Robert B. Reich's Blog, page 2

JD Vance Is a Working Class Phony

J.D. Vance wants to con America into believing he’s some “working class hero.” 

Baloney!

He worked for a law firm that lobbied for Purdue Pharma — the company that pleaded guilty to three felonies for its role in creating America’s opioid crisis.

He’s a former venture capitalist who benefited from tax loopholes designed for the super-rich.

He won his Senate seat thanks to tech billionaire Peter Thiel, who spent $15 million on Vance’s Senate campaign.

He visited a picket line for a photo op, but opposed legislation to protect workers’ rights to organize.

He weakened his own railway safety bill at the request of rail and chemical lobbyists.

He opposed the Inflation Reduction Act, which has unleashed a wave of investment in American manufacturing and created over 300,000 clean energy jobs so far.

J.D. Vance isn’t a “populist.” He’s a phony.

He doesn’t give a fig about workers.

Trump claims he has “no idea who is behind” Project 2025.

Hogwash!

Project 2025’s nearly thousand-page plan for a total MAGA takeover of America was assembled by more than 25 of Trump’s own administration officials.

Trump’s Make America Great Again PAC is running ads calling it “Trump’s Project 2025.”

CNN found that at least 140 people who worked for Trump are involved in the project, including six of his cabinet secretaries.

Trump’s campaign press secretary and his adviser Stephen Miller star in Project 2025’s recruitment video.

If Trump has “no idea” who they are, that’s some serious cognitive decline!

I can see why Trump wants to distance himself from such a toxic plan. Page 5 calls for jailing teachers and librarians over banned books.

Page 455 calls for “abortion surveillance” and stripping Americans of reproductive freedom.

Pages 587 and 592 have plans to gut overtime pay rules.

Page 489 demands the government prioritize “married men and women” over any other type of family.

Page 371 proposes privatizing nuclear waste disposal. What could go wrong?

Trump has promised to be a “dictator” on Day One. The Supreme Court has given their blessing. Project 2025 is the how-to manual for Trump’s dictatorship.

Trump is Project 2025. He cannot escape it.

Excuse my language, but why is Boeing such a shitty corporation?

Their planes are literally falling apart in the sky.

At least six Boeing planes have had parts fall off this year — including an exit door in mid-flight. A whistle-blower has accused Boeing of a “criminal cover-up” of its safety failures.

But beyond this one company, Boeing’s descent is a case study in how American capitalism has become so rotten. Let me explain.

I’m old enough to remember when people used to say “If it’s not Boeing, I’m not going.”

But in 1997, everything changed when Boeing merged with McDonnell Douglas and became the only major maker of commercial aircraft in America. With no domestic rivals, it no longer needed to stay on the cutting edge of innovation.

Executives at Boeing who once specialized in engineering were replaced with Wall Street types who looked down on the engineers. One money-hungry CEO described those who cared too much about the integrity of Boeing’s planes, and not enough about its stock price, as “phenomenally talented assholes.”

To keep Wall Street happy, Boeing began spending billions on stock buybacks that pumped up the value of shares — money that could have been spent on safety and innovation.

It doled out hundreds of millions on campaign contributions and lobbying to lower safety standards, rake in massive government contracts, and boost its bottom line.

To cut costs, Boeing outsourced roughly 70% of its design, engineering, and manufacturing rather than rely on its experienced union workforce.

To further undercut its union, Boeing opened an assembly plant in South Carolina, a notorious anti-union state. Executives reportedly told managers not to move any unionized employees there.

This quest for profit resulted in massive quality control problems that were reported by engineers and machinists, but allegedly ignored by management. All of this inevitably led to the deadly safety issues Boeing faces today.

And because of Boeing’s monopoly-like power, it has been largely immune from any repercussions for its poor performance.

Boeing made it seem like it was punishing executives who led it astray by firing them, but still rewarded them with “golden parachutes” on the way out.

