The myth of the American Elite

I came across a wonderful post at firedoglake today, a few days after it posted. Dean Baker, writing about the Fiat-Chrysler merger, highlights the growing disparity between so called 'knowledge workers' and the blue-collar manufacturers who have so often been at the sharp end of outsourcing. As he states

The media coverage of the auto bailouts has focused on the need for union autoworkers to take big pay cuts, causing them to once again miss the real story. The Fiat-Chrysler deal shows that the pay problem is at the top, not the bottom. At the end of the day, the new Chrysler is still likely to be producing most of its cars in the United States. What the new company will be getting from abroad is technology and top management. [...] While this story of the US becoming a high skills center in the world economy may have been comforting to the elites, and was widely promoted by economists and the news media, there was never much truth to it. Highly skilled professionals did well in recent decades not because they succeeded in international competition, but rather because they were largely sheltered from it.
Over the past ten years those elites have gained in accelerating salaries and in a lower tax burden (see also my earlier post on the rich/poor tax divide) while the blue collar workers wages have largely stagnated, and fallen behind in real terms. As Baker says
If we compare wages for assembly-line workers in Europe and the United States, there would not be much difference between the pay of UAW members and their counterparts in Europe. However, there would be a very large difference between the multi-million dollar pay packages of the top executives at the US companies and their European counterparts. The pay gaps persist among the more highly paid engineers and management personnel.
The remaining differences are that European workers do not need to reserve a significant portion of their weekly wage to cover healthcare costs, that they receive many more vacation days (between four and eight weeks for most Europeans), and that their supervisors, engineers and management are not a world apart in terms of salaries, benefits, and lifestyles.

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Growing opposition to Obama’s Tax Haven clampdown

Opposition to President Obama's plans to close the fiscal loophole of Tax Haven's is under increasing pressure from business, lobbyists, and the media. You can be sure many Senators and Congressmen, worried about their campaign contributions in the run up to 2010, will be conveying this sense of alarm to the President. Bloomberg ran with a story this morning, quoting some very influential Democrats including Senate Finance Committee Chairman Max Baucus, Representative Joseph Crowley, a Democrat on the tax-writing House Ways and Means Committee, and Senator Barbara Boxer. This latest attack follows a lot of negative, primarily republican generated, commentary since last Monday, including the expected outrage from the Republican caucus and their media friends (particularly Fox). One of the most telling, however, was a seemingly innocent comment from CNBC's Erin Burnett, during an interview on Morning Joe last week. She basically said that 'avoiding taxes' is a perfectly acceptable and legal practice and is basically the fault of our 35% corporate tax rate. To Ms Burnett, and all of the other people who think that tax avoidance is perfectly acceptable, I'll share another quote that I discovered while following this story - posted on a discussion thread

"My Lords, of recent years much ingenuity has been expended in certain quarters in attempting to devise methods of disposition of income by which those who were prepared to adopt them might enjoy the benefits of residence within this country while receiving the equivalent of such income without sharing in the appropriate burden of British taxation. Judicial dicta may be cited which may point out that, however elaborate and artificial such methods may be, those who adopt them are "entitled" to do so. There is, of course, no doubt they are within their legal rights, but that is no reason why their effort, or those of the professional gentlemen who assist them in the matter, should be regarded as a commendable exercise of ingenuity or as a discharge of the duties of good citizenship."

Lord Simon, L.C., Latilla v Inland Revenue Commissioners (1943)
Video and more details after the fold

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Fair To A Fault: Secularist Chastised For Bashing Religion In School

The next time someone says to you that religion is under attack by the courts in the schools because of the separation clause, consider this high school history teacher who has been found guilty of insulting Christians in class.

James Corbett, a 20-year teacher at Capistrano Valley High School, was found guilty of referring to Creationism as “religious, superstitious nonsense” during a 2007 classroom lecture, denigrating his former Advanced Placement European history student, Chad Farnan.

The problem with this is that, basically, Mr. Corbett only told the truth, and appears to have talked almost exclusively about Creationism, not Christianity. The judge made the immediate connection between the two, however. U.S. District Court Judge James Selna's claim that he can find "no secular purpose" in Corbett's statements is either thick-witted or disingenuous---it would seem to be a teacher's job to point out to students something that is, well, idiocy. However, I expect an appeal on this, because it is also clear that the judge in question has something of a bias here. But it's instructive---rather than take the idea of Creationism as what it has lately been packaged, namely Intelligent Design, and examine it as a claim of "science" as its advocates insist it is, Selna understands immediately that this is a bogus proposition. That, in fact, Intelligent Design is a religious idea in a new wrapper. Corbett's dismissal of Creationism can only then be an attack on religion. Which, by the letter of the law, is a violation of the separation clause. Those who advocate against secularism and insist religious ideas have no defense in this modern state should look at this as an example---not in their favor, because it still won't allow for the introduction of religion into public schools---of the fact, oft-stated, that the Constitution requires even-handed exclusions. Secularists can't even say nasty things about a bogus idea that has only association relevance to religion. You can't even bring it up to say it's wrong. Personally, I do think this is a bit idiotic, but---what's that old phrase---it is fair to a fault.

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American Stock Car Gets 81 MPG!

"Have you driven a Ford, lately?" As a charity stunt, Ford had specially trained drivers drive an unmodified stock 2010 Ford Fusion (mid-size sedan) to beat 1,000 miles in a single tank of gas. They reached 1,445.7 miles in 69 hours of driving around the D.C. area on surface streets and highways. "Your mileage may vary." Ford readily admits that this was a stunt, and the details of how it was done are available in many places, like here. Oh, and details about why are here. The car is normally expected to get about 40 miles per gallon under everyday conditions.

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Avoid Swine Flu, the Science-Guy way!

Swine flu has captured the attention of the nation, including calls from European health officials to restrict travel to the US. It's all rather overblown, because almost everyone* has the ability to avoid the flu and it's symptoms. Just follow the directions in the video, courtesy of Bill Nye, the Science Guy! * the exception is immune-compromised individuals.

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