Jeffrey Sachs: "The American People Are Going to Reach a Breaking Point"

[marmar]

Jeffrey Sachs: "The American People Are Going to Reach a Breaking Point"
Posted Mar 16, 2011 09:43am EDT by Aaron Task


New York Fed President William Dudley got an earful this week at town-hall style meeting in Queens earlier this week. When the former Goldman Sachs chief economist tried to explain why the Fed looks at "core" inflation, which excludes food and energy, he drew a hostile response, according to wire service reports. "You have to look at the prices of all things," Dudley said. "Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful."

This "prompted guffaws and widespread murmuring from the audience," Reuters reports: "I can't eat an iPad," one attendee declared. Another asked: "When was the last time, sir, that you went grocery shopping?"

I mention this exchange in the context of my recent conversation with Columbia economics professor Jeffrey Sachs.

"The top 1% is cut off from the rest of society," he says in the accompanying video. "They don't know what's going on in America anymore. For them life couldn't be more booming (but) it's falling apart" for ordinary Americans. .............(more)

The complete piece (and accompanying video) are at: http://finance.yahoo.com/tech-ticker/article/536035/Jeffrey-Sachs%3A-%22The-American-People-Are-Going-to-Reach-a-Breaking-Point%22

[xchrom]

1. recommend -- again -- if it's all right with you -- i'll x-post this in SMW? nt

[marmar]

5. Si, mi amigo.

nt

[xchrom]

8. thank you.

:toast:

[daa]

2. Send that to Obama while he contemplates cutting social

security benefits.

[Arkana]

38. Since he's not, this wouldn't make any sense.

[RUMMYisFROSTED]

42. No contemplation at all?

Not even one synapse?

[Jakes Progress]

69. Shhhh. You will disturb the worship services.

[Name removed]

72. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Jakes Progress]

76. Sorry to have offended the choir.

That's a pretty song you sing. But it is no more reality than Puff the Magic Dragon.

[Le Taz Hot]

87. LOL!

Literally. Out loud. :rofl:

[Knight Hawk]

97. Actually............

I am not sure Obama is contemplating ANYTHING.

[spooked911]

85. he already has-- with that ridiculous payroll tax holiday

that will only make things worse

[ChairmanAgnostic]

64. Por que? Some misguided effort at triangulation?

some effort to cull love and adoration from the GOoPers?

[closeupready]

3. 'you have to look at the prices of all thing' - so they exlude food and fuel.

:wtf:

[Aerows]

14. The two things you can't live without...

...it makes no sense.

[closeupready]

15. If the volatility was the preciptating reason for exclusion, then you'd account for that.

Not exclude them. But you know, we aren't the Smartest Guys in the Room. :eyes:

[sabrina 1]

65. It makes sense when you accept the fact that these robots

have no interest in human beings, except as commodities.

They don't see 'people'. The evil eg, of a scheme called the 'Dead Peasant Insurance policy' proves that there are people, if you can call them that, who believe that they are not like everyone else, and that the existence of the masses is to feed their lust for profits, otherwise they have no value. To them the masses are prey.

It's impossible to get inside that kind of mindset, people who can be so cold that the suffering of millions of people is viewed only through the lens of how they might profit from it.

I believe they are very sick mentally and we have allowed the most disturbed individuals in our society to take over. Then we wonder why nothing makes sense.

He revealed himself completely, his mind on commodities only. He didn't even consider food or fuel, life-sustaining necessities for the masses, at all.

I wish someone would do a study of the species that makes up the ruling classes. And after doing so, maybe we can avoid ever again allowing such specimens of human filth from getting into positions where they can affect the lives of human beings.

They truly are a real threat to society.

[closeupready]

99. Right, like that guy on one of the market news programs being grateful the human toll is greater

than the economic one in Japan. :wtf:

[Sherman A1]

82. And that tells the whole story of

their perception of the state of things. The disconnect with reality and the very logic underlying their own statement causes one to simply :banghead:

[Tatiana]

4. K&R. The top 1% don't have a clue and don't care to.

They're doing better than ever as a result of our governmental policies.

[CanonRay]

6. I can't rec this enough

it's getting close out there, and it ain't going to be pretty. Those 1%ers are going to be mighty shocked.

[hifiguy]

10. Yep. They will never understand

why the mobs with torches, pitchforks and tumbrels are coming for them. They'll stand there like Ceaucescu wondering why the angry mob is storming the gates and unable to think of any reason why they would.

