HOME



Digby's Hullabaloo
2801 Ocean Park Blvd.
Box 157
Santa Monica, Ca 90405



Facebook: Digby Parton

Twitter:
@digby56
@Gaius_Publius
@BloggersRUs (Tom Sullivan)
@spockosbrain



emails:
Digby:
thedigbyblog at gmail
Dennis:
satniteflix at gmail
Gaius:
publius.gaius at gmail
Tom:
tpostsully at gmail
Spocko:
Spockosbrain at gmail
tristero:
Richardein at me.com








Infomania

Salon
Buzzflash
Mother Jones
Raw Story
Huffington Post
Slate
Crooks and Liars
American Prospect
New Republic


Denofcinema.com: Saturday Night at the Movies by Dennis Hartley review archive

January 2003 February 2003 March 2003 April 2003 May 2003 June 2003 July 2003 August 2003 September 2003 October 2003 November 2003 December 2003 January 2004 February 2004 March 2004 April 2004 May 2004 June 2004 July 2004 August 2004 September 2004 October 2004 November 2004 December 2004 January 2005 February 2005 March 2005 April 2005 May 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018


 

This page is powered by Blogger. Isn't yours?

Hullabaloo


Saturday, July 02, 2016

 

Warren broadens her attack

by Tom Sullivan

Last Saturday's post addressed ways to disrupt commercial the forces undermining our democracy. Ways to restore balance to the Force, if you will. Today, please look at Sen. Elizabeth Warren's speech to New America’s Open Markets meeting. Warren attacks consolidation itself, not just in finance but across industries including the tech sector, as an anti-competitive trend that must be stopped by more hard-headed regulation.

Earlier this week I mentioned Warren's roll as principled antagonist for all the right corporate lapdogs in Congress. Yves Smith at Naked Capitalism echoes those thoughts in response to Warren's Open Markets speech:

Warren is continuing to be a thorn in the side of powerful interests. And even though bona fide progressives are disappointed on her support of our misadventures in the Middle East, and her general fealty to feckless Team Dem positions outside her particularly interests, the concentration of economic power and the resulting high corporate profit share of GDP is a big part of why capitalists are partying while workers struggle. Warren is taking on a central topic that is starting to mainstream traction. Even if Warren falls well short of being the Great Progressive Hope, it’s a mistake to disregard how she uses her bully pulpit to undermine a key justification for the rise of inequality in our society: that the operation of markets is always and ever virtuous and therefore outsized pay and profits are justly earned. The more monopolist wannabes are seen as parasites, the better off we will be.
Paul Glastris writes at Washington Monthly:
Warren is, of course, famous for her attacks on too-big-to-fail banks. But in her address yesterday, entitled “Reigniting Competition in the American Economy,” she extended her critique to the entire economy, noting that, as a result of three decades of weakened federal antitrust regulation, virtually every industrial sector today—from airlines to telecom to agriculture to retail to social media—is under the control of a handful of oligopolistic corporations. This widespread consolidation is “hiding in plain sight all across the American economy,” she said, and “threatens our markets, threatens our economy, and threatens our democracy.”
That should be obvious, and it drives the widespread feeling that democracy itself is slipping through our fingers. But that feeling among workers needs the validation of spokespersons of Warren's stature. By repeating validating their concerns, Warren amplifies them. After citing the market reasons industry consolidation is harmful, she gets the to the democratic reasons:
Finally, concentration has contributed to the decline of what was once a strong, robust middle class in this country. As corporations get bigger, and bigger, and bigger, a handful of managers get richer, and richer, and richer. And god-bless—in America, we celebrate success. But what about everybody else? What about small business owners and community bankers – people who used to be able to hold their own with big guys but now find it harder and harder to keep up with the armies of corporate lawyers and lobbyists determined to rig the economy against them? What about the employees at Wal-Mart who scrape by on help from the food pantry and Medicaid, but who never have enough money to build any security? What about them? They are stuck.

Concentration is not the only reason for rising economic insecurity, but it is one of them. Concentrated industries result in concentrated profits. It’s the ultimate price squeeze. When markets are not competitive, big businesses are able to extract monopoly profits by setting prices that are higher and higher above the cost of making an item or providing a service. In 2014, the top 500 largest firms pocketed 45 percent of the global profits of ALL American businesses. And the vast majority of those profits went to the wealthiest of the wealthy. As of 2013, the wealthiest 1 percent of Americans held nearly half of all the stock and mutual fund assets held by all Americans.

And who gets a shot at their own dream? When big business can shut out competition, entrepreneurs and small businesses are denied their shot at building something new and exciting.
As a model of what might be done about that, Warren references the trust-busting efforts of a century ago that built the strong middle class that many Americans now see themselves falling out of. She calls for a new team of Executive branch regulators who will "stand tall and say no" to consolidation and for "revival of the movement that created the antitrust laws in the first place."

This speech might not "change the course of the presidential contest," as Glastris suggests. It is too wonky for that – not as plain-spoken as her famous "There is nobody in this country who got rich on their own. Nobody." Nor as in-your-face as Roosevelt's "economic royalists" rhetoric. But the fact that Elizabeth Warren is out there, week after week, using her bully pulpit to advocate for people Donald Trump thinks of as losers to be exploited means she just might help ignite the "revival of the movement that created the antitrust laws" that she called for this week.