Thread: Yes, it's class war. And your point is...? Board: Oblivion / Ship of Fools.


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Posted by Adeodatus (# 4992) on :
 
The term "class war" has been getting a few outings recently. Most prominently in yesterday's and today's headlines, Barack Obama's hope that he might raise taxes for the most wealthy has been met with spluttering outrage: "This is class war!"

But when the 85 richest people in the world have the same wealth as the poorest 3.5 billion - link - does the class war become a just war? And if, as Oxfam alleges, that the people who own half the world's wealth might squeeze into a double decker bus, might it not be an act of justice to drive that bus off a cliff?
 
Posted by Anglican't (# 15292) on :
 
1. Killing rich people by driving them off a cliff wouldn't actually make everyone else richer would it, except in terms of some statistical exercise? Whether you can afford your weekly grocery shop doesn't change if Bill Gates is dead.

2. I don't think the very richest really travel by bus. Especially not double-deckers.
 
Posted by Adeodatus (# 4992) on :
 
quote:
Originally posted by Anglican't:
1. Killing rich people by driving them off a cliff wouldn't actually make everyone else richer would it, except in terms of some statistical exercise?

But it would go so viral on Youtube.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Adeodatus:
quote:
Originally posted by Anglican't:
1. Killing rich people by driving them off a cliff wouldn't actually make everyone else richer would it, except in terms of some statistical exercise?

But it would go so viral on Youtube.
Unless you spice it up a bit I can't see a straight-forward drive off a cliff being more exciting than a Russian car crash compilation.
 
Posted by Golden Key (# 1468) on :
 
Maybe *they* could do viral videos of signing most of their wealth over to the poor?
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by Anglican't:
1. Killing rich people by driving them off a cliff wouldn't actually make everyone else richer would it, except in terms of some statistical exercise?

Well, technically, once you've killed all the rich people, you've also killed all the heirs of the rich people, and their property will pass to the state as bona vacantia. You could view that as making everyone else richer, at least temporarily [Smile]
 
Posted by Lord Jestocost (# 12909) on :
 
quote:
Originally posted by Leorning Cniht:
Well, technically, once you've killed all the rich people, you've also killed all the heirs of the rich people, and their property will pass to the state as bona vacantia.

But many will already have bred and the wealth will go to the descendants, so the cycle will repeat. You'll only be able to pull off this double decker trick with a couple of generations before the message sinks in that they shouldn't take the bus.

In fact, has this already happened? Is this why the rich and privileged are so determined to destroy public transport?
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Lord Jestocost:
quote:
Originally posted by Leorning Cniht:
Well, technically, once you've killed all the rich people, you've also killed all the heirs of the rich people...

But many will already have bred and the wealth will go to the descendants
I can picture a dismayed Adeodatus, AK-47 in hand, muttering to himself 'we're gonna need a bigger bus'.
 
Posted by Caissa (# 16710) on :
 
The rich have been waging class warfare since the dawn of time.
 
Posted by Adeodatus (# 4992) on :
 
Hm... I can see my charming and light hearted style mean I'm going to have a problem keeping this Purgatorial rather than Heavenly.

So anyway, on the subject of "class war"...?

[Cross-posted with Caissa. Yes! How is it that "class war" is (supposedly) okay when it's in the other directione?]

[ 21. January 2015, 11:44: Message edited by: Adeodatus ]
 
Posted by quetzalcoatl (# 16740) on :
 
But, surely, God made them high and lowly and ordered their estate?
 
Posted by Sioni Sais (# 5713) on :
 
One of the problems of class war (whether in quotes or not) is that the rich and wealthy own different weapons to the poor.

In simply owning stuff they can determine where people live and, to a great extent control prices. If they own enterprises in different countries they can put people out of work pretty much as they choose and, best of all, in usinbg the weapons at disposal they are actually protected by the law of the land. But then, they would be, because until very recently they alone were involved in making the law.

The poor by contrast possess less wealth. They are dependent, to a lesser or greater extent, on the rich for the means to make a living. The means the poor have devised to oppose the interest of the wealthy have been eroded wherever they have existed to the point where they are of little consequence.

Where those who are not rich have much beyond the very basic needs, they are told they should be grateful forr what they have.

eta: Hope that's got things back on track [Biased]

[ 21. January 2015, 11:52: Message edited by: Sioni Sais ]
 
Posted by Tortuf (# 3784) on :
 
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Part of this is due to the fact that the very rich can afford to buy:

1. Their own pet politicians who enact "tax reforms" in the name of anything other than this is payback for all the campaign money you have given me and I expect to get from you next time around; not to mention all the "investment opportunities" you are going to let me in on.

2. Pay the braying shills at Faux News to trumpet any attempt to stop yet another tax break for the very rich as just an ultra liberal effort to tear apart the fabric of our society.

So, while I appreciate President Obama suggesting it, it was just a way to point out the difference between the Democrats and the Republicans. It is unlikely be a serious effort at change.

Imagining sending all those people to their deaths is an amusing pastime - although not exactly good for your long term serenity.

Instead, it might be a better idea to start thinking of ways to empower the poor and the middle class to actually look at their situations and then GO VOTE. If people voted their actual interests, as opposed to what they hear are their actual interests, it really wouldn't matter how much money was spent on campaigns.

How to accomplish that is well beyond me. I have no idea how to reduce evaluations of how systems work and how they affect peoples lives into easy to repeat slogans.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Caissa:
The rich have been waging class warfare since the dawn of time.

Damn those entrepreneurs with their job-creating businesses!
 
Posted by Adeodatus (# 4992) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Caissa:
The rich have been waging class warfare since the dawn of time.

Damn those entrepreneurs with their job-creating businesses!
Yeah, cos those profiteers and asset-strippers in our banks create jobs for ... ooh ... tens of people. It makes up for the thousands they destroy.
 
Posted by Albertus (# 13356) on :
 
I don't see any necessary connection between entrepreneurial business and class war. People like Anglican't don't seem to realise that Anglo-American neoliberalism - which does IMO wage class war- is not the only way to do business. Countries like Sweden, Finland, aand Japan all manage to combine a good deal of equality and social cohesion with (on the whole, over time) effective and successful capitalist economies.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Caissa:
The rich have been waging class warfare since the dawn of time.

Damn those entrepreneurs with their job-creating businesses!
I'm sure the jobs are created out of the goodness of their hearts rather than for any additional wealth that might accrue. These jobs might be created but every effort is then made to keep wages as low as possible, sometimes through persuading governments to top them up to a subsistence level out of taxation which, as we have seen, is levied for the most part on the poor and middle classes.
 
Posted by mark_in_manchester (# 15978) on :
 
quote:
Damn those entrepreneurs with their job-creating businesses!
I smell a false dichotomy.

I celebrate entrepreneurs with their job-creating businesses. Especially where their services and products reduce waste, illness, hunger, ignorance...as has, at least sometimes, been the case through history.

But unless their entrepreneurial skills lie in very basic club-, spade- or pick-wielding (direct personal involvement in primary industry) then their wealth is predicated on the context of a society in which to become wealthy.

This used to mean they needed a healthy-ish, educated-ish workforce and a more-or-less crime-free, stable and predictable business environment. Increasingly in this era of 'financial services', just the last one will do - but it requires a really sophisticated, modern society to provide the context for you (or me) to make a killing on derivatives or oil futures.

So - those nearing the 'top' owe their wealth increasingly to the society in which they exist - and it is therefore just to tax them accordingly. Only farmers and miners have much of an excuse to say they are 'self-made', but even there you can't eat gold and you need someone to stop everyone else nicking your carrots.
 
Posted by Soror Magna (# 9881) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Caissa:
The rich have been waging class warfare since the dawn of time.

Damn those entrepreneurs with their job-creating businesses!
Not all entrepeneurs are rich. Not all rich people are entrepeneurs. Not all entrepeneurs create jobs - as a matter of fact, some *cough* *Mitt Romney* *cough* specialize in destroying other people's jobs.

If you look closely, you will find very few entrepeneurs among the very rich, if your definition of entrepreneur is someone who risks their own money. Everybody's favourite rich guy, Warren Buffett, for example, got rich investing other people's money - the insurance premiums paid by millions of ordinary people.
 
Posted by Anglican't (# 15292) on :
 
To give some context to the discussion, the Guardian has helpfully listed who these 85 people are.

I don't have time to look at the list closely at the moment but while it includes the Ship's favourite newspaper propietor Rupert Murdoch and a few Russian oligarchs, it also includes a number of people from Microsoft, from Apple and Mark Zuckerberg. Are these people we want to be shepherding onto the bus before its final journey?
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Albertus:
Anglo-American neoliberalism...does IMO wage class war

I'm afraid I don't know what you mean by this. What does 'class war' mean in this context?
 
Posted by Mere Nick (# 11827) on :
 
quote:
Originally posted by Tortuf:
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Not when it comes to the federal income tax.

[Fix UBB code]

[ 21. January 2015, 22:15: Message edited by: TonyK ]
 
Posted by Sober Preacher's Kid (# 12699) on :
 
Facts, please. The Rich generally have investment income and especially business income which has a wider array of deductions available than wage income. Hence lower tax per dollar.
 
Posted by Adeodatus (# 4992) on :
 
quote:
Originally posted by Anglican't:
To give some context to the discussion, the Guardian has helpfully listed who these 85 people are.

I don't have time to look at the list closely at the moment but while it includes the Ship's favourite newspaper propietor Rupert Murdoch and a few Russian oligarchs, it also includes a number of people from Microsoft, from Apple and Mark Zuckerberg. Are these people we want to be shepherding onto the bus before its final journey?

Look at it another way. Take one of the top 85 somewhere in the middle of that number. Say their net worth is about $15bn. Well, naively at least, $14bn of that could pay 7000 people a salary of $40000 for 50 years, and the rich person would still have a billion dollars left.

Still, I'm sure they have another very good use for that other $14bn.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Adeodatus:
Still, I'm sure they have another very good use for that other $14bn.

They might indeed.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Tortuf:
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Not when it comes to the federal income tax.
There's more to tax than (federal) income tax. Indirect taxes are regressive, ie, the more you earn, the less you pay as a proportion of income.

Also, wealth itself is only taxed on transfer and, armed with a competent accountant, a lot of tax liability can be avoided, thanks to a tax system made by and for the rich.
 
Posted by cliffdweller (# 13338) on :
 
Yes, of course it's a class war. And the wealthy are winning. Massively. But the really irritating thing is this:

quote:
Originally posted by Adeodatus:
Most prominently in yesterday's and today's headlines, Barack Obama's hope that he might raise taxes for the most wealthy has been met with spluttering outrage: "This is class war!"

But when the 85 richest people in the world have the same wealth as the poorest 3.5 billion - link - does the class war become a just war? And if, as Oxfam alleges, that the people who own half the world's wealth might squeeze into a double decker bus, might it not be an act of justice to drive that bus off a cliff?

Raising taxes is not driving a bus off a cliff. I know for people who worship money, who find the acquiring and hoarding of money to be the center of their universe, it may feel like murder, but it's really not. It just isn't. The rich will not die if we raise their taxes. They won't cease to exist. They won't go out of business. They won't even cease to be extraordinarily wealthy.

otoh, cutting or eliminating things like health care, food stamps, and welfare benefits does kill people. Not in the figurative, metaphorical, hyperbolic way that we talk about driving a busload of wealthy people over a cliff, but in the real, no-longer-living sort of way. That kind of death. So when we talk about a class war and the way the two sides have different weapons, we also need to remember that the collateral damage is very different as well.
 
Posted by lilBuddha (# 14333) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Caissa:
The rich have been waging class warfare since the dawn of time.

Damn those entrepreneurs with their job-creating businesses!
Oooh, that's so cuuute! "Trickle Down" turned out to be the wee of rich folk, not so much resource. And these days, with so much outsource, who are getting the jobs?
 
Posted by Mere Nick (# 11827) on :
 
quote:
Originally posted by Sober Preacher's Kid:
Facts, please. The Rich generally have investment income and especially business income which has a wider array of deductions available than wage income. Hence lower tax per dollar.