[Octafish]

7. The Top 1-percent includes most of the Political leadership.

I'd like to see their income limited to the minimum wage while in office - elected or appointed.

Thank you for an excellent OP, marmar.

[marmar]

9. 'The Top 1-percent includes most of the Political leadership.'

Exactly. And their cluelessness reflects that.

[closeupready]

12. There's a reason the Senate is known as the Millionaire Boy's Club.

[Arkana]

39. Pretty sure Obama only came into money fairly recently with book sales

and Biden probably still has a negative net worth.

[liberation]

45. Sure you are...

[Octafish]

46. Believe they became millionaires from book sales in 2007.

Obamas Earned $4.2 Million in 2007, Tax Returns Show

Mrs. Obama got a big promotion at University of Chicago about the time Mr. Obama became U.S. Sen. Obama.

I don't have anything against rich people -- just want my elected officials to actually do stuff to improve the lives of working stiffs and poor schmoes, as well.

[bertman]

62. Thanks for the links and the cogent comment, Octafish. I agree.

[Arkana]

71. That's why I said "fairly recently".

Also, wasn't Biden one of the poorest Senators? Like 99th out of 100?

[GatesofPunk]

90. Agreed n/t

[Carolina]

66. doesn't matter how they started

they're set for life now

[Doctor_J]

94. Maybe, but as Senator and now prez, he is of the monied class

He will make zillions once retired

[Arkana]

104. And that makes him a bad person...why, exactly?

[Doctor_J]

106. It doesn't make him a bad person

I was simply conter-ing your claim that because he recently became rich, he's not one of them. He's not a bad person but he is also not dumb. He knows that if he plays along, including kissing up to the Bush family, he and all of his descendants are set for life. The real power brokers in the country have the capability to make or break anyone, and if Obama were to actually stand up for workers and against the oligarchs, he would be broken.

[mmonk]

43. Or out sourced and their unemployment benefits cut.

[Octafish]

47. Now THAT would be justice.

Turn about fair play; then, tar and feather time.

[Knight Hawk]

98. Would not help much because..................

they are making their real money with their connections.Many of the most powerful would work for free or even pay for the job.How did Harry Reid amass his money on his salary?

[Octafish]

105. Absolutely.

Can one be immune to the temptation of becoming a billionaire?

[JuniperLea]

11. The disconnect is startling...

Some people I know asked me recently why I didn't travel more, knowing it's one of my favorite things. Well, I need to eat, and getting to work costs twice what it did a few years ago. Shrug. The wonder why I don't go out to eat with them more often... same deal. For what I pay in food and drinks in a restaurant for one night, I can eat for many full days.

I haven't paid so much attention to everyday expense prices since I moved out of my Mom's house some 35 years ago. It's really weird doing a running tally in my head as I put groceries in the cart.

[marions ghost]

53. Same here

having trouble keeping up with wealthier friends. You don't want to say "I can't afford it." Money divides people in America.

[kenny blankenship]

13. At a certain point, FUCK YOU becomes the only socially appropriate response.

[socialist_n_TN]

18. We're at that point. Time to get a little less polite..........

Still non violent, but not so polite. They need to hear our anger. Get arrested for disorderly and resisting. In public with cameras rolling. NOT SO FUCKING POLITE!

[lonestarnot]

96. a lot less polite!

[demwing]

19. thanks for ruining

the nice cleaning I just gave my monitor and keyboard. Now coffee has been sprayed everywhere, and I blame you...

[marmar]

34. The Cee-Lo Green treatment......

:)

[CrispyQ]

16. This video is worth the time!

k&r for a great link.

We have been well off enough for many years that I pretty much never looked at prices in the grocery store. If it was on the list it went into the cart. Not anymore. I'm learning to bake bread because my favorite organic rye bread is now $4.59 a loaf - $2 more than when I first started buying it a few years ago. Five dollars for a loaf of bread. :crazy: I can buy a five pound bag of organic flour for that - & I did! The first few loaves were not so good, but they're getting better.

[Armstead]

17. K&R for Jeffrey Sachs -- He's been pointing at the Emperor's lack of clothes a lot lately

[notesdev]

20. I think we're past the breaking point

all that is left is for the facade of normalcy to be stripped away. Underneath the facade, it is already gone.

