Who took your money

Lenny looks at the Merrill Lynch Cap Gemini World Wealth Report and sees how the richest people in the world took more of our money thanks to the economic crisis:

The total liquid wealth of the rich in 2009, at $39 trillion, was actually more than two-thirds of world GDP in the same year, almost triple the GDP of the US, and nearly ten times that of China. Another way of looking at it is that the increase in liquid assets from 2008 to 2009 held by the rich was about $6.5 trillion, more than 10% of total GDP in 2009. This was in a year in which world GDP actually shrank by 0.8%.

The distinction between “economic and market drivers of wealth” is very important, and very telling. Most of the new wealth held by the rich was, as you can see, not produced by economic growth, but by stock market capitalisation. In other words, market relations, sustained by state intervention, facilitated the transfer of wealth from the working class to the rich at a time when most of the world’s economy was such that the direct exploitation of labour could not sustain high profit rates. That’s what the bail-outs did; it’s what they were intended to do. Another intended consequence is that there were not only more high net worth individuals, 10 million of them globally (0.014% of the world’s population), but the ‘ultras’ did far better at increasing their share of liquid assets than mere millionaires – thus wealth became even more concentrated than it had been, among a mere 36,300 people, or 0.0005% of the population. The corollary of this has been, and will continue to be, a general decline in the living standards of the working class in most of the advanced capitalist economies: at the same time as the wealth of the richest grew, global unemployment rose by 14.4%.

The correct and proper English breakfast

the English breakfast

Instructions for the making of:

9. There are many different ways to cook eggs but most of them are purely of interest to invalids, children and the feeble-minded. The correct or ‘proper English egg’ is fried with lightly browned edges in the fat left over from the bacon. At the last minute, oil is flicked over the top of the yolk to seal it. This dangerous procedure causes the yolk to form a perfect, golden, viscid capsule, the violation of which with a rough shard of toast, is the nearest that an Englishman will permit himself to unbridled sexual ecstasy.

Via Sore Eyes.

A feature, not a bug

Radley Balko excerpts a story that shows anti-meth laws regulating the sale of certain cold remedies have led to people making big bucks trawling chemists, buying up these medications and then reselling them at huge profit to meth producers. Balko snarks:

Meth use was also up 34 percent in 2009. So the new laws are inconveniencing law-abiding people who want to treat cold and allergy symptoms, have had either zero or a positive effect on meth use, have lured new people into the meth trade, and have created a bigger market for smuggling meth and meth ingredients into the country from Mexico.

But perhaps we should go easy on the politicians who passed these laws. I mean, it’s not like anyone could possibly have predicted any of this.

Really, it’s a win-win situation: the professional drug warriors have a new reason to keep their budgets intact or increased, the pharmaceutical industry makes money hand over fist from the artificial scarcity of Sudafed and similar drugs, Big Crime has less amateur competition and some lucky duckies get to travel the country buying cold relief cures to make a quick buck, which will come in handy since if I’m not mistaken, the biggest meth using parts of the US are also the most economically depressed.

Tunesia – the revolution continues

protesters facing riot police in the streets of Tunis

Clashes continue in the streets of the Tunisian capital, denouncing the new “unity” government that includes many figures from the ousted Ben Ali regime.

The revolution in Tunesia is not over yet, as the above picture shows. In the west we only tuned in when it hit the climax and we’re already starting to tune out again now that the situation has been declared to be resolved. Ben Ali has been made into a scapegoat, with his erstwhile supporters and collaborators attempting to keep their own power and skins through this government of national unity, while placating the protesters with gestures like the release of political prisoners. These are steps in the right direction, but the fundamental problems of the country are not resolved by them. The same people who oppressed it are still largely in power, still think that they can calm down the protests with small concessions, that once things have calmed down they can go back to dividing the country’s wealth amongst themselves. The protestors know this and hence stay out on the streets, unwilling for now to be placated this way.

Meanwhile French capital sees the fall of Ben Ali as an opportunity to penetrate Tunesia further, as also reported in Ahram Online. But for that to be the case, the revolution and protests need to end soon. some sort of compromise, like this national government between the old regime and its opposition needs to be reached. In situations like this, when the common enemy, Ben Ali, has been vanquished, but the structures of the old regime are still in place and able to act to defend themselves, is when revolutions get derailed, as inherent class differences come to the fore.

The protests didn’t just call for greater political freedoms after all, but also more basic economic freedoms. What’s on offer now from the old regime is greater political freedom, a somewhat more representative government and a place at the table for the old elite and middle class opposition to Ben Ali and his party, the the Rassemblement constitutionnel démocratique (RCD). And with the chief kleptocrat gone, there are also economic spoils to be had for those opposition leaders willing to help shore up the old elite. And at the same time there’s foreign pressure, from France as Tunesia’s largest trading partner, but also from other “western democraties” to get the unrest dealt with quickly and get things back to normal.

Which leaves the ordinary men and women of Tunesia out in the cold, their economic and political grievances so far unheard. How they will respond to these attempts to freeze the revolt is uncertain. It’s likely that their answer will be largely determined by class: the petit bourgeoisie, small shop owners, traders and the like, will likely want the unrest to end sooner rather than later, even if this largely means a return to the status quo, just sans Ben Ali. For the working classes and working poor, this return will be more difficult and much less desirable. The protests got started when Mohamed Bouazizi set himself on fire. He had been unable to find meaningful employment, resorted to selling fruits and vegetables on the street in Sidi Bouzid to support himself and his family and then the police took his fruit cart from him, denying him his last means of existence. That was enough for him to set himself alight and that was the spark (no pun intented) that started the revolution. For people like Bouazizi anything that allows the RCP to remain in government, that doesn’t stop the cronyism and the plundering of the nation’s economy by the political elites, is a defeat. That’s why the protests continue: they need to win to survive or face the same slow death again, only with a slightly nicer government in power.