Robert Kuttner

Chapter 11. WWII social form of contained capitalism, economy grew and got more equal.  Exceptional politics.

2. Nothing in economy dictated a return to 19th century capitalism. This was a series of Political decisions. 70s opened space for rich to use globalization to steal influence and power.  

3. US central in creating equal capital and retiring the elites to power. 

4. Globalization very anti-democratic.  Sets up new laws to supersede gov.  Reaction against new form of capital fueling fascism.  

5. Central left parties jumped on band wagon and locked us in horrid threat to our lives.  Capital note produced demo. Much better when constrained.  Capital works well with fascists and kleptocracies.  

WW1 recovery focused on debt and austerity. We got another war.  Market forces rule society and u get massive fat right reaction. 

Chapter 2 – Markets often wrong. Globalization says Market rewards workers with more skills.  Says workers fault. Really we changed rules to allow child labor and union less work in thru trade.  Took away jobs and looked down on them for being losers. 

Farmers coops, worker coops, saving and loans, self insurance. Supported by gov.  80s. S&L at least 400 members with 125 local, cut down to 1 person.  Regulate the bottom and not the top.  Hunter shots a bird get fined, arrested.  Corp destroys environment kill million and nothing happens.  
Dems forgot labor and rural.  In bed with banks rely on identity politics. Left on social issues.  Very right on Econ.  

Chapter 3. 45-75. Income equals. Dynamic capital and full employment. Rising Social bebes. Regulate finance, organized labor, activists gov.  
Labor. War lead to more organization. Gave labor social role but sapped radicalism.  Gone when instituido turned on labor in 70s. 
35-1947. Wagner and Taft/Hartley only time in us history that gov supported labor.

Unions give people a better understanding of class. And labor families vote left.  Public works shows public better than private.  Unemployment and social security not include domestic and farm worker Wilmington NC violence in 1890s.

Bretton Woods. Market stuck below output.  Austerity debt payment, balance and currency stability over growth.  Creates boom bust cycles.   Create international system currency. High employment at home separate from global finance.  Not full embrace.  Depend on us gov influence.  Us politics changes soon.

Tax evasion, austerity, deregulation financie, or new trade rules.  All failures except for making rich richer.  None needed. 
Chapter 4Share of income going to wages, equal distribution of wage, disruption of capital. Capital loosened, wage flattened and income inequality.

Invested capital faster than growth. Not just destruction of wealth in war.  Yet US grew after both wars.  More equal after II, less after I.  Distribution of power different.  

Inflation seen as wages too high.  Demand too high. Chases few good.  Milton gov creative too much money.  Yet neither explains 70s.  Oil more expensive cause of politics.  Food because of weather.  Sectoral approach would have fixed, not just raise interest rates.  

Chapter 5 – Washington convencidos “right way” attract capital wit low tax, balanced budgets, privatization, small welfare state, free capital movement.  Conditionality. Capital controls protects against investment fads. Turn debt crisis into economic crisis.  Cresta bubbles in asia by pouring then running away.  

Reinhert and Rogath study show relation to deregulation and financial crisis. France under Mitteron not able to act as they wanted due to international controls.  High growth and fill employment not free to try. 
Can regulate derivares or as gambling. Chapter 6Unemployed from rigidity. Minimum wage, unions, job protection make labor too strong, above market clearing wage.  Yet decking wages lowers demand and slow growth.

Deflate to recovery not work.  Allowing duty free imports from countries with bad labor laws a choice. As was letting jobs leave and letting China procrear their maker met yet trade.  

Rules matter more than growth. Peter G Peterson. Bowles Simpson commission.

Hostile takeover – private equity.  Private excepmt from disclosure.  Claim to increase shareholder value. Tend to work by increasing debt. Cut wages and benefits.  Go bancarios if needed.  Not a prob as they get cash out right away. Control capital. Ok to have low equity.  But with arbitroage  no idea how leveraged companies are. Basil 1 congress asked about competition, not starts. Global finance. Weak reg, more complex’s tools. Increased power of investors and more obaque. The great risk shift .

Chapter 7 New Democrat era of big gov overShrink gov. End welfare. And weaken unions. Minimum wage up but welfare slashed. 10% of people, instead of nearly half. The politics of evasion. Not just identify politics but instead of fighting people he worked for banks.  Deregulate finance.  Trade deals and budget balance. Not needed for Econ or politics.  

Chapter 9- Trade away good economy. Pursue open trading system. Knowing we built best stuff. But japan and Europe hurting after war.  We gave them deal.  Open with us, barriers at home. Honored ideals but not the practice.  

System bending rules for Japan and Europe and even China – not a friend. This was cause it helped American multinational and banks. Hurt people. Also undermined our long term 
1947-60 reduce tariffs but room for local managed capitalism. Quatas procurement and limit imports and regulate.  Balance of payment. Worked and egalitarian. Second phase state lead capitalism. Asian exports subsidized and closed to ya imports. 

Trade a tool to dismantle managed capitalism and get rid of regulation.  
Rely on finance as export is to give away. Ricardo (free trade) snapshot. Who offers a best goods. Others should buy and export something else. What he missed is that dynamic gains of development over time. More important than any moment and requires state Support
Military as Econ. Airfare, internet , metal radio, rca. Leadership.  Naca license of aircraft and helped prolific Kelly air

Chapter 10 – WW11 90% tax for rich even after war. Gov serious about enforcement.  Distribution of primary incomes.  

80s. Cut tax on rich. Increase social security – as counts as general gov income.  Right argue tax cut works cause income came in.  Tax not increase investment or income.  Shortfall in ss not result of poor planning but flat wage growth.  If wages still increasing, we would be in red.  Double stealing from workers.  Tax cut for rich, loosening social Contract and regulation lead to wage cut, increase ss used to make up for shortfall from letting rich off hook. 

Cut taxes, deficits go up, cut social spending.  Donors recommend austerity, investors benefits. Donors and investors say people.  
Peter G Peterson. Bowles Simpson commission

True ownership. Make universal owner registry of all stocks and accounts. Citizens have to. What not Corp and rich? Final sales apportioned- tax where goods sold, not where they registered.  

Chapter 11 Private law.  Demo make public lawMerchant law.  Protecting property over borders. Global reach of private law 21st extra-territoriality fine for property but not labor or environmental. Sullivan principles. Apartheid rules to make change. Voluntary codes of conduct.  Part of larger social and gov efforts.  Now many corp pretend these rules make a diff without gov or social or enforcement.   CFC van worked and not hurt makert Binding treaty.

Chapter 13. Fascism had dictators and corporations Descocarte thrives when raw power of money is tamed. Political aspects of full employment Rigged rules. Conflict of interest.  We stuck in place. Minter in Sweden. Social control of capital.  Share to wage earners so that in 20 years workers owners companies

Deregulation Collusion by right and left. Anti trust gone under Regean.  Uno fixation not efficiency but autonomy price gouging. And pollution.  
Citizen dividend for any taking of commons. Clean air, lands. Patents.  Example: Alaskan permanent fund. Cash goes to people.  Not gov. Hammond 70s. Public power, social security and Medicare all function better that private.  Start Ari Medicare for all and college loans.

Right wing not critique Econ.  Jump on immigrants.  Left call on bretton woods and people.  Globalization pushed under work.  

Chronic crisis state go broke making up for failure of capitalism.  Profits fall. Squeeze workers and ruin legitimacy of system.  Also big problems more likely.  Plutomony.