Economic ‘experts’ from the mainstream media act as though crony capitalism is the only game in town

THE ISSUE

We always need to be sceptical of the mainstream media, but arguably the area where we need to be more so than any other is that of economics.

THE MEDIA

Article by Dean Baker in Center for Econopic Policy and Research on February 21, 2018

It Wasn’t the Market that Made Elites Incredibly Rich, It was Elites Rigging the Market to Make Themselves Incredibly Rich

None of the rules we have in place that redistribute upward were given to us by the market. They were the result of deliberate economic policy.

THE COMMENT

When legislation is passed that cuts corporate taxes it is chiselled into concrete, yet when it redistributes wealth among the lower classes it is written on tissue paper.

The reason that quote is rather clunky is that it’s mine, and I’m far from a qualified economist, but FWIW I reckon the #AppleTax issue and way the Irish government protects its corporate tax rate are at the forefront of a status quo that is generally accepted as ‘untouchable’ and similar thinking exists in other western countries.

For that reason Baker’s quote from his article is what inspired me to write this post, but the wider point is that when it comes to economics we have to look beyond what the ‘experts’ put forward by the mainstream media say, and that is where the internet comes in.

I’m not saying we have to agree with the thoughts of people like Richard Wolf, but if we are to have a full discussion on any topic it seems a no-brainer to at least discuss the alternatives and even a massive crash like that we experienced ten years ago wasn’t enough to have us wondering if  allowing the top corporate players to run the economy wasn’t the best idea. Since then elected representatives who dare to oppose austerity are virtual outcasts both in the Dáil and in media coverage of same.

So that’s my point…but if you’re on for getting more specific, check out this Op-ed in the NYT and then read Baker’s reply.

While Economics is an academic field in its own right, there’s no reason why we the voters can’t educate ourselves to a decent standard on it once we know where to look, and more importantly, where to be sceptical.  JLP

#IANWAE

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If Sean Fitzpatrick did not commit a crime then we need new laws. Now.

Oh, how this makes my blood boil.

Here are some viewpoints on the role former Anglo-Irish Bank chairman Sean FItzpatrick played in the Irish banking crisis.

According to the judicial system…

But Judge John Aylmer ruled this morning on day 126 of the trial that the investigation carried out by the Office of the Director of Corporate Enforcement fell short of the impartial, unbiased investigation that an accused is entitled to.

According to Solidarity TD Richard Boyd Barrett…

Mr Boyd Barrett claimed Mr FitzPatrick walked free because of a set-up and not a blunder. “This stinks to high heaven,’’ he added.

Leas Cheann Comhairle Pat “The Cope’’ Gallagher intervened to say he was referring to a trial and should “refrain lest there might be consequences’’.

Mr Boyd Barrett said: “There is a direct link between Seánie FitzPatrick’s rotten, corrupt activities and Anglo Irish Bank and the families this week being sent to Garda stations or are sleeping in parks because there are no homes.’’

…and then we have the viewpoint of the Irish Times Legal Affairs correspondent Colm Keena

“Sean Fitzpatrick did not commit a crime.” (paraphrase)

It won’t surprise you to learn that my own views would tend to lean towards those of Deputy Barrett.  And while the Irish mainstream media takes such great pains to point out that he was speaking under “privilege” as if it is some kind of cowardly act, I would put forward the proposal that the opposite is the case.

Maybe it’s true that technically Fitzpatrick did not break any laws.  And I would go further in pointing out that watching him “sent down” will not make me feel any better about what the Irish banking sector did to this country.

But if the way he comported himself in both managing Anglo Irish loans and his own personal ones was “legal”, then surely it must be a priority of our parliament to bring proper laws into existence.  And if we can’t bring down a sentence on him in a court of law, how about one from the court of public opinion, making sure the new laws get known as (at least commonly assuming the Dáil would never approve it) The Sean Fitzpatrick Laws.

On the subject of what actually has been done to improve legislation since the crash, here is but one recommendation of the Joint Committee of Inquiry into the Banking Crisis published in 2016…

A personal remuneration clawback provision linked to medium term performance should be part of the employment contract for senior executive management and board members.

Just to break that down…basically it seems to suggest that if a bank is losing money, the “bigwigs” at the bank should not make money in terms of bonuses.

BUT ISN’T THAT BLOODY WELL OBVIOUS???????  Did it really have to take a group of elected representatives the guts of three years to come up with stuff like that???

Like I said, blood boiling.  At least we have people like Deputy Barrett who are free to speculate as to what is really going on amongst the ranks of the establishment without fear of prosecution under libel laws by our nation’s real cowards.

#IANWAE