Kamala Harris

The Pronk Pops Show 1282, June 27, 2019, Story 1: Radical Extremist Socialist Democrats (REDS) Pass The Torch — Burn Baby Burn Burn Biden Burn — Democrat Demolition Disco Debate — REDS Party Line: Government Single Payer Medicare (Socialized Medicine) For All Including 30-60 Million Illegal Aliens Given Citizenship To Vote For Democrats! — Lying Lunatic Leftist Losing REDS Line — Never Vote For REDS If You Like Your Employer Provided Health Care,Want To Keep Your Babies Alive, Want A Job, Raise Your Standard of Living and Love Your Country — Staying Alive —  Born to Be Alive — Videos

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Pronk Pops Show 1282 June 27, 2019

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Pronk Pops Show 1280 June 25, 2019

Pronk Pops Show 1279 June 24, 2019

Pronk Pops Show 1278 June 20, 2019 

Pronk Pops Show 1277 June 19, 2019

Pronk Pops Show 1276 June 18, 2019

Pronk Pops Show 1275 June 17, 2019

Pronk Pops Show 1274 June 13, 2019

Pronk Pops Show 1273 June 12, 2019

Pronk Pops Show 1272 June 11, 2019

Pronk Pops Show 1271 June 10, 2019

Pronk Pops Show 1270 June 6, 2019

Pronk Pops Show 1269 June 5, 2019

Pronk Pops Show 1268 June 3, 2019

Pronk Pops Show 1267 May 30, 2019

Pronk Pops Show 1266 May 29, 2019

Pronk Pops Show 1265 May 28, 2019

Pronk Pops Show 1264 May 24, 2019

Pronk Pops Show 1263 May 23, 2019

Pronk Pops Show 1262 May 22, 2019

Pronk Pops Show 1261 May 21, 2019

Pronk Pops Show 1260 May 20, 2019

Pronk Pops Show 1259 May 16, 2019

Pronk Pops Show 1258 May 15, 2019

Pronk Pops Show 1257 May 14, 2019

Pronk Pops Show 1256 May 13, 2019

Pronk Pops Show 1255 May 10, 2019

Pronk Pops Show 1254 May 9, 2019

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Pronk Pops Show 1252 May 7, 2019

Pronk Pops Show 1251 May 6, 2019

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Pronk Pops Show 1247 April 30, 2019

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Pronk Pops Show 1245 April 26, 2019

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Pronk Pops Show 1243 April 24, 2019

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Pronk Pops Show 1241 April 18, 2019

Pronk Pops Show 1240 April 16, 2019

Pronk Pops Show 1239 April 15, 2019

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Pronk Pops Show 1233 April 4, 2019

Pronk Pops Show 1232 April 1, 2019 Part 2

Pronk Pops Show 1232 March 29, 2019 Part 1

Pronk Pops Show 1231 March 28, 2019

Pronk Pops Show 1230 March 27, 2019

Pronk Pops Show 1229 March 26, 2019

Pronk Pops Show 1228 March 25, 2019

Pronk Pops Show 1227 March 21, 2019

Pronk Pops Show 1226 March 20, 2019

Pronk Pops Show 1225 March 19, 2019

Pronk Pops Show 1224 March 18, 2019

Pronk Pops Show 1223 March 8, 2019

Pronk Pops Show 1222 March 7, 2019

Pronk Pops Show 1221 March 6, 2019

Pronk Pops Show 1220 March 5, 2019

Pronk Pops Show 1219 March 4, 2019

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Story 1: Radical Extremist Socialist Democrats (REDS) Pass The Torch — Burn Baby Burn Burn  Biden Burn — Democrat Demolition Disco Debate — REDS Party Line: Government Single Payer Medicare (Socialized Medicine) For All Including 30-60 Million Illegal Aliens Given Citizenship To Vote For Democrats! — Lying Lunatic Leftist Losing REDS Line — Never Vote For REDS If You Like Your Employer Provided Health Care,Want To Keep Your Babies Alive, Want A Job, Raise Your Standard of Living and Love Your Country — Staying Alive —  Born to Be Alive — Videos

