Thursday, January 30, 2020

ECONOMIC INEQUALITY UNDER TRUMP

“The remarkable thing is how weak wages are, how weak the economy is, given that as a result of the tax bill we have a $1 trillion deficit.”

Donald Trump is ‘just wrong’ about the economy, says Nobel Prize-winner Joseph Stiglitz



President Donald Trump told business and political leaders in Davos, Switzerland last week that the economy under his tenure has lifted up working- and middle-class Americans. In a newly released interview, Nobel Prize-winning economist Joseph Stiglitz sharply disagreed, saying Trump’s characterization is “just wrong.” 
“The Washington Post has kept a tab of how many lies and misrepresentations he does a day,” Stiglitz said of Trump last Friday at the annual World Economic Forum. “I think he outdid himself.”
In Davos last Tuesday, Trump said he has presided over a “blue-collar boom,” citing a historically low unemployment rate and surging wage growth among workers at the bottom of the pay scale.
“The American Dream is back — bigger, better, and stronger than ever before,” Trump said. “No one is benefitting more than America’s middle class.”


Stiglitz, a professor at Columbia University who won the Nobel Prize in 2001, refuted the claim, saying the failure of Trump’s economic policies is evident in the decline in average life expectancy among Americans over each of the past three years.
“A lot of it is what they call deaths of despair,” he says. “Suicide, drug overdose, alcoholism — it’s not a pretty picture.”
The uptick in wage growth is a result of the economic cycle, not Trump’s policies, Stiglitz said.
“At this point in an economic recovery, it’s been 10 years since the great recession, labor markets get tight, unemployment gets lower, and that at last starts having wages go up,” Stiglitz says.
“The remarkable thing is how weak wages are, how weak the economy is, given that as a result of the tax bill we have a $1 trillion deficit.”
As the presidential race inches closer to the general election in November, Trump’s record on economic growth — and whether it has resulted in broad-based gains — is likely to draw increased attention.
BLOG: THE GREATEST TRANSFER OF WEALTH TO THE RICH OCCURRED DURING THE OBAMA-BIDEN BANKSTER REGIME
“The middle class is getting killed; the middle class is getting crushed," former Vice President Joe Biden said in a Democratic presidential debate last month. "Where I live, folks aren't measuring the economy by how the Dow Jones is doing, they're measuring the economy by how they're doing," added Pete Buttigieg, a Democratic presidential candidate and former Mayor of South Bend, Indiana.
Trump has criticized Democrats for tax and regulatory policies that he says will make the U.S. less competitive in attracting business investment.
“To every business looking for a place where they are free to invest, build, thrive, innovate, and succeed, there is no better place on Earth than the United States,” he said in Davos.
Stiglitz pointed to Trump’s threats last week of tariffs on European cars to demonstrate that turmoil in U.S. trade relationships may continue, despite the recent completion of U.S. trade deals in North America and China.
“He can’t help but bully somebody,” Stiglitz said.
Max Zahn is a reporter for Yahoo Finance. Find hi

The financial oligarchy go into the New Year 
celebrating their massive accumulation of 
wealth and the so-called mainstream media 
will continue to maintain the fiction that the 
US and, by extension, the global economy, 
remain sound. But the reality is that the seeds
of another financial catastrophe have not 
only been planted but are rapidly germinating.

 A new Gilded Age has emerged in America — a 21st century version.
The wealth of the top 1% of Americans has grown dramatically in the past four decades, squeezing both the middle class and the poor. This is in sharp contrast to Europe and Asia, where the wealth of the 1% has grown at a more constrained pace.