[Lydia Leftcoast]

21. Having gone to an Ivy League school for grad school, I KNOW how out of touch the upper 1% is

When I was there, the lowest paid clerical and library workers were eligible for food stamps. Some of the students just sniffed and said, "They should get better jobs if they want more money."

When I mentioned that I had applied for fellowships to do research in Japan, some of the rich kids said, "You should just go if you don't get a fellowship."

When I explained that I didn't have the money to support myself in Japan or even pay the airfare, they looked blank for a moment and said, "Well, then get the money from your parents." They couldn't believe that my parents didn't have that kind of money, either.

They also saw nothing wrong with unpaid internships. Sure! Work 40 hours a week for a major bank or publication and live in New York City or Washington DC for three months in the summer and then pay tuition for an Ivy League school the following fall. No problem there! Their parents or their trust fund would cover it. And people who couldn't do that were just lazy or their parents needed to get better jobs or something.

I was a pretty conventional Midwesterner before I went East. Experiences with the rich kids (many of whom were pleasant and friendly, despite being clueless) were one of the factors in sending me way to the left.

[closeupready]

25. Yes, dealing with many of them is somewhat like changing diapers -

you have to explain what is 100% obvious to the other 99% of people. It can be very frustrating.

[FreeStateDemocrat]

22. CNN: Rising wholesale prices ring inflation alarm bells:

http://money.cnn.com/2011/03/16/news/economy/ppi_wholesale_prices/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

[FreeStateDemocrat]

23. CNN: Fed not sweating high oil prices:

http://money.cnn.com/2011/03/15/news/economy/federal_reserve_decision/index.htm?iid=EAL

[FreeStateDemocrat]

24. CNN: Coming soon to U.S. shores: Higher prices:

http://money.cnn.com/2011/02/17/news/economy/overseas_inflation_pressures/index.htm?iid=EAL

[deutsey]

26. Excellent!!!

I wish I could recommend this a few thousand times.

[roamer65]

27. Wholesale price were up 1.6 % last month, mostly on higher food prices.

That translates out to a 19.2% inflation rate at the wholesale level. That will not be swallowed by businesses. They will pass most of it along.

[malaise]

28. ANd Jeffrey should know

He fugged up all of Eastern Europe with neo-liberal policies but he did learn.

[marmar]

31. Yep. I think he's one of those recovering NeoLibs......

..... like Robert Reich.

[Lucky 13]

36. I'd say neo-lib is not his stance anymore... if it was...

The stuff I'm reading from him now puts him way left - pro environment, pro equity.

I'm unfamiliar with his work before... I'll have to check that out.

[Uncle Joe]

29. Kicked and recommended.

Thanks for the thread, marmar.

[nadinbrzezinski]

30. We already did, I think the Midwest is the beginning of that flame

[Johnny2X2X]

32. Not sustainable

It's can't continue like this for much longer. When you have 1% at the top who basically don't work that hard, they just collect dividends and live off the sweat of others while the rest fight over their leftover table scraps you have an unsustainable situation.

There is a huge backlash coming and I fear for our Country.

[Marr]

33. What's the rationalization for *excluding* food and energy from the calculation?

I can see possibly weighing them against other factors, but when you get down to it, food and energy are the only meaningful products by which to measure inflation. Completely excluding them just seems like a means of hiding the inflation rate in a pile of consumerism and credit.

[CrispyQ]

101. Last year, a few days before Thanksgiving, CNN had a report on the cost of T-day dinner.

They were citing how much some favorite T-day ingredients had gone up. One item, can't remember which, had gone up 37% since the T-day before. Other items had increased in cost well over 15% & one over 25%. The irony was, in the text trailer at the bottom of the screen, they had an item that stated that inflation was only at X percent - a figure significantly below the very inflation figures they were citing for food.

TPTB are so out of touch that they think they can disguise the inflation figures & we won't notice, when anyone who goes to the grocery store or pays a utility bill knows that those figures are horribly skewed.

The People are waking up! It is becoming harder & harder to tell us everything is groovy.

[ieoeja]

107. It is more supply-side thinking.

Reagan changed the cost of living to the cost of manufacturing (but kept the name) because that is what is truly important in the supply-side way of thinking.

Of course, energy is a huge cost of manufacturing. But we had just come out of a decade featuring massive inflation, probably caused by price-fixing, but certainly made much worse by oil speculation. Fully expecting another such incident during his administration, he removed Energy from the calculation just to make his adminsitration look better in that event.

So we lost food to really stupid reasoning and energy to personal politics.