Of course there are costs for a business to earn income, so what? If the business is a S, partnership, LLC, LLP, etc, with the income flowing through to the owners, then it is picked up in their AGI. Unless their businesses aren't doing well at all, then they will still be a higher tax bracket.

Here is a summary that provides the latest available (2012) data about who is really paying the federal income tax based on returns filed.
 
Posted by Mere Nick (# 11827) on :
 
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Tortuf:
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Not when it comes to the federal income tax.
There's more to tax than (federal) income tax. Indirect taxes are regressive, ie, the more you earn, the less you pay as a proportion of income.

Also, wealth itself is only taxed on transfer and, armed with a competent accountant, a lot of tax liability can be avoided, thanks to a tax system made by and for the rich.

Of course there is more tax than just federal income tax. However, with what was tossed out at the SOTU, that's all that seems worth discussing, right now.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Tortuf:
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Not when it comes to the federal income tax.
There's more to tax than (federal) income tax. Indirect taxes are regressive, ie, the more you earn, the less you pay as a proportion of income.

Also, wealth itself is only taxed on transfer and, armed with a competent accountant, a lot of tax liability can be avoided, thanks to a tax system made by and for the rich.

Of course there is more tax than just federal income tax. However, with what was tossed out at the SOTU, that's all that seems worth discussing, right now.
That might be all you want to discuss, but it isn't all that is relevant. The class war is fought on many fronts.
 
Posted by Fr Weber (# 13472) on :
 
It's class war all right, and the rich are scared shitless that the poor might actually start fighting back.
 
Posted by no prophet's flag is set so... (# 15560) on :
 
Would I agree to pay more tax? -putting it into context, I pay more 2-3 times more in income tax than the average person earns in a year. My answer is yes, I would pay more, but only if: the social safety net in our society properly covered all of us. By this I mean: broader rather than narrower publicly funded health care and stopping de-insurance of some medical services, retirement benefits from the gov't pension plan that were actually something a person could live on, disability insurance that didn't cut an ill person off after 2 years, college and university education that is free or for only nominal tuition and probably a stipend for students so they graduate without debts, subsidized daycare that is regulated and licensed and completely affordable for all, investment in public infrastructure like transportation, parks, public access to recreational and fitness facilities, control on prices of housing. Among other things. I don't agree with the increasing disparity between those who have and those who have not.
 
Posted by Organ Builder (# 12478) on :
 
quote:
Originally posted by Mere Nick:
Of course there is more tax than just federal income tax. However, with what was tossed out at the SOTU, that's all that seems worth discussing, right now.

How odd. I would have thought you would find capital gains taxes equally worth discussion.
 
Posted by Albertus (# 13356) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Albertus:
Anglo-American neoliberalism...does IMO wage class war

I'm afraid I don't know what you mean by this. What does 'class war' mean in this context?
I mean that this kind of capitalism is based fairly explicitly on social division and is designed to ensure that those at the top of the pile get aand keep as much as possible, preferring where necessary to rely on force to maintain that division of wealth and income. It's a conqueror mentality which retreats into fortified strongholds and views those outside them as potentially hostile and alien.
 
Posted by Organ Builder (# 12478) on :
 
quote:
Originally posted by Albertus:
I mean that this kind of capitalism is based fairly explicitly on social division and is designed to ensure that those at the top of the pile get aand keep as much as possible, preferring where necessary to rely on force to maintain that division of wealth and income.

Taken to its extreme, it could remind one of 1789 in Paris--and we all know how that ended.
 
Posted by Beeswax Altar (# 11644) on :
 
quote:
Originally posted by Adeodatus:
quote:
Originally posted by Anglican't:
To give some context to the discussion, the Guardian has helpfully listed who these 85 people are.

I don't have time to look at the list closely at the moment but while it includes the Ship's favourite newspaper propietor Rupert Murdoch and a few Russian oligarchs, it also includes a number of people from Microsoft, from Apple and Mark Zuckerberg. Are these people we want to be shepherding onto the bus before its final journey?

Look at it another way. Take one of the top 85 somewhere in the middle of that number. Say their net worth is about $15bn. Well, naively at least, $14bn of that could pay 7000 people a salary of $40000 for 50 years, and the rich person would still have a billion dollars left.

Still, I'm sure they have another very good use for that other $14bn.

Do you think somebody with $15 billion has the entire sum laying around in hard currency and precious metals? Because they don't. No, the wealthy have the money invested in something. Somebody is using that money to do something to make more money. You assume that the government could pay the salary of 7000 people to do something more productive with that money. I agree that's a possibility.

A few questions...

Who are these people?
What will they be doing?
Why is what they will be doing worthwhile?
If it really needs to be done, why isn't it already being done?
For that matter, who gets to decide what those 7000 people do for their $40,000?
Do the 7000 people have any choice about what they do for their $40,000 a year?
What happens in 50 years when you no longer have any ultra wealthy to tax?
 
Posted by stonespring (# 15530) on :
 
Does it seem to anyone else that the very world "class" (as in socioeconomic class) has become politically incorrect in many situations in the US? Is this the case in other countries? In school for example, we would talk about the class issues in literature or in history but when it came to current events - or especially when it involved discussing our own community and the families in our own school - it was impolite to use the term class and it was instead referred to indirectly with terms like "socioeconomic diversity" and "income Inequality" - which point to class issues, but they don't emphasize that people in a given class - even in a country like America where even the poor believe they can become rich, where people often vote against their class's financial interests, and where both the poor and the rich often call themselves "middle class" when they are asked - even in America people in a given class tend to have common interests that they often find themselves defending whether they intend to or not - if not always at the ballot box. The different classes also have hostilities against other classes and often feel uncomfortable when they are not around people of the same class - although members of the classes often are not aware or do not want to talk publicly about the fact that it is class that causes these feelings.
 
Posted by Arethosemyfeet (# 17047) on :
 
Even if you dropped that money straight into the pockets of the 70000 poorest people each year (4k a pop) it would pay huge dividends in terms of economic growth. Money spent tends to go around the economy a lot faster than money tied up in savings or investments. You'd make those people better off and improve the economy at the same time.
 
Posted by Fr Weber (# 13472) on :
 
quote:
Originally posted by stonespring:
Does it seem to anyone else that the very world "class" (as in socioeconomic class) has become politically incorrect in many situations in the US? Is this the case in other countries? In school for example, we would talk about the class issues in literature or in history but when it came to current events - or especially when it involved discussing our own community and the families in our own school - it was impolite to use the term class and it was instead referred to indirectly with terms like "socioeconomic diversity" and "income Inequality" - which point to class issues, but they don't emphasize that people in a given class - even in a country like America where even the poor believe they can become rich, where people often vote against their class's financial interests, and where both the poor and the rich often call themselves "middle class" when they are asked - even in America people in a given class tend to have common interests that they often find themselves defending whether they intend to or not - if not always at the ballot box. The different classes also have hostilities against other classes and often feel uncomfortable when they are not around people of the same class - although members of the classes often are not aware or do not want to talk publicly about the fact that it is class that causes these feelings.

In the US, we have a shared-world fiction setting where we all agree that there is no such thing as social class. Everyone in the USA is equal.

It follows that therefore class has nothing to do with social inequality. Gender and race explain everything.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Arethosemyfeet:
Even if you dropped that money straight into the pockets of the 70000 poorest people each year (4k a pop) it would pay huge dividends in terms of economic growth. Money spent tends to go around the economy a lot faster than money tied up in savings or investments. You'd make those people better off and improve the economy at the same time.

Most (but not all) measures of GDP rely on money moving, and GDP is often used to measure the economy. Measuring organic growth in the economy is more difficult, but money is like manure in that if you spread it around it does a lot of good, while if you pile it up, it stinks.

What gets to me is that while the rich say it's important for them to have wealth beyond what is needed to live on, so they can invest, yadda, yadda, they do very little to enable others to do the same. It's akin to those who extol marriage but object to persons of the same sex doing so.
 
Posted by Beeswax Altar (# 11644) on :
 
quote:
Originally posted by Arethosemyfeet:
Even if you dropped that money straight into the pockets of the 70000 poorest people each year (4k a pop) it would pay huge dividends in terms of economic growth. Money spent tends to go around the economy a lot faster than money tied up in savings or investments. You'd make those people better off and improve the economy at the same time.

Really?

All we need is some super rich Obama supporter to pony up $3.5 billion for a 12 year experiment.
 
Posted by Doc Tor (# 9748) on :
 
quote:
Originally posted by Beeswax Altar:
quote:
Originally posted by Arethosemyfeet:
Even if you dropped that money straight into the pockets of the 70000 poorest people each year (4k a pop) it would pay huge dividends in terms of economic growth. Money spent tends to go around the economy a lot faster than money tied up in savings or investments. You'd make those people better off and improve the economy at the same time.

Really?

All we need is some super rich Obama supporter to pony up $3.5 billion for a 12 year experiment.

We don't need an experiment, because it's been shown to be true. All we need is the will to do it.
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Beeswax Altar:
No, the wealthy have the money invested in something. Somebody is using that money to do something to make more money.

Not all investments are equally useful to the rest of the economy or society.
That's even ignoring investments in bubbles.

One factor AIUI is liquidity. Investments that pay off straight away are better for investors than those that pay off steadily over time. Unfortunately, investments that pay off straight away aren't of much use to people actually trying to get a business off the ground. You get better rates of return by asset stripping, cutting investment in plant and workforce, and so on - activities that overall depress the economy.
 
Posted by no prophet's flag is set so... (# 15560) on :
 
Forgive me, but dropping money into people's pockets, who may lack the skills and knowledge to know how to handle it, is exactly why dropping coins into the hats of beggars is not the right idea. The right idea is to have programs to help the homeless not to be homeless by dealing with their health, mental health and social issues, providing job skills, and helping them to have stable housing. Of course, in the absence of such programs, we are currently stuck with dropping money directly into the hats of the homeless. Often the small amounts of money are spent on the wrong things: alcohol or drugs. Which is why the liquor board stores report so much activity on welfare cheque days.

I'll say it again: I'd pay more taxes if something legitimately helpful was being done with it on a programmatic basis. As if is, I identify causes I think are worthy and given money, for which I get, of course, an additional tax break. Which means that a donation of $50,000 costs me one-half or one-third of the amount.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by no prophet's flag is set so...:
Forgive me, but dropping money into people's pockets, who may lack the skills and knowledge to know how to handle it, is exactly why dropping coins into the hats of beggars is not the right idea. The right idea is to have programs to help the homeless not to be homeless by dealing with their health, mental health and social issues, providing job skills, and helping them to have stable housing. Of course, in the absence of such programs, we are currently stuck with dropping money directly into the hats of the homeless. Often the small amounts of money are spent on the wrong things: alcohol or drugs. Which is why the liquor board stores report so much activity on welfare cheque days.

The working poor are not precisely the same as the homeless-- at least not yet (though the growing income inequality does seem to be pushing us that way). The point of the studies referenced above is that when you put more $$ in the pockets of the working poor it almost always is used to pay for consumer goods and services-- the things that drive the economy and produce jobs. Far more so than just giving a tax cut to the so-called "job creators". As was noted above, there may be be even more desirable ways to goose the economy through directed incentives to invest in long-range things like infrastructure, renewable energy or education, but if all else fails, putting cash in the hands of the working poor is a better investment for the country overall than putting it in the hands of the 1%ers.
 
Posted by Doublethink. (# 1984) on :
 
When people push hardline capitalism as the way to do things successfully, they never expain why John Lewis manages to be successful. Or why the mutuals only went bust when they tried to act like standard banks. There clearly are other ways of doing successful businesd.
 
Posted by no prophet's flag is set so... (# 15560) on :
 
A multi-site study, unpublished yet as far as I know (I know two of the contracted researchers), was looking at working low-income families*. What they found is that the consumer goods were not really what most of us might recommend: e.g., prepared food meals where the concerns are salt, fat sources and overall nutrition, and electronics. They also found that the income meant less visits to the food bank.