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The Trammps – Disco Inferno

Burn Baby Burn, Disco Inferno

Disco Inferno

The Trammps

To my surprise, one hundred stories high
People getting loose y’all, getting down on the roof
Folks are screaming, out of control
It was so entertaining when the boogie started to explode
I heard somebody say
disco inferno
(Burn baby burn) burn that mother down
(Burn baby burn) disco inferno
(Burn baby burn) burn that mother down
Satisfaction came in a chain reaction
(Burnin’)
I couldn’t get enough, so I had to self-destruct
The heat was on, rising to the top
Everybody going strong, and that is when my spark got hot
I heard somebody say
disco inferno
(Burn baby burn) burn that mother down y’all
(Burn baby burn) disco inferno
(Burn baby burn) burn that mother down
Up above my head
I hear music in the air
That makes me know
There’s a party somewhere
Satisfaction came in a chain reaction
(Burnin’)
I couldn’t get enough, so I had to self-destruct
The heat was on, rising to the top
Everybody going strong, and that is when my spark got hot
I heard somebody say
disco inferno
(Burn baby burn) burn that mother down
(Burn baby burn) disco inferno
(Burn baby burn) burn that mother down
burn that mother down
(Burn baby burn) disco inferno
(Burn baby burn) burn that mother down
when my spark gets hot
(Just can’t stop) when my spark gets hot
when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
When my spark gets hot
when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
(Just can’t stop) when my spark gets hot
disco inferno
(Burn baby burn) burn that mother down
(Burn baby burn) disco inferno
(Burn baby burn) burn that mother down
(Burn baby burn)
(Burn baby burn) burn that mother down
(Burn baby burn) disco inferno
Source: LyricFind
Songwriters: Leroy Green / Tyrone Kersey
Disco Inferno lyrics © Reservoir Media Management Inc

Democratic Presidential Debate – June 27 (Full) | NBC News

The Five reacts to the Dems debate as far-left policies take center stage

Tucker: 2020 Democrats all agree on immigration

Everything Marianne Williamson Said During the Democratic Debate | NBC New York

Ted Cruz rips Democratic debate: ‘The clown car is broken’

Live Stream: The Debate Postmortem and America Meets Marianne Williamson

Live Stream: Dems Will Soon Realize That After the Dust Has Settled There’s Nothing But Dust

The New American Story | Marianne Williamson | TEDxBerkeley

Marianne Williamson Wants to Heal the Country By Running for President

‘Conversation with the Candidate’ with Marianne Williamson: Part 2

Why Oprah’s Spiritual Guru Marianne Williamson Joined the 2020 Race | NowThis

Author Marianne Williamson On Why She’s Running For President

Kate McKinnon Perfectly Impersonates Marianne Williamson at the Democratic Debate

Gaetz slams Democrats’ Nazi Germany comparisons

Why are some top Democrats suddenly embracing reparations for slavery?

Votegasm 2020: The Democratic Debates, Night Two | The Daily Show

Watch Highlights From The First Democratic Debate, Day Two | NBC News

After first Democratic debate night two, recapping the highs and lows l Nightline

Democratic Debate: Kamala Harris Blasts Joe Biden Over Busing Stance | NBC New York

Democratic Presidential Debate – June 27 (Full) | NBC News

4 Hours of the Democratic Debates in 5 Minutes — Best Moments | NowThis

Bee Gees – Stayin’ Alive [Version 1] (Video)

Stayin’ Alive

Bee Gees

Well, you can tell by the way I use my walk
I’m a woman’s man, no time to talk
Music loud and women warm, I’ve been kicked around
Since I was born
And now it’s alright, it’s okay
And you may look the other way
We can try to understand
The New York Times’ effect on man
Whether you’re a brother or whether you’re a mother
You’re stayin’ alive, stayin’ alive
Feel the city breakin’ and everybody shakin’
And we’re stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive
Well now, I get low and I get high
And if I can’t get either, I really try
Got the wings of heaven on my shoes
I’m a dancin’ man and I just can’t lose
You know it’s alright, it’s okay
I’ll live to see another day
We can try to understand
The New York Times’ effect on man
Whether you’re a brother or whether you’re a mother
You’re stayin’ alive, stayin’ alive
Feel the city breakin’ and everybody shakin’
And we’re stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive
Life goin’ nowhere, somebody help me
Somebody help me, yeah
Life goin’ nowhere, somebody help me, yeah
I’m stayin’ alive
Well, you can tell by the way I use my walk
I’m a woman’s man, no time to talk
Music loud and women warm
I’ve been kicked around since I was born
And now it’s all right, it’s okay
And you may look the other way
We can try to understand
The New York Times’ effect on man
Whether you’re a brother or whether you’re a mother
You’re stayin’ alive, stayin’ alive
Feel the city breakin’ and everybody shakin’
And we’re stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive, stayin’ alive
Ah, ha, ha, ha, stayin’ alive
Life goin’ nowhere, somebody help me
Somebody help me, yeah
Life goin’ nowhere, somebody help me, yeah
I’m stayin’ alive
Life goin’ nowhere, somebody help me
Somebody help me, yeah
Life goin’ nowhere, somebody help me, yeah
I’m stayin’ alive
Life goin’ nowhere, somebody help me
Somebody help me, yeah
Life goin’ nowhere, somebody help me, yeah
I’m stayin’ alive
Life goin’ nowhere, somebody help me
Somebody help me, yeah
Life goin’ nowhere, somebody help me, yeah
I’m stayin’ alive
Source: LyricFind
Songwriters: Maurice Ernest Gibb / Robin Hugh Gibb / Barry Alan Gibb
Stayin’ Alive lyrics © EMI Music Publishing, Sony/ATV Music Publishing LLC, Warner/Chappell Music, Inc, Universal Music Publishing Group

Bee Gees Stayin Alive (Extended Remaster)

