The Desolations of Smaugs

Gotta make this quick so I can bop down to the farmers’ market in East Liberty.

Here are two posts that belong together.  The first is about the crazy amount of money that the wealthy are just sitting on and not investing.  In The World’s Richest People are Sitting on Gigantic Piles of Cash that aren’t Earning them Anything, we get confirmation of what we have suspected for some time, that is, rich people are hoarding money.  But the reason they are hoarding makes no damn sense.  Apparently, the wealthy are waiting for a market correction before they dive back in to investing and since that doesn’t look like it’s going to happen anytime soon, they’re going to sit on the cash.  Now, I can understand that feeling if you’re a poor schlub like me, hoarding the miserable little bit of IRA you have left after several years of employment insecurity.  It makes less sense if you’re a plutocrat with more money than god.

Hmmm, maybe we should be wondering why the wealthy think there is going to be a pullback.

The second is about the consequences of hoarding all that money.  When the shareholders demand more money and less investment, companies tend to shutter their facilities.  Recently, Hoffman-LaRoche in Nutley, NJ closed it’s doors and is preparing to dismantle the site.  When I was a young chemist a long, long time ago, I visited the Nutley campus.  Like many research facilities, it was more like a small town with a gatehouse and a shuttle that delivered the visitor to her destination.  Now that Roche has decided to stop doing research in the US because shareholder value (and Americans are notoriously easy to lay off since they have virtually no labor protections whatsoever), the Nutley facility is about to undergo a radical transformation.  If it is anything like my facility where the rent the company was demanding from small startups was prohibitively high, they probably won’t get many takers.

In other words, if some of the scientists they laid off decided to get together and try to operate one of the buildings as a small incubator, they wouldn’t be able to afford it.  And these days, vulture capitalists want a lot of the research done up front so they don’t actually have to risk any money at all.  That makes research on small scale even more difficult to finance.  Rent, reagents and researchers are expensive.  So, if Roche can’t get any takers to rent its empty labs, it may go the route of some of the other companies in similar circumstances and demolish perfectly serviceable, and in some cases, brand new research buildings, rather than keep them on the books.

Lovely.

One final thing, Hillary Clinton gave an interview to Terry Gross, former Obama fangirl extraordinaire, the other day.  It got a little testy about half way through when Gross started pushing her on same-sex marriage.  Hillary talks primarily about her four years as SOS and seems to think that Edward Snowden had other options to spill the beans.  I’d have to differ with her there though.  Snowden had superuser privileges.  Anything he revealed while he was still in the US would trace right back to him very quickly.  You don’t give su privileges to many people, or at least I don’t think the NSA and its contractors would.  I could be wrong about that.  It seems a little sloppy to allow one person to download massive amounts of information and have no one notice.

Given the reaction of the Obama administration to leakers, I think Snowden did the only thing he could have done and I’m not unhappy that he did it.  I meet people everyday who are pretty non-political who are keenly aware of what Snowden revealed and they are not happy to know that the government has so much information on them.  Until Snowden, the conversation about spying on Americans was tepid at best.  Hillary should know by now that timing is everything.  Snowden forced door open and let the sunshine in a lot more quickly than some politicians might have found convenient but he sure did get their attention, didn’t he?  No putting the genie back in the bottle now or slowing that genie down now.

Ok, enough with the foreign policy stuff.  What about domestic issues?  I want to hear about that now.  No time like the present.  Let’s not put it off any longer.

 

To all those rich people who think they are the most productive people on earth

Don’t flatter yourselves.  Dragons are not productive.

Every school kid knows this.

Just sayin’.

********************************************

Paul Krugman and Joseph Stiglitz have a chat:

 

To the Phones

Smaug makes his opening bid

Following Atrios at Eschaton, Call the White House, your Senators and your House members to say no to proposed cuts to Social Security via the Chained CPI.  They *are* cuts.

This is what the 1% have been waiting for.  This is why the bankers and well-connected have been strangling the money supply for the past 4 years and holding the economy hostage every time there is an expiration of their tax rates.  They need for us to feel enough pain so that we will give up something that is very important to us.

It has never been about the deficit.  It has always been about weakening and then eliminating the social insurance programs and using the chained CPI to calculate Social Security benefits is their first blow.  Don’t let them get away with it without a fight.

Say “NO!” to the Chained CPI.  But don’t just stop there.  I’ve always believed that you shouldn’t oppose a law or proposal without a working counter proposal.  Don’t just complain.  So, tell your elected officials that you would like to strengthen Social Security by raising the payroll tax on higher income earners.

Here’s who to call:

White House

202-456-1111

Your Senators

Your House Members

We didn’t share in the prosperity, why should we share in the austerity?

Spread the word!