Further, they found that the worst nourished children were the latch-key kids whose lower income two or one parent had the adult(s) leave early for work, with the kids getting their own breakfasts (or not), with the same holding true for other meals. They also had issues with homework and classroom conduct. Interventions such as school milk programs and hot lunches were somewhat effective in improving things. Which my suspicious mind says is why the project data has not been released: a level of gov't would have to fund it. -- which leads me to believe that we really suck as a society. Instead we're getting a new half-billion dollar hospital for children, with all sorts of ground breaking, ribbon cutting and corporate execs talking about how good it feels to "give back" to the community.


*(low income families is the general term used here it seems instead of working poor; with the other term being 'living in poverty')
 
Posted by hatless (# 3365) on :
 
quote:
Originally posted by Doc Tor:
quote:
Originally posted by Beeswax Altar:
quote:
Originally posted by Arethosemyfeet:
Even if you dropped that money straight into the pockets of the 70000 poorest people each year (4k a pop) it would pay huge dividends in terms of economic growth. Money spent tends to go around the economy a lot faster than money tied up in savings or investments. You'd make those people better off and improve the economy at the same time.

Really?

All we need is some super rich Obama supporter to pony up $3.5 billion for a 12 year experiment.

We don't need an experiment, because it's been shown to be true. All we need is the will to do it.
Instead, in the UK, we responded to the recession with £375 billion of government spending, but all in the form of quantitative easing. It has mostly been swallowed by the banks and is not circulating.
 
Posted by Mere Nick (# 11827) on :
 
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Mere Nick:
quote:
Originally posted by Tortuf:
The very rich pay less tax per dollar of income than the poor and the middle class. Part of this is due to some notion that enough tax is enough.

Not when it comes to the federal income tax.
There's more to tax than (federal) income tax. Indirect taxes are regressive, ie, the more you earn, the less you pay as a proportion of income.

Also, wealth itself is only taxed on transfer and, armed with a competent accountant, a lot of tax liability can be avoided, thanks to a tax system made by and for the rich.

Of course there is more tax than just federal income tax. However, with what was tossed out at the SOTU, that's all that seems worth discussing, right now.
That might be all you want to discuss, but it isn't all that is relevant. The class war is fought on many fronts.
Since the op is about Obama, then it is about the federal income tax.
 
Posted by Beeswax Altar (# 11644) on :
 
quote:
Originally posted by no prophet's flag is set so...:
Forgive me, but dropping money into people's pockets, who may lack the skills and knowledge to know how to handle it, is exactly why dropping coins into the hats of beggars is not the right idea. The right idea is to have programs to help the homeless not to be homeless by dealing with their health, mental health and social issues, providing job skills, and helping them to have stable housing. Of course, in the absence of such programs, we are currently stuck with dropping money directly into the hats of the homeless. Often the small amounts of money are spent on the wrong things: alcohol or drugs. Which is why the liquor board stores report so much activity on welfare cheque days.

I'll say it again: I'd pay more taxes if something legitimately helpful was being done with it on a programmatic basis. As if is, I identify causes I think are worthy and given money, for which I get, of course, an additional tax break. Which means that a donation of $50,000 costs me one-half or one-third of the amount.

And that's why no wealthy Obama supporter will pony up the money. Nothing is stopping a billionaire from sending money to tens of thousands of poor people. Buffett and Gates are both Obama supporters. They wouldn't miss the $14 billion much less $3.5 billion.
 
Posted by Sioni Sais (# 5713) on :
 
Isn't it such a help to so many consciences that the poor, working or not, are so feckless that so many can feel so little moral duty to help them.

Not. I really miss ken when we have a thread like this.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by Sioni Sais:
Isn't it such a help to so many consciences that the poor, working or not, are so feckless that so many can feel so little moral duty to help them.

Indeed. If no prophet's rant conflating all working-class poor with a possibly drug or alcohol addicted beggar is about the clearest proof so far of the existence of class warfare.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by no prophet's flag is set so...:
A multi-site study, unpublished yet as far as I know (I know two of the contracted researchers), was looking at working low-income families*. What they found is that the consumer goods were not really what most of us might recommend: e.g., prepared food meals where the concerns are salt, fat sources and overall nutrition, and electronics. They also found that the income meant less visits to the food bank.

But we're conflating several kinds of desired outcomes here.

Again, the original post was not suggesting that handouts to the working poor was THE best way to deal with inequality, simply that doing so would be better than the current "trickle-down" method of giving huge tax breaks to the so-called "job creators" who are anything but. The fact that the working poor might use their $$ to buy things some of us might disapprove of (as if the rich never do) is beside the point-- the point was simply that lower income families will spend the $$ on consumer goods which drives the economy. Again, a more targeted program might very well provide even greater good than just a flat give-away, the point was simply that even a flat give away is better than the mythical trickle down.


quote:
Originally posted by no prophet's flag is set so...:

Further, they found that the worst nourished children were the latch-key kids whose lower income two or one parent had the adult(s) leave early for work, with the kids getting their own breakfasts (or not), with the same holding true for other meals. They also had issues with homework and classroom conduct. Interventions such as school milk programs and hot lunches were somewhat effective in improving things.

Nothing here strikes me as particularly earth-shattering news...
 
Posted by Adeodatus (# 4992) on :
 
quote:
Originally posted by no prophet's flag is set so...:
Forgive me, but dropping money into people's pockets, who may lack the skills and knowledge to know how to handle it, is exactly why dropping coins into the hats of beggars is not the right idea.

Well then, thank goodness all those rich folks work so hard at protecting their money from falling into the hands of idiots.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by Adeodatus:
quote:
Originally posted by no prophet's flag is set so...:
Forgive me, but dropping money into people's pockets, who may lack the skills and knowledge to know how to handle it, is exactly why dropping coins into the hats of beggars is not the right idea.

Well then, thank goodness all those rich folks work so hard at protecting their money from falling into the hands of idiots.
[Overused]
 
Posted by Martin60 (# 368) on :
 
When the world's GDP is about $13K per person - thirteen thousand dollars a year for every man, woman and child on the planet - yet half of all persons live on $2 a day or less, who needs Satan?

[ 21. January 2015, 22:05: Message edited by: Martin60 ]
 
Posted by orfeo (# 13878) on :
 
quote:
Originally posted by Fr Weber:
quote:
Originally posted by stonespring:
Does it seem to anyone else that the very world "class" (as in socioeconomic class) has become politically incorrect in many situations in the US? Is this the case in other countries? In school for example, we would talk about the class issues in literature or in history but when it came to current events - or especially when it involved discussing our own community and the families in our own school - it was impolite to use the term class and it was instead referred to indirectly with terms like "socioeconomic diversity" and "income Inequality" - which point to class issues, but they don't emphasize that people in a given class - even in a country like America where even the poor believe they can become rich, where people often vote against their class's financial interests, and where both the poor and the rich often call themselves "middle class" when they are asked - even in America people in a given class tend to have common interests that they often find themselves defending whether they intend to or not - if not always at the ballot box. The different classes also have hostilities against other classes and often feel uncomfortable when they are not around people of the same class - although members of the classes often are not aware or do not want to talk publicly about the fact that it is class that causes these feelings.

In the US, we have a shared-world fiction setting where we all agree that there is no such thing as social class. Everyone in the USA is equal.

It follows that therefore class has nothing to do with social inequality. Gender and race explain everything.

It so happens that a couple of days ago I was reading how the USA, "Great American Dream" notwithstanding, actually has greater wealth inequality than other Western countries and a lower opportunity for people born in low-income families to get themselves into higher income brackets.
 
Posted by saysay (# 6645) on :
 
And yet when I tell people that something we're dealing with is a class issue, I frequently get told that class doesn't exist in the US.
 
Posted by Kelly Alves (# 2522) on :
 
Those people never tried to get a room with a Section 8 voucher.
 
Posted by no prophet's flag is set so... (# 15560) on :
 
quote:
Originally posted by cliffdweller:
quote:
Originally posted by Sioni Sais:
Isn't it such a help to so many consciences that the poor, working or not, are so feckless that so many can feel so little moral duty to help them.

Indeed. If no prophet's rant conflating all working-class poor with a possibly drug or alcohol addicted beggar is about the clearest proof so far of the existence of class warfare.
It's not a rant, and I didn't conflate all together. I simply do not believe that social change occurs because you give money to one person or one at a time. I believe that social change occurs because we change things about how the social system is set up. In my community, we started a health clinic with services that normally have to be paid for, including psychological counselling, legal advice, and other things. It's in the neediest neighbourhood. A bicycle co-op where we fix used bicycles and give them away so people have something to transport themselves with. Used computers that we repair, put operating systems on and give them to (mostl) refugees and elderly. Free internet. So yes, I am a goddamned rich asshole who conflates everyone. I can only help with what I know about. You want money to fund something worthy, talk to me. I'll give you my time as well, been doing that since I was a teenager and had nothing.

Now tell me what you do.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by no prophet's flag is set so...:
quote:
Originally posted by cliffdweller:
quote:
Originally posted by Sioni Sais:
Isn't it such a help to so many consciences that the poor, working or not, are so feckless that so many can feel so little moral duty to help them.

Indeed. If no prophet's rant conflating all working-class poor with a possibly drug or alcohol addicted beggar is about the clearest proof so far of the existence of class warfare.
It's not a rant, and I didn't conflate all together. I simply do not believe that social change occurs because you give money to one person or one at a time.
But AGAIN, that's not what the original post was about. No one claimed that giving away money solves all of society's problems. The claim-- as has been explained to you several times now-- was simply that giving money to the working poor would do more to reinvigorate the economy than giving "trickle down" tax cuts to the wealthy. No one ever claimed such a plan would solve all of society's problems. No one ever claimed it was even the best way to spend such a large amount of money. The claim was simple that it would have more benefit due to increased consumer spending than would giving tax cuts to the wealthy.

Your response to that rather simple and limited claim was to equate giving money to the working poor with giving money to a homeless beggar. That IS conflating all poor. If the drug-addicted homeless guy on the corner can't be trusted not to spend your dollar on his next hit, than neither can the working single mother who resorts to picking up fast food for her family instead of cooking a healthy meal after working her 2nd shift.

[ 22. January 2015, 01:18: Message edited by: cliffdweller ]
 
Posted by Beeswax Altar (# 11644) on :
 
quote:
Originally posted by Fr Weber:
It's class war all right, and the rich are scared shitless that the poor might actually start fighting back.

The rich have already won the class war. They aren't the least bit concerned the poor might fight back. What Edmund Burke called the little platoons have been severely weakened. Without them, resisting tyranny is impossible. Nothing unites the middle and lower class other than we all have less than the upper class. We aren't poor enough to be united by that fact.
 
Posted by Golden Key (# 1468) on :
 
Giving change to a homeless person can help them eattoday.
 
Posted by Karl: Liberal Backslider (# 76) on :
 
quote:
Originally posted by Sioni Sais:
Isn't it such a help to so many consciences that the poor, working or not, are so feckless that so many can feel so little moral duty to help them.

Not. I really miss ken when we have a thread like this.

This. All of it.
 
Posted by Mere Nick (# 11827) on :
 
quote:
Originally posted by Organ Builder:
quote:
Originally posted by Mere Nick:
Of course there is more tax than just federal income tax. However, with what was tossed out at the SOTU, that's all that seems worth discussing, right now.

How odd. I would have thought you would find capital gains taxes equally worth discussion.
That flows through from schedule D to the 1040, the "US Individual Income Tax Return". It's an income tax.
 
Posted by L'organist (# 17338) on :
 
The OP assumes some correlation between social class and wealth: not something that is a given.

There is evidence of a desire for 'class war' in the UK - this mostly comes from the more assinine pronouncements of people on the left who open their mouths before engaging their brain: latest example of Chris Bryant being pretty typical.

What I worry about more than absolute wealth is that so few of the fabulously wealthy seem to feel any obligation to use their riches to better or enrich the lives of people less fortunate than themselves. Yes, there are people like the Gates, Warren Buffet, etc, but there are also people like the Walton family who give very little.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by L'organist:
The OP assumes some correlation between social class and wealth: not something that is a given.

There is evidence of a desire for 'class war' in the UK - this mostly comes from the more assinine pronouncements of people on the left who open their mouths before engaging their brain: latest example of Chris Bryant being pretty typical.

