Top 5% Income / 37% Consumer Purchases

To reiterate, the top five percent of income earners in the United States make thirty seven percent of the consumer purchases. This means that what these people buy is a key determinate of whether or not this economy recovers.

Probably, you are wondering how you fit into this picture. Now hold on to your hat, gentle reader. Those in the bottom eighty percent make thirty nine point five of all consumer purchases.

So, look on the bright side! The bottom 80% of Americans buys 39.5 % of consumer goods as opposed to 37% of the top five percent of the income earners in the U.S. That means we are 2% up.

I have to admit I feel a little left behind but 2% is 2% and I should take what solace I can from this. Right?

James Pilant

Photos From Our Last Great Economic Crisis

This picture is from the American Memory Project at the Library of Congress. This is from a photo collection of the Great Depression.

From The Great Depression

Now, take a look at a more hopeful poster –
Speaks for itself, doesn't it?

This is from a huge collection of pictures. You might take a look.

James Pilant

Recovery? Another 131,000 Jobs Lost In July

A BBC report spells out how bad the hiring situation is in the United States. On the very dim bright side of the equation, 143,000 of the jobs lost in July were census jobs which were temporary. So part of the job loss was expected. On the exceptionally bad side of the news, not counting the census workers, United States job growth is very, very slow, too slow for there to be a sustained recovery.

Ethics Blog Round Up – 8/7/2010

Chis MacDonald has a new post about “wind turbine hush money.” Sounds like a catchy title to me. It seems that turbines are noisy and complaints could stifle the industry’s growth, so they are paying people what I consider a good amount of money to keep their complaints to themselves. You should read the post.

Lauren Bloom has the second in her series of avoiding workplace law suits. Today’s entry talks about health and safety rules. She discusses the recent mine disaster and mentions NPR’s coverage.

Tone at the top only counts when leaders use words that they believe in enough to live. So says, Gael O’Brien on her blog, This Week In Ethics. She discusses the resignation of Hewlett Packard’s CEO and his violations of HP’s Standards of Business Conduct.

Jonathan Tasini in his Blog, Working Life, has a scathing review of the recent “given pledge.” He’s almost as angry as I am. He discusses the monopolistic practices of these billionaires who made their money on the backs of the workers.

Facebook Discussion On “Internet Rip Off”

When I make a blog entry on this wordpress account, I have set it to immediately post on my Facebook account. The discussion there was lively and informative. So, I am going to repost it here for you to read!

(You will note that my presence in the discussion was tiny. I was playing Dungeons and Dragons from that afternoon until two in the morning. Yes, I am 54 years old and still play D&D – sue me.)

Bryan Aguiar How is the interent a public good? I run a server on the internet. It cost me money to buy it, me money to buy software that runs the computer, and me money to buy the router that connects it to the interent. How is freedom of speech even remotely affected by this? You can still stand on a street corner and shout out your message or pay to print it up on flyers, billboards, newspapers, etc. Where does it say anyone has a right to free interent access? Newspapers costs money, magazines cost money so why shouldn’t the internet?
Yesterday at 9:48am

Gary Bender The internet is considered a public good because it is non-rivalrous and non-excludable. By using the internet, one person does not deplete the internet so that others can’t use it. This isn’t perfectly true, for if enough people or consuming the resources of the internet, the extent with which everyone can use the internet is decreased. However, those resources are only limited by the efforts of monopolistic owners created by government in the grant of ownership to the ISPs.

Whether the internet is non-excludable is arguable. Educators and employers often argue that access to the internet is necessary for all in order to compete in the international economy. The internet is too important as a tool of economic growth to allow exclusion. There are certain special interests who see the internet as a personal cash cow and who would like to exclude some in order to drive demand by limiting supply. This is the reason that the ISPs have hired so many former members of Congress to lobby against net neutrality.

The issue isn’t whether the internet is free as in beer, but free as in speech. I believe that I should have as much right to the internet as Bill Gates without being gouged simply because I don’t generate as much profit for the ISPs as Bill does. I have the same right to drive I-520 to 1 Microsoft Way as Bill. Why should I not have the same right to use the Information Superhighway as Bill?
Yesterday at 10:30am

A.G. If you use other people/companies servers, then you will pay for the convenience. OR you could pay for your own server like Bryan does, and browse the internet as you see fit. The internet is a product just like any other.

How is this any different than posting a message on your local newspaper? If your local paper, being a private company, doesn’t like your message than they don’t have to post it. If they choose to post it, then you will pay more for a half page ad (if that’s what you want) than you will for a quarter page ad. If you don’t want to pay for your newspaper ad, then you should own the newspaper.
Yesterday at 10:46am

Bryan Aguiar The internet is very excludable just like cable TV; therefore, it is not a public good. “The internet is too important as a tool of economic growth to allow exclusion” is strictly an opinion. In the Dharavi slum of India, they export goods around the world worth 500 million per year. They have one toilet per 1,440 residents, barely have electricity, let alone internet.
“I believe that I should have as much right to the internet as Bill Gates ” You do, just pay for it like Bill Gates does. He doesn’t get it for free and neither should you. Before the internet were you saying you should get a free newspaper while Bill Gates should have to pay for it? Information is still available for free in public libraries. “Educators and employers often argue that access to the internet is necessary for all in order to compete in the international economy.” Yet we have very few computer labs and computer classrooms at NWACC. Yet thousands and thousands of workers work evryday day without using the internet. I went to taco bell for lunch yesterday and they made my lunch without having to use the interent. “The issue isn’t whether the internet is free as in beer, but free as in speech”. No, that is the issue. People are trying to make it a free speech issue so they can get something for nothing. The government provides public goods with tax money. Private goods and saome quasi-public goods (cable TV and the Internet) are paid for by the user.

