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Milton Friedman, 50 Years Ago Today |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51635"><span class="small">Robert Reich, Robert Reich's Blog</span></a>
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Tuesday, 15 September 2020 08:22 |
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Reich writes: "In the half century since [Friedman's] article appeared, big corporations have gained so much influence over government that they've overwhelmed our democracy."
Former Clinton labor secretary Robert Reich. (photo: Steve Russell/Toronto Star)

Milton Friedman, 50 Years Ago Today
By Robert Reich, Robert Reich's Blog
15 September 20
half-century ago, the economist Milton Friedman wrote an article in the New York Times Magazine that got a lot of attention. In it, he argued that CEOs should not try to be socially responsible. Their sole obligation was to maximize shareholder returns. It was the responsibility of government to respond to social needs.
Friedman’s case was based on the logic of accountability: CEOs and corporations are accountable to shareholders, not to the public at large. Government, on the other hand, is accountable to the public. So we should leave social responsibility to democracy.
Friedman’s logic seemed unassailable but there was a gaping flaw in it that Friedman couldn’t have anticipated. In the half century since his article appeared, big corporations have gained so much influence over government that they’ve overwhelmed our democracy.
According to a 2014 study by Princeton professor Martin Gilens and Northwestern professor Benjamin Page, the preferences of the typical American have no influence at all on legislation emerging from Congress. Gilens and Page analyzed 1,799 policy issues in detail, determining the relative influence on them of economic elites, business groups, mass-based interest groups, and average citizens. Their conclusion: “The preferences of the average American appear to have only a miniscule, near-zero, statistically non-significant impact upon public policy.” Lawmakers mainly listen to the policy demands of big businesses, which have the most lobbying prowess and deepest pockets to bankroll campaigns and promote their views.
Note that Gilens and Page’s data come from the period 1981 to 2002 – before the Supreme Court opened the floodgates to big money in the Citizens United case, and prior to Super PACs, “dark money,” and the Wall Street bailout.
In the 2016 election cycle, corporations flooded presidential, Senate, and House elections with $3.4 billion of donations. Labor unions and public interest groups didn’t make a dent. Corporations and Wall Street contributed $34 to candidates from both parties for every $1 donated by labor unions and all public interest organizations combined.
Largely because of the escalating surge of corporate money into politics over the last fifty years, taxes on corporations have been slashed, safety nets for the poor and middle class have begun to unravel, and public investments in education and infrastructure have waned. The “free market” has been taken over by crony capitalism, corporate bailouts, and corporate welfare.
Shareholders and top executives have done extremely well, but almost no one else has. No wonder so many Americans want corporations to be more socially responsible. They can’t rely on our democracy to be.
Corporations don’t admit to any of this, of course. They continue to pretend they’re socially responsible while hiding their growing political clout. As a result, the public gets the worst of both worlds.
Last year, the Business Roundtable issued a statement signed by 181 CEOs of major American corporations, expressing “a fundamental commitment to all of our stakeholders [emphasis in original]” – workers, communities, and the public in general. But it was just PR. Nothing changed. These corporations didn’t raise their workers’ wages (leading GM workers to stage the longest strike on record). They continued to offer ever skimpier health insurance and retirement funding (Amazon promptly cancelled health insurance for part-time workers at its Whole Foods subsidiary). They continued to fight unions, outsource abroad, and abandon communities.
If those CEOs were serious about a commitment to all their stakeholders, they’d make sure American democracy was able to respond to the needs of workers, communities, and citizens. How? They’d use their formidable political clout to reduce the necessity for candidates to raise campaign funding from corporations. They’d push for public financing of campaigns. And they’d seek a constitutional amendment limiting corporate lobbying and campaign spending.
The most important act of social responsibility that big corporations could possibly undertake would be to push for a society where big corporations could never again become as politically powerful as they have become. Presumably Milton Friedman would approve of this because it follows logically from his argument fifty years ago. But don’t hold your breath.