What I worry about more than absolute wealth is that so few of the fabulously wealthy seem to feel any obligation to use their riches to better or enrich the lives of people less fortunate than themselves. Yes, there are people like the Gates, Warren Buffet, etc, but there are also people like the Walton family who give very little.

This. Why else would there be any appetite for class war?

btw, Chris Bryant is just wrong. What does it say about Labour that so many of their MPs are ex public school and Oxbridge? Is politics truly showbiz for ugly folk?
 
Posted by kankucho (# 14318) on :
 
Hello again everyone. It's been a while.

Back to the OP, and this...
<< if, as Oxfam alleges, that the people who own half the world's wealth might squeeze into a double decker bus, might it not be an act of justice to drive that bus off a cliff? >>

Justice? Well we could maybe take a vote on that. The real question should be: after we've driven them all of the cliff and redistributed their wealth, would the problem of inequality be solved?

Well, no. Not really. We'll just have temporarily dealt with the effects of some people having built empires out of greed. Unless we actually nip the propensity for acquisitiveness and ego-lust in the bud, the whole process will just start over again as others find ways to clamber above the the newly egalitarian masses.
 
Posted by anoesis (# 14189) on :
 
quote:
Originally posted by Beeswax Altar:
quote:
Originally posted by Adeodatus:
Look at it another way. Take one of the top 85 somewhere in the middle of that number. Say their net worth is about $15bn. Well, naively at least, $14bn of that could pay 7000 people a salary of $40000 for 50 years, and the rich person would still have a billion dollars left.

Still, I'm sure they have another very good use for that other $14bn.

Do you think somebody with $15 billion has the entire sum laying around in hard currency and precious metals? Because they don't. No, the wealthy have the money invested in something. Somebody is using that money to do something to make more money. You assume that the government could pay the salary of 7000 people to do something more productive with that money. I agree that's a possibility.

A few questions...

Who are these people?
What will they be doing?
Why is what they will be doing worthwhile?
If it really needs to be done, why isn't it already being done?
For that matter, who gets to decide what those 7000 people do for their $40,000?
Do the 7000 people have any choice about what they do for their $40,000 a year?
What happens in 50 years when you no longer have any ultra wealthy to tax?

To answer just a couple of your questions: What will they be doing? Well, the first thing that springs to mind is that 7000 people each earning $40k a year for 50 years are highly likely to pay income tax, and highly unlikely to have money in Swiss or Bermudan bank accounts. Which I think helps answer the last question of why it might not be a problem tax-wise if the world should run out of 'ultra-wealthy' people.
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by L'organist:
There is evidence of a desire for 'class war' in the UK - this mostly comes from the more assinine pronouncements of people on the left who open their mouths before engaging their brain: latest example of Chris Bryant being pretty typical.

If James Blunt had engaged his brain before opening his mouth he would have been flattered to be mentioned in the same breath as a potential Oscar winner.
Chris Bryant was not saying what James Blunt assumed he was saying.
 
Posted by stonespring (# 15530) on :
 
I'm going slightly off topic to get back to the fact that people don't even seem to be talking much about "class" on this thread. At least the tradition definition of class: a division of human society based on how people earned their living.

So in the industrial revolution you had the farmers (who may or may not own land, depending on the country) and the landowning aristocracy, both of whom were declining in numbers and power. The classes that were rising in numbers were the working class (unskilled labor, who worked in factories) (who were becoming the plurality), the bourgeoisie (in its original sense meaning the class of people who owned the factories and banks, and the "new middle class" of shopkeepers, skilled trade workers, white collar workers, etc., who provided services to the bourgeoisie. Doctors, lawyers, and mid-level office managers (who did not own businesses or large amounts of stock themselves) became known as the upper middle class.

Later, when tensions between the working class and the bourgeoisie (and their middle class "allies") - and the fear of revolution - led to the creation of the welfare state and a large bureaucratic government, there was a new group of civil servants and public school teachers who class-wise had some of the interests of the working class some of the more traditional middle class. The prosperity generated by capitalism, especially the mixed-market capitalism that became the norm in the mid-twentieth century, also saw increased incomes even in the working class, allowing for a boom in consumerism and the growth of jobs in service industries (restaurants, hotels, retail, etc.) - which were different than ordinary working class jobs because some workers were highly experienced and skilled, and even in service fields where experience and skill were not as important, worker bargaining power was little to none, and the "class consciousness" of service workers was similar to those of the lower middle class, even if they were often paid worse than the working class.

That brings us to today, where manufacturing jobs have largely left the most developed economies except for highly skilled ones - so the traditional working class is no longer a significant social force (other than its cultural legacy and the political and labor union groupings it gave rise to). There are many different ways of speaking about the current class structure but I would suggest that the largest class is the

-low-skilled service class (subject to stagnant wages, unpredictable schedules, frequent underemployment, high job turnover, etc.)

and that the other groupings are

-the elite with large financial holdings whose income largely comes from interest, capital gains, and dividends

-the professional class of doctors, lawyers, professors, computer engineers, etc., whose livelihood is dependent on their "human capital" (education and experience), the demand for it, and their skill at marketing it

-a very precarious white-collar middle class whose jobs can become redundant very fast and whose skills can quickly become obsolete. Success in this class often relies on effective networking (and the family and friends you have before you put any effort into networking) just as much as proficiency.

-unionized and public sector employees, who deserve a category of their own because they enjoy so many more protections than other employees in the middle income levels and that this has a very strong effect on their political sensibilities - as well as on the way other classes view themselves in contrast with, rather than in solidarity with, these protected workers

-the remaining farmers and fishermen/women - who are declining in numbers although large businesses in their sector of the economy still generate significant income - This group sometimes has a political voice that is much larger than their numbers - and they do not necessarily feel in solidarity with any of the other class groups.

-the underclass of people so marginalized by society that they rarely are given the academic, health, financial, and emotional education and support needed to even hold a place at the bottom edge of the low-skilled service class. This group is far from the largest but its costs to society in terms of social services, healthcare, crime, etc., are very large. Often talk of income inequality focuses on the extremes of the elite and the underclass but many "poor" people work consistently (or consistently seek work) and do not really belong to the underclass because they have enough education and social skills to function in society if they have dignified work and a living wage. In the US there is also a large group of illegal immigrants who have very consistent employment but because of their undocumented status are underpaid and mistreated and live as a kind of underclass, but often with much more stable families than the underclass I am talking about above.

So after all that bluster, I think the only people who really are politically engaged enough to fight in a "class war" (by which I mean a political battle to shape policy less in the interests of one class and more in the interests of their own) - are the unionized and public sector workers and the elite. The elite consistently win but make compromises that benefit the unionized/public sector workers (those whose jobs were not cut when the elite got the chance to do so during the recession) in order to appear to be compromising in favor of other classes, but the other classes largely remain ignored by politicians and also largely remain politically disengaged.

(Note: I fully admit that I am subject to the biases and paternalistic attitudes that come from being the child of parents somewhere in between the professional class and the elite.)

PS I guess you could also count pensioners as a very important political interest group that spans across multiple classes (although retirement-age members of the elite class often do not need the government programs that help other people their age). Although they include many members that struggle economically, they are the other group that manages to eke compromises out of the elite with the appearance (but not the reality) that they are benefiting the politically disengaged classes.
 
Posted by Jay-Emm (# 11411) on :
 
quote:
Originally posted by anoesis:
To answer just a couple of your questions: What will they be doing? Well, the first thing that springs to mind is that 7000 people each earning $40k a year for 50 years are highly likely to pay income tax, and highly unlikely to have money in Swiss or Bermudan bank accounts. Which I think helps answer the last question of why it might not be a problem tax-wise if the world should run out of 'ultra-wealthy' people. [/QB]

To follow on that:

If (for some stupid reason) we're giving the money to those who don't need it, then they'll be paying tax at pretty much the same rate (looking it up and naively overestimating you may lose about a third of it?)*

Assuming we give it to those who are in need (e.g. where a company provides help then we do lose a bit more tax income. For each person we still lose $14,000 from the rich persons tax. We gain at least $6000 straight back from the poor persons tax. However before they were naively a 'cost' to the treasury (though not to society, because they enabled Mr Bloggs to earn more money, so were being an indirect subsidy) which they are now not so that needs to come off (however much that was).
And then...

*Allowing for the change in payroll rates, and likely net deduction changes will make this a fair bit smaller, second order effects will also reduce it a bit (e.g. that they pay VAT when they spend the bit that hasn't gone to Uncle Sam)
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by anoesis:
To answer just a couple of your questions: What will they be doing? Well, the first thing that springs to mind is that 7000 people each earning $40k a year for 50 years are highly likely to pay income tax, and highly unlikely to have money in Swiss or Bermudan bank accounts. Which I think helps answer the last question of why it might not be a problem tax-wise if the world should run out of 'ultra-wealthy' people.

Hang on, wouldn't running out of 'ultra-wealthy' people be a massive problem, if you're reliant on taking their money? It's a bit like killing a goose, eating the meat and then wondering why it hasn't laid an egg. Or do you tell the equivalent of these 7,000 people fifty years down the line that they're not going to get anything?
 
Posted by SvitlanaV2 (# 16967) on :
 
quote:
Originally posted by stonespring:
I'm going slightly off topic to get back to the fact that people don't even seem to be talking much about "class" on this thread. At least the tradition definition of class: a division of human society based on how people earned their living.

This has been hinted at in some previous posts, but it should be made explicit that what you've said here isn't exactly what class means in the British context. It's far more complicated, I would say.

There's a vague if problematic sense here that class is something you inherit, even if you do a very different job from your parents. It's about attitudes, tastes and behaviour as well as income and employment.

I think this is an important point to make, because the likelihood of 'class war' is presumably reduced if disadvantaged people come from a variety of backgrounds, have a hazy sense of class allegiance, and little sense of unity with others in the same financial predicament as themselves.
 
Posted by Jay-Emm (# 11411) on :
 
quote:
Originally posted by Anglican't:
Hang on, wouldn't running out of 'ultra-wealthy' people be a massive problem, if you're reliant on taking their money? It's a bit like killing a goose, eating the meat and then wondering why it hasn't laid an egg. Or do you tell the equivalent of these 7,000 people fifty years down the line that they're not going to get anything? [/QB]

(of course the problem is that they aren't exactly laying now either).

But that has reminded me that I messed up we are killing geese rather than harvesting (whether sustainable or not) eggs in the metaphor so of course I've given credit to tax that I shouldn't have.

Tax income would hence skyrocket under the nominal plan. Whether that would be enough to get things in place for the next generation (plus the benefits that having a desk.

In any case I suspect it was to provide an idea of the scale of difference and money that is 'locked up' (it may be invested, but in this context the difference is negligible) rather than a specific plan. Which if it was the intent, I got the idea.
 
Posted by churchgeek (# 5557) on :
 
What stonespring is saying intrigues me. Is that the current definition of class, and if so, used by whom? Historians, sociologists, economists?

ISTM that the gist of what "class" means colloquially, anyway, is indeed socio-economic - not just about how much money you make, but also certain attitudes and loyalties. I'm not expressing this very well, I'm sure.

But I consider myself working-class, even though the jobs I've held were, at one time, considered "professional" jobs, and I'm currently in a PhD program (the loans for which I'll be either paying back or deferring for the rest of my life).
 
Posted by saysay (# 6645) on :
 
I agree with that - it's not just about income levels or professions, there's a culture associated with it.

And ISTM that most working class people aren't more politically engaged because picking between the Democrats and Republicans is like choosing whether you want to get crushed by a jackboot or a birkenstock.

There are far too many people with power and without ethics who are too invested in a system where there's just enough social mobility that everyone can pat themselves on the back for what they've achieved and delude themselves that we're living in a meritocracy. It's actually cronysim.
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by anoesis:
To answer just a couple of your questions: What will they be doing? Well, the first thing that springs to mind is that 7000 people each earning $40k a year for 50 years are highly likely to pay income tax, and highly unlikely to have money in Swiss or Bermudan bank accounts. Which I think helps answer the last question of why it might not be a problem tax-wise if the world should run out of 'ultra-wealthy' people.