The Lessons of Theodore Roosevelt

To get out of our Second Gilded Age, look no further than how we got out of the first one.
We’ve been rocked by scandals over the past year involving the nation’s most wealthy and powerful. We’ve learned that a twisted multimillionaire allegedly procured and raped girls in his Manhattan mansion and on his private Caribbean Island; entitled celebrities and corporate plutocrats paid millions of dollars in bribes to get their kids into elite universities; pillars of the Hollywood and media establishments have used their stature to sexually prey upon underlings; and, yes, our president was caught lying about possibly violating campaign finance laws with hush money payoffs to a porn star and Playboy bunny.
This moral corruption is accompanied by the regressive government policies of a scandal-stained administration. President Donald Trump is rolling back programs that protect consumers, voting rights, the environment, and competitive commerce faster than Congress can issue subpoenas. His cabinet includes 17 millionaires, two centimillionaires, and one billionaire with a combined worth of $3.2 billion, according to Forbes. He presides over the most corrupt administration in American history, one marked by nepotism and self-dealing. His so-called “A Team” of senior officials has undergone a record 75 percent turnover since he took office—most of whom resigned under pressure, often caught up in scandal.
Commerce Secretary Wilbur Ross, whose net worth is estimated at $600 million, reflected the arrogance and empathy deficit that typifies the Trump White House during last winter’s record-long government shutdown. He suggested that federal workers just take out loans until they got paid.
But nobody tops the swamp king, Trump himself. Forget the sleaze, forget the obstruction of justice, forget the constant dissing of Congress. His defying the Constitution’s emoluments clause alone would, in a normally functioning American democracy, make him the subject of impeachment. Instead, he flouts the rules as if they don’t apply to him. If he gets his way and hosts next year’s G-7 summit at Mar-a-Lago, we may as well send the Constitution to the shredder. And yet, as more recent controversies have shown us, including the Varsity Blues college admissions scandal and Jeffery Epstein’s sex trafficking racket, this kind of indifference to moral values is not confined to government grandees.
So, what gives? Is America drowning in a marsh of unchecked corruption and entitlement brought on by latter-day Louis XVI’s and Marie Antoinettes? Are the uber-wealthy out of control? There’s something rotten in America and, if we don’t fix it soon, we invite a new wave of national decline and social disintegration.
The good news is that we have faced similar challenges before. Some prescriptions from a previous era may provide a lodestar for a future Democratic president to steer the country in the right direction. As Mark Twain, who coined the term “the Gilded Age,” once said, “The external glitter of wealth conceals a corrupt political core that reflects the growing gap between the very few rich and the very many poor.” He was talking about the original Gilded Age, but that diagnosis could just as easily apply to our current American condition.
The first Gilded Age was marked by rapid economic growth, massive immigration, political corruption, and a high concentration of wealth in which the richest one percent owned 51 percent of property, while the bottom 44 percent had a mere one percent. The oligarchs at the top were popularly known as “robber barons.”
Theodore Roosevelt, who was president at the time, understood that economic inequality itself becomes a driver of a dysfunctional political system that benefits the wealthy but few others. As he once famously warned, “There can be no real political democracy unless there is something approaching economic democracy.”
His response to the inequities of his times, which came to define the Progressive Era, have much to teach us now about how to sensibly tackle economic inequality. It’s worthwhile to closely examine the Rooseveltian playbook. For instance, his “Square Deal” made bold changes in the American workplace, government regulation of industry, and consumer protection. These reforms included mandating safer conditions for miners and eliminating the spoils system in federal hiring; bringing forty-four antitrust suits against big business, resulting in the breakup of the largest railroad monopoly, and regulation of the nation’s largest oil company; and passing the Meat Inspection Act and Pure Food and Drug Act, which created the FDA. He prosecuted more than twice as many antitrust suits against monopolistic businesses than his three predecessors combined, curbing the robber barons’ power. And he relentlessly cleaned up corruption in the federal government. One-hundred-forty-six indictments were brought against a bribery ring involving public timberlands, culminating in the conviction and imprisonment of a U.S. senator, and forty-four Postal Department employees were charged with fraud and bribery.
