Showing posts with label neo-liberalism. Show all posts
Showing posts with label neo-liberalism. Show all posts

Wednesday, January 21, 2026

The root of all our problems




From George Monbiot at the Guardian




There is one political problem from which all others follow. It is the major cause of Donald Trump, of Nigel Farage, of the shocking weakness of their opponents, of the polarisation tearing societies apart, of the devastation of the living world. It is simply stated: the extreme wealth of a small number of people.

It can also be quantified. The World Inequality Report (WIR) 2026 shows that about 56,000 people – 0.001% of the global population – corral three times more wealth than the poorest half of humanity. They afflict almost every country. In the UK, for example, 50 families hold more wealth than 50% of the population combined.

You can watch their fortunes grow. In 2024, Oxfam’s figures show, the wealth of the world’s 2,769 billionaires grew by $2tn, or $2,000bn. The total global spending on international aid last year was projected to be, at most, $186bn, less than a tenth of the increment in their wealth. Governments tell us they “can’t afford” more. In the UK, billionaires, on average, have become more than 1,000% richer since 1990. Most of their wealth derives from property, inheritance and finance. They have become so rich, in other words, at our expense.

The issue affects every aspect of policy. Trump is not seizing Venezuela’s oil wealth for the sake of the US poor. He couldn’t give a damn about them, as his “big, beautiful bill” – robbing the poor to give to the rich – revealed. He covets Greenland on behalf of the same elite interests, of which he is the avatar.

When the world’s richest man, Elon Musk, helped destroy the lives of the world’s poorest by tearing down USAID, he did so on behalf of his class. The same goes for Trump’s assaults on democracy, and his war on the living world. It is the ultra-rich who benefit most from destruction, in making money and in spending it. The WIR shows that the richest 1% of the world’s population account for 41% of greenhouse gas emissions arising from private capital ownership: almost twice that of the bottom 90%. And through their consumption, another study shows, the 1% produce as many greenhouse gases as the poorest two-thirds.

Inequality damages every aspect of our lives. Decades of research by Kate Pickett and Richard Wilkinson shows that higher inequality, regardless of absolute levels of wealth, is associated with higher crime, worse public health, higher addiction, lower educational attainment, worse status anxiety (leading to higher consumption of positional goods), worse pollution and destruction, and a host of other ills.

Extreme inequality creates an “Epstein class” of global predators, exploiting the rest financially – and in other ways. It creates an ethos that no longer recognises our common humanity, that sees other people, as Musk puts it, as “non-player characters”, and believes that, “the fundamental weakness of western civilisation is empathy”.

This is the metric by which you can tell who in politics are your allies and who are your enemies: whether they support or oppose the extreme concentration of wealth. In fact, the matter should be definitional. Those who support it (let’s call them Group 1) are the right. Those who oppose it (Group 2) are the left.

As soon as you understand politics in this light, you notice something extraordinary. Almost the entire population is in Group 2. Polling across 36 nations by the Pew Research Center found that 84% see economic inequality as a big problem, and 86% see the political influence of the rich as a major cause of it. In 33 of these nations, a majority believe their country’s economic system needs either “major changes” or “complete reform”. In the UK, a YouGov poll revealed, 75% support a wealth tax on fortunes above £10m, while only 13% oppose it. But – and here’s the astonishing thing – almost the entire political class is in Group 1. You can search the manifestos of major parties that once belonged to the left, and find no call to make billionaires history.

Quite the opposite in fact. Even when politicians are forced to respond to calls for a wealth tax, they dismiss it, as UK ministers have done, with two excuses. The first is that it won’t raise much revenue. Maybe, maybe not: there’s a wide range of evidence on this matter. But revenue-raising is the least of its benefits. Far more important are two other issues. One is fairness. As the WIR reports, “Effective income tax rates climb steadily for most of the population but fall sharply for billionaires and centi-millionaires.” This undermines trust in the tax system and politics in general. The other is reducing the power of the ultra-rich over our lives. To restore democracy and create a fairer, safer, greener world, we must bring the ultra-rich to heel, cutting their fortunes until they can no longer bludgeon us.

