Harold Meyerson: For merit-based societies, look to Europe - Tampa Bay Times

Mittens: What kind of society does America want?

(Mitt) Romney told Wall Street Journal editors, will be "a very simple choice" between Obama's "European social democratic" vision and "a merit-based opportunity society — an American-style society — where people earn their rewards based on their education, their work, their willingness to take risks and their dreams." 

"Romney's assertions are the centerpiece of his, and his party's, critique not just of Obama but of American liberalism generally. But they fail to explain how and why the American economy has declined the past few decades — in good part because they betray no awareness that Europe's social democracies now fit the description of "merit-based opportunity societies" much more than ours does."

The Romney assertion is a great example of one per cent spin that has been the centerpiece of the GOP as long as Rightardia can remember. 

Even Bank of America admits that the the U.S., UK, and Canada are the key plutonomies - economies powered by the wealthy.Continental Europe (ex-Italy) and Japan are in the egalitarian bloc with social democracies that divide the fruits of society more equitably.  

Plutonomies are better for bank profits.  

In Europe and Japan, CEOs make about 11 times what the average worker makes. In the US CEOs make more than 300 times. 

Check out the Meyerson editorial. America is not an exceptional country. It's the one per cent who think they own America like Mitt Romney who are exceptional. The 1 per cent will do anything they can to maintain the status quo.

A new report from the Organization for Economic Co-Operation and Development (OECD) finds that social mobility between generations is dramatically lower in the U.S. than in many other developed countries.

The link between sibling and parental earnings is much higher in the US compared to other industrial countries which indicates low social mobility. 

Unfortunately a lot of Americans who should know better buy into this right wing BS! The Tea party comes to mind. 

source: For merit-based societies, look to Europe - Tampa Bay Times

Subscribe to the Rightardia feed: http://feeds.feedburner.com/blogspot/UFPYA

Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.
Permissions beyond the scope of this license may be available at rightardia@gmail.com.

Equity Strategy: Plutonomy, buying luxury, explaining global imbalances

This is the summary of a paper that Citgroup published and Cryptome posted on its web site. The Citigroup writer looks at the industrial world in terms of Plutonomies and the egalitarian bloc.

The US and Switzerland are plutonomies because neither nation experienced the worst horrors of World War 2. The US was spared by geography and Switzerland by remaining neutral during the war.

After World War 2, many of the European nations , the UK and Japan had to rebuild. Fascism and militarism were defeated in these counties and a more egalitarian economic system arose that Republicans would call socialistic.

Now you know why the US is always complaining about NATO not spending enough on defense.

This is also why Donald Rumsfeld's "Old Europe" comments were such a misnomer. Europe rebuilt after WW2. The US didn't and still suffers from a  crumbling infrastructure.

Here is the Citigroup summary of its document: 

➤ The World is dividing into two blocs - the Plutonomy and the rest.  The U.S., UK, and Canada are the key Plutonomies - economies powered by the wealthy. Continental Europe (ex-Italy) and Japan are in the egalitarian bloc.
➤ Equity risk premium embedded in “global imbalances” are unwarranted.  In
plutonomies the rich absorb a disproportionate chunk of the economy and have a massive impact on reported aggregate numbers like savings rates, current account deficits, consumption levels, etc.  This imbalance in inequality
expresses itself in the standard scary “ global imbalances”.  We worry less.
➤ There is no “average consumer” in a Plutonomy.  Consensus analyses focusing on the “average” consumer are flawed from the start.   The Plutonomy Stock Basket outperformed MSCI AC World by 6.8% per year since 1985.  Does even better if equities beat housing.  Select names:  Julius Baer, Bulgari,
Richemont, Kuoni, and Toll Brothers.    

One of many interesting graphics in this study. 

Check out the complete article at http://cryptome.org/0005/rich-pander.pdf. It is fascinating reading and provides insight on how the corporate board of a large bank looks at the world.


Subscribe to the Rightardia feed: http://feeds.feedburner.com/blogspot/UFPYA  
 

Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.

Permissions beyond the scope of this license may be available at rightardia@gmail.com.