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Dear Joe Biden: The Student Loan Crisis Is Exploding. We Need Real Action |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=56210"><span class="small">The Debt Collective, Justice Democrats, Sunrise Movement and Action Center, Guardian UK</span></a>
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Tuesday, 15 September 2020 08:22 |
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Excerpt: "We write to you as the first generation made worse-off because of higher education. Student debt is a national crisis that destroys lives, drags down the economy and fuels the racial wealth gap."
Joe Biden. (photo: Mike Blake/Reuters)

Dear Joe Biden: The Student Loan Crisis Is Exploding. We Need Real Action
By The Debt Collective, Justice Democrats, Sunrise Movement and Action Center, Guardian UK
15 September 20
As bad as Betsy DeVos is, this problem predates her. Student debtors cannot afford another Democratic administration that sells them out
ear Joe Biden,
We write to you as the first generation made worse-off because of higher education. Student debt is a national crisis that destroys lives, drags down the economy and fuels the racial wealth gap.
No one should be forced to mortgage their future for an education, yet 45 million of us have been forced to do just that. Today the total amount of student debt stands at $1.7tn, and it keeps growing. This is a direct result of decades of divestment in public funding and the privatization of higher education into a for-profit industry. This broken system has shifted the burden of financing higher education on to individual students and households, disproportionately harming Black, Brown, immigrant and low-income communities. Bold solutions are required to address the harms this policy failure has caused. These solutions can start with the personnel staffing the US Department of Education.
As bad as Betsy DeVos is, most of the problems with our higher education system predate her. When President Obama was in office, debtors and advocates sounded the alarm about soaring tuition, mounting student debt, predatory loan servicers, criminal for-profit colleges and more, but their warnings went unheeded.
Under the leadership of Arne Duncan, John King and Ted Mitchell, the Department of Education fundamentally failed to listen to and protect their constituents. Under their watch, the total amount of student debt doubled, surpassing the total amount of credit card debt for the first time in history. They sat by and allowed impoverished and elderly borrowers’ social security to be garnished. Several Obama administration officials became investors in the predatory for-profit Apollo Education, including Tony Miller, Obama’s former deputy secretary of the education department. And despite public outcry over abuses, Ted Mitchell fought to keep predatory for-profit schools alive, approved the sale of these schools to ECMC (an abusive debt collection company), and now serves as president of the American Council on Education lobbying against mass student debt cancellation.
Meanwhile, the students who were defrauded by predatory for-profit schools continue to wait for justice. The education secretary, Arne Duncan, promised them: “If you’ve been defrauded by a school, we’ll make sure that you get every penny of the debt relief you are entitled to through … as streamlined a process as possible.” He broke that promise. And there are hundreds of other Obama Department of Education officials with a history of failing students who are just waiting to waltz back in through the revolving door.
Student debtors cannot afford another Democratic administration that sells them out and sells them short. A Biden administration must make a clean break from this history. It is time for a new Department of Education staffed with champions who will fight for students. You should appoint strong advocates to fight for students and real solutions to the student debt crisis.
Additionally the Department of Education Organization Act allows the president to appoint up to four assistant secretaries of education. As president, you should fill all four of these positions.
You should commit to appointing:
A secretary of education who will use the authority Congress has already granted the secretary to cancel student debt on their first day in office. During the primary, Elizabeth Warren promised to use the department’s full “compromise and settlement” authority to provide student loan relief, and in March the Trump administration actually did, though the relief they provided was woefully inadequate. Nevertheless, the move was significant because it is a further recognition of the government’s broad power to cancel student debt. A Biden administration will be inheriting an economic depression and a global health crisis, alongside Mitch McConnell promising to be the “grim reaper” killing any policies designed to help people. Canceling student debt via the Department of Education bypasses McConnell, and is a direct way to stimulate the economy (estimated at a $1tn stimulus over 10 years) and create millions of new jobs. With people’s lives – and livelihoods – at stake, it would be cruel and unnecessary for the Department of Education to continue profiting from student debt. We cannot afford the economic damage this debt causes to American households.
