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How the True Parasites from the Private Sector Suck the System Dry
http://www.alternet.org/economy/how-true-parasites-private-sector-suck-system-dryYou dont have to be a Tea Party conservative to believe that the economy is threatened when there are too many takers and not enough makers. The takers who threaten the dynamism and fairness of industrial capitalism the most in the 21st century are not the welfare-dependent poor the villains of Tea Party propaganda but the rent-extracting, unproductive rich.
The term rent in this context refers to more than payments to your landlords. As Mike Konczal and many others have argued, profits should be distinguished from rents. Profits from the sale of goods or services in a free market are different from rents extracted from the public by monopolists in various kinds. Unlike profits, rents tend to be based on recurrent fees rather than sales to ever-changing consumers. While productive capitalists industrialists, to use the old-fashioned term need to be active and entrepreneurial in order to keep ahead of the competition, rentiers (the term for people whose income comes from rents, rather than profits) can enjoy a perpetual stream of income even if they are completely passive.
Rents come in as many kinds as there are rentier interests. Land or apartment or rental-house rents flow to landlords. Royalty payments for energy or mineral extraction flow to landowners. Interest payments on loans flow to bankers and other lenders. Royalty payments on patents and copyrights flow to inventors. Professions and guilds and unions can also extract rents from the rest of society, by creating artificial labor cartels to raise wages or professional fees. Tolls are rents paid to the owners of necessary transportation and communications infrastructure. Last but not least, taxes are rents paid to territorial governments for essential public services, including military and police protection.
All of these goods or services are necessary to make or distribute the goods and services generated by productive industry (which can be government-owned or nonprofit, as well as for-profit). If one or more of the sectors providing inputs or infrastructure to productive industry charges excessive rents, then industry can be strangled. Industry cannot flourish if too much rent is paid to landlords, if credit is too expensive, if excessive copyright protections stifle the diffusion of technology. Even progressives must concede that guilds or unions or professions can use the power of labor monopolies to demand excessive incomes for their members and that at some point high taxes really do strangle the economy. (The evidence of successful high-tax-big government countries like those of Scandinavia suggests that you can go safely up to about 40-50 percent of GDP going to government, assuming the taxes are well spent and raised largely by less-distortionary taxes including consumption, property and wealth taxes).
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How the True Parasites from the Private Sector Suck the System Dry (Original Post)
xchrom
Mar 2013
OP
reteachinwi
(579 posts)1. Je ne sais pas ce que voulez dire vous.
marmar
(77,078 posts)2. The "efficiency of the private sector" brainwashing has been thorough.
BP can wreck an important water ecosystem, pay for a small part of the cleanup and dump the rest of the cost on taxpayers and it causes limited outrage. ...... Corrupt banks can get bailed out by the public, then refuse to give them loans and confiscate their houses with botched paperwork. - C'est la vie.
But let an unemployed person receive an extra week of benefits? Oh HELL no.
This country is an hour past hopelessly f**ked up.
xchrom
(108,903 posts)3. well said. nt
It's disgusting, isn't it? I see it everywhere. Hatred for the poor, adoration for the corporations that ship our jobs overseas.
And the argument that we can't tax the corpos cuz they'll raise the price of everything. I always respond, "Prices go up no matter what we do." I remind them that when the cost of sugar goes up, everything that has sugar in it goes up. When sugar goes down, those other items never go down. So tax the fuckers, already.
WillyT
(72,631 posts)5. K & R !!!