Yesterday at 11:00am

Gary Bender Actually, the ISPs are trying to exclude people, not based on the fee, but on the ISPs choice. They want to decide who should use the internet. “Any entrepreneur with an idea has always been able to create a website and share their ideas globally – without paying extra tolls to have their content seen by other users.” Up until now, the users of the internet decide whose ventures succeed and whose ventures fail. The ISPs want to change this. They want to rig it so that their friends succeed and others fail. It’s political. Has nothing to do with somebody getting something for nothing. If the ISPs succeed, I won’t have the same access to the internet as Bill Gates, not because I won’t pay but because we are in different political camps. My internet provider, Cox Communications, already has tiered service. But anyone willing to pay the monthly fee can get any tier he or she desires. That is about to come to an end.
Yesterday

Bryan Aguiar“The ISPs want to change this. They want to rig it so that their friends succeed and others fail. It’s political. Has nothing to do with somebody getting something for nothing. If the ISPs succeed, I won’t have the same access to the internet as Bill Gates, not because I won’t pay but because we are in different political camps.” I agree that is wrong, wrong, wrong, and they should be stopped from doing that.
Yesterday at 11:48am

Gary Bender James did have a good point about economics which I think deserves an addendum. You might remember when the ISPs laid the groundwork for the internet – the fiber that makes the internet possible. Certain companies were given the contracts in exchange for promises. Those promises have not been met. Moore’s law is in effect with the internet. Excess capacity and breakthroughs such as multiplexing are allowing for a doubling in throughput every 9 months. Hence, the cost to transmit a bit decreases by half every 9 months. Has your ISP cut your rates or doubled your speed? I saw only a tiny increase over the past three years. Moreover, the government, in its foolishness, allowed for virtual monopolies. Oh, Cox will tell you that there is competition. That’s like saying that cars have competition. You can walk. The pols, by allowing the ISPs to get away with what is actually a breach of contract, have created the illusion, Americans being good capitalists, that this is about economic philosophy. It’s not. We are being gouged. While this is not the same issue as net neutrality, it is related and helps to muddle the issue. I think that $45 plus/mo. is too much for the piddling bandwidth and intermittent service that I get, but if Americans are willing to get cheated, there is not much I can do about it. Anyway, these are important topics and I’m glad to see that people are paying attention.
Yesterday at 12:06pm

James Pilant Gary, will you give me permission to put your comments up as a blog post? jp
Yesterday at 3:46pm

Bryan Aguiar Millions of people around the world survive every day without cars and internet. If $45 per month is too much, don’t pay it. And when you and others stop paying it, the price will come down. Problem is too many people think it is worth it, accept the crappy service, and are willing to pay that price or more for it. But as you said Americans are willing to get cheated. By the way cox sucks which is why I am no longer their customer.
Yesterday at 4:31pm

Gary Bender It’s not that I can’t afford $45. Nor can’t I live without the internet. I did so for almost half a century. It’s the fact that if the government hadn’t created these pseudo-monopolies, competition would drive prices down. Cox doesn’t care if I or fifty people like me quit. They will still have their monopoly and a hundred thousand customers in NWA who are too busy working to make that money to think about why they need so much money. Compared to the price of their four kids, boat, and SUVs, internet service is nothing so long as the credit card still works.

I know someone with three kids, a new house, and a new SUV worth as much as I make each year. Yet she is getting government aid. Perhaps if she were to give up some of her unnecessary goods and get off the government dole, I would consider boycotting Cox.

I checked with AT&T. No go. Not that I will ever go back to those thieves, but I checked into it anyway. I don’t know what alternative I have. I won’t go back to dial-up. I really have no choice so long as I’m an educator. I need access to email. I could move to the Midwest and go back to farming, I suppose.

James, you have my permission.

Bryan Aguiar Agreed. Competition would drive the prices down and the government created the monopolies. Fifty people, no cox could care less. 500,000 maybe.
Yesterday at 6:19pm

James Pilant I want to post the whole exchange on my blog! Any objections? jp
11 hours ago

Bryan Aguiar Fine with me
11 hours ago

Gary Bender No objections.
about an hour ago

James Pilant Thanks! I put it up. jp
2 seconds ago

Walter Cronkite

Ethical Houston has a good essay up on Walter Cronkite. For those of you who are much younger than me, just about everybody, Cronkite was a newsman who worked for CBS news during the turbulent 1960’s. He was an icon. People looked up to and trusted him. When he after the Tet offensive condemned the Vietnam War, it was for many Americans a turning point in the political discourse.