Patrick Hernandez – Born to Be Alive – Official Video (Clip Officiel)

Patrick Hernandez Born to be alive

Born to Be Alive

Patrick Hernandez

We were born to be alive
We were born to be alive
Born, born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
People ask me why
I never find a place to stop
And settle down
Down
Down
But I never wanted all those things
People need to justify
Their lives
Lives
Lives
Yes we were born, born
Born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
It’s good to be alive
To be alive
To be alive
It’s good to be alive
To be alive
To be alive
IT’S GOOD TO BE ALIVE!
Time was on my side
When I was running down the street
It was so fine
fine
fine
A suitcase and an old guitar
It’s all I need to occupy
A mind like mine
Yes we were born, born
Born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
Yes we were born, born
Born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
Yes we were born, born
Born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
Yes we were born, born
Born to be alive
(Born to be alive)
Yes we were born
Born
Born
(Born to be alive)
Born born to be alive
Source: Musixmatch
Songwriters: P. HERNANDEZ
 Former Vice President Joe Biden
Some Joe Biden loyalists said they thought it was misleading of Sen. Kamala Harris to attack him on civil rights. | Scott Olson/Getty Images

2020 ELECTIONS

‘Her ambition got it wrong about Joe’: Harris faces debate backlash

Biden supporters lash out against Kamala Harris.

SAN FRANCISCO — Kamala Harris might be reveling in her sudden burst of attention after roasting Joe Biden over racial issues on the debate stage last week, but a backlash is already brewing.

Biden supporters and Democrats who have attended the former vice president’s events in the days after the first nationally televised debate, are describing Harris’ assault on Biden as an all-too-calculated overreach after she knocked him on his heels in a grilling over busing and his remarks on segregationist senators.

One major Biden supporter from California who declined to be named for publication said Harris’ direct attack on Biden was a mistake that would haunt her.

“It’s going to bite her in the ass,” the supporter noted. “Very early on there was buzz … Biden-Kamala is the dream ticket, the best of both worlds.’’

After this week, “That shit ain’t happening.”

The criticism of Harris over her rough treatment of Biden is among the first signs of backlash — including in her home state — against the California Democrat who had a breakout moment in the first presidential debate. It’s also a sign of the goodwill and loyalty that many still feel toward that the vice president, who has managed to keep many of his backers in his camp, even amid criticism of what was roundly viewed as a subpar debate performance. Indeed, sources say Biden walked away with a $1 million haul after two fundraisers in San Francisco alone this weekend.

“We can be proud of her nonetheless, but her ambition got it wrong about Joe,” said former Illinois Sen. Carol Moseley Braun, the first African American woman to serve in the Senate who has endorsed Biden in the 2020 primary. “He is about the best there is; for her to take that tack is sad.”

Harris stunned Biden in the debate, knocking him back on his heels by noting his past “hurtful” efforts to work with segregationists and what she defined as his opposition to school busing. Harris’ emotional recounting of her own experience in the Berkeley school district as a child who was bused to more segregated schools — “that girl was me,’’ she said — became a defining debate moment, and bruised Biden’s status as the Democratic front-runner.

But one of Biden’s supporters called the attack by Harris “too cute by half” after her campaign tweeted out — and quickly began merchandising — a photo of Harris as a young girl. “Couldn’t they at least pretend that it was semi-organic?” the Biden supporter asked, referring to the planned nature of Harris’ debate night ambush.

Some Biden loyalists said they thought it was misleading of Harris to attack Biden on civil rights, given what they said was his lifelong advocacy on that front.

White, who is African American, said of the underlying segregationist issues Harris attacked: “I thought it was old news.”

Sam Johnson, a Columbia, S.C.-based public affairs consultant who represents many minority clients, accused Harris of “desperately overreaching.”

“I don’t think a lot of folks are saying, ‘well, there’s a lot of credibility of her going after Biden,’” said Johnson, who has not backed a 2020 candidate. “I don’t think it was received by the majority of folks as an attack that is going to move the needle. Most folks aren’t looking at that as something where, hey, ‘Biden was against civil rights carte blanche.’”

“It was planned, and it was staged and it was rehearsed — and they were ready to raise money on it,’’ another Bay Area Biden supporter said of Harris’ roundhouse punch.

But former San Francisco Mayor Willie Brown — whose patronage of Harris helped put the then-Alameda County assistant district attorney on the political map in her early years — bridled at the suggestion that Harris may have muddled her political future with her attack on Biden. He told POLITICO that the vice president has no one to blame but himself for a lackluster and unprepared performance.

“They better hope she would accept [a VP nomination],’’ he said. “Otherwise, he’s a guaranteed loser.”

“At this point, she may be the only life raft he has,’’ he added, “because, as of this moment, he’s on the Titanic.”

Biden, in comments to supporters this weekend, appeared to acknowledge the possibility that his quest may not end in success — an unusual departure from the script of most presidential candidates who confidently toss off phrases like “as your next president.”