Hang on, wouldn't running out of 'ultra-wealthy' people be a massive problem, if you're reliant on taking their money? It's a bit like killing a goose, eating the meat and then wondering why it hasn't laid an egg. Or do you tell the equivalent of these 7,000 people fifty years down the line that they're not going to get anything?
And again, if anyone was really suggesting loading all the 1% on a bus and running it off a cliff, yes, that might happen. But it's not. We're talking tax increases, not homicide. So, once again, these tax increases won't kill them, they won't put them out of business, they won't even cause them to cease to be significantly wealthy-- just a small tad less so.

So the equivalent metaphor is really, if I take one egg (out of a dozen) from the goose today, will there still be one there tomorrow? And the answer is yes-- tomorrow and the day after that and the day after that.

But as we have the ability to begin feeding all the little skinny geese, the ones too undernourished before, they'll start laying eggs too. And then there'll be even more eggs to go around.

[ 22. January 2015, 23:34: Message edited by: cliffdweller ]
 
Posted by Jonah the Whale (# 1244) on :
 
quote:
Originally posted by stonespring:

-unionized and public sector employees, who deserve a category of their own because they enjoy so many more protections than other employees in the middle income levels and that this has a very strong effect on their political sensibilities - as well as on the way other classes view themselves in contrast with, rather than in solidarity with, these protected workers

I think the "many more protections" may be overstated, and certainly still diminishing. This is part of the class war which, in the UK, Thatcher won really, though subsequent governments are continuing to press the victory home. Other European countries seem to follow Britain's lead on this at various rates. I don't know the US too well but my impression is that there has never been much of a "problem" with unionised and public sector employees. At least not to the same level as in Europe.
quote:


So after all that bluster, I think the only people who really are politically engaged enough to fight in a "class war" (by which I mean a political battle to shape policy less in the interests of one class and more in the interests of their own) - are the unionized and public sector workers and the elite. The elite consistently win but make compromises that benefit the unionized/public sector workers (those whose jobs were not cut when the elite got the chance to do so during the recession) in order to appear to be compromising in favor of other classes, but the other classes largely remain ignored by politicians and also largely remain politically disengaged.

Probably, but I am not sure what compromises you mean. Have there been any meaningful ones recently?
 
Posted by Soror Magna (# 9881) on :
 
Here's one winner of the class war:

Target Fail

quote:
Target’s "employee trust" package for its Canadian workers, announced last week, amounts to $70 million ($56 million US). It’s designed to provide each worker with 16 weeks of pay.

Depending on who’s doing the calculation, the golden handshake handed to ex-CEO Gregg Steinhafel last May is in roughly in the same ballpark.

Fortune Magazine put the value of his total "walk-away" package, including stock options and other benefits, at $61 million US, including severance of $15.9 million.

Who are the real entrepeneurs in Target? The stockholders, and they've just been royally screwed by a no-talent asshat. This man is filthy stinking rich, but he is clearly neither an entrepreneur nor a job creator. The reason he was able to negotiate a sweet deal for failing so spectacularly is because he and the class of self-styled "entrepeneurs / job creators" have created a culture in which they give each other prezzies at the expense of stockholders and employees.
 
Posted by Soror Magna (# 9881) on :
 
I forgot to add that Target is also ripping off the Canadian taxpayers as well:

quote:
... Alvarez & Marsal Canada, the court-appointed monitor handling Target Canada’s creditor protection and insolvency, has filed papers that show the retailer has total liabilities of $5.1 billion, including accounts payable of about $546 million. ... The amounts include $12,036,000 to the Canada Revenue Agency, $8,372,000 to the Canada Pension Plan Investment Board, $2,674,000 to the province of British Columbia ...
They could have paid their taxes with some of that severance money, but it was more important to throw money at an idiot.
 
Posted by Albertus (# 13356) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by anoesis:
To answer just a couple of your questions: What will they be doing? Well, the first thing that springs to mind is that 7000 people each earning $40k a year for 50 years are highly likely to pay income tax, and highly unlikely to have money in Swiss or Bermudan bank accounts. Which I think helps answer the last question of why it might not be a problem tax-wise if the world should run out of 'ultra-wealthy' people.

Hang on, wouldn't running out of 'ultra-wealthy' people be a massive problem, if you're reliant on taking their money? It's a bit like killing a goose, eating the meat and then wondering why it hasn't laid an egg. Or do you tell the equivalent of these 7,000 people fifty years down the line that they're not going to get anything?
The object is not to keep a stock of ultra-rich people so that you can periodically raid their assets to ameliorate temporarily the position of everybody else. The object is to get as close as you can to a society where nobody is ultra-rich and nobody is ultra-poor, but almost everybody is clsoe enough to the middle to feel, with reason, some sense of connection to everybody else. And as I have said earlier this can be aand has been achieved even within capitalist economies- but not within the model of capitalism that the UK and US follow.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Soror Magna:
Who are the real entrepeneurs in Target? The stockholders, and they've just been royally screwed by a no-talent asshat. This man is filthy stinking rich, but he is clearly neither an entrepreneur nor a job creator. The reason he was able to negotiate a sweet deal for failing so spectacularly is because he and the class of self-styled "entrepeneurs / job creators" have created a culture in which they give each other prezzies at the expense of stockholders and employees.

You forgot customers and suppliers. They get screwed too. For all the BS we hear about 'empowerment' only wealth actually empowers anyone, and those who have wealth aren't giving it up without a fight. That fight is called class war.
 
Posted by Anglican't (# 15292) on :
 
quote:
You forgot customers...They get screwed too. For all the BS we hear about 'empowerment' only wealth actually empowers anyone, and those who have wealth aren't giving it up without a fight. That fight is called class war.
I don't know Target. Never been to one. But if it's a discount retailer don't customers benefit from its existence by being able to buy a range of goods at a low price?
 
Posted by Alan Cresswell (# 31) on :
 
The customers don't benefit from a chain of stores that have gone out of business, winding down to pay the CEO who saw the company sink get a massive golden handshake.
 
Posted by Anglican't (# 15292) on :
 
I've read that Target is closing its Canadian shops, but the whole thing isn't closing, is it?
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Anglican't:
I've read that Target is closing its Canadian shops, but the whole thing isn't closing, is it?

Nope, and the CEO won't ever have to work again, unlike the erstwhile employees.
 
Posted by Jane R (# 331) on :
 
Albertus:
quote:
The object is not to keep a stock of ultra-rich people so that you can periodically raid their assets to ameliorate temporarily the position of everybody else. The object is to get as close as you can to a society where nobody is ultra-rich and nobody is ultra-poor, but almost everybody is clsoe enough to the middle to feel, with reason, some sense of connection to everybody else. And as I have said earlier this can be aand has been achieved even within capitalist economies- but not within the model of capitalism that the UK and US follow.
This. In a service-based economy it's not the ultra-wealthy who create the biggest number of extra jobs; it's the people on middle-to-low incomes.

If I had an extra £150 a month disposable income, for example, I would spend it on paying someone else to clean my house for me instead of trying to find time to do it myself and pay the hairdresser to dye my hair, which is much less messy than doing it at home. That would improve the quality of life for me, and also for my cleaner and hairdresser, who would have more money to spend on their families... and so on.
 
Posted by stonespring (# 15530) on :
 
The different classes certainly have their own cultures and even in the US we have the idea of class being inherited (although people don't like to talk about it). However, whenever someone from the industrial working class (what's left of it), or from what I call the "low-skill service class" (often the working poor) or the "shrinking and vulnerable white collar middle class" manages to wind up as the owner of a profitable business, or becomes a financially successful doctor or lawyer or other professional who makes money on human capital rather than on other things they own, or becomes a successful politician who makes money in other ways [Smile] , but continues to go on about how their "working class culture" continues to be their ethical motivation, I'm not going to completely disagree with them, but I'm going to be realistic and say that economic incentives are much more influential in terms of a person's economic decisions.
 
Posted by Dave W. (# 8765) on :
 
quote:
Originally posted by Alan Cresswell:
The customers don't benefit from a chain of stores that have gone out of business, winding down to pay the CEO who saw the company sink get a massive golden handshake.

Well, Target doesn't really "benefit" from this, either - except in the sense that they'll stop losing massive amounts of money on a failed expansion attempt ( $2 billion in losses since 2011.)

It's not as though they're closing stores now in order to pay the CEO they forced out last May, ending his 35-year career at the company. I would think both the current CEO and the previous one would have been much happier to see their company succeed in Canada.
 
Posted by Jane R (# 331) on :
 
stonespring:
quote:
The different classes certainly have their own cultures...
I wasn't really talking about culture, but about how much money the average person is likely to spend on maintaining their desired lifestyle and how many jobs it will support. For example, if all the people in my village who work full-time could afford to pay someone else to clean their houses for them, that would create quite a lot of extra jobs; not particularly well-paid ones, but locally based and (potentially) flexible enough to be fitted round other responsibilities like caring for children or elderly members of the family. If only the ultra-wealthy can afford a cleaner there won't be any jobs for cleaners in my village, because there aren't any billionaires living here that I'm aware of.
 
Posted by Soror Magna (# 9881) on :
 
Target "expanded" into Canada by purchasing the Zeller's chain and firing all its employees. Some were re-hired by Target at lower wages. So this is the second time they've been chewed up and shitted out by our corporate masters. By definition, the CEO of Target is not an entrepreneur, he is an employee of the corporation, who, unlike all the ordinary employees, is being rewarded handsomely for failing.

That's one of the logical flaws in the slavish worship of the wealthy. People at the top of the scale operate under a different set of rules and incentives than the people at the bottom. You won't hear CEOs saying they have to pay more than minimum wage to get the best employees. Apparently rich people can be motivated to "create jobs" if they can get more money, but if working people are paid more, they will just waste it on smokes and booze. (Which, btw, creates jobs.)

Another cliché of the class war, already seen on this thread, is that poor people are poor because they don't know how to handle their money. I'm not going to waste time explaining how hard it is to live on small amounts of money, or how poor people are forced to make choices that others can't understand. Instead, I'll give you an example of rich people who can't manage their money:

Debt doubts cast shadow for professional couple with five kids
Dad works two days a week, although he claims that adds up to 80 hours per week. They have five kids they obviously can't afford. They live rent-free, but horrors!, will have to find another home in a few months. Although they are self-employed, they've decided they don't need to save for retirement, or get life and disability insurance, because “I have no pension whatsoever, but like my parents, colleagues and mentors, I love my work and plan to keep going well into my 80s, so retiring is not a big concern, just living."

Check out the financial planner's advice:

quote:
“If Eric is willing to work one more day a week in the clinic, they can live within their means and still afford to build the new home using a HELOC with the parents’ home as security,” Mr. MacKenzie says.
So the financial planner's advice to these privileged losers is to work a whopping three days a week and ask Mom and Dad to help them borrow more money to mismanage. The rich really are different. And not in a good way.
 
Posted by Anglican't (# 15292) on :
 
On the other hand, Jane, Microsoft (whose founders appear in this list of 85) has nearly 130,000 employees and how many jobs have been created thanks to the advances in computer technology that Microsoft pioneered?
 
Posted by Jane R (# 331) on :
 
I don't know. Do you?

Do you also know how many jobs were destroyed by computerization and automation? Because I bet that figure is a lot higher. Heck, just the number of bank clerks who were made redundant by ATMs would probably be higher...

[ 23. January 2015, 13:49: Message edited by: Jane R ]
 
Posted by Anglican't (# 15292) on :
 
Are you saying that's been a bad thing?!
 
Posted by Jane R (# 331) on :
 
Oh, and Microsoft didn't *pioneer* the computer revolution. What Microsoft did (and did very well) was popularize computer use and knock all its rivals out of the market. Xerox and Apple were the first to do a WYSIWYG interface, while Microsoft were still using MS-DOS.

Beta-max was a much better video format than VHS, but because VHS was cheaper they got the biggest market share.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Jane R:
Beta-max was a much better video format than VHS, but because VHS was cheaper they got the biggest market share.

Which is a good thing, isn't it? As it allows more people to buy the product. If Betamax's advantages had been so significant, it would have survived. (Betamax also had a shorter recording time, didn't it?)
 