The second excuse is that the uber-rich will flee the country. There are three possible responses to this claim. The first is that there’s no evidence to support it. The second is, if true, good riddance: they do us more harm than good. The third is to say: then the obvious solution is a global tax-avoidance measure. So guess what? While 125 nations supported this approach, Keir Starmer’s government was one of nine that opposed it. Our government doesn’t tax the ultra-rich enough not because it can’t, but because it doesn’t want to.

It’s not just politicians. Almost all the media belongs to Group 1. As the wealth and power of the proprietor class becomes ever greater and harder to justify, the views expressed in their outlets become ever crazier. Immigrants, asylum seekers, Muslims, women, transgender people, disabled people, students, protesters: anyone and everyone must be blamed for our dysfunctions, except those causing them. Ever more extreme “culture wars” (a euphemism for divide-and-rule) must be waged.

It’s also why imaginary threats (Venezuela, “cultural Marxists”, “domestic terrorists”) must constantly be drummed up. You cannot have both a free market in media ownership and a free market in information and ideas. The oligarchs who dominate the sector stifle inconvenient thoughts and promote the policies that protect their fortunes.

No one would claim that taking on extreme wealth is easy. But the battle begins with political parties spelling out this aim, clearly and unequivocally. Either they represent the great majority, or they represent the tiny minority: they cannot do both. So where, we might ask, are our representatives?





Saturday, December 13, 2025

The coming cheap electricity boom

 A comment by Jilles van Gurp, on Electrek's Solar and wind are covering all new power demand in 2025


Basically the penny that hasn't dropped yet with a lot of people is that there are going to be two types of countries. 1) the type of country that covers all their power needs with self-generated, cheap, clean power 2) the type of country that are hopelessly dependent for most of their power needs on both expensive fossil fuel imports and domestic fossil fuel companies taking huge chunks of their GDP out of the economy.

One of those will do really well in competing with the other. That's China vs. the US right now. Everything the US does, China can do cheaper, faster, and better. That really matters when you are selling to the rest of the world like China is and the US seems to be struggling to do. It really is that simple. If the US wants to have an export market in the future, it needs to let go of fossil fuel. The sooner it figures that out the better it's chances.

China is on a track to go cold turkey on fossil fuel by the 2060s. Yes they are building coal plants. But those are not running at full capacity anymore. They are hitting peak coal even as they build more plants. Solar/wind are growing faster. Compound growth curves mean all that coal capacity is rapidly becoming less relevant. Just like the Chinese have been planning. If anything, that's speeding up because they are doing unexpectedly well with solar and battery.

After WWII, the world entered a period of sustained high growth, with declining inequality, low unemployment, and a belief that their children would be better off.  In retrospect, a golden age. 

It was driven by three forces:

  • High taxes on the rich, which were used to boost education, science, transport and economic progress.
  • Keynesian economics, which advised governments to increase spending during recessions, instead of embracing austerity, which is the current failing orthodoxy.
  • Cheap energy.  The global oil price was controlled by the Texas Railroad Commission, and remained stable until the oil crisis.
These three drivers of prosperity failed with the Vietnam War; the surge in the oil price as US supply declined and OPEC flexed its muscles and instituted an oil embargo; and the rise of neo-liberalism.

Today, solar and battery costs continue to decline, battery costs precipitously.   This means that the cost of energy will once again be low, and even better than stable---it will be falling.   Countries which embrace renewables will have low and falling energy costs.  Countries which don't, will reduce their growth rate and standard of living.  As Jilles van Gurp says, it's obvious.  

As an aside, the countries which will benefit the most from cheap solar are in the sunbelt, between latitudes 30 North and South, and they're mostly developing countries, which have hitherto been held back by poor access to electricity.  That is all changing.  Since they are so far inside their production possibility frontier, these poorer countries embracing renewables could achieve very high growth rates.  China sees this.  The US, blinded by racism and arrogance, calls them "shithole" countries, and completely missed the point.