Now, we are in a Second Gilded Age, facing many of the same problems, and, in some ways, to an even greater degree. The gap between the rich and everyone else is even greater than it was during the late 19th Century, when the richest two percent of Americans owned more than a third of the nation’s wealth. Today, the top one percent owns almost 40 percent of the nation’s wealth, or more than the bottom 90 percent combined, according to the nonpartisan National Bureau of Economic Research. The first Gilded Age saw the rise of hyper-rich dynastic families, such as the Rockefellers, Mellons, Carnegies, and DuPonts. Today, three individuals—Jeff Bezos, Bill Gates, and Warren Buffett—own more wealth than the bottom half of the country combined. And three families—the Waltons, the Kochs, and the Mars—have enjoyed a nearly 6,000 percent rise in wealth since Ronald Reagan took the oath as president, while median U.S. household wealth over the same period has declined by three percent.
The consequences of this wealth gap are dire. Steve Brill explains in his book Tailspin that, by manipulating the tax and legal systems to their benefit, America’s most educated elite, the so-called meritocracy, have built a moat that excludes the working poor, limiting their upward mobility and increasing their sense of alienation, which then gives rise to the populist streak that allowed politicians like Trump to captivate enough of the American electorate.
Similarly, psychologist Dacher Keltner’s research shows that power in and of itself is a corrupting force. As he documents in The Power Paradox, powerful people lie more, drive more aggressively, are more likely to cheat on their spouses, act abusively toward subordinates, and even take candy from children. Too often, they simply do not respect the rules.
For example, in monitoring an urban traffic intersection, Keltner found that drivers of the least expensive vehicles virtually always yielded to pedestrians, whereas drivers of luxury cars yielded only about half of the time. He cites surveys covering 27 countries that show that rich people are more likely to admit that it’s acceptable to engage in unethical behavior, such as accepting bribes or cheating on taxes.“The experience of power might be thought of as having someone open up your skull and take out that part of your brain so critical to empathy and socially appropriate behavior,” says Keltner.
That’s why we need to reform our political system if we are to survive the rampant amorality and lawlessness of the Second Gilded Age. Simply put, so very few should not wield so much sway over so many.
One of the first priorities of an incoming administration should be to narrow the wealth and income gap. French economist Thomas Picketty favors a progressive annual wealth tax of up to two percent, along with a progressive income tax as high as 80 percent on the biggest earners to reduce inequality and avoid reverting to “patrimonial capitalism” in which inherited wealth controls much of the economy and could lead essentially to oligarchy.
The leading 2020 Democratic candidates favor raising taxes, as well. Elizabeth Warren has proposed something commensurate to Picketty’s two percent wealth tax for those worth more than $50 million, and a three percent annual tax on individuals with a net worth higher than $1 billion. She has also proposed closing corporate tax loopholes. Joe Biden wants to restore the top individual income tax rate to a pre-Trump 39.6 percent and raise capital gains taxes. Bernie Sanders has proposed an estate tax on the wealth of the top 0.2 percent of Americans.
Following Theodore Roosevelt’s example, we need to aggressively root out the tangle of corruption brought on by Trump and his minions. This has already begun with multiple and expanding investigations led by House Democrats into the metastasizing malfeasance within the Trump administration. Trump’s successor, however, should work with Congress to appoint a bipartisan anti-corruption task force to oversee prosecutions and draw up reform legislation to prevent future abuses.
“Of all forms of tyranny, the least attractive and the most vulgar is the tyranny of mere wealth, the tyranny of a plutocracy,” Roosevelt once warned. The free market has made America the great success it is today. But history has shown that unconstrained capitalism and a growing wealth gap leads to an unhealthy concentration of wealth in the hands of a few. When the gap between the haves and the have-nots goes unchecked, populism takes hold, leading to the election of dangerous demagogues like Trump, and the disastrous politics they bring with them. It is not too late to reverse course. But first, we need to re-learn the lessons from our first Gilded Age if we are going to get out of the current one.
 Mike Bloomberg: Don’t Believe Trump – Our Economy Is Broken