Folks, Boeing’s troubles should serve as a cautionary tale. It’s reflective of broader trends in our economy over the past forty years. Monopolization. Wealth siphoned off to rich shareholders at the expense of everyone else. Cutting corners on safety to save a dime. Bashing unions. All while spending big money lobbying the government.

Boeing may have become a shitty company, but that doesn’t mean we have to put up with it.

The government has the power to increase antitrust enforcement to bust up big companies — something that we are already starting to see in other industries.

It should also attach strings to government contracts and subsidies to ensure that private corporations are working in the best interest of the country, and not just their bottom lines.

It should ban stock buybacks, which were illegal before the Reagan administration, so profits are put back into improving the company, including the safety of products, rather than solely padding investors’ wallets.

Union power should be rebuilt, so that workers can once again act as a countervailing force to Wall Street.

And we should continue the fight to get Big Money out of politics.

It’s not too late to reverse course and chart a new flight path.

Immigrants are good for the economy and our society! Don’t let anyone tell you otherwise.

For centuries, immigration has been America’s secret sauce for economic growth and prosperity.

But for just as long, immigrants have been an easy scapegoat.

One of the oldest, ugliest lies is to falsely smear immigrants as criminals.

It’s just not true. Crime is way down in America. Anyone who says otherwise is fearmongering.

And whatever crime there is is not being driven by immigration. Immigrants, regardless of citizenship status, are 60% less likely to be incarcerated for committing crimes than U.S.-born citizens.

Maybe that’s why border cities are among America’s safest.

Immigration opponents also claim immigrants are a drag on the economy and a drain on government resources.

Rubbish!

Quite the opposite, the major reason immigrants are coming to America is to build a better life for themselves and their families, contributing to the American economy.

The long-term economic benefits of immigration outweigh any short-term costs. The nonpartisan Congressional Budget Office estimates that adding more immigrants as workers and consumers — including undocumented immigrants — will grow America’s economy by about $7 trillion over the next decade. And those immigrants would increase tax revenue by about $1 trillion, shrinking the deficit and helping pay for programs we all benefit from.

Immigrants of all statuses pay more in taxes than they get in government benefits. Research by the libertarian Cato Institute found first-generation immigrants pay $1.38 in taxes for every $1 they receive in benefits,

This is especially true for undocumented immigrants, who pay billions in taxes each year, but are excluded from almost all federal benefits. After all, you need documentation to receive federal benefits. Guess what undocumented immigrants don’t have. Hello?

And of course, one of the most common anti-immigrant claims also isn’t true.

No. Immigrants are not taking away jobs that Americans want. Undocumented immigrants in particular are doing some of the most dangerous, difficult, low-paying, and essential jobs in the country.

Despite what certain pundits might tell you, immigration has not stopped the U.S. from enjoying record-low unemployment.

And as the Baby Boom generation moves into retirement, young immigrants will help support Social Security by providing a thriving base of younger workers who are paying into the system. The fact that so many immigrants want to come here gives America an advantage over other countries with aging populations, like Germany and Japan.  

What’s more, immigrants are particularly ambitious and hardworking. They are 80% more likely to start a new business than U.S. born citizens. Immigrant-founded businesses also impressively comprise 103 companies in last year’s Fortune 500.

And immigrants continue to add immeasurably to the richness of American culture. We should be celebrating them, not denigrating them.

It’s time to speak the facts and the truth. We need immigrants to keep our economy — and our country — vibrant and growing. They are not “poisoning the blood” of our nation. They’re renewing and restoring it.

Donald Trump is portraying himself as a religious savior. He says Election Day will be: …”the most important day in the history of our country, and it’s going to be Christian Visibility Day.”

Trump has repeatedly compared his criminal trials to the crucifixion of Jesus, promoted videos calling his reelection “the most important moment in human history,” and that describe him as a divinely appointed ruler.

He claims to be a holy warrior against an imaginary attack on Christianity.