Posted by Jane R (# 331) on :
 
Anglican't:
quote:
Are you saying that's been a bad thing?!
It is if you were a bank clerk and were unable to find another job. Just as closing down the steelworks was a bad thing for the men in The Full Monty, who were left high and dry with no alternative employment opportunities except performing in striptease acts.

No, I don't think automation is a bad thing. In my case it means I can concentrate on the interesting aspects of my job and leave the computer to do (most of) the dull bits. But people who lost their jobs through automation might disagree.

You seem to be arguing that change is always good, which is an odd point of view for a traditional Tory [Biased]
 
Posted by Albertus (# 13356) on :
 
Nah, for a proper traditional Tory view on these boards you need to go to someone like betjemaniac.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Jane R:
You seem to be arguing that change is always good, which is an odd point of view for a traditional Tory [Biased]

I hate both Betamax and VHS because it really put the final nail in the coffin of the music hall industry. [Biased]

Seriously, though, I think technological advance more often than not is liberating for everyone and I think it's difficult to draw a line in the sand and say 'so far and no further', particularly when it comes to this sort of thing.
 
Posted by Anglican't (# 15292) on :
 
...though that doesn't stop my mild frustration that the prolific use of biros and suchlike means that I'm unable to find a decent roller blotter.
 
Posted by Alan Cresswell (# 31) on :
 
In general, I think technology has resulted in the creation of more jobs. Different jobs, probably chnaging the relative distribution of wages, but more of them.

Just because VHS/Betamax have been mentioned already. The invention of video tape, and later DVD etc, almost certainly cut the number of people who went to the cinema to see any given movie - it's now possible to wait a short time and then you can watch it at home as many times as you like. But, on the other hand, it created the video store, with all the people that employs. Perhaps more significantly it created a whole new way for film and TV production companies to market movies resulting in increased profits. The film and TV industry is now much larger than it was pre-video recording, with more films and programmes produced than ever before, employing lots more people. What's more, all those extra film industry employees are now often doing a lot of location filming, with boosts to local hotels and restaurants, and all sorts of knock on benefits to other parts of the economy.
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Anglican't:
On the other hand, Jane, Microsoft (whose founders appear in this list of 85) has nearly 130,000 employees and how many jobs have been created thanks to the advances in computer technology that Microsoft pioneered?

I think that those jobs might still have been created had Microsoft something less of a functional monopoly.
(Even free-market absolutists are supposed to disapprove of functional monopolies.)
 
Posted by Doc Tor (# 9748) on :
 
quote:
Originally posted by Dafyd:
quote:
Originally posted by Anglican't:
On the other hand, Jane, Microsoft (whose founders appear in this list of 85) has nearly 130,000 employees and how many jobs have been created thanks to the advances in computer technology that Microsoft pioneered?

I think that those jobs might still have been created had Microsoft something less of a functional monopoly.
(Even free-market absolutists are supposed to disapprove of functional monopolies.)

And I think it's reasonably certain that more people would have been employed in more companies if Microsoft hadn't repeatedly succumbed to the lure of anticompetitive practices.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Dafyd:

(Even free-market absolutists are supposed to disapprove of functional monopolies.)

They do, unless they are an owner of such an enterprise. Who needs to be entrepreneur when you have cornered the market?
 
Posted by no prophet's flag is set so... (# 15560) on :
 
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Dafyd:

(Even free-market absolutists are supposed to disapprove of functional monopolies.)

They do, unless they are an owner of such an enterprise. Who needs to be entrepreneur when you have cornered the market?
That's in an interesting question. We have a government monopoly on the distribution of natural gas, electricity, water, sewer, auto insurance and, partial monopolies on internet and cable television specifically because entrepeneurs and private business have refused to get involved in the market or cannot do it affordably. If the monopoly is gov't run and responsible to the legislature (elected officials), then the monopoly in practice may run more efficiently that any private enterprise even if in competition. And it may provide a service otherwise not available.
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Dafyd:

(Even free-market absolutists are supposed to disapprove of functional monopolies.)

They do, unless they are an owner of such an enterprise. Who needs to be entrepreneur when you have cornered the market?
It has to be said that while in theory monopolies are just as much a threat to the proper workings of the market as government intervention, free market absolutists seem quite able to tolerate them in practice.
 
Posted by orfeo (# 13878) on :
 
quote:
Originally posted by no prophet's flag is set so...:
quote:
Originally posted by Sioni Sais:
quote:
Originally posted by Dafyd:

(Even free-market absolutists are supposed to disapprove of functional monopolies.)

They do, unless they are an owner of such an enterprise. Who needs to be entrepreneur when you have cornered the market?
That's in an interesting question. We have a government monopoly on the distribution of natural gas, electricity, water, sewer, auto insurance and, partial monopolies on internet and cable television specifically because entrepeneurs and private business have refused to get involved in the market or cannot do it affordably. If the monopoly is gov't run and responsible to the legislature (elected officials), then the monopoly in practice may run more efficiently that any private enterprise even if in competition. And it may provide a service otherwise not available.
Sadly, serious questions about whether a service is best handled centrally or in a competitive market are rarely answered these days by a proper look at the pros and cons to figure out which is the more economically efficient approach. The answer is usually driven by ideology. It seems obvious to me that there are services that are best supplied to everyone, by government and services that are best thrown open to the variation and customisation of the marketplace. But in a lot of cases it's not immediately obvious which is which, and we rarely ask qualified people to figure out the right mix.
 
Posted by Russ (# 120) on :
 
quote:
Originally posted by SvitlanaV2:
This has been hinted at in some previous posts, but it should be made explicit that what you've said here isn't exactly what class means in the British context. It's far more complicated, I would say.

There's a vague if problematic sense here that class is something you inherit, even if you do a very different job from your parents. It's about attitudes, tastes and behaviour as well as income and employment.

Yes, in Britain class is a sub-culture thing, to do with mores and taste and values and ways of speaking. People are pretty quick at picking up on the cues that indicate whether someone else is of the same social class as themselves.

(As Professor Higgins had it, " an Englishman's way of speaking absolutely classifies him; the moment he talks he makes some other Englishman despise him").

A professional-class person in financial distress with no income (or who has to take an unskilled job to make ends meet) still has the habits of thought, the level of education, the speech patterns and the taste of the professional class. A working-class lottery winner who lives off the interest is still working-class.

It's not about materialism. I remember a married couple - whose material standard of living depended on their joint income, and worked in similar-status jobs - who were by their tastes and speech clearly from different classes - she was noticeably more genteel than her husband.

It's not that the country lives in a constant state of class war - many people have no animosity at all to others of different backgrounds. They just know not to expect to find particular friends, kindred spirits, among those with a very different outlook on life...

There's a certain amount of snobbery - some members of some classes looking down on the coarseness and vulgarity and limited horizons of those in lower classes. But that's a weakness akin to judging a book by its cover. Real class war" - whipping up hatred of other people just because of their class - is a hard-left (extreme socialist) idea. The sort of mentality that hates small businessmen as class traitors - who do you think you are, daring to put yourself above your fellow human beings by employing them ?

Don't go there.

My impression is that in the US social class is more about money and less about taste and accent. But I could be wrong.

Best wishes,

Russ
 
Posted by rufiki (# 11165) on :
 
quote:
Originally posted by Soror Magna:
I'll give you an example of rich people who can't manage their money:

Debt doubts cast shadow for professional couple with five kids
Dad works two days a week, although he claims that adds up to 80 hours per week. They have five kids they obviously can't afford. They live rent-free, but horrors!, will have to find another home in a few months. Although they are self-employed, they've decided they don't need to save for retirement, or get life and disability insurance, because “I have no pension whatsoever, but like my parents, colleagues and mentors, I love my work and plan to keep going well into my 80s, so retiring is not a big concern, just living."

Check out the financial planner's advice:

quote:
“If Eric is willing to work one more day a week in the clinic, they can live within their means and still afford to build the new home using a HELOC with the parents’ home as security,” Mr. MacKenzie says.
So the financial planner's advice to these privileged losers is to work a whopping three days a week and ask Mom and Dad to help them borrow more money to mismanage. The rich really are different. And not in a good way.
The comments section of that article suggests that Eric and Ilsa's situation is fictional.
 
Posted by Golden Key (# 1468) on :
 
Early in the article, it mentions something that the husband "wrote in an e-mail". If the writer made it up, they were thorough.

I read maybe the first half-dozen comments. People *think* it's fiction, but I don't see any proof. I don't know anything about this paper. Are they prone to making things up?
 
Posted by Soror Magna (# 9881) on :
 
The Globe is a reputable newspaper, and Faux News has described it as "left-wing", which makes Canadians [Killing me]

If the unbelievable detail is the $1,000,000 price tag on their vacant lot, let me assure you that is the going rate around here. Perhaps the skepticism comes from an unwillingness to believe that such privileged people could be so fucking stupid, because everyone knows poor people are poor because they're bad at managing money, and rich people are rich because they're all so talented and wise and disciplined and hard-working and ...
 
Posted by Alt Wally (# 3245) on :
 
quote:
The term "class war" has been getting a few outings recently. Most prominently in yesterday's and today's headlines, Barack Obama's hope that he might raise taxes for the most wealthy has been met with spluttering outrage: "This is class war!
I would categorize that as grandstanding on both sides. The class war between the richer and poorer parts of the Eurozone seems more real to me. Should Greek debt be forgiven and the bill passed on to the North in the interest of fairness?
 
Posted by betjemaniac (# 17618) on :
 
quote:
Originally posted by Albertus:
Nah, for a proper traditional Tory view on these boards you need to go to someone like betjemaniac.

Thankee kind sir - I refer my honourable friend to the standard work on this subject; "Sybil, Or the Two Nations," by a Mr Disraeli of the Beaconsfield area. He said it all a very long time ago.
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Russ:
Real class war" - whipping up hatred of other people just because of their class - is a hard-left (extreme socialist) idea.

So nobody in the tabloids is whipping up hatred of benefit claimants?

The rich are getting richer; the poorer are struggling and their lives are becoming more precarious, and the process is accompanied by a great deal of finger wagging by spokespeople for the richer and scapegoating of a particular poorer economic group. But apparently that's not class war.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Dafyd:
quote:
Originally posted by Russ:
Real class war" - whipping up hatred of other people just because of their class - is a hard-left (extreme socialist) idea.

So nobody in the tabloids is whipping up hatred of benefit claimants?

The rich are getting richer; the poorer are struggling and their lives are becoming more precarious, and the process is accompanied by a great deal of finger wagging by spokespeople for the richer and scapegoating of a particular poorer economic group. But apparently that's not class war.

Of course not. That's business, which is modern and to everybody's benefit.

Then again, if it wasn't class war, and we have to remember that class war is international, we wouldn't have instances of real child poverty in just about every country on earth, not merely those recognised as 'poor'. It's amazing that if a business is killed by an anarchist's bomb, it's terrorism, while if children die hungry or because they don't have adequate housing, then they are simply feckless good-for-nothings and it's their own fault.

The main difference is that the former happens maybe a few times a year (if that), and attracts headlines. The only time any part of the latter gets in the papers is to reinforce the need for welfare cuts.
 
Posted by Kelly Alves (# 2522) on :
 
I immediately thought of this thread.
 
Posted by Russ (# 120) on :
 
quote:
Originally posted by Dafyd:
So nobody in the tabloids is whipping up hatred of benefit claimants?

Disproving that suggestion would require a level of scrutiny of the tabloid press for which I lack the endurance.

But it has not come to my attention that anyone worth reading is suggesting that the world would be a better place if we put benefit claimants in buses and drove them over the edge of a cliff.

One can assert that the proportion of fraudulent benefit claims is greater than 0%. And that the proportion of undeserving-but-within-the-rules claims is greater than 0%. And that these are Bad Things about which Something Should Be Done. All without hating anyone. Or suggesting that murder would be a just solution.

If you say you have personal experience of some right-wing commentator crossing the line from legitimate political points (however small-minded and ungenerous) to hatemongering, then I'll believe you. Reactionaries... ...react.

Best wishes,

Russ
 
Posted by cliffdweller (# 13338) on :
 
quote:
Originally posted by Russ:

But it has not come to my attention that anyone worth reading is suggesting that the world would be a better place if we put benefit claimants in buses and drove them over the edge of a cliff.