By 
Michael R. Bloomberg



Democratic Presidential candidate Michael Bloomberg addresses a crowd in North Carolina. Photograph by Melissa Sue Gerrits/Getty Images

This article originally appeared on MarketWatch, a sister publication of Barron’s.

President Donald Trump says our economy is “the best it has ever been,” and he is planning to ride that false claim to a second term.
I won’t let him get away with it. I have the track record—in business and government—to show America what real economic leadership looks like.
Sure, the stock market is at an all-time high. But almost half the country doesn’t own any stocks. And yes, the unemployment rate is low. But nearly half of all workers are in jobs that earn $18,000 at the median. In fact, the share of national income going to workers—rather than investors—is near an all-time low.
Too much wealth is in too few hands. And while a handful of big cities are doing well, a lot of the country is struggling; our middle class is being hollowed out; and working Americans are being squeezed by higher prices on everything from health care to housing.
As a candidate, Trump promised to take on these issues. As president, he has been in the pockets of the special interests that dominate Washington.
Remember when candidate Trump promised to deliver for regular people—the forgotten Americans?
Well, President Trump pushed through the 
biggest tax cut for the wealthy in history, and 
nearly all the money goes to people like me, 
who don’t need it.
Remember when candidate Trump stood in front of the GM factory in Lordstown, Ohio and promised to keep it open?
In 2018, that plant closed down.
Remember when candidate Trump promised to “protect the farmers”?
Last year, farmers lost billions of dollars, and many lost their farms, as a direct result of his tariffs and trade wars.
Again and again, candidate Trump made economic promises to working people that he had no intention of keeping. And sure enough, he has broken all of them.
In fairness, we faced serious economic problems before President Trump took office. That’s one of the reasons he won. He promised to fix them.
Instead, he has made them worse.
We need to elect a leader who can actually deliver real change—not just talk about it—and create more good jobs, with good salaries, all across America.
And I know I can do that, because I’ve done it.
Coming from a middle-class home, where my father never made more than $6,000 in a year, I was lucky to get a good education and work my way up from an entry-level job. When I got laid off, I started a company from scratch that now employs 20,000 people. We pay good salaries and provide the best health benefits money can buy, including six months of parental leave—at full pay.
As mayor of New York, I helped create nearly 500,000 new jobs, most of them outside of Manhattan.
When I was first elected shortly after the terrorist attacks of 9/11, the question everyone asked us was: Can you rebuild Lower Manhattan?
Our answer was: Yes, but that’s not enough.
We set out to rebuild every area of the city, starting with those outside Manhattan that had faced decades of industrial abandonment and decay. We spread good jobs with good salaries to those communities. I know we can bring about that kind of progress all across America.
This week on the South Side of Chicago, I announced some of the core elements of the strategy I’ll take to create millions of good jobs where they are needed most, by investing in areas of the country that have been hurt by globalization and automation, and have been ignored by the federal government for too long.
To start, I will dramatically increase spending on research and development, by over $100 billion. Rather than sending that money to only a few places that already have massive research budgets, like Harvard and Stanford, we’ll spread it to places like Akron, Ohio, where I was today.
The way we’ll do it is by funding new “job factories” in Akron and around the country, with the goal of bringing opportunity to places that don’t have enough of it. We call them job factories because that’s what they’ll produce: jobs. They’ll do it by generating scientific breakthroughs in a wide variety of areas, which will generate millions of good jobs in everything from green energy and sustainable agriculture to advanced manufacturing and public health.
We’ll also make sure Americans have the skills they need to do the work—supporting community colleges, apprenticeships, and job-training programs all across our country.
In addition to preparing people for good jobs, we will modernize the social contract between employee and employer—so laborers are protected, no matter where they work.
We will do that by working to guarantee paid sick leave and paid family leave for all workers—just as we do at my company. We will support the right of all workers to organize and bargain collectively—including gig, contract, and franchise employees, many of whom have to work two or three jobs to put food on the table.
I know a lot of candidates say they’re going to create good jobs. But for me, creating good jobs is not something I just talk about. It’s what I’ve spent my whole career doing.
That’s a key part of the message we need to beat Trump. I’m ready to take it directly to him.
Michael R. Bloomberg, the former mayor of New York City, is the founder of Bloomberg LP.


TRUMPERNOMICS:

