Putin’s administration, which is why he is especially hated by the US. So now the support for Russia is in the context of keeping the colonizers from recolonizing it, and supporting Russia to the extent that it helps other states liberate themselves. But Russia isn’t trying to “liberate” Ukraine, at least not all of Ukraine. It’s trying to resolve the genocidal attacks on the people of the Donbas, and it’s trying to resolve the imperialist military expansion at its border.