Speaking to about 150 backers in the bay-side Marin County community of Belvedere, Biden dismissed the idea that he was making a sacrifice to run for president, but said that he felt an obligation at a time when the country is at a crisis point with the Trump presidency.

“My family and I believe very strongly that you kind of have certain things fall in your wheelhouse,” he said. “It doesn’t mean I’m going to win, doesn’t mean I’m the only person who can be a good president, I’m not saying that.”

He told two different audiences that civil rights is a lifelong “passion’’ and also made reference to his Democratic competitors. While never mentioning Harris by name, he appeared to address her sharp criticism about working with segregationists, pushing back at the notion that reaching across the aisle is an outdated notion.

“I know I’m criticized heavily by my qualified contenders who are running,” he said, “when I say, ‘folks, we’ve got to bring the country together.’”

“Some will say, ‘well, that’s old Joe, they’re the old days,’’ he said. “[But] if that’s the old days,’’ he told supporters, “we’re dead … that’s not hyperbole.”

Former San Francisco Supervisor Leslie Katz, who has known the former San Francisco district attorney for years and is a member of Harris’ finance committee, defended the senator’s approach.

“She was giving him a chance to address the issues that would plague him. … She was gracious, and she personalized it: She said she didn’t think he was a racist,’’ Katz said. “What stunned me was that he wasn’t prepared for that topic, and he needs to figure that out, sooner rather than later.”

Debbie Mesloh, a longtime Harris adviser, also defended Harris’ question to Biden as on the mark — and entirely fair. “She was ready, and she was bold, and she delivered,’’ she said. “She really showed what she can do.”

Harris, meanwhile, was met in her hometown of San Francisco like a conquering hero post-debate, facing a sea of ebullient supporters at a packed #LGBTQ fundraiser during San Francisco’s PRIDE weekend.

But after reveling in the moment, Harris also delivered a reality check about the long campaign still ahead.

“It will be tough. It will be excruciating. It’s going to be a long haul,’’ she told them.

“We’re going to have good weeks. We’re going to have bad weeks. It’s not going to be given to us … but we are going to be joyful about this,’’ she said. “As much success as we’ve had — there’s still much to do.”

https://www.politico.com/story/2019/06/30/kamala-harris-joe-biden-2020-1391212

Who Won the Democratic Debate, Night 2? Experts Weigh In

Senator Kamala Harris impressed campaign veterans across the board with her confrontation with Joseph R. Biden Jr.CreditDoug Mills/The New York Times
Senator Kamala Harris impressed campaign veterans across the board with her confrontation with Joseph R. Biden Jr.
CreditCreditDoug Mills/The New York Times

When the candidates took the stage in Miami on Thursday for the second night of Democratic primary debates, former Vice President Joseph R. Biden Jr. and Senator Bernie Sanders were the stars. By the time they walked off, all eyes were on Senator Kamala Harris.

Twitter is a bad gauge for public opinion, but a decent source for the assessments of professional observers, including some who know the stakes of debates best: veteran campaign strategists and consultants from both parties. Here is a sampling of responses from them, and from some activists and writers.

From beginning to end, Ms. Harris dominated the debate, starting with a pithy applause line — “America does not want a food fight; they want to know how we are going to put food on the table,” she said, as her rivals shouted over one another — and culminating with a deeply personal exchange in which she confronted Mr. Biden over his record on race and desegregation.

“She proved that she can go after a male opponent without suffering the gender stereotype of appearing overly aggressive or overly ambitious. She looked like a winner, plain & simple.” — Patti Solis Doyle, adviser to the 2008 Obama campaign

“Hell of an exchange on race between Joe Biden and Kamala Harris. If Kamala Harris becomes president, it will be because of this moment.” — Frank Luntz, Republican consultant and pollster

“Harris directly confronting Biden on busing/segregationists was historic, powerful, and unimaginable on a presidential stage until very recently, which is itself symptomatic of a world Biden is struggling to defend.” — Rebecca Traister, writer-at-large for New York magazine

“Here are my #demdebate2 rankings: 1. Kamala.” — Zerlina Maxwell, senior director of progressive programming at SiriusXM

A debate watch party in Manhattan.
CreditSarah Blesener for The New York Times

[Mr. Biden is a fragile frontrunner, Ms. Harris has a chance to build momentum: What we learned from watching the debates.]

 

Pete Buttigieg received some tough questions, including one about a police officer’s fatal shooting of a black man in South Bend, Ind., where Mr. Buttigieg is mayor. He has been off the campaign trail for much of the week dealing with the crisis. But his response at the debate, when asked why the South Bend Police Department has not added more black officers during his time in office, impressed some strategists and activists.

“Because I couldn’t get it done,” he said, before adding: “I could walk you through all of the things that we have done as a community, all of the steps that we took, from bias training to de-escalation, but it didn’t save the life of Eric Logan. And when I look into his mother’s eyes, I have to face the fact that nothing that I say will bring him back.”