TRUMP: They want to tear down crosses//But no one will be touching the cross of Christ under the Trump administration. I swear to you.

He’s even selling his own version of the Bible.

Trump is playing to a rising white Christian Nationalist movement within the Republican Party.

Christian Nationalists believe that the law of the land is not the Constitution, but instead the law of God as they interpret it. Under this view, atheists and people of other faiths (including Christians of other denominations) are all second-class citizens.

Trump’s supporters are increasingly overt in their calls to replace democracy with a MAGA theocracy.

The idea that the will of voters is irrelevant because God has anointed Trump was a recurring message in the efforts to overturn the 2020 election.

In previous videos, I’ve highlighted how MAGA Republicans have embraced core elements of fascism. They reject democracy, stoke fear of immigrants and minorities, embrace a gender and ethnic hierarchy, and look to a strongman to lead and defend them.

The combination of fascism and Christian Nationalism is called Christofascism, a term first used half a century ago by the theologian Dorothee Sölle. Fascists rise to power by characterizing their opponents as subhuman. Christofascists take it a step further by casting opponents as not just subhuman, but actually demonic.

Framing opponents as enemies of God makes violence against them not only seem justifiable, but divinely sanctioned, and almost inevitable.

Christofascists want to strip away a wide range of rights Americans take for granted. Former Trump staffers involved in developing plans for a second Trump term have called for imposing “Biblical” tests on immigration, overturning marriage equality, and restricting contraception.  

And MAGA-aligned judges are already setting their dogma ahead of the Constitution. In his concurring opinion on the case that declared frozen embryos are people, Alabama Supreme Court Justice Tom Parker cited God more than forty times and quoted the Book of Genesis and other religious texts.

Nothing could be more un-American than the Christian Nationalist vision. So many of America’s founders came here as refugees seeking religious freedom. The framers of the Constitution were adamant that religion had no role in our government. The words “God,” “Jesus,” and “Christ,” don’t appear anywhere in the Constitution. And the very first words of the Bill of Rights are a promise that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.”

Christofascism, or any religion-based form of government, is a rejection of everything America has aspired to be — a secular, multi-racial society whose inhabitants have come from everywhere, bound together by a faith in equal opportunity, democracy, and the rule of law.

Beware.

When the Ku Klux Klan murdered my protector, it made me see the world differently.

I was always the shortest kid in school, which made me an easy target for bullies. To protect myself, I got into the habit of befriending older boys who’d watch my back.

One summer when I was around 8 years old I found Mickey, a kind and gentle teenager with a ready smile who made me feel safe.

Over the years, I lost track of Mickey. It wasn’t until the fall of 1964, my freshman year in college, that I heard what had happened to him.

Several months before, Mickey, whose full name was Michael Schwerner, had gone to Mississippi to register Black voters during what was known as “Freedom Summer.”

On June 21, Michael and two other civil rights workers, James Chaney and Andrew Goodman, were arrested near Philadelphia, Mississippi by Neshoba County Deputy Sheriff Cecil Ray Price, for allegedly speeding.

That night, after they paid their speeding ticket and left the jail, Deputy Price followed them, stopped them again, ordered them into his car, and took them down a deserted road where he turned them over to a group of his fellow Ku Klux Klan members. They were beaten, shot at point-blank range, and buried in an earthen dam. Their bodies weren’t found until August 4.

The state of Mississippi refused to bring charges against any of the Klan members. Eventually, the U.S. Justice Department brought federal charges against Price and 17 others.

An all-white jury found seven of the defendants guilty, including Price. Ultimately none would serve more than six years behind bars.

When the news reached me that Mickey, my childhood protector, had been murdered by white supremacists — by violent bullies who would stop at nothing to prevent Black people from exercising their right to vote — something snapped inside me.