They don't have to suggest it. It's being done. The policies that have been enacted at least in the US are already "driving them over a cliff".

As mentioned before, the worst thing anyone is suggesting re the wealthy is that their taxes be increased. Unpleasant, sure, but certainly not life-threatening. No one is making any serious threat to their health or well-being.

But the policies being enacted by certain members of the 1% (yes, Koch bros I'm looking at you) does provide a serious threat to the health and well-being of those below the poverty line. When food stamps are cut so that families struggle daily with food insecurity-- lives are threatened. When people lose access to preventative health care and are only seen by a doctor when it becomes an emergency-- lives are lost. When the legal system is manipulated so that some members of society are virtually guaranteed to do serious jail time for offenses other members never serve time for (e.g. drugs)-- lives are threatened.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by cliffdweller:
quote:
Originally posted by Russ:

But it has not come to my attention that anyone worth reading is suggesting that the world would be a better place if we put benefit claimants in buses and drove them over the edge of a cliff.

They don't have to suggest it. It's being done. The policies that have been enacted at least in the US are already "driving them over a cliff".

As mentioned before, the worst thing anyone is suggesting re the wealthy is that their taxes be increased. Unpleasant, sure, but certainly not life-threatening. No one is making any serious threat to their health or well-being.

But the policies being enacted by certain members of the 1% (yes, Koch bros I'm looking at you) does provide a serious threat to the health and well-being of those below the poverty line. When food stamps are cut so that families struggle daily with food insecurity-- lives are threatened. When people lose access to preventative health care and are only seen by a doctor when it becomes an emergency-- lives are lost. When the legal system is manipulated so that some members of society are virtually guaranteed to do serious jail time for offenses other members never serve time for (e.g. drugs)-- lives are threatened.

You missed housing. A lack of decent, secure housing for the anyone who does not own their home puts all too many at risk of being made homeless, even if they aren't already homeless. Tenancies are typically short-term and woe betide any uppity tenants who want repairs done - at the very best their lease won't be renewed, and those with mortgages must live in dread of interest rates returning to the levels of the early 1990's (up to 15% in the UK).
 
Posted by cliffdweller (# 13338) on :
 
Yes. And long term, drastic cuts to education and particularly higher education also is a direct threat to the health and well-being of both middle and lower class Americans (can't speak to the situation in Europe).
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Russ:
quote:
Originally posted by Dafyd:
So nobody in the tabloids is whipping up hatred of benefit claimants?

Disproving that suggestion would require a level of scrutiny of the tabloid press for which I lack the endurance.
I don't either: I let the Guardian do it so I don't have to. There's also the Church report on myths about poverty further down my post, if you think Guardian commentators are inherently untrustworthy.

I was on a bus this morning, though, and there was a poster exhorting benefit claimants to come forward and declare any additional income they may have. If you think the primary message of that poster was to exhort benefit claimants to declare additional income, you probably also think Mark Anthony was really trying to persuade the Romans that Brutus was an honourable man.

quote:
But it has not come to my attention that anyone worth reading is suggesting that the world would be a better place if we put benefit claimants in buses and drove them over the edge of a cliff.
You saying that wishing to drive the world's wealthiest people of a cliff is a position compatible with being worth reading? It's not mad or sociopathic to do so?

(I don't think Adeodatus is in earnest myself.)

quote:
One can assert that the proportion of fraudulent benefit claims is greater than 0%. And that the proportion of undeserving-but-within-the-rules claims is greater than 0%. And that these are Bad Things about which Something Should Be Done. All without hating anyone.
If it looks like hating someone, and quacks like hating someone, then probably it is...

Again, one can assert that Brutus is an honourable man without suggesting that Brutus is a dishonourable liar. That doesn't mean that Mark Anthony isn't suggesting that.
If someone

quote:
If you say you have personal experience of some right-wing commentator crossing the line from legitimate political points (however small-minded and ungenerous) to hatemongering, then I'll believe you.
The line between small-minded and ungenerous, and hatemongering is something of a blurry one I would think. Where do the myths rebutted in this report fall on the line?
The report quotes George Osbourne inflating the amount of benefit fraud by including errors made by the government, with no fraudulent action on the part of the claimant. Is that innocent? I might agree that Osbourne is not someone worth reading; but not worth reading doesn't mean uninfluential.

[ 25. January 2015, 16:34: Message edited by: Dafyd ]
 
Posted by lilBuddha (# 14333) on :
 
quote:
Originally posted by Alan Cresswell:

Just because VHS/Betamax have been mentioned already. The invention of video tape, and later DVD etc, almost certainly cut the number of people who went to the cinema to see any given movie -

IIRC, despite initial fears, videos coincided with an increase in cinema revenue. DVD is merely an extension of that, though it did increase the quality of black market releases.
However, ease of use such as VOD (Video on Demand) and the acceptance of lower standards seems to have had an effect on cinema revenue. This is changing the nature of the industry wherein the money is being spent on fewer, bigger films. Lowering the number of jobs in the pool. And whilst the acting takes place on location, much of the production is moving to countries with cheaper labour.
 
Posted by Russ (# 120) on :
 
quote:
Originally posted by Sioni Sais:
Tenancies are typically short-term and woe betide any uppity tenants who want repairs done - at the very best their lease won't be renewed

I believe it happens.

But so does benefit fraud.

And the message I'm getting is that bad behaviour by individual welfare claimants isn't any reflection on the poor as a whole. Oh no, that would be hatemongering. Heaven forbid that anyone should imply it.

But bad behaviour by individual landlords, that's evidence of a class war waged by the rich against the poor.

Do I detect the faint whiff of a double standard here ?

Best wishes,

Russ
 
Posted by Doc Tor (# 9748) on :
 
quote:
Originally posted by Russ:
Do I detect the faint whiff of a double standard here ?

Yes, of course you do.

Benefit fraud is illegal.

Maliciously terminating someone's tenancy for requesting repairs on the property isn't.

And there's your double standard, right there, enshrined (or not, as the case may be) in law.
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by Doc Tor:

Maliciously terminating someone's tenancy for requesting repairs on the property isn't.

There's another side to that coin. I was an evil landlord for a while (was working abroad, and let out my UK flat).

I had three sets of tenants (two sets moved on when their time was up, one renewed for another year, then moved on). Two sets were ideal tenants - paid on time, looked after the place and so on. The third (middle) set weren't deliberately malicious, but every month there was another bill from a plumber or someone because they had blocked the drains again or something.

Given that neither I, nor the other two sets of tenants ever had an issue with the drains, it seemed likely that the problem was with the middle set of tenants.

I wouldn't have let the middle set renew their tenancy. I think they were careless of my flat, rather than actively intending damage, but I didn't intend to go on subsidizing their carelessness.
 
Posted by Doc Tor (# 9748) on :
 
You didn't maliciously terminate their tenancy, but there are landlords who do just that - and there is no external adjudicator (and there used to be) to appeal to.

Tenants' rights in the UK have been systematically eroded, quite deliberately, and has been coupled with the scandal that is buy-to-let and the lack of housebuilding - while rentiers pocket millions in housing benefit. It's nothing short of a disgrace.
 
Posted by Sioni Sais (# 5713) on :
 
Benefit fraud is illegal and tax evasion is illegal, but while efforts to reduce benefit fraud have increased the effort to reduce tax evasion has been scaled down. Contrast also the attitude to tax evaders and benefit fraudsters.

Look at it this way: how many of you have never paid a tradesman in cash? On the other hand, the single mum next door has just had her boyfriend move in. Who is cheating you as a hard-working taxpayer and are you really going to inform HMRC and the DWP?
 
Posted by Dafyd (# 5549) on :
 
quote:
Originally posted by Russ:
But so does benefit fraud.

Not in proportion to the amount spent complaining about it.

quote:
And the message I'm getting is that bad behaviour by individual welfare claimants isn't any reflection on the poor as a whole. Oh no, that would be hatemongering. Heaven forbid that anyone should imply it.

But bad behaviour by individual landlords, that's evidence of a class war waged by the rich against the poor.

By the nature of things a few bad apples among the poor are a lower proportion of the whole than a few bad apples among landlords, since there are generally more poor people than landlords.

Also, benefit fraud, while it might put another penny on everyone's insurance, does not risk anybody's livelihood or family life or health. Mistreatment of tenants by landlords does risk the tenant's livelihood and health and family life.

Going back to the OP, the people who brought class war up are right-wing commentators in the US, who accused Obama of this.
 
Posted by Anglican't (# 15292) on :
 
quote:
Originally posted by Sioni Sais:
Benefit fraud is illegal and tax evasion is illegal, but while efforts to reduce benefit fraud have increased the effort to reduce tax evasion has been scaled down. Contrast also the attitude to tax evaders and benefit fraudsters.

Looking at the public reaction to the behaviour of, say, Jimmy Carr, Starbucks and Gary Barlow, I'm not sure one could say that people are ambivalent about aggressive tax avoidance, never mind evasion.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Sioni Sais:
Benefit fraud is illegal and tax evasion is illegal, but while efforts to reduce benefit fraud have increased the effort to reduce tax evasion has been scaled down. Contrast also the attitude to tax evaders and benefit fraudsters.

Looking at the public reaction to the behaviour of, say, Jimmy Carr, Starbucks and Gary Barlow, I'm not sure one could say that people are ambivalent about aggressive tax avoidance, never mind evasion.
It's a slightly different subject, but I think Joe Public's feeling is mostly one of powerlessness.

If that could be harnessed such that, under a tighter tax regime, eg one as tight and as closely policed as that for benefit fraud, then the fat cats, both corporate and individual, could pay their way. I doubt that will happen because the wealthy have persuaded successive governments that an "enterprise" friendly tax regime is essential for national prosperity, although the prosperity is spread according to what one already has, rather than according to ones efforts, let alone needs.
 
Posted by stonespring (# 15530) on :
 
Re: the persistence of traditional social classes, and their cultural and other non-economic qualities, in the UK.

This academic study reported on by the BBC in 2013 concluded that the UK now had 7 social classes rather than the traditional 3. Do you agree?

http://www.bbc.com/news/uk-22007058

Here's a questionnaire to determine which of these new class groupings you belong in:

http://www.bbc.com/news/magazine-22000973

and here's a brief explanation of their methodology:

http://www.bbc.co.uk/science/0/22001963
 
Posted by chris stiles (# 12641) on :
 
quote:
Originally posted by Anglican't:
Looking at the public reaction to the behaviour of, say, Jimmy Carr, Starbucks and Gary Barlow, I'm not sure one could say that people are ambivalent about aggressive tax avoidance, never mind evasion.

I think the coverage of the alleged scale of benefit fraud (and benefit claims in general) dwarf the fairly small amount of material on tax avoidance and evasion.

The day there are entire series of programs on the TV about tax evasion, complete with people insulting Gary Barlow in front of a live - and baying - studio audience, you'd have a point.

A lot of the coverage of tax avoidance/evasion is due to the newspapers covering the actions of groups like UK Uncut.
 
Posted by Doc Tor (# 9748) on :
 
quote:
Originally posted by Anglican't:
quote:
Originally posted by Sioni Sais:
Benefit fraud is illegal and tax evasion is illegal, but while efforts to reduce benefit fraud have increased the effort to reduce tax evasion has been scaled down. Contrast also the attitude to tax evaders and benefit fraudsters.

Looking at the public reaction to the behaviour of, say, Jimmy Carr, Starbucks and Gary Barlow, I'm not sure one could say that people are ambivalent about aggressive tax avoidance, never mind evasion.
You're right - people aren't ambivalent about aggressive tax avoidance.

Unfortunately, the HMRC, under orders from the government, are. I would put every single benefit fraud investigator with the DWP on the much more cost-effective trail of offshorers, below minimum-wage payers, and VAT fraudsters.
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by Doc Tor:

I would put every single benefit fraud investigator with the DWP on the much more cost-effective trail of offshorers, below minimum-wage payers, and VAT fraudsters.

I think "every single one" is probably going too far: a system which is known to be un-policed ends up with the expenses claims of MPs.

But in general, lying to the government in order to claim more handouts is functionally equivalent to lying to the government in order to pay less tax. Both are fraud, and theft, and cost-effectiveness is a reasonable metric with which to decide which fruit to pick.
 