An assistant secretary of education dedicated to enforcement. As president, you should appoint an assistant secretary dedicated strictly to enforcing the regulations already on the books. By simply enforcing its own regulations, the Department of Education could fundamentally reshape how higher education functions and is financed. For decades now, it has tolerated a wild west approach, allowing scam accreditation agencies, predatory for-profit schools (which amass huge profits by exploiting low-income communities), and law-breaking debt collectors and loan servicers to flourish. We need someone at the Department of Education who can shut down these corrupt agencies, for-profit schools and abusive servicers and debt collectors once and for all.
An assistant secretary dedicated to racial justice and racial equity. This goes beyond merely protecting civil rights; our education system is fundamentally racist, from the disparities in K-12 funding, to persistent “legalized” segregation, to discriminatory enrollment practices and the deeply racialized nature of student debt. (Study after study after study after study after study after study have shown that student debt is a driver of the racial wealth gap, and that the more student debt we cancel, the better it is for Black and Brown borrowers.) This position should be given full rein to examine how white supremacy functions at every level of our educational system and how our system must change on deep structural levels to repair and redress these inequities.
By making these commitments you can show the 45 million voters struggling with student debt and the millions of would-be college students that you take their pain seriously. During the Obama administration we organized protests to mark what we called “1T Day,” the day student debt surpassed $1tn. Unless real solutions like College for All are enacted, we will be marking 2T Day during a Biden administration.
A generation ago, college was basically free. As a result, many elected officials were able to graduate without taking out student loans. Over the last few decades, millions of students have suffered from a policy failure that developed on their watch – a policy failure that we know how to fix. You can show that you are committed to staffing a Department of Education that will fight for students, stand for racial justice, and help build a fair, equitable and debt-free higher education system.
Sincerely,
The Debt Collective
Sunrise Movement
Justice Democrats
Demand Progress
Action Center on Race & the Economy (ACRE)
The Project on Predatory Student Lending at Harvard Law School
Progressive Democrats of America (DPA)
Council of UC Faculty Associations
Rutgers AAUP-AFT
Student Action
NYC DSA Debt & Finance Working Group
The Leap
Social Security Works
Student Loan Justice
Roots Action
People’s Action
The Progressive Change Campaign Committee
Money on the Left
Jolt Action
Our Revolution
Scholars for Social Justice

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Save the USPS, Defend Democracy |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51831"><span class="small">Paul Prescod, Jacobin</span></a>
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Tuesday, 15 September 2020 08:22 |
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Prescod writes: "A combination of the pandemic, the heightened importance of mail-in voting, and massive delivery delays has pushed the post office into the news in a way not seen since the nationwide postal strike in 1970."
'The USPS is under assault.' (photo: Paul Ratje/AFP/Getty Images)

Save the USPS, Defend Democracy
By Paul Prescod, Jacobin
15 September 20
The USPS is under assault at the very moment we need a functioning postal service to hold a free and fair election. We can defend electoral democracy by defending the post office.
he United States Postal Service (USPS) is all the rage. A combination of the pandemic, the heightened importance of mail-in voting, and massive delivery delays has pushed the post office into the news in a way not seen since the nationwide postal strike in 1970. Even teenagers are brandishing the USPS as a weapon in the culture wars, with memes championing postal workers as the “real boys in blue.”
Socialists and progressives are correct to use this moment to highlight the value of the postal service beyond the 2020 presidential election. The Trump administration’s recent attacks are part of a broader effort to privatize a beloved universal service and destroy over six hundred thousand living wage union jobs in the process. Postal service employment has been especially crucial in helping black workers, women workers, and veterans achieve some economic stability and dignity.
Still, we shouldn’t overlook the urgency of safeguarding the election and our democratic rights. Electoral democracy, especially in the United States, is severely limited in delivering substantive change. But we should never forget that so many basic democratic rights, including voting, were won through fierce working-class struggle. There is no contradiction in protecting these rights as we try to deepen and expand democracy into all areas of life.
