The Loss of Respect of the Economic Elite is Enormous

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The embedding of the market and the economy in civil society is the challenge of the 21st century. Tax shelters or havens must be closed. Shadow banking must be ended if we are to prevent double speak and double standards.

The wealthiest 400 Americans have more wealth than 150 million Americans! The top 5% have 70% of the nation's wealth according to Gar Alperowitz. Time for Plan B and alternative economics: reduced working hours, person-oriented work, labor-intensive investments, community centers, and infrastructure investment.

to read the interview with Swiss economic ethics professor Peter Ulrich from 2008 "The Loss of Respect of the Economic Elite is Enormous," click on

http://la.indymedia.org/news/2012/05/253244.php

demandside's picture
demandside
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Jul. 31, 2007 3:01 pm

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About time people wake up. That respect should have never been there. It's an antiquated form of respect and it's caused all kinds of misery in the world.

.ren's picture
.ren
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Apr. 1, 2010 6:50 am

When a 10% share of gdp quadruples to 40% and a coinciding oversight does not follow, fraud is not only likely, but a sure thing. The comparitive share of investigators of white collar crime in the fbi was not there, nor commodities, sec, or fdic. FIRE [finance, insurance, real estate] is so big now, the petty fines for fraud are nothing but a hiccup or burp.

" Entrepeneurs take risk, and should be rewarded"-Mitt Romney

A Risk-Free Beginning: Guaranteed Pay and Cover Stories

Mitt Romney says while campaigning that the successes and failures of individual companies is what gives him “credibility on the economy” and that he took great risk to make businesses succeed. Romney has even said he was sometimes himself worried about getting a pink slip.

But, Romney’s beginning at Bain Capital was risk-free. In a deal that seems unbelievable to most Americans, Romney was given his new job heading Bain Capital with the agreement that if Romney failed, he would get his old job back with any raises he missed. The company would also lie for Romney if necessary, creating a cover story for Romney’s failure. As Romney’s mentor said, “there was no professional or financial risk.”

Romney Claimed He Often Worried About Being Fired. "I know what it's like to worry whether you're gonna get fired," Romney told a rally. "There were a couple of times I wondered whether I was going to get a pink slip.'' He didn't offer specifics. READ MORE: Boston Globe, 1/8/12

Romney Was Guaranteed Old Job With Raises If He Failed at Bain and Co. According to the Boston Globe, when Romney was offered the job as head of Bain and Co., he hesitated because of the professional risk. According to the Globe, “Romney explained that he didn't want to risk his position, earnings, and reputation on an experiment in investing. The offer was appealing, Romney recalled in a recent interview, but he wasn't going to make such a decision in a "light or flippant manner." So Bain sweetened the offer. He guaranteed that if the experiment failed, Romney would get his old job and salary back, plus any raises handed out during his absence. – Boston Globe, 6/26/07 and MSNBC

Bain Agreed to Create False Cover Story for Romney if He Failed. According to the Boston Globe, “Romney had one more concern: the impact on his reputation should he prove unable to do the job. In the end, Bain agreed to craft a cover story if necessary, promising to bring Romney back to the consulting firm and explain Romney's return as a matter of his being more valuable to Bain as a consultant. "So," Bain says, "there was no professional or financial risk.” – Boston Globe, 6/26/07 and Washington Post’s Plum Line, 1/9/12

Lies, damn lies, and statistics

douglaslee's picture
douglaslee
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Jul. 31, 2007 3:01 pm

Do you really think the rich care?

lovecraft
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May. 8, 2012 11:06 am

How bout the death of basic understanding of economics in this country.

CollegeConservative's picture
CollegeConservative
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May. 4, 2012 1:22 pm

Yep, when we entered into the Reagan Revolution and the Economic Alchemy of Supply Side class war, all understanding of economics in American public opinion was lost. My big complaint against Clinton was that he gave juice to "It's the Economy, stupid" as if that was more than short-term electoral political 'wisdom.' It is why the GOPimps have a good chance of fooling enough Americans into giving Romney's 'business acumen' weight in their voting. Were we well-versed in economics, we would know better than to have given Wall St. anything other than a collective beating.

The demonization of Socialism in the polarity and polemic of the Cold War helped prepare Americans to be gulled by Ronnie Popular and his Morning in America smile. If we cared about debt and were really afraid of deficits, we would have turned back from the GOPimp PNAC journey at the start. But, debt is free cash and made a lot of people feel good about feeling good about America instead of asking any basic questions from Vietnam's disaster. We can spend whatever it takes to beat the Commies, but only the "private sector" is able to serve the domestic needs of American democracy. Repeat the Lie over and over, and over, and over. . .

Students at business schools learn a very distorted dogma of 'economics' where it is all about being the individual Monopoly game player in pursuit of owning as much as possible. "Fiduciary responsibility" (sic) is the measure of their business morality, and "making money" is what they are taught as virtue. All this is projected against a global world of simplified barter equations and humanity reduced to economic function. That stuff is too complicated to allow any moral tinkering, so just focus on making money in the free market.

The students of economics who serve these Bible Colleges of Commerce cannot believe heresy, so there is far less questioning of "market solutions" and the "profit motive" in general in our employed economists. It is hard to be a socialist and get any public attention, much less respect. It is not about the quality of the economic theory or realism.

While the death of economics is bad, the death of democratic thinking and respect for self-government is far worse. Were we to fix the basic problem of democratic inclusion and participation by resisting this corporatized, monetized and militarized fraud to see if we could have one, we would find all the motivation required to get our economic thinking sorted out. The failures in our democracy are more obvious to the public than are the failures in economic theories. We know our participation in power is a sham even when we think the loss of our pension is beyond our opposition. We can talk with each other about what liberty and justice means for us, and for all, a lot less emotionally than we can discuss how the money works as the starting point.

College Conservative, you have to learn to think for yourself rather than repeat what you were taught as though it is economics. What has amazed me for some time has been the ignorance of so many economists about economics. It is like having the Rightwing preachers define what Christianity is.

drc2
Joined:
Apr. 26, 2012 11:15 am

Do you mean the voodoo economics instituted by the right and embraced later by the Dems as well? It effectively killed the Golden Age we had for several decades after World War II. Golden Ages are rare in hisotry. I feel fortunate to have lived in one

Retired Monk - "Ideology is a disease".

polycarp2
Joined:
Jul. 31, 2007 3:01 pm

The recent JP Morgan debacle could be a positive if spun right. That incident shines a light on the sector that seeks to control your Social Security. If that perspective is pronounced loud enough, Soc Sec becomes a third rail again. Fox has been successful at legitimizing fraud and theft, and effectivley offering insulation to the theives that walk the third rail. I bet fox viewers believe they must cut Soc Sec to be patriotic. The most ill informed demographic in the US are fox viewers, as they vote to cut their own food stamps, cut their own medical coverage, cut the wealthy's taxes, raise their own taxes, and send their own sons and daughters off to die in a war of choice waged for the wealthy to elect an unelected president, and make money for his vp.

douglaslee's picture
douglaslee
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Jul. 31, 2007 3:01 pm
Quote CollegeConservative:

How bout the death of basic understanding of economics in this country.

Indeed. I wonder what 'shadow banking' is. It sounds ominous.

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Dr. Econ
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