I began to see everything differently.  Before then, I understood bullying as a few kids picking on me for being short. Now I saw bullying on a larger scale, all around me. In Black people bullied by whites. In workers bullied by bosses. In girls and women bullied by men. In the disabled or gay or poor or sick or immigrant bullied by employers, landlords, insurance companies, and politicians.

Sixty years after the Freedom Summer murders, America still wrestles with bullies — a rise in hate crimes targeting people of color, LGBTQ people, immigrants, Jews, and Muslims — new laws restricting the right to vote, banning books, and stripping Americans of reproductive freedoms — leaders who insult and demean people with disabilities, women, and trans kids.

We must never give in to cruelty and violence. It is incumbent on all of us to stand up to bullies and be each other’s protectors.

Trump and Republicans want to wreck your bank account. Here are 5 things you need to know about Trumponomics.

1.Trump wants tax cuts for the rich, at your expense.

Trump’s tax cuts for the rich and big corporations added about $1.7 trillion to the national debt, with few benefits trickling down to the middle class — in fact, it raised taxes for more than 10 million American families.

Now Trump and Republicans want to make the tax cuts for the rich permanent, blowing up the debt even further. And then they’ll use that debt to justify this:

2. Trump would cut Social Security and Medicare — programs you’ve been paying into!

In every year of his presidency, Trump submitted a budget that tried to cut Social Security and Medicare. And he knows that’s the only way he can even begin to pay for extending his tax cuts for the rich.

3. Trump and his allies are pro-junk fee.

When the Biden administration issued a rule capping credit card late fees at $8, Sen. Tim Scott, a Trump surrogate, tried to overturn it in the Senate. And then a Trump-appointed judge issued a temporary injunction that blocked the rule from taking effect. Eliminating that rule would cost American families an estimated $10 billion a year.

And when the Biden administration required airlines to issue automatic refunds for canceled flights, Trump’s allies in Congress fought to block that too.

When Trump was in office, his administration fought against efforts to rein in airline junk fees.

Corporations nickel and diming us like this makes inflation worse. If Trump gets back in the White House, buckle up for more junk fees.

4. Trump would send health care costs soaring.

Republicans have committed to repealing the Inflation Reduction Act, which would strip Medicare of the ability to negotiate drug prices, and let Big Pharma send the price of insulin and other life-saving medicines back through the roof.

And Trump is still fixated on repealing Obamacare, with no plan to replace it.

TRUMP: Obamacare is a disaster. We’re gonna do something about it.

That would strip coverage from tens of millions of Americans, drive up premiums, and let insurers charge more or deny coverage to people with preexisting conditions.

5, If you’ve got student debt, you’re out of luck with Trump.

In contrast to President Biden, who’s canceled more than $160 billion of student debt so far, Trump is against student debt relief. In his first term, he tried to eliminate the popular Public Service Loan Forgiveness program for people like teachers and nurses, and he’s called the idea of debt relief “unfair.”

What’s unfair, is how student debt hurts not just the roughly 40 million Americans burdened by it, but the entire economy, since Americans with debt have less money to spend, are less likely to start a business, less likely to buy a home, and more likely to rely on government assistance.

The MAGA agenda would make nearly every aspect of your life more expensive, while making the richest Americans even richer.

Teddy Roosevelt’s economic plan was called the Square Deal. Franklin Roosevelt’s was the New Deal.

What Trump is offering is simply a Raw Deal.

Two of the world’s richest men want to end unions once and for all. 

Musk’s SpaceX and Bezos’ Amazon are both arguing in court that the National Labor Relations Board is unconstitutional on the grounds that it combines judicial and executive functions.

The NLRB is the agency that supervises union organizing and collective bargaining as established by the National Labor Relations Act of 1935 — a cornerstone of FDR’s New Deal that guarantees the right of workers to organize. It is, in effect, the referee of labor management relations.

If Bezos and Musk get their way, two of the richest people in the world will have gutted the enforcement of labor laws designed to protect the right of average workers to unionize. Corporations could fire employees who try to organize, without any repercussions. It could also be a death knell to unions that already exist.