Posted by L'organist (# 17338) on :
 
I think everyone should get themselves a copy of William Beveridge's original Report and read it: then having read it they should make a note of how they think it should be updated for the world of 2015 and compare that with the system as it is now.

You might be surprised.
 
Posted by Karl: Liberal Backslider (# 76) on :
 
quote:
Originally posted by Leorning Cniht:
quote:
Originally posted by Doc Tor:

I would put every single benefit fraud investigator with the DWP on the much more cost-effective trail of offshorers, below minimum-wage payers, and VAT fraudsters.

I think "every single one" is probably going too far: a system which is known to be un-policed ends up with the expenses claims of MPs.

But in general, lying to the government in order to claim more handouts is functionally equivalent to lying to the government in order to pay less tax. Both are fraud, and theft, and cost-effectiveness is a reasonable metric with which to decide which fruit to pick.

Indeed. Which is why it makes sense to transfer the effort from benefit fraud (where each case is usually in the hundreds or thousands) to tax evasion (where each case is in the tens of thousands to millions).
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by L'organist:
I think everyone should get themselves a copy of William Beveridge's original Report and read it: then having read it they should make a note of how they think it should be updated for the world of 2015 and compare that with the system as it is now.

You might be surprised.

Nope, the "Great Evils" it identified are still going strong. They were, and are, "Squalor, ignorance, want, idleness, and disease".

With a lack of housing, chopping and changing in education, mass long-term unemployment and offshoring of jobs and a National Health Service that isn't national and is being sold off slice-by-slice, there isn't a whole lot left. Moreover, Beveridge wanted means-testing of benefits to be the exception, but that has been the rule for decades.
 
Posted by ExclamationMark (# 14715) on :
 
quote:
Originally posted by Karl: Liberal Backslider:Which is why it makes sense to transfer the effort from benefit fraud (where each case is usually in the hundreds or thousands) to tax evasion (where each case is in the tens of thousands to millions). [/QB]
Let's start with that elderly couple in Buckingham Palace Gate who not only have a big house with lots of empty room, they have some very strange (unique to them and their extended family) tax arrangements.

[ 29. January 2015, 11:56: Message edited by: ExclamationMark ]
 
Posted by L'organist (# 17338) on :
 
Agreed, SS: Beveridge identified the evils as being (in order)"... Want is one only of five giants on the road of reconstruction ... others are Disease, Ignorance, Squalor and Idleness"

First up: Beveridge wrote three reports and it was is intention that all three be used in tandem but in the end it was only the first that became the starting point for what we now have as a welfare system. This is a shame because the other two (dealing with a centrally planned economy to ensure full employment and one which stressed the important of non-governmental bodies for the good of society as a whole) would have given a more rounded picture.

Second: the world which Beveridge was writing in didn't deal with the problems of working married women, carers, single parents or civilian disabled people because (a) the first three categories didn't really exist and as far as he was concerned disabled people meant people who were physically disabled and these would, he thought, be ex-service personnel whose needs would be addressed by Remploy and other organisations.

Beveridge didn't address the problem of accommodation at all - you could say this was his blind spot.

Beveridge envisaged a world in which the unemployed would take any work offered to them: and that while waiting to find work they would occupy themselves in keeping themselves clean and tidy, and in making sure their children got to school.

The idea of widespread divorce leading to households headed by single mothers was foreign to him - in fact he was an advocate of all mothers staying at home to bring up the next generation.

Above all, Beveridge didn't envisage a Welfare State (a term he hated) and the idea of people being given benefits without having previously made contributions was anathema
quote:
Benefit in return for contributions, rather than free allowances from the State, is what the people desire
is how he put it. Indeed, towards the end of his life he became quite bitter about the gloss politicians (particularly of the left) and social commentators put on the ideas contained in his report, complaining bitterly to a former colleague
quote:
his original ideas had been mutilated, reversed and taken completely out of his hands although given his name; that he had come to loathe both the caption “Welfare State” and the title “Beveridge Plan” which had become like advertising slogans, which taken together had led many people hopelessly to misunderstand what he had truly worked for’.
As for your
quote:
...National Health Service that isn't national and is being sold off slice-by-slice...
1. The NHS has NEVER been 'national', nor could it ever be since the facilities available in somewhere like London with a number of teaching hospitals are always going to be greater than those of a single hospital serving a far-flung rural community such as in the Scottish highlands or mid-Wales.

2. As for it being sold off: roughly 4.8% of services previously provided in-house by the NHS were given over to private providers between 2006 and 2010 - by a LABOUR government. Since 2010 a further 0.9% of services have been hived off. The majority of those services were things like hip replacements being done in private hospitals to get rid of waiting lists.
 
Posted by Albertus (# 13356) on :
 
Good summary of Beveridge there. Of course the NHS- with the organisation of which Beveridge didn't concern himself- has more resources available in major cities, but that centralist planner Bevan did nonetheless seek to ensure that services were more evenly distributed across the country than the previously had been. I often wonder how things would have gone if Herbert Morrison (as a Londoner, one of my Labour heroes) had got his way and got an NHS based on a much bigger role for local authorities, building on the growing health responsibilities that they had been given between the wars (and which his own London County Council had taken up enthusiastically). I think that both the NHS aand local goivernment might have benefited from that.
 
Posted by Karl: Liberal Backslider (# 76) on :
 
Russ upthread looked for evidence of Tabloids whipping up hatred of benefit claimants

How does Making up fake stories qualify?
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Karl: Liberal Backslider:
Russ upthread looked for evidence of Tabloids whipping up hatred of benefit claimants

How does Making up fake stories qualify?

Part of the problem is that the Daily Mail is accorded more respect than the red tops (The Sun, Daily Mirror) but it publishes more, bigger lies. It started with the Zinoviev letter, which ensured the defeat of the first Labour government, and it has never let up.
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by Karl: Liberal Backslider:

How does Making up fake stories qualify?

I'm going to hold judgement on that one for a while. The subject of the article, a Mr. Kamran Kam, aspires to a career as an actor. He is, however, an actor in the same sense that every other waiter in Hollywood is an actor. He lists his experience (on the "starnow" website linked from your article) as "Previous unpaid speaking roles". It looks as though he might have had some paid work as an extra, but based on the evidence presented there, there is no way that he makes a living from acting or modelling.

Did the Mail make the story up and hire Mr. Kam? The Mail's political prejudices are well known, but to me, that seems unlikely.

Far more likely, in my opinion, is that Mr. Kam, who seems to be frequently "between roles" claims JSA, made more or less the comments that are attributed to him in the course of a longer interview, which was then spun by the Mail to promote their particular prejudices.

Taking quotes out of context is bread and butter for the tabloid press (of which the Mail is certainly a member), as is editorial selection (they could go out and interview 99 normal decent people who claim benefits and one flake, and you know who would appear in their article), but I'd be surprised if they actually went to the lengths of wholesale fabrication - there are enough people in the country that it's easy enough to find a few examples to promote any viewpoint you would care to take.
 
Posted by stonespring (# 15530) on :
 
My earlier post got no reply - did anyone read about this study back in 2013 that posited 7 social classes as currently existing in the UK as opposed to the traditional 3?

http://www.bbc.com/news/uk-22007058

Anyone want to find out what class they supposedly fit in?

http://www.bbc.com/news/magazine-22000973

(I'm not British, and it says I'm "Elite." Not sure if it translates across the pond. Naturally I'm feeling more full of my white liberal guilt than usual right now.)
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by stonespring:
My earlier post got no reply - did anyone read about this study back in 2013 that posited 7 social classes as currently existing in the UK as opposed to the traditional 3?

We had a whole thread about it when that quiz first came out. The study identified seven clusterings of people in the set of variables they considered. Nothing they considered has very much to do with what we traditionally call "social class" per se, although there are some correlations. These seven "classes" are more akin to the NRS social grades.
 
Posted by Sioni Sais (# 5713) on :
 
quote:
Originally posted by Leorning Cniht:


Taking quotes out of context is bread and butter for the tabloid press (of which the Mail is certainly a member), as is editorial selection (they could go out and interview 99 normal decent people who claim benefits and one flake, and you know who would appear in their article), but I'd be surprised if they actually went to the lengths of wholesale fabrication - there are enough people in the country that it's easy enough to find a few examples to promote any viewpoint you would care to take.

What this does demonstrate is that it is always possible to find a case to back up any argument you wish to make, and if that argument is what your readers want to hear, what is the chance that they will look at it critically?

Wholesale fabrication - unlikely. Wholesale misrepresentation and dishonesty - undoubtedly.
 
Posted by Leorning Cniht (# 17564) on :
 
quote:
Originally posted by Sioni Sais:
Wholesale fabrication - unlikely. Wholesale misrepresentation and dishonesty - undoubtedly.

As a general rule, if every time a newspaper prints the article about an individual person or family, arguing that the law should be changed because "just look at this situation - it's not fair" your first assumption is that the newspaper is trying to pull a fast one on you, you won't be far wrong.
 
Posted by stonespring (# 15530) on :
 
quote:
Originally posted by Leorning Cniht:
quote:
Originally posted by stonespring:
My earlier post got no reply - did anyone read about this study back in 2013 that posited 7 social classes as currently existing in the UK as opposed to the traditional 3?

We had a whole thread about it when that quiz first came out. The study identified seven clusterings of people in the set of variables they considered. Nothing they considered has very much to do with what we traditionally call "social class" per se, although there are some correlations. These seven "classes" are more akin to the NRS social grades.
I agree that just because a new study comes along does not mean it has any validity to the way things are going on in society, and that studies like these are often shallow in their criteria.

However, they do seem to be approaching social class in a traditional sense. Marx himself defined social class as divisions of people based on whether or not they possessed any capital. This study just broadens that to include not only

-economic capital (owning a business or stock in one - perhaps more broadly seen today as a measure of assets in general since the landowning aristocracy that had nothing to do with business and the stock market is largely a thing of the past - current aristocrats in the countries that have them are very intermingled with the financial elite).

but also:

-educational capital (also commonly called "human capital")

-cultural capital (the study may have been biased in emphasizing culture such as the opera or ballet, but in today's world where people gain power and influence through who they know (networking) it is often very important to rub shoulders with influential artists/entertainers and their producers, rub shoulders with the patrons of the arts, and, even for people of lower income levels be conversant in the artistic/cultural tastes of the circles you want to move in (ie, have cultural literacy). "Hipsters" and good-old-fashioned gays, even though they are often not wealthy patrons of the arts have not always been rich but are the vanguard in gentrifying neighborhoods (with all the deleterious effects to the people who can no longer afford to live there) because they bring with them a high level of cultural capital that other people want to be around. Ironically, cultural capital can be a measure of either stodginess or coolness, because both can gain you influence, but cultural stodginess requires much more money.

-social capital, to me seems to be a broader category that includes cultural capital, but they defined it as the diversity of people that you interact with and befriend. Nowadays, this is a measure of influence as well - based on the economic tradition of capital, it is an asset that can be used to turn raw materials (social relationships) into a marketable product (Youtube videos, blogs, anything pushed through grassroots marketing) not to mention that in the job market employers often look for workers who are socially nimble as it is seen as an asset that adds to a company's value (just as buying a machine does or hiring an employee with engineering skills, etc.). A person's network of friends and acquaintances and one's ability to leverage it are now even more than before very valuable assets in the economy - especially for people who do not inherit social networks due to other forms of capital or wealth they inherit - and now technology is developing ways that people can "capitalize" (monetarize, commodify, analyze, etc.) their social contacts (LinkedIn is a very good example, but even Twitter and Facebook have this role for many).

So I'm not sure how you are defining social class. Economists (and Leftist politicians) going all the way back to Marx have defined it as dividing society based on who possessed capital and who didn't. The thing is, today there are so many forms of capital that the old-fashioned proletariat that was the majority of society in industrial days and had no capital (unskilled labor who rented out their lodgings and worked in factories owned by the capitalists or bourgeoisie) are dying out. Obviously there is still a business, financial-asset, and real-estate owning elite. But Even they, to maintain their status, are leveraging other forms of capital as they need to.
 


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