And on a practical level, electoral politics will play an important role in socialist strategy in the coming years. Electing working-class fighters like Cori Bush, Jamaal Bowman, and the five New York City Democratic Socialists of America state legislature candidates — just to name a few — helps keep working-class issues on the political agenda and build organizational capacity. Especially in districts outside of urban enclaves, winning these campaigns will require mobilizing large swaths of disaffected voters and inspiring them to believe that fundamental change is possible. This will be impossible if people are denied basic voting rights or given cause for cynicism about whether their vote really counts.
Joe Biden is a weak and uninspiring candidate. The long list of his crimes and follies has been well-documented. However, there are still clear stakes in this election. We don’t need to echo the Democratic National Committee’s vague talking points about lack of decency to convey the dangers of four more years of Donald Trump.
In Trump’s first term we saw vicious attacks on federal workers, the gutting of the National Labor Relations Board, tax cuts for the rich, and the further weakening of the Occupational Safety and Health Administration (OSHA). Campaign promises such as a massive infrastructure project, minimum wage hike, and an overhaul of the health care system have gone unfulfilled. While Trump doesn’t articulate a future vision very cogently, he’s made clear that the USPS and Social Security are in his sights. Booting Trump from office will require a legitimate election and a functioning postal system.
During a global pandemic, people should obviously be able to vote by mail. Failure to ensure everyone has this option is nothing less than voter suppression and an assault on public health. Despite consistent claims that mail-in voting will lead to widescale election fraud, the Trump campaign could not produce any convincing evidence when asked to do so by a federal judge.
On the other hand, there is evidence that Postmaster General Louis DeJoy’s recent policy changes have caused huge mail delays across the country. While the removal of sorting machines and mail collection boxes has received lots of (justified) attention, work rule changes have had an even bigger impact on delays. DeJoy drastically cut overtime and post office hours. In an unprecedented move, he has also required all letter carriers to leave for their routes on time even if mail sorting isn’t complete.
DeJoy is selling these changes as a way to bring down costs and improve efficiency. But they should be seen as another iteration of a familiar right-wing strategy: degrade the quality of a service, turn the public against it, and then privatize. Despite promises from DeJoy that he would delay these changes until after the election, postal workers on the ground say the mail delays continue. It’s not clear whether DeJoy will follow through on his vow, let alone reverse the measures he’s already put in place.
More encouragingly, there’s been mass resistance to DeJoy’s changes. Hundreds of rallies have been held in support of the USPS, and in some areas postal workers are refusing to let mail delays happen.
We have an opportunity to leverage these budding coalitions to mount larger fights to expand the postal service in the years to come. But for now, we can’t let a corporate oligarch steal this election. Save the post office, save living wage jobs, and save our democracy.

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Trump Comes Off Even Worse in Woodward's Rage Than You've Heard |
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Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=37428"><span class="small">Fred Kaplan, Slate</span></a>
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Monday, 14 September 2020 12:26 |
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Excerpt: "In his latest, Bob Woodward finally lets us know what he's thinking about a president. But it's Trump himself who does the most damage."
Bob Woodward at the White House Correspondents’ Association Dinner at the Washington Hilton in D.C. on April 29, 2017. (photo: Tasos Katopodis/Getty Images)

Trump Comes Off Even Worse in Woodward's Rage Than You've Heard
By Fred Kaplan, Slate
14 September 20
In his latest, Bob Woodward finally lets us know what he’s thinking about a president. But it’s Trump himself who does the most damage.
f books can still have political impact (a big if), then Rage, Bob Woodward’s latest in his series of presidential profiles, should wind up an election-shaping blockbuster. He doesn’t merely quote anonymous sources dissing the policies and character of Donald Trump. He catches Trump himself in self-incriminating blather—17 interviews’ worth, from January to July of 2020—on the record, on tape. We’ve all been waiting for someone to leak secretly recorded tapes of Trump saying ghastly things. Who would have predicted that he’d say them to one of the world’s most famous reporters with a tape recorder in clear sight!