“I can’t stop thinking about Pete Buttigieg’s answer to that question. It was completely unexpected. Vulnerable, honest, heartfelt, and not one bit of cowardice in it. It was a leader’s answer.” — Charlotte Clymer, spokeswoman for Human Rights Campaign

“Once again, he took responsibility for his failure as mayor to fully address the underlying issues. But he also spoke of the incident in very human terms; of the man who was killed, his family and the impact on his community.” — David Axelrod, former senior adviser to Barack Obama

“If anyone is teaching media training classes for how to speak in English about complicated topics on television—@PeteButtigieg is masterful at it. Never mentions bills, never mentions DC garbely gook.” — Jen Psaki, former spokeswoman for Mr. Obama

Early in the debate, Mr. Biden got some praise from analysts.

“Very smart for @JoeBiden to stick to who he is, what he stands for and not back away from it.” — Jen Psaki

But once he started tangling with Ms. Harris, things went downhill fast. There was little dispute that she came out of their exchanges victorious, and Mr. Biden bruised.

“There are very few candidates who are able to connect on an emotional and personal level with voters the way Joe Biden typically does. But in that exchange with Harris, when she looked at him and gave an intensely personal anecdote, he fell far short of doing so.” — Mo Elleithee, executive director of the Georgetown Institute of Politics and Public Service

Pete Buttigieg, Mr. Biden and Senator Bernie Sanders during a commercial break on Thursday.CreditDoug Mills/The New York TimesI
Pete Buttigieg, Mr. Biden and Senator Bernie Sanders during a commercial break on Thursday.
CreditDoug Mills/The New York Times

“If you are the Biden folks tonight, you have two hopes: 1. The poor reviews convince your principal he needs to listen and come to next debate better prepared. 2. Next round of polls don’t register a huge drop, and you can try to act like Harris’s knock-out was a Twitter phenomenon.” — Brian Fallon, former aide to Hillary Clinton and Chuck Schumer

“Later debates could be more important. But this debate won’t help Biden.” — Laura Belin, Iowa political commentator

[Read more about Mr. Biden’s night.]

Mr. Sanders is one of the highest-polling candidates in the race, with one of the most committed followings. But on Thursday, he struggled to command attention.

“It’s amazing to me how little a factor (outside of the first few minutes) Bernie has been in this debate.” — Mo Elleithee

Senator Kirsten Gillibrand didn’t make as much of a mark as Ms. Harris or Mr. Buttigieg, but she did get good reviews.

“@SenGillibrand is excellent at explaining her evolution from her previous positions — she says she was wrong, she listened, she learned, she changed. That’s what we need to hear from Joe Biden tonight.” — Jess McIntosh, executive editor of Shareblue Media

“Kirsten at her best. Prepared. Committed. Clear.” — Ilyse Hogue, president of Naral

Representative Eric Swalwell was not as well received.

“Good God. I thought nobody could attempt more irritating interruptions than De Blasio last night. But Swalwell is giving him a run for his money.” — Ana Navarro-Cárdenas, Republican strategist

 

Democratic Debate Night 2 Viewership Hits All-Time Debate High For Party Of FDR, JFK & HRC – Update

The 2nd & last of the 1st face-off between the men & women who want Donald Trump’s job was much more punchy, on stage & in the numbersAP

UPDATE, 12:01 PM: Looks like the viewership estimations for the second Democratic debate were as conservative as frontrunner Joe Biden.

With 18.1 million tuning in to see Sen. Kamala Harris school the former VP, the simulcast across NBCMSNBC and Telemundo is officially the most watched debate that the party of FDR, JKF, Barack Obama and Hillary Clinton has ever had.

Topping the previous high of the CNN-hosted and Hillary Clinton and Bernie Sanders-led yakfest of October 2015 by 2.6 million, last night’s debate also had 9 million viewers and 14 million video views across all platforms such as NBCNews.com, MSNBC.com, Telemundo.com, NBC News NOW on OTT devices, Facebook, Twitter and YouTube.

Democratic Debate Night 2 Review: Joe Biden Takes A Beating But Keeps On Tickin’, Kamala Harris Comes Out Swinging On NBC Stage

Which means, CNN better get its engines roaring for the next set of Dems debates that it is hosting in Motor City next month

PREVIOUSLY, 8:39 AM: The second night of the first Democratic debate of the 2020 presidential election season was certainly punchier and snappy than the previous evening.

Kamala Harris came out of her corner Thursday intending to belt and bruise frontrunner Joe Biden, and California’s junior senator did just that – which means the NBC, MSNBC and Telemundo simulcast was also much better TV than Night 1.

Building off the night before, the dust-up was also more of a magnet to viewers in comparison to Wednesday’s rather decorous affair with Sen. Elizabeth Warren and nine other candidates you’ve already forgotten, with the scrimmage scoring a 14.2/26 in metered markets across the trio of outlets. Remarkably steady with the Donald Trump jet-fueled Fox News Channel-hosted first GOP debate of the 2016 campaign, last night’s 9-11 PM ET event jumped 16.4% over Night 1 in the early metrics.