Billionaires’ wealth surged in 2019

28 December 2019
As the second decade of the 21st century comes to a close, its most salient feature—the plundering of humanity by a global financial oligarchy—continues unabated.
Amidst trade war and the growth of militarism and authoritarianism on the one side, and an eruption of international strikes and protests by the working class against social inequality on the other, the stock market is hitting record highs and the fortunes of the world’s billionaires are continuing to surge.
On Friday, one day after all three major US stock indexes set new records, Bloomberg issued its end-of-year survey of the world’s 500 richest people. The Bloomberg Billionaires Index reported that the oligarchs’ fortunes increased by a combined total of $1.2 trillion, a 25 percent rise over 2018. Their collective net worth now comes to $5.9 trillion.
To place this figure in some perspective, these 500 individuals control more wealth than the gross domestic product of the United States at the end of the third quarter of 2019, which was $5.4 trillion.
The year’s biggest gains went to France’s Bernard Arnault, who added $36.5 billion to his fortune, bringing it above the rarified $100 billion level to $105 billion. He knocked speculator Warren Buffett, at $89.3 billion, down to fourth place. Amazon boss Jeff Bezos lost nearly $9 billion due to a divorce settlement, but maintained the top position, with a net worth of $116 billion. Microsoft founder Bill Gates gained $22.7 billion for the year and held on to second place at $113 billion.
The 172 American billionaires on the Bloomberg list added $500 billion, with Facebook’s Mark Zuckerberg recording the year’s biggest US gain at $27.3 billion, placing him in fifth place worldwide with a net worth of $79.3 billion.
It is difficult to comprehend the true significance of such stratospheric sums. In his 2016 book Global Inequality, economist Branko Milanovic wrote:
"A billion dollars is so far outside the usual experience of practically everyone on earth that the very quantity it implies is not easily understood… Suppose now that you inherited either $1 million or $1 billion, and that you spent $1,000 every day. It would take you less than three years to run through your inheritance in the first case, and more than 2,700 years (that is, the time that separates us from Homer’s Iliad) to blow your inheritance in the second case."
The vast redistribution of wealth from the bottom to the top of society is the outcome of a decades-long process, which was accelerated following the 2008 Wall Street crash. It is not the result of impersonal and simply self-activating processes. Rather, the policies of capitalist governments and parties around the world, nominally “left” as well as right, have been dedicated to the ever greater impoverishment of the working class and enrichment of the ruling elite.
In the US, the top one percent has captured all of the increase in national income over the past two decades, and all of the increase in national wealth since the 2008 crash.
The main mechanism for this transfer of wealth has been the stock market, and the policies of the US Federal Reserve and central banks internationally have been geared to providing cheap money to drive up stock prices. The cost of this massive subsidy to the financial markets and the oligarchs has been paid by the working class, in the form of social cuts, mass layoffs, the destruction of pensions and health benefits, and the replacement of relatively secure and decent-paying jobs with part-time, temporary and contingent “gig” positions.
Since Trump was inaugurated in January of 2017, pledging to slash corporate taxes, lift regulations on big business and dramatically increase the military budget, the Dow has surged by 9,000 points. This year, Trump and the financial markets applied massive pressure on the Fed to reverse its efforts to “normalize” interest rates. The Fed complied, carrying out three rate cuts and repeatedly assuring the markets it had no plans to raise rates in 2020.
This windfall for the banks and hedge funds was supported by the Democrats no less than the Republicans. In fact, Trump’s economic policy has been given de facto support by the Democratic Party all down the line—from his tax cuts for corporations and the rich to his attack on virtually all regulations on business. Even in the midst of impeachment—carried out entirely on the grounds of “national security” and Trump’s supposed “softness” toward Russia—the Democrats have voted by wide margins for Trump’s budget, his anti-Chinese US-Mexico-Canada trade pact and his record $738 billion Pentagon war budget.
This has included giving Trump all the money he wants to build his border wall and carry out the mass incarceration and persecution of immigrants.
Trump’s pro-corporate policies are an extension and expansion of those pursued by the Obama administration. It allocated trillions in taxpayer money to bail out the banks and flooded the financial markets with cheap credit, driving up stock prices, while imposing a 50 percent across-the-board cut in pay for newly hired autoworkers in its bailout of General Motors and Chrysler. Obama oversaw the closure of thousands of schools and the layoff of hundreds of thousands of teachers, and enacted austerity budgets that slashed social programs.
Two of those running for the 2020 Democratic presidential nomination are billionaires—Tom Steyer and Michael Bloomberg. The latter, with a net worth of $56 billion, is the ninth richest person in the US. He entered the race as the spokesman for oligarchs outraged over talk from Bernie Sanders and Elizabeth Warren of token tax increases on the super-rich.
The oligarchs are not frightened by Sanders and Warren—two longstanding defenders of the American ruling class, who seek to mask their subservience to capital with talk of making the oligarchs pay “their fair share,” a euphemism for defending their right to pillage the population. The billionaires are frightened by the growth of mass opposition to capitalism that finds a distorted expression in support for the phony “progressives” in the Democratic fold.
Between them, Bloomberg and Steyer have already spent $200 million of their own money in an effort to buy the election outright.
The impact of the policy of social plunder is seen in the deepening of a malignant social crisis in country after country. In the US, society is marching backwards, as the crying need for schools, hospitals, affordable housing, pensions, the rebuilding of decrepit roads, bridges, transportation, flood control, water and sewage, fire control and electricity grids is met with the official response: “There is no money.”
The result? Three straight years of declining life expectancy, record addiction and suicide rates, devastating wildfires and floods, electricity cut-offs by profiteering utility companies. And a climate crisis that cannot be addressed within the framework of a system dominated by a money-mad plutocracy.
Not a single serious social problem can be addressed under conditions where the ruling elite—through its bribed parties and politicians, aided by its pro-capitalist trade unions and backed up by its courts, police and troops—diverts resources from society to the accumulation of ever more luxurious yachts, mansions, private islands and personal jets.
The watchword must be—in opposition to the Corbyns, the Sanders, the Tsiprases and their pseudo-left promoters—“Expropriate the super-rich!”

