Posted tagged ‘C.R.E.A.M’

Peter Thiel Makes The Case For Confiscatory Taxation On Billionaires

May 25, 2016

This broke over at Forbes and is bouncing around the ‘nets today:

Peter Thiel, a PayPal cofounder and one of the earliest backers of Facebook FB +0.49%, has been secretly covering the expenses for Hulk Hogan’s lawsuits against online news organization Gawker Media. According to people familiar with the situation who agreed to speak on condition of anonymity, Thiel, a cofounder and partner at Founders Fund, has played a lead role in bankrolling the cases Terry Bollea, a.k.a. Hogan, brought against New York-based Gawker. Hogan is being represented by Charles Harder, a prominent Los Angeles-based lawyer.

Whatever you think of Gawker, Hulk Hogan, or Thiel himself, this is yet one more way in which extreme income inequality destroys civic life. It’s actually worse than many, given the clandestine way it deepens the corruption of the system that could (in theory) provide a check on the damage that purchased legislative and executive branches can do.

Lazarus_in_Heaven_and_the_Rich_Man_in_Hell_LACMA_M.88.91.91

Here’s a take on the poison here revealed from Caterina Fake:

Champerty, as third-party litigation funding used to be called (and should probably be called again!) was formerly a crime, but the commercial litigation finance industry has been growing in recent years.

Fake notes that much of such litigation is actually a form of speculation, in which rich folks gamble on the possibility of significant payout.  One can imagine the “free market” argument that such funding levels the playing field, allows those who’ve suffered real harm to recoup, and thus makes the legal system a more efficient and effective dispute-settling and behavior-changing engine. But Thiel’s pursuit of Gawker illuminates what this leads to in the real world:

Generally, people avoid frivolous lawsuits because it often exposes them to as much scrutiny as those they sue, so what is significant about this case is that by funding Hogan behind the scenes, Thiel could get his revenge, escape exposure, and influence the outcome of the case.

For the very rich, this is a win however it goes, and damn the collateral damage.

Hogan’s lawyers made decisions against Hogan’s best interests, withdrawing a claim that would have required Gawker’s insurance company to pay damages rather than the company itself–a move that made Nick Denton, Gawker Media’s founder and CEO, suspect that a Silicon Valley millionaire was behind the suit.

I leave it to the actual lawyers to weigh in on the ethics (and consequences, if any) for such a litigation approach. For myself, I’ll note that what you have here is an insanely rich guy gaming the legal system to destroy a media outfit that pissed him off.

And with that, one more thought:  Franklin Roosevelt created the social welfare state in the US as an alternative to revolution.  Today’s plutocrats might want to think about that.  In plainer terms: to remain democracies, modern democractic states need to tax polity-buying wealth out of individual hands; income taxes and a levy on inheritances.  A 90% rate that kicks in well below an estate value of a billion bucks seems a good place to start.

A blogger can dream…

Image: Cornelius Bos, Lazarus in Heaven and the Rich Man in Hell, 1547.

A Lesson In Compassion (From Within A “Family Values” State)

January 30, 2014

Nothing says the dignity of humanity; nothing says kindness; nothing says how a high level of public religiosity makes for a better society than literally ripping  food out of hungry kids hands, and, in front of them, throwing it away:

Up to 40 kids at Uintah Elementary in Salt Lake City picked up their lunches Tuesday, then watched as the meals were taken and thrown away because of outstanding balances on their accounts — a move that shocked and angered parents.

Max_Liebermann_Kindervolksküche

“It was pretty traumatic and humiliating,” said Erica Lukes, whose 11-year-old daughter had her cafeteria lunch taken from her as she stood in line Tuesday at Uintah Elementary School, 1571 E. 1300 South.

Eleven years old!

I’m a dad, as y’all probably know.  My kid is 13 now.  He’s a total pain in the ass about food right now — won’t touch most stuff, including his school’s cafeteria fare.  He takes food from home and we top him up when he gets home.  But he used to get some stuff there.  I remember topping up his account once or twice when I dropped him off — we’d either crossed over into the red or come too close to it.  No one at his school would have dreamed of grabbing his bagel; we’d get a note asking for another five bucks for the system.  That’s how you do it.

If anyone had stopped my son in the middle of the cafeteria line, grabbed his tray and dumped his lunch?

I can’t imagine what I’d have done and said.  I can imagine what that experience would do to my child — to any kid.  Public poor-shaming –turning some little kid, with no power, no agency, no ability to defend or deflect or do anything, into nothing more than your prop in some twisted morality play about the undeserving proles.  I’m sorry about the run-on there. The rage and refracted sorrow/sympathy for the chidren some asshole(s) decided it was OK to hurt just overwhelms my ability to calm down my syntax.  But you get the point:  this  is no way to teach an 11 year old anything.  Or rather it’s just the right way to learn both that child and all her or his peers how to be the worst we can be.

One more thing:  I’m slamming on Utah in the headline, because I’m sick of sitting here in godless Massachusetts listening to folks from the religiousist corners of our country tell us how we all need to emulate the values in which such places are alledgedly rich.

But I take this personally too.  This isn’t just Utah.  An action like this is the logical endpoint of a culture that frames all things as the battle of the individual against society.  I like living in a social setting.  I think the genius of American democracy in the abstract is that it provides a once-novel way of mediating between levels of association from village on up and the individual.  So when  I hear the words “American exceptionalism,  I’d like them to have some other meaning than that we are exceptional in our capacity to be cruel to hungry children.

Image: Max Liebermann, Kindervolksküche, 1915