In fact, if the audience of 15.3 million that the 10 candidates drew Wednesday with moderators Savannah Guthrie, Lester Holt, Chuck Todd, Rachel Maddow and José Diaz-Balar is a fair indication, it’s reasonable to predict that last night’s hootenanny could snare just over 17 million viewers.

Still far behind the 24 million that tuned in for the former Celebrity Apprentice host and his fellow Republicans’ first debate almost four years ago, last night would exceed the 16 million that Hillary Clinton, Bernie Sanders (who was on stage in Miami with Harris, Biden and seven other contenders last night) and a trio of other hopefuls got in the first Dems debate of the last POTUS campaign back in October 2015.

Right now, in the unadjusted fast affiliates, Night 2 is looking at around 8.83 million viewers on NBC alone. That number will of course change as is the case with all live events like debates, sports and award shows. We’ll update with the final numbers and more of what else was on the small screen last night when they come in.

By then, there may likely be another swipe from the current POTUS against some of his would-be successors:

Donald J. Trump

@realDonaldTrump

I am in Japan at the G-20, representing our Country well, but I heard it was not a good day for Sleepy Joe or Crazy Bernie. One is exhausted, the other is nuts – so what’s the big deal?

56.5K people are talking about this

In the meantime, the metered market breakdown for last night is an 8.1/15 on NBC itself, 5.3/10 for MSNBC and a 0.8/1 for Telemundo. It’s worth noting that Night 2 saw far fewer Spanish speaking candidates on stage in contrast to Night 1 with ex-cabinet secretary Julian Castro, former Congressman Beto O’Rourke and Garden State Sen. Cory Booker.

The debate dominated the night to give NBC a victory overall in total viewers and the adults 18-49 demographic. ABC’s Holey Moley (0.9, 4.26M) at 8 PM was the night’s top-rated entertainment program, though it was edged by a Young Sheldon rerun on CBS in total viewers. CBS finished the night with the series finale of Life In Pieces(0.6, 3.77M) and a new Elementary (0.4, 3.13M).

Fox was second overall in the demo for the night thanks to MasterChef (0.7, 2.89M), even with last week, and Spin the Wheel (0.6, 2.54M), off two tenths from its series premiere. Still, the latter edged ABC’s Family Food Fight (0.5, 2.53M) at 9 PM. ABC’s Reef Break (0.3, 1.99M) at 10 also dipped two tenths from a week ago.

The CW aired the season finale of In the Dark (0.2, 610,000), which followed an original iZombie (0.2, 670K). Both were flat compared with a week ago.

‘Girlfriend, you are so on’: Marianne Williamson stuns with bizarre performance at Democratic presidential debate as she vows to ‘harness love’ to defeat Donald Trump

  • Self-help author Marianne Williamson stunned onlookers during Dem debate
  • Spiritual guru promised to ‘harness love’ to defeat President Donald Trump 
  • Declared that ‘chemicals’ are to blame for many health issues in the US 
  • Vowed first act as president would be to call the Prime Minister of New Zealand
  • Said she’d say: ‘Girlfriend, you are so on’, after PM Arden said NZ is best for kids
  • Some fans declared her a ‘Wine Aunt’ whom they’d enjoy drinking with

Author and spiritual guru Marianne Williamson has confused viewers as well as attracted new fans with her bizarre performance at the Democratic presidential primary debate.

In a memorable moment, Williamson declared that her first act as president would be to call the Prime Minister of New Zealand and declare the United States a better country to raise children.

‘Girlfriend, you are so on,’ Williamson said she would tell Prime Minister Jacinda Arden, who has said that New Zealand is the best place in the world to raise a child. 

Relegated to the outside left podium, Williamson didn’t speak for the first 30 minutes of the debate, until jumping into an argument about healthcare policy.

Democratic presidential hopeful US author Marianne Williamson speaks during the second Democratic primary debate of the 2020 presidential campaign season

Democratic presidential hopeful US author Marianne Williamson speaks during the second Democratic primary debate of the 2020 presidential campaign season

Williamson was relegated to the far-left podium, polling the lowest of the field along with Congressman Eric Swalwell at the far-right podium

Williamson was relegated to the far-left podium, polling the lowest of the field along with Congressman Eric Swalwell at the far-right podium

Williamson confusingly dismissed the other candidates’ health policy positions as ‘superficial fixes’ and said that President Donald Trump won without a plan just by repeating ‘Make America Great Again.’

She went on to say that Democrats need to ‘go deeper’ and that ‘chemicals’ are to blame for many health problems in the U.S.

In her concluding statement, Williamson declared that she was going to ‘harness love for political purposes’ to defeat Trump.

Her unusual performance drew did however draw praise on social media, where many compared her to a ‘Wine Aunt’ with ‘healing crystal energy.’

‘If the standard for the candidate is who you would want to split box wine with, Marianne Williamson won,’ one Twitter user wrote.