Bloomberg: 2019 a Good Year for Wealthy; Jeff Bezos Remains on Top Despite $9 Billion Loss in Divorce

For the already wealthy and those who struck gold for the first time, 2019 was a good year for the rich.

Bloomberg News’ billionaire index is reporting on the money made this past year, including Amazon founder and Washington Post owner Jeff Bezos remaining on the top of the heap despite a divorce settlement with his ex-wife that led to a $9 billion decrease in his portfolio:
The leveraging of a giant social-media presence, a catchy tune about a family of sharks and a burgeoning collection of junkyards are just a few of the curious ways that helped make 2019 a fertile year for fortunes to blossom around the world.
Kylie Jenner became the youngest self-made billionaire this year after her company, Kylie Cosmetics, signed an exclusive partnership with Ulta Beauty Inc. She then sold a 51% stake for $600 million.
It has been almost two months since the Washington Nationals captured their first World Series championship, but people around the world are still singing along to the baseball team’s adopted rallying cry: “Baby Shark, doo-doo doo-doo doo-doo.” The Korean family that helped popularize the viral earworm are now worth about $125 million.
The new wealthy includes Willis Johnson of Oklahoma who has amassed a $1.9 billion fortune from building a network of junkyards that sell damaged automobiles, according to Bloomberg News.
Bloomberg reported that the 500 wealthiest people around the world added $1.2 trillion to their wealth, “boosting their collective net worth 25 percent to $5.9 trillion.”
“Leading the 2019 gains was France’s Bernard Arnault, who added $36.5 billion as he rose on the Bloomberg index to become the world’s third-richest person and one of three centibillionaires — those with a net worth of at least $100 billion,” Bloomberg reported.
Ironically, Bezos was one of 52 people who had a decline in their fortune, in his case because of a divorce settlement with MacKenzie Bezos who is now on the billionaires list ranking No. 25 with a net worth of $27.5 billion.
Bloomberg reported on the winners:
  • The 172 American billionaires on the Bloomberg ranking added $500 billion, with Facebook Inc.’s Mark Zuckerberg up $27.3 billion and Microsoft Corp. co-founder Bill Gates up $22.7 billion.
  • Representation from China continued to grow, with the nation’s contingent rising to 54, second only to the U.S. He Xiangjian, founder of China’s biggest air-conditioner exporter, was the standout performer as his wealth surged 79 percent to $23.3 billion.
  • Russia’s richest added $51 billion, a collective increase of 21 percent, as emerging-market assets from currencies to stocks and bonds rebounded in 2019 after posting big losses a year earlier.
And “losers”:
  • Rupert Murdoch’s personal fortune dropped by about $10 billion after proceeds from Walt Disney Co.’s purchase of Fox assets were distributed to his six children, making them billionaires in their own right.
  • Interactive Brokers Group Inc.’s Thomas Peterffy saw his wealth slump by $2.1 billion as investors weighed a reshaped competitive landscape for brokerage businesses after rival Charles Schwab Corp. eliminated commissions and agreed to buy TD Ameritrade Holding Corp.
  • WeWork’s Adam Neumann saw his fortune implode — at least on paper — as the struggling office-sharing company’s valuation dropped to $8 billion in October from an estimated $47 billion at the start of the year. Still, SoftBank Group Corp.’s rescue package left Neumann’s status as a billionaire intact.
And the new billionaires:
  • White Claw, the “hard seltzer” that was the hit of the summer among U.S. millennials, helped boost Anthony von Mandl’s net worth to $3.6 billion.
  • Mastering the art of fast-food deliveries proved rewarding for Jitse Groen, whose soaring Takeaway.com NV lifted his wealth to $1.5 billion.
  • The popularity of soy milk gave eight members of Hong Kong’s Lo family a combined $1.5 billion.