[Lucky 13]

35. I'm reading a great book right now by Jeffrey Sachs called "Common Wealth"

It ties together issues of population, environment, consumption, first-world/third-world inequality, etc.

The book is very informative, yet very readable.

I HIGHLY recommend you check it out.

[1776Forever]

37. Are "going" to reach - I would scream HAVE reached it! n/t

[WiffenPoof]

40. So, The Breaking Point Is Reached...

...what does that mean in real terms? Protests, strikes...etc. ????

-PLA

[gateley]

61. I'm wondering the same thing. What concerns me is that we, as a people,

aren't cohesive - yet. I was thinking that while watching the people of Egypt. There would be no Christians protecting the Muslims during prayer, some of our Christians would be shooting the Muslims, then anybody who knew how to spell a protest sign correctly, if you catch my drift.

We're too divided, thanks to the hate mongers.

So I don't know what's going to happen.

[glinda]

77. that is why the NRA arms people. divide & conquer.

[louslobbs]

41. The sad thing is, they are so deep in their own bubbles, they don't see the awakening

or Breaking Point is quickly coming upon us thanks to Shock Doctrine Republicons in various states, overplaying their hands to try and kill Unions. We are awakening, and they are having their next very dry martini, no olive.
Lou

[Arugula Latte]

44. To be fair, Dudley also said "Let Them Eat Cake," and, you know, cake is a food.

:sarcasm:

[JDPriestly]

48. At the height of the recession, a friend of mine who lives on the West side of Los Angeles

was having a rough time. But, she said, her neighbors in the area where she lived were just living it up. They had not noticed the smallest blip in their incomes or life styles. Two separate Americas. Very separate.

If you live in a small town in the Midwest, you probably really don't see many houses worth a million or more. In areas of Los Angeles County, they are very common. In fact, in some surprisingly large areas, virtually every house is worth at least a half a million and many, many are worth a million or more.

The two Americas don't live in the same communities, don't attend the same schools, don't meet in everyday life. I doubt that my niece living in a small town in Ohio has ever seen the wealthy lifestyle of people in certain areas of Los Angeles County. Her idea of wealth is the local real estate broker who makes maybe at best a couple of hundred thousand a year.

That is why people in small towns in the Midwest vote Republican. They don't know who they are voting for.

[Zorra]

49. Awesome. A real live American "Let them eat cake" quote from "royalty".

In this case it's a let them eat ipad quote, but the essence of the meaning and the source is the same.

[Initech]

50. Yeah... Thanks to you, fucker!!!

[mstinamotorcity]

51. Oh its just

a little class warfare it never really works. Those poor people just dont understand. we don't know why they want food,clothing,shelter,and oh my God they want a job!!!:sarcasm: :sarcasm: :sarcasm:

[Marnie]

52. Dudley of course chose the average over the mean.

It is not real world realistic to include the cost of items that are non-essentials, and often too expensive for the average family into the total impact of inflation.

But if you do then the "average" income and the "average" impact of inflation make the uber wealthy like him look better. And allow for adjustments that further impoverish the working class.

What, a stupid example to choose, though it does show how out of touch he is with real Americans.

[Skip_In_Boulder]

54. "I can't eat an iPad,"

When the people get hungry, that usually doesn't work out well for the aristocracy.

[Ikonoklast]

55. I currently spend $10,000.00 a month on diesel fuel.

Two months ago, it was less than $7,500.00.

I guess that shouldn't be counted as 'inflation'.

Maybe that falls under the new "Royal Reaming" economic category.

[WinkyDink]

56. Food and energy costs are excluded in order to HAVE inflation WITHOUT CoL increases.

[russspeakeasy]

57. Thanks for the post, video and link.

[AllyCat]

58. Wow! who were these brave souls? The super rich are completely

clueless about what the real world does to eke out a living. I'm sure it didn't sink in with the speaker, but some others in the group might have left with questions brimming in their protected little brains.