 

Williamson speaks as former Colorado governor John Hickenlooper looks on during the second night of the first Democratic presidential debate on in Miami

Williamson speaks as former Colorado governor John Hickenlooper looks on during the second night of the first Democratic presidential debate on in Miami

‘Marianne Williamson is all of my mom’s friends when the wine kicks in,’ wrote another.’

‘When asked why they voted for President Marianne Williamson, more than 30% of Americans said that she was the kind of woman they could go to a wine bar with,’ another quipped.

Singer Katy Perry felt a kindred spirit in Williamson, writing: ‘not gonna lie i sound like Marianne Williamson after a few glasses of red.’

Williamson’s signature campaign proposal is a call for $100 billion in reparations for slavery to be distributed over 10 years, though she has also thrown out $200 and $500 billion as possible reparations figures.

https://www.dailymail.co.uk/news/article-7191021/Marianne-Williamson-stuns-bizarre-performance-Democratic-presidential-debate.html

 

Marianne Williamson

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Marianne Williamson
Marianne Williamson - 33252886458 (cropped).jpg

Williamson in February 2019
Personal details
Born
Marianne Deborah Williamson

July 8, 1952 (age 66)
HoustonTexas, U.S.

Political party Democratic
Independent (2014)
Children 1
Education Pomona College
Signature

Marianne Deborah Williamson (born July 8, 1952)[1] is an American author, lecturer, and activist. She has written 13 books,[2] including four New York Times number one bestsellers within the “Advice, How To and Miscellaneous” category.[3][4][5][6] She is the founder of Project Angel Food, a volunteer food delivery program that serves home-bound people with AIDS and other life-threatening illnesses.[7] She is also the co-founder of the Peace Alliance, a nonprofit grassroots education and advocacy organization supporting peace-building projects.[8]

In 2014, as an independent, Williamson ran unsuccessfully for the seat of California’s 33rd congressional district in the United States House of Representatives elections in California. On January 29, 2019, she announced her campaign to seek the Democratic nomination for the 2020 United States presidential election.[9]

Contents

Early life and education

Williamson was born in Houston, Texas, in 1952.[10][11][12] She is the youngest of three children of Samuel “Sam” Williamson, an immigration lawyer,[12][13] and Sophie Ann (Kaplan), a homemaker.[14][15] Her family is Jewish, and she was raised in Conservative Judaism.[13][16] Her father’s original surname was Vishnevetsky.[17] After graduating from Houston’s Bellaire High School, Williamson spent two years studying theater and philosophy at Pomona College in Claremont, California.[14]

Writing and speaking career

Williamson dropped out of college her junior year in 1973 and moved to New York City, intending to pursue a career as a cabaret singer.[14][13]

In 1979, after delving into A Course in Miracles, she returned to Houston, where she ran a combination metaphysical bookstore and coffeeshop.[14][18]

In 1983 she moved to Los Angeles. She began regularly lecturing on A Course in Miracles in Los Angeles and New York City, and eventually in other cities in the U.S. and Europe as well.[18][19]

She published her first book, A Return to Love: Reflections on the Principles of A Course in Miracles, in 1992.

Books

Williamson’s first book, A Return to Love, was featured on The Oprah Winfrey Show in 1992 and remained on The New York Times bestseller list for 39 weeks in the ‘Advice, How To and Miscellaneous’ category.[20] She has published 12 other books, seven of which have been on the same New York Times bestseller list and four of which have been #1.[3][4][5][6] She has sold more than 3 million copies of her books.[21] In 2018, she published a 20th anniversary revised edition of Healing the Soul of America.[22]

Healing the Soul of America

In 1997 Williamson published her book Healing the Soul of America (hardcover originally titled The Healing of America) and began a more robust political engagement. In this book, she laid out plans to “transform the American political consciousness and encourage powerful citizen involvement to heal our society”.[23]

She wrote in the book,

It is a task of our generation to recreate the American politeia, to awaken from our culture of distraction and re-engage the process of democracy with soulfulness and hope. Yes, we see there are problems in the world. But we believe in a universal force that, when activated by the human heart, has the power to make all things right. Such is the divine authority of love: to renew the heart, renew the nations, and ultimately, renew the world.[24]

Patricia Holt of the San Francisco Chronicle called it “A huge and wondrous surprise…. The Healing of America somehow makes us proud to be Americans, because every hope for democracy seems newly within our grasp.”[25]

Television and media appearances

She has been a guest on television programs such as The Oprah Winfrey ShowGood Morning America, and Real Time with Bill Maher. In December 2006, a Newsweek magazine poll named her one of the 50 most influential baby boomers. She bases her teaching and writing on A Course in Miracles, a nonreligious self-study program of spiritual psychotherapy.[26]

Social activism

HIV/AIDS advocacy

Centers for Living

In response to the HIV/AIDS crises in the 1980s, Williamson founded the Los Angeles and Manhattan Centers for Living, which served as a refuge and non-medical support for people with HIV/AIDS. There they could connect with a variety of psychological and emotional resources, as well as community of support. She has said of that time that “there was so much love, because there was nothing to hold onto but love.”[27]