(Source)


Thursday, December 11, 2025

How the hell did we get here?

 




From The Hartmann Report


Young people are furious. A survey released this week by the Harvard Institute of Politics finds that under-30 Americans are “a generation under profound strain” who’ve lost pretty much any confidence in government or corporate institutions.

By a 57% to 13% margin they told pollsters America is on the wrong track, and only 32% agree that the US is a healthy democracy or even one that’s “somewhat functioning.”

Fully 64% of young American adults say the system is either in trouble or has completely failed. Pollster John Della Volpe summarized the Institute’s findings:

“Young Americans are sending a clear message: the systems and institutions meant to support them no longer feel stable, fair, or responsive to this generation.”

Which raises the urgent question: How the hell did we get here from the widespread prosperity of the postwar years?

The 1970s were a pivotal decade, and not just because they saw the end of the Vietnam War, the resignation of Nixon, and the death of both the psychedelic hippie movement and the very political (and sometimes violent) SDS, which I had joined. Most consequentially, the 1970s were when the modern-day Republican Party was birthed.

Prior to that, the nation had hummed along for 40 years on a top income tax bracket of 91% and a corporate income tax that topped out around 50%. Business leaders focused on running their companies, which were growing faster than at any time in the history of America, and avoided participating in politics.

Democrat Franklin Roosevelt and Republican Dwight Eisenhower renewed America with:
— modern, state-of-the-art public labs, schools, and public hospitals across the nation;
— nearly free college, trade school, and research support;
— enforcement of antitrust laws which produced healthy small and family businesses;
— unions protecting a third of America’s workers so fully two-thirds of us had a living wage and benefits on a single salary;
— and an interstate highway system, rail system, and network of new airports paid for with tax dollars that transformed the nation’s commerce.

When we handed America over to Ronald Reagan in 1981 it was a brand, gleaming new country with a prosperous and thriving middle class. Young people saw a lifetime of opportunity ahead of them, and wealthy people were doing well, too.

The seeds of today’s American crisis were planted just ten years earlier, in 1971, when Lewis Powell, then a lawyer for the tobacco industry, wrote his infamous “Powell Memo.” It was a blueprint for the morbidly rich and big corporations to take over the weakened remnants of Nixon’s Republican Party and then seize control of the institutions of America.

Those groups, inspired by Powell, decided to take his advice and infiltrate our universities, create a massive, billion-dollar conservative media infrastructure, pack our courts, integrate themselves into a large religious movement to collect millions of votes, and turn upside-down our tax, labor, abortion, and gun laws.

That effort burst onto the American scene with the 1980 election of Ronald Reagan.

By 1982 America was agog at the “new ideas” this newly-invented, billionaire-owned GOP was putting forward. They included radical tax cuts for the rich, pollution deregulation, destroying unions, ending Roe v. Wade, and slashing the support services the New Deal and Great Society once offered citizens (because, Republicans said, feeding, educating, or providing healthcare to people made them “dependent on the government”).

Their sales pitch was effective, so we’ve now had 44 years of Republicans’ so-called Reagan Revolution.

It’s time to simply say out loud — as our young people are yelling at us — that it hasn’t worked. For example:

— Republicans told us if we just cut the top income tax rate on the morbidly rich from the 74% it was in 1980 down to 37% it would “trickle down” benefits to everybody else because, they said, the “job creators” would be “unleashed” on our economy.

Instead of a more general prosperity, we’ve now ended up with the greatest wealth and income inequality in the developed world, as over $50 trillion was transferred over those 44 years from the bottom 90% to the top 1%, where it remains to this day. The middle class has gone from over 65% of us to fewer than half of us. Because of 44 years of Reaganomics, it now takes 2 full-time wage earners to sustain the same lifestyle one could in 1980.

— Republicans told us if we just deregulated guns and let anybody buy and carry as many as they wanted, wherever they wanted, it would clean up our crime problem and put the fear of God into our politicians.