You’ve no doubt read or even heard the biggest scoop: Trump knew back in January that the coronavirus was much deadlier than the flu, that it spreads through the air, that it kills not just the elderly but young people too. Yet he told the public that all was well, that the germs would vanish soon—and, even now, he encourages thousands of barefaced supporters to attend jampacked rallies, makes fun of Joe Biden for wearing a mask, and pressures the Big Ten colleges to resume their football schedules, for his entertainment.
The genuine news here is that, contrary to what was thought at the time, Trump didn’t ignore the scientists or wave away their advice when the pandemic took off. No, he understood their analyses and forecasts perfectly well. He just decided not to do anything about it—and, worse still, to encourage others not to do much either. Before we could only speculate that Trump was personally responsible for the deaths of tens of thousands; now we know it.
Woodward scrounged up other, less reported, but still dramatic revelations.
For instance, he obtained the letters between Trump and North Korean leader Kim Jong-un—“beautiful letters,” Trump has called them—and they reveal Trump was an even bigger chump than we’d figured. “Dear Excellency,” Kim’s first letter begins, and Woodward adds that Trump noted the ultra-respectful greeting “with pride.” Another Kim gem began, “I feel pleased to have formed good ties with such a powerful and preeminent statesman as Your Excellency,” then likened their next meeting to “a scene from a fantasy film.” Woodward reports that CIA analysts “marveled” at these letters, at how skillfully their author appealed “to Trump’s sense of grandiosity” and his desire to be seen taking “center stage in history.”
When Woodward asks what it was like to meet Kim at their first summit in Singapore, Trump responds, “It was the most cameras I think I’ve seen, more cameras than any human being in history,” even more than he’d seen at the Academy Awards.
He then gives Woodward a poster-size copy of a photo of Trump and Kim shaking hands at the border separating North and South Korea. “This is me and him,” he tells Woodward, all excited. “That’s the line, right? Then I walked over the line. Pretty cool.” He goes on to brag that Kim “tells me everything. … He killed his uncle and put the body right in the steps where the senators walked out. And the head was cut, sitting on the chest. … Nancy Pelosi said, ‘Oh, let’s impeach him.’ You think that’s tough? This is tough.”
What a fanboy. No wonder Kim and every other dictator on earth plays the American president like such a wondrously easy mark.
At one point, when talking about Turkish President Recep Tayyip Erdogan, Trump tells Woodward, “It’s funny, the relations I have, the tougher and meaner they are, the better I get along with them. You know? Explain that to me someday, OK?” Woodward writes: “That might not be difficult, I thought, but I didn’t say anything.”
Throughout the book, Woodward proclaims shock (though one wonders why) at how shallow Trump is. Asked about his strategy for dealing with the plethora of crises hitting him, Trump replies, “I don’t have a strategy,” except to “do a good job.” Trump says he knew that he and Kim would get along instantly, in the same way that “you meet a woman, in one second you know whether or not it’s all going to happen.”
Over and over, Trump plasters his pathological insecurity on marquee display. “I don’t think Obama’s smart,” he says, adding, “Hey look, I went to the best schools, I did great. … You know, they talk about the elite … they have nice houses. No, I have much better than them, I have better everything than them, including education.” His uncle, as he has said many times, was a brilliant MIT professor who knew about nuclear weapons—“so I understand that stuff,” the president says. “You know, genetically.”
He boasts of being No. 1 on Twitter and Facebook, as if any grown human would care about such distinctions. Woodward then tracks it down and reports that, in fact, he has the ninth most popular account on Twitter and is outranked by several dozen on Facebook.
Finally, there is Trump’s—to put it generously—racial insensitivity. Amid the protests over the police killing of George Floyd, Woodward tells Trump that, as a privileged white person, he has only recently grasped the need to understand and address the anger and pain of Black people, and he asks Trump whether he has experienced a similar epiphany. Trump replies, “No. You really drank the Kool-Aid, didn’t you? Just listen to you. Wow. No, I don’t feel that at all”—then claims, for the umpteenth time, that he’s done more to help Black people than any president besides Abraham Lincoln, but adds, “honestly, I’m not feeling any love.”