Project Angel Food

In 1989, she launched Project Angel Food to build off the work of the Centers for Living. Originally launched to support HIV/AIDS patients, Project Angel Food expanded its outreach and currently cooks and delivers more than 12,000 meals each week, free of charge, to the homes of men, women and children affected by various life-threatening illnesses.[28] The organization’s food and nutrition services, including medically tailored meals and nutritional counseling, help under-served people throughout Los Angeles County who are too sick to shop or cook for themselves. In 2017, Project Angel Food served its 11 millionth meal.[29]

Women’s advocacy

She has worked on behalf of women’s empowerment issues for decades. In 1993 she published her #1 NYT bestseller, A Woman’s Worth.[30] Publishers Weekly said of the book: “Williamson gives sound, empowering advice on relationships, work, love, sex and childrearing.”[31]

In 2010, she launched a series of Sister Giant conferences, trainings, and events to support individuals – particularly women – who want to increase their efficacy as activists and/or run for office. On the initiative she has said, “I want to be a cheerleader for women who have never even considered running for office or being involved in a campaign, but who in the quietness of their hearts might think, ‘Why not me?’” The events have focused on how to better address many social issues, including: child poverty, low levels of female representation in office, campaign finance reform, high levels of mass incarceration, among other issues.[32][33]

Peace-building

In 2004, she co-founded The Peace Alliance, a nonprofit grassroots education and advocacy organization focused on increasing U.S. governmental support of peace-building approaches to domestic and international conflicts. She has said of the need for this work: “You don’t just wait until there is a violent eruption and then just try to throw people in jail or just wait until there is a violent eruption and then try to bomb an entire country, there’s just a limit past which this is not workable. Rather, you proactively seek to cultivate the conditions of peace…so we can have a much more sophisticated analysis of what it will take to create a more peaceful world.”[34]

Poverty alleviation

For years Williamson was a member of the Board of Directors and remains a public supporter of RESULTS, an organization aiming to create the political will to end hunger and poverty around the world. It lobbies public officials, does research, and works with the media and the public to addresses the causal issues of poverty. RESULTS has 100 U.S. local chapters and works in six other countries.[35][32]

Love America Tour

Starting in the winter of 2018, she began touring the United States as part of her Love America Tour, discussing how she believes “a revolution in consciousness paves the way to both personal and national renewal.” Of the tour she said: “Our own disconnection from the political process, lack of knowledge of how our system operates, lack of understanding of our history, and confusion about many of the issues that confront us now, have led in too many cases to a dangerous emotional disconnection between our country and ourselves.”[36][37]

Political career

2014 U.S. House of Representatives campaign

Williamson campaigning in 2014

In 2014 Williamson ran, as an Independent, for the seat of California’s 33rd congressional district (in westernmost Los Angeles County) in the United States House of Representatives elections. Regarding her motivation for running, she has said, “America has gone off the democratic rails. A toxic brew of shrinking civil liberties and expanded corporate influence are poisoning our democracy.” Her core message was that “humanitarian values should replace economic values as the ordering principle of our civilization.”[38]

Prominent elected and public officials endorsed her campaign, including former governors Jennifer Granholm and Jesse Ventura; former representatives Dennis Kucinich and Alan Grayson; and Van Jones, among others.[39] Alanis Morissette wrote and performed Williamson’s campaign song, “Today”.[40]

She campaigned on a broad array of progressive issues, including: greater access to high-quality education and free college; child poverty; economic justice; climate change & renewable energy; campaign finance reform; universal health care; criminal justice reform; ending perpetual war and increasing investments in peacebuilding; women’s reproductive rights; and LGBTQ equality among others.[41][42][43]

She finished fourth out of 16 candidates,[44] with 14,335 votes for 13.2% of the vote. Williamson said of the process and its outcome: “This conversation of a politics of conscience, a politics of the heart, is much bigger than any one woman winning a congressional seat. And if that woman loses, the conversation goes on. My losing the congressional seat is small; what’s big is the larger conversation … you impact the ethers, and that energy goes somewhere.”[45]

2020 presidential campaign

Williamson in New Hampshire in January 2019

On November 15, 2018, Williamson announced the formation of a presidential exploratory committee in a video in which she acclaimed that there was a “miracle in this country in 1776 and we need another one” which would require “a co-creative effort, an effort of love and a gift of love, to our country and hopefully to our world”.[46] Visiting New Hampshire in early January, she said that she “received enough positive energy to make me feel I should take the next step”,[47] and subsequently hired Brent Roske to lead her operation in Iowa.[48]

Roske, a film producer who also contested the same 2014 primary for the seat now represented by Ted Lieu,[49][50] maintained a wide network of connections in Iowa due in part to his previous involvement in the state, working on a political television show about the 2016 caucuses.[50] In response to the Iowa Democratic Party‘s proposed creation of “virtual caucuses