“An armed society is a polite society” was the bumper sticker back during Reagan’s time, the NRA relentlessly promoting the lie that the Founders and Framers put the Second Amendment into the Constitution so “patriots” could kill corrupt politicians. Five on-the-take Republicans on the Supreme Court even got into the act by twisting the law and lying about American history to make guns more widely available.

Instead of a “polite” society or politicians who listened better to their constituents, we ended up with school shootings and a daily rate of gun carnage unmatched anywhere else in the developed world. We regularly terrorize young people with active shooter drills; the number-one cause of death for American children (and only American children) is bullets tearing their bodies apart.

— Republicans told us that if we just ended sex education in our schools, purged our libraries of books, and outlawed abortion, we’d return to “the good old days” when, they argued, every child was wanted and every marriage was happy.

Instead of helping young Americans, we’ve ended up with epidemics of sexually transmitted diseases, unwanted pregnancies, and — now that abortion is illegal in state after state — a return to deadly back-alley abortions.

— Republicans told us that if we just killed off Civics and History classes in our schools, we’d “liberate” our young people to focus on science and math.

Instead, we’ve raised two generations of Americans who can’t even name the three branches of government, much less understand the meaning of the Constitution’s reference to the “General Welfare.” And forget about trying to explain to them the difference between Hitler’s fascism, Stalin’s communism, and the modern-day governments of Russia, Hungary, and China. Or what Trump and his cronies are up to.

— Republicans told us that if we cut state and federal aid to higher education — which in 1980 paid for about 80% of a student’s tuition — so that students would have “skin in the game,” we’d see students take their studies more seriously and produce a new generation of engineers and scientists to prepare us for the 21st century.

Instead of happy students, since we cut that 80% government support down to around 20% (with the 80% now covered by students’ tuition), our nation is groaning under a $2 trillion dollar student debt burden, preventing young people from buying homes, starting businesses, or beginning families.

While students are underwater, the banksters who own Republican politicians are making billions in profits every single week of the year from these bizarrely non-negotiable student loans, the consequence of legally paid-off legislators (because of Clarence Thomas‘s tie-breaking vote in Citizens United).

— Republicans told us that if we just stopped enforcing the anti-monopoly and anti-trust laws that had protected small businesses for nearly 100 years, there would be an explosion of innovation and opportunity as companies got bigger and thus “more efficient.”

Instead, we’ve seen every industry in America become so consolidated that competition is dead, inflation-causing price gouging and profiteering reign, and it’s hard to find small family-owned businesses anymore in downtowns, malls, and the suburbs. It’s all giant chains, many being sucked dry by hedge funds or private equity as we enter the cancer stage of capitalism. Few family or local businesses can compete against such giants and the door to entrepreneurialism is largely closed to Zoomers.

— Republicans told us that if we just changed the laws to let corporations pay their senior executives with stock (in addition to cash) they’d be “more invested” in the fate and future of the company and business would generally become healthier.

Stock buybacks used to be called felony stock manipulation, but Reagan legalized the practice in 1983. As a result, every time a corporation initiates a stock buyback program, billions of dollars flow directly into the pockets of the main shareholders and executives while workers, the company, communities, and even the businesses themselves suffer the loss.

— Republicans told us that if we just let a handful of individual companies and billionaires buy most of our media, a thousand flowers would grow and we’d have the most diverse media landscape in the world. At first, as the internet was opening in the 90s, they even giddily claimed it was happening.

Now a small handful of billionaires and often-rightwing companies own our major media/internet companies, radio and TV stations, as well as local newspapers across the country. In such a landscape, progressive voices, as young people will tell you, are generally absent.

— Republicans told us we should hand all our healthcare decisions not to our doctors but to bureaucratic insurance industry middlemen who would decide which of our doctor’s suggestions they’d approve for payment and which they’d reject. They said this “pre-approval” process would “lower costs and increase choice.”