THE REALITY OF TRUMPERNOMICS - HIS ASSAULT ON MIDDLE AMERICA FOR WALL STREET CONTINUES


Donald Trump is ‘just wrong’ about the economy, says Nobel Prize-winner Joseph Stiglitz

Max Zahn 
Reporter
 
 
 
 
Jospeh Stiglitz talks Trump, wage growth & economy
President Donald Trump told business and political leaders in Davos, Switzerland last week that the economy under his tenure has lifted up working- and middle-class Americans. In a newly released interview, Nobel Prize-winning economist Joseph Stiglitz sharply disagreed, saying Trump’s characterization is “just wrong.” 
“The Washington Post has kept a tab of how many lies and misrepresentations he does a day,” Stiglitz said of Trump last Friday at the annual World Economic Forum. “I think he outdid himself.”
In Davos last Tuesday, Trump said he has presided over a “blue-collar boom,” citing a historically low unemployment rate and surging wage growth among workers at the bottom of the pay scale.
“The American Dream is back — bigger, better, and stronger than ever before,” Trump said. “No one is benefitting more than America’s middle class.”
In this Jan. 22, 2020, file photo, President Donald Trump speaks during a news conference at the World Economic Forum in Davos, Switzerland. (AP Photo/Evan Vucci, File)
In this Jan. 22, 2020, file photo, President Donald Trump speaks during a news conference at the World Economic Forum in Davos, Switzerland. (AP Photo/Evan Vucci, File)
Stiglitz, a professor at Columbia University who won the Nobel Prize in 2001, refuted the claim, saying the failure of Trump’s economic policies is evident in the decline in average life expectancy among Americans over each of the past three years.
“A lot of it is what they call deaths of despair,” he says. “Suicide, drug overdose, alcoholism — it’s not a pretty picture.”
The uptick in wage growth is a result of the economic cycle, not Trump’s policies, Stiglitz said.
“At this point in an economic recovery, it’s been 10 years since the great recession, labor markets get tight, unemployment gets lower, and that at last starts having wages go up,” Stiglitz says.
“The remarkable thing is how weak wages are, how weak the economy is, given that as a result of the tax bill we have a $1 trillion deficit.”
As the presidential race inches closer to the general election in November, Trump’s record on economic growth — and whether it has resulted in broad-based gains — is likely to draw increased attention.
Nobel Prize-winning economist Joseph Stiglitz gestures during the World Congress of the Institute of Economic Affairs (IEA) in Mexico City, Mexico, June 19, 2017. REUTERS/Edgard Garrido
Nobel Prize-winning economist Joseph Stiglitz gestures during the World Congress of the Institute of Economic Affairs (IEA) in Mexico City, Mexico, June 19, 2017. REUTERS/Edgard Garrido
“The middle class is getting killed; the middle class is getting crushed," former Vice President Joe Biden said in a Democratic presidential debate last month. "Where I live, folks aren't measuring the economy by how the Dow Jones is doing, they're measuring the economy by how they're doing," added Pete Buttigieg, a Democratic presidential candidate and former Mayor of South Bend, Indiana.
Trump has criticized Democrats for tax and regulatory policies that he says will make the U.S. less competitive in attracting business investment.
“To every business looking for a place where they are free to invest, build, thrive, innovate, and succeed, there is no better place on Earth than the United States,” he said in Davos.
Stiglitz pointed to Trump’s threats last week of tariffs on European cars to demonstrate that turmoil in U.S. trade relationships may continue, despite the recent completion of U.S. trade deals in North America and China.
“He can’t help but bully somebody,” Stiglitz said.
Max Zahn is a reporter for Yahoo Finance. Find hi