Corporate giants Starbucks and Trader Joe’s have similarly advanced their own legal arguments echoing the same anti-union, anti-worker sentiment. So much for being “progressive” companies, huh?

Beyond their copycat legal arguments, what do all of these corporations have in common? A history of bashing unions and preventing workers from exercising their right to organize.

The NLRB has charged these companies with hundreds of violations of workers’ rights. They’ve fired pro-union workers, retaliated against organizers by cutting their hours, closed stores that tried to unionize, denied benefits being provided to non-union workers, and refused to bargain. And now Musk and Bezos are even going after the referees — the NLRB—  so unions and workers don’t stand a chance.

It’s not the first time their argument has been trotted out by robber barons. A similar case made its way to the Supreme Court way back in 1937. The opinion in that case upheld the NLRB and its decision to punish steel barons who fired workers who tried to organize a union.

Modern-day robber barons Bezos and Musk are hoping today’s Supreme Court will reverse its 1937 ruling and return America to a time before workers had a referee to ensure their rights.

Evidently, it’s not enough for Bezos and Musk to amass more wealth than any two people on the planet. No, they want even more wealth and covet even more power — and don’t want to share it with their workers.

You see, unions are one of the greatest champions of equality. And unions don’t just help unionized workers — they help all workers. There’s a ripple effect that occurs when workers organize: Non-union workers often receive the benefits of higher wages and safer working conditions fought for by organized labor. Unions also play a political role: They provide countervailing power to the overwhelming political power of giant corporations.

We will all suffer if unions are not there to have the backs of workers.

Now these cases may take a while to snake their way through the courts.

In the meantime, please share this video. These corporations win this fight only if the public doesn’t know what’s happening.

And support your local unions. When they go on strike, join a picket line. Better yet, join a union if you can.

We all need to voice our support for organized labor now more than ever.

Rent is skyrocketing and home buying is out of reach for millions. One big reason why? Wall Street.

Hedge funds and private equity firms have been buying up hundreds of thousands of homes that would otherwise be purchased by people. Wall Street’s appetite for housing ramped up after the 2008 financial crisis. As you’ll recall, the Street’s excessive greed created a housing bubble that burst. Millions of people lost their homes to foreclosure.

Did the Street learn a lesson? Of course not. It got bailed out. Then it began picking off the scraps of the housing market it had just destroyed, gobbling up foreclosed homes at fire-sale prices — which it then sold or rented for big profits.

Investor purchases hit their peak in 2022, accounting for around 28% of all home sales in America.

Home buyers frequently reported being outbid by cash offers made by investors. So called “iBuyers” used algorithms to instantly buy homes before offers could even be made by actual humans.

If the present trend continues, by 2030, Wall Street investors may control 40% of U.S. single-family rental homes.

Partly as a result, homeownership — a cornerstone of generational wealth and a big part of the American dream — is increasingly out of reach for a large number of Americans, especially young people.

Now, Wall Street’s feasting has slowed recently due to rising home prices — even the wolves of Wall Street are falling victim to sticker shock. But that hasn’t stopped them from specifically targeting more modestly priced homes — buying up a record share of the country’s most affordable homes at the end of 2023.

They’ve also been most active in bigger cities, particularly in the Sun Belt, which has become an increasingly expensive place to live. And they’re pointedly going after neighborhoods that are home to communities of color.

For example, in one diverse neighborhood in Charlotte, North Carolina, Wall Street-backed investors bought half of the homes that sold in 2021 and 2022. On a single block, investors bought every house but one, and turned them into rentals.

Folks, it’s a vicious cycle: First you’re outbid by investors, then you may be stuck renting from them at excessive prices that leave you with even less money to put up for a new home. Rinse. Repeat.