[Paka]

59. I have family who live like this.

At retirement I ran away to Thailand where I can live on my social security and now the pukes want to mess with that. Prices here are even starting to go up and predicted to rise 10-15%. Eating does get to be more of a luxury than a basic.
:scared:

[Buddha2B]

60. Let them eat iPads!

:) someone had to say it :)

[sam sarrha]

63. the richest 1% hold 42% 0f Americas Financial Wealth, 6 times what the bottom 80% hold at only 7% of

Americas financial wealth

TOO Rich to Regulate.! the Dominionists believe that wealth is proof of gods favor of a man, thus it's a sin to tax/regulate them.
and the poor are being punished by god so it is a sin to help them...the government is infested with Dominionists.. the GOP is Theocratic Cargo Cult of OCD psychotic narcissistic wealth/power hoarders.. they are mentally ill, out of control, their Religious anti-christ theology was started by a Nazi in 1934, Abraham Vereide, who hear "Voices".. nuf said

http://sociology.ucsc.edu/whorulesamerica/power/wealth.html
the richest 1% hold 42% of Americas Financial Wealth, 6 times what the bottom 80% hold at only 7% if financial wealth.. 20% hold 93% of all financial wealth,


http://doggo.tripod.com/doggchrisdomin.html

read down to Leo Strauss...then to where they advocate slavery and executing/exterminating Liberals

[TxVietVet]

67. WAKE UP, AMERICA!

[tomp]

68. the only question is: will it be too late? nt

[midnight]

70. The American People are Waking up....

[CoffeeCat]

73. Americans WILL reach a breaking point...

...and when they do--the Patriot Act will be waiting for them.

[hifiguy]

102. Not to mention Blackwater/Xe and their ilk

The PTB are plenty worried that the US military won't shoot the citizenry. They know that the mercenaries will do so, and gleefully.

[Corruption Winz]

74. I wish I could be a aprt of the top 1%. But, without the belief in God...

Can you sell your soul to the devil?

[WHEN CRABS ROAR]

75. We are coming, and yes it will be a class war. You have stolen enough.

I hope it will be peaceful.

[glinda]

78. I do not think it can be.

[mackerel]

80. Nation of sheep,

ruled by wolves, owned by pigs.


http://yfrog.com/h2sgm2j

[deacon]

79. And they need to get there to run these lunatics out of office. n/t

[Doctor_J]

89. In their minds, they did that in November

[HCE SuiGeneris]

81. IMO, it should have been reached already.

Life is too short to be a subject, or serf.

[aikanae]

83. So why did voters forget who caused this mess in 2 years?

How did the GOP get back in the House?

Why can they pass House bills that mean anything? Dems passed 300 bills that never got to the floor of the Senate. Why can they do things and Dems can't? I don't know who I'm more mad at voters, GOP or Dems.

[GatesofPunk]

92. They did it...

With a 'bait and switch.' Prey on fear, promise fiscal conservatism and fall through, make themselves seem more to the center and make Obama and the democrats look far-left, and by using a rephrased "if you are not with us, then you are with the terrorists." Basic republican stategy.

[SpiralHawk]

84. Billionaire Republiconomics (R) are the runination of America

as wanked off & skewed as their so-called 'family values'

[Maineman]

86. Not including food and energy is another attack on citizens.

What are core expenses if they are not food and fuel??

[myrna minx]

88. K&R n/t

[Doctor_J]

91. I hope so, but I have grave doubts

The ones who are angry got what they wanted in November. Now they cheer as unions, public schools, social security and Medicare are destroyed. Are they dumb as rocks? Yup. But their screaming, threatening, and gun-waving at the 2009 Town Hall meetings got them what they want. Meanwhile, as Madison pointed out clearly, peaceful, legal demonstrations, even by 10s of thousands of people, accomplish nothing against fascists.

When the first hate radio station is actually taken over and taken down, I'll believe we will fight back, but as long as our pushback is confined to petitions and holding up signs, the future is bleak.

[CrispyQ]

103. I fear you are right:

"...as long as our pushback is confined to petitions and holding up signs, the future is bleak."

While I love the protests going on in Madison, I wonder how many people, like my BIL, don't even know what's going on. Our media is a huge part of the problem. CNN sends Anderson Cooper to Egypt & Japan, but won't send him to Wisconsin. They put their lying pundits on the air & then claim they are 'keeping them honest.'

[ck4829]

93. K&R

[hobbit709]

95. When they finally snap, the results won't be pretty.

Ask the Bourbons or the Romanovs-if you can find one.

[Major Hogwash]

100. Wasn't there a song "We Didn't Start the Fire" that was along these lines?

How many decades have they been manipulating the mainstream media this way?
I've never seen so many so-called news programs ignore what just happened in Madison over the weekend ever before in my whole life.

Or what is going on in Michigan today.

If there is one way to get attention, it's to put more fucking wood on the fire.