“Trump is the wrong man for the job,” Woodward writes at the very end of the book, and while it’s not the stunner he clearly intended, it is a tiny eyebrow-raiser, in that it’s the sort of judgment that Woodward—the erstwhile upstart turned mild-mannered chronicler of the Washington high and mighty—has never expressed so openly in his previous books.
At age 77, well over half a lifetime after he and Carl Bernstein took down President Richard Nixon with their reporting on Watergate, Woodward seems more willing—perhaps entitled—to put himself in the narrative and state his own views explicitly.
In many ways, though, he’s the same Woodward. He’s an unparalleled amasser of secret documents, inside facts, dazzling scoops. But he’s also a prisoner of those scoops. He doesn’t quite know what to do with them. He fastidiously counts all the rings on the fallen trees, but doesn’t look closely at the forest or why the trees fell.
In a 1989 Playboy interview, conducted by the journalist-historian J. Anthony Lukas, Woodward acknowledged that analysis was not his strong point, adding, “I am just not capable—and this is a grave fault—of taking A, B, C, and D, and saying, ‘OK, now E.’ ”
If you want to know the motives Kim had in meeting with Trump, or why their second summit in Hanoi, Vietnam, was a disaster, Woodward is not your go-to author. If you’re looking for a tour of the broader political landscape in which Trump exercises power, again, look elsewhere.
What Woodward does is paint a picture of presidents dealing with power and crises. Even here, he is dependent on his sources, and you can always tell who Woodward’s best sources are, because they’re the ones who come off looking best. Retired Gen. Jim Mattis, who resigned in protest as Trump’s first secretary of defense, was clearly a big source for this book. Hence we read: “Mattis had a stoic Marine exterior and attention-getting ramrod posture, but his bright, open and inviting smile softened his presence.”
Another major source is Dan Coats, whom Trump fired as director of national intelligence. Hence: “Still waters ran deep in Dan Coats. He was cool and not defensive, unintimidated by complexity. Mattis found himself often thinking that Coats was a model of what was needed in government service—though maybe he was too decent.”
Woodward also seems to have talked a lot with Jared Kushner, Trump’s son-in-law and special adviser, and so describes him as “intelligent, organized, self-confident, and arrogant”—words that Kushner has probably dined out on. But even Woodward sees through Kushner’s craven shallowness. He quotes former Secretary of State Rex Tillerson (another well-treated source) as finding Kushner’s kowtowing toward Israeli Prime Minister Benjamin Netanyahu “nauseating to watch.” And he quotes Kushner saying, after Mattis and Tillerson and others have quit or been fired, “We’ve gotten rid of a lot of the overconfident idiots,” so the administration now has “a lot more thoughtful people who kind of know their place and know what to do”—thus proving that Kushner is every bit as self-immolating and prone to projection as his father-in-law.
Rage is better and more valuable than Fear, Woodward’s first book about Trump’s presidency, because it’s built around his conversations with Trump himself—and the gasoline the president pours on himself is, even by his standards, remarkable.
Why did Trump agree to talk with Woodward? In part for the same reason many powerful people do: because it means they’ll end up in the history books, and if they can charm Woodward, they’ll come off well. Trump clearly thought he could charm Woodward. He quotes Trump as saying that Fear “was horrendous, but that was my fault. I would’ve loved to have seen you. But they didn’t tell me you were calling.” This too is a lie: Sen. Lindsey Graham urged Trump to talk to Woodward for that book and for this one, too—a favor that Woodward returns by saying that Graham sometimes “provided wise counsel, urging Trump to take a strategic view.” For instance, Graham tells Trump (or at least tells Woodward that he told Trump) that the president’s “law and order” approach to the nation’s racial tensions is reminiscent of George Wallace and that it will lose him the election.

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