Now I want to be clear: This is just one part of the problem with housing in America. The lack of supply is considered the biggest reason why home prices and rents have soared — and are outpacing recent wage gains. But Wall Street sinking its teeth into whatever is left on the market is making the supply problem even worse.

So what can we do about this? Start by getting Wall Street out of our homes.

Democrats have introduced a bill in both houses of Congress to ban hedge funds and private equity firms from buying or owning single-family homes.

If signed into law, this could increase the supply of homes available to individual buyers — thereby making housing more affordable.

President Biden has also made it a priority to tackle the housing crisis, proposing billions in funding to increase the supply of homes and tax credits to help actual people buy them.

Now I have no delusions that any of this will be easy to get done. But these plans provide a roadmap of where the country could head — under the right leadership.

So many Americans I meet these days are cynical about the country. I understand their cynicism. But cynicism can be a self-fulfilling prophecy if it means giving up the fight.

The captains of American industry and Wall Street would like nothing better than for the rest of us to give up that fight, so they can take it all.

I say we keep fighting.

Do billionaires have a right to exist?

America has driven more than 650 species to extinction. And it should do the same to billionaires.

Why? Because there are only five ways to become one, and they’re all bad for free-market capitalism:

1. Exploit a Monopoly.

Jamie Dimon is worth $2 billion today… but not because he succeeded in the “free market.” In 2008, the government bailed out his bank JPMorgan and other giant Wall Street banks, keeping them off the endangered species list.

This government “insurance policy” scored these struggling Mom-and-Pop megabanks an estimated $34 billion a year.

But doesn’t entrepreneur Jeff Bezos deserve his billions for building Amazon?

No, because he also built a monopoly that’s been charged by the federal government and 17 states for inflating prices, overcharging sellers, and stifling competition like a predator in the wild.

With better anti-monopoly enforcement, Bezos would be worth closer to his fair-market value.

2. Exploit Inside Information

Steven A. Cohen, worth roughly $20 billion headed a hedge fund charged by the Justice Department with insider trading “on a scale without known precedent.” Another innovator!

Taming insider trading would level the investing field between the C Suite and Main Street.

3.  Buy Off Politicians

That’s a great way to become a billionaire! The Koch family and Koch Industries saved roughly $1 billion a year from the Trump tax cut they and allies spent $20 million lobbying for. What a return on investment!

If we had tougher lobbying laws, political corruption would go extinct.

4. Defraud Investors

Adam Neumann conned investors out of hundreds of millions for WeWork, an office-sharing startup. WeWork didn’t make a nickel of profit, but Neumann still funded his extravagant lifestyle, including a $60 million private jet. Not exactly “sharing.”

Elizabeth Holmes was convicted of fraud for her blood-testing company, Theranos. So was Sam Bankman-Fried of crypto-exchange FTX. Remember a supposed billionaire named Donald Trump? He was also found to have committed fraud.

Presumably, if we had tougher anti-fraud laws, more would be caught and there’d be fewer billionaires to preserve.

5. Get Money From Rich Relatives

About 60 percent of all wealth in America today is inherited.

That’s because loopholes in U.S. tax law —lobbied for by the wealthy — allow rich families to avoid taxes on assets they inherit. And the estate tax has been so defanged that fewer than 0.2 percent of estates have paid it in recent years.

Tax reform would disrupt the circle of life for the rich, stopping them from automatically becoming billionaires at their birth, or someone else’s death.

Now, don’t get me wrong. I’m not arguing against big rewards for entrepreneurs and inventors. But do today’s entrepreneurs really need billions of dollars? Couldn’t they survive on a measly hundred million?

Because they’re now using those billions to erode American institutions. They spent fortunes bringing Supreme Court justices with them into the wild.They treated news organizations and social media platforms like prey, and they turned their relationships with politicians into patronage troughs.

This has created an America where fewer than ever can become millionaires (or even thousandaires) through hard work and actual innovation.

If capitalism were working properly, billionaires would have gone the way of the dodo.