In her recent post-election piece “It’s Time to Work on America’s Agenda” Elizabeth Warren points out that the changes in Washington and in various States aren’t changing the fact that
The stock market and gross domestic product keep going up, while families are getting squeezed hard by an economy that isn’t working for them.
Or to put it another way, it’s not enough to have aggregate indicators going up. We also have to have shared gains and inequality going down, and given our current state of affairs, going down rapidly. She then says:
The solution to this isn’t a basket of quickly passed laws designed to prove Congress can do something — anything. The solution isn’t for the president to cut deals — any deals — just to show he can do business. The solution requires an honest recognition of the kind of changes needed if families are going to get a shot at building a secure future.
That’s what happened in 2009 – 2010. Democrats structured legislation in a vain search for bipartisanship, and in doing so produced:
Posted in Joe Firestone
Tagged accountability, broken promises, elizabeth warren, FastTrack, free trade, inequality, MMT, modern money theory, progressive politicians, TPP TAFTA, US sovereignty
By William K. Black
As financial regulators we have been warning since 1984 that accounting control fraud is optimized by modern executive compensation. Modern executive compensation is so perverse that it creates overwhelming incentives to engage in fraud and the means of committing the fraud that makes it far more difficult to prosecute. The CEO is able to convert the firm’s assets to his own benefit through seemingly normal corporate mechanisms. CEOs also use executive and professional compensation to generate “Gresham’s” dynamics and incentivize fraud by employees, officers, and professionals.
George Akerlof and Paul Romer added their voice to this point in1993 in their article “Looting: The Economic Underworld of Bankruptcy for Profit.” Among the points they emphasized were that accounting control fraud was a “sure thing” and that the way for the CEO controlling a lender to optimize to optimize his looting was to cause the lender to make very bad loans at a premium nominal yield. White-collar criminologists and the National Commission on Financial Institution Reform, Recovery and Enforcement (NCFIRRE) reached similar conclusions beginning in 1993.