Instead, in all of the entire developed world — all the 34 OECD countries on 4 continents — there are ~500,000 medical bankruptcies a year…and every single one of them is here in America. And now, as Republicans fight to prevent the renewal of Obamacare subsidies, millions — particularly young people working low-wage jobs — will simply be forced to drop health insurance altogether.

— Republicans told us if we just got rid of our unions, then our bosses and the companies that employ them would give us better pay, more benefits, and real job security.

As everybody can see, they lied. And are still lying as hard as they can to prevent America from returning to the levels of unionization (around a third of us) we had before Reagan’s Great Republican Experiment (now only a tenth of us have a union).

— Republicans told us if we went with the trade agreement the GHW Bush administration had negotiated — NAFTA — and then signed off on the WTO, that we’d see an explosion of jobs.

There was an explosion all right; lots of them, in fact, as over 60,000 American factories were blown up, torn down, or left vacant because their production was moved to China or elsewhere. Over 15 million good-paying union jobs went overseas along with those 60,000 factories.

— Republicans told us global warming was a hoax: they’re still telling us that, in fact. And therefore, they say, we shouldn’t do anything to interfere with the profits of their wealthy donors in the American fossil fuel industry and the Middle East.

The hoax, it turns out, was the lie that there was no global warming, a lie that the industry spent hundreds of millions over decades to pull off. By purchasing the GOP, they succeeded in delaying action on global warming for at least three decades and maybe as many as five. That lie produced trillions in profits and brought us the climate crisis that is today killing millions and threatens all life on Earth.

— And then, of course, there’s the biggest GOP lie of them all: “Money is the same thing as Free Speech and corporations are persons with rights under the Bill of Rights.” Five corrupt Republicans on the Supreme Court told us that if we threw out around 1000 anti-corruption and anti-bribery laws at both the state and federal level so politicians and political PACs could take unaccountable billions, even from foreign powers, it would “strengthen and diversify” the range of voices heard in America.

It’s diversified it, for sure. We’re now regularly hearing from racists and open Nazis, many of them elected Republican officials, who would have been driven out of decent society before the Reagan Revolution. American political discourse hasn’t been this filled with conflict and violence since the Civil War, and much of it can be traced straight back to the power and influence of dark money unleashed by those five billionaire-bought-off Republicans on the Supreme Court.

— So now Donald Trump tells our young people that it’s time to make take the next big step — to reject democracy — as the logical outcome of the Reagan Revolution.

He says if we just abandon the rule of law and make him an uncountable emperor for life; punish with prison his political enemies; make women, Blacks, and Hispanics second-class citizens; end immigration for everybody except white South Africans; and forge alliances with dictators around the world, that life in America will become wonderful.

It should shock no one that young people aren’t buying this GOP bullshit.

The bottom line is that we as a nation have now had the full Republican experience. We’ve done pretty much everything they suggested or demanded.

And as a result, young Americans are increasingly disgusted when they hear Republicans sermonizing about deficits (that they themselves caused).

Or welfare (that the GOP damaged and then exploited).

Or even whatever these sanctimonious Republicans are calling “faith” these days, be it the death penalty, forcing raped women and pre-teen girls to give birth against the threat of imprisonment, hiding Trump’s association with Epstein and Maxwell, or burning books.

Or having masked secret police kidnap people, including children, off the streets of our cities and throwing them into god-awful hellhole prisons.

Not to mention Donald Trump’s sinister “revenge” campaign against the Americans he sees as his “enemies,” his eliminating pollution controls that protected our environment in exchange for a billion dollars in fossil fuel industry donations, and giving his billionaire donors another massive tax cut, to be paid for by the same next generation who’re protesting against him.

America’s young people are over it, Republicans, and they’re going to reboot this nation to fulfill its potential and promise.

new, progressive America is being birthed from the ashes of the Reagan Revolution and the GOP and its billionaire owners can’t stop it much longer.


The Hartmann Report is required reading, if you want to keep up with the explosion of fascism in America.  You can subscribe to it here