Cronkite announces Kennedy’s death.

Cronkite remembers his Tet Offensive editorial.

Cronkite announces the death of Martin Luther King.

I’ll let the video’s speak for themselves.

James Pilant

Internet Rip Off! Crooks! Thieves! SCUM!

Google and Verizon are working behind closed doors to divide internet service into tiers. That’s right. You’re going to have to pay more money for good service while having your basic stuff will gradually become more and more unpalatable. This will enable some companies (not me!) to pay for premium access (fast connection) while the independents are left in the dust. And the independents is where intelligent commentary and political action have been coming from. Prepare to return to the days when you’re only news is cable news unless you are willing to wait and wait to see a web blog like mine.

This is a disaster for free speech. What’s more, it is going to cost everyone big, big bucks, that is, unless you’re a cable provider in which case you’ll be able to swim in the money.

Only in the United States can a public good like internet access be bought and sold like an old cow. There is no concern for the public, its rights and the future of democracy. These are all small quibbles in corporate largese.

Incredible amounts of money can be made from dividing a public good. The internet is a government creation and the private cable companies have been salivating like so many rabid dogs at the prospect of taking your money and destroying your freedom.

Don’t think for a moment, this is all about the money. The millions of small voices on the web are very annoying to the powerful and they must be silenced.

They will silence us in the name of the free market, in a made up, fradulent, crap argument that there isn’t enough band width while there is plenty, and this will be all the more reason for companies not to invest or develop new internet capabilities because after all, if the good isn’t limited in its service, who’ll pay for premium?

This is disgusting, a rip off, real evidence of how corrupt, incompetent and vicious this society is to those without billions of dollars to play with.

These people did not develop the internet, they preyed on it. These people provide, currently, a rotten service that in most locales is little more than a one cable company monopoly. But this isn’t enough. This isn’t profitable enough. They can’t hold you by the cojones and extract the last dollar, the last dime, the tiniest, thinnest penny.

The internet is yours. It doesn’t belong to these people. But our pseudo representatives and useless media clowns will do nothing. They will have premium service. Their friends in the board rooms will keep the money flowing to our elected comedy acts that pass for legislatures.

We have no defenders. This is absolute positive evidence of the complete helplessness of the general public. This is a complete repudiation of the concept that our government should try in some tiny, almost imperceptible way, to serve our interest and they can’t do it.

Two companies, Google and Verizon, meet behind closed doors to decide the fate of the internet, this is how the business of government is done in this country. You have no one at the table because this isn’t a symbolic issue, this is about dividing you up for the kill. This is about dividing you up into essentially taxable constituents. That’s right. What would you call it when a public good, something paid for and developed with your taxes, something you owned, is distributed among a number of companies?

I would like to say bought and sold. But I can’t. They are not paying for it. They don’t owe us a dime. They get what they get because of who they are and they have no responsibility whatever except to make money and guess who is going to pay that money.

This is so disgusting. You wake up in the morning, go to your computer and find your rights and privileges hocked like old jewelry at a pawn shop. This is not our America. This is the land of “you can buy or steal anything, anytime as long as you have enough influence and the right friends.” This is corporatism writ large.

There is nothing you own, nothing you prize, nothing sacred, that they cannot come and get. And then make you pay and pay and pay.

James Alan Pilant

Benjamin Franklin According To Walter Isaacson

This is Walter Isaacson: “Benjamin Franklin: An American Life”

In addition I found an article. This is Time magazine’s cover story on Benjamin Franklin from 2003. It is written by Mr. Isaacson.

Benjamin Franklin (via London Sideways)

This is an English web site discussing what has become of Franklin’s London lodgings in the intervening years. It celebrates Franklin, which leads me to believe that the little inconveniences of Franklin’s leadership in revolution and creation of a spy service against Britain have apparently been forgiven or forgotten. The link to the Franklin House is wonderful and I recommend you take a look at it. To my astonishment and delight, they have a piece of music you can listen to, that Franklin composed. So, to all of Franklin’s many accomplishments, I can add composer. I shouldn’t be surprised. What field of human endeavor did he not find interesting?

Benjamin Frankln first came to London as a young printer in 1725. He spent 18 months working for James Watts, whose printing shop was in Wild Court, St Giles. Wild Court is still there, now an alley behind the new City Lit. Some would say there is nothing there, but you try walking along Wild Court and tell  me there are no ghosts of it's past. During Victorian times it was a slum. Whilst working in Wild Court, Benjamin Franklin lodged nearby in … Read More

via London Sideways

Benjamin Franklin (via Science)

A nice tribute to Benjamin Franklin from a web site entitled “Science.” (I thought I tackled a lot of turf with Business Ethics in my title!)

Benjamin Franklin "If you would not be forgotten, as soon as you are dead and rotten, either write things worth reading, or do things worth the writing." ~ B. Franklin America has never forgotten Benjamin Franklin because he did both. He lived these words of wisdom by writing as much as he possibly could and by doing even more. He became famous for being a scientist, an inventor, a statesman, a printer, a philosopher, a musician, and an economist. Today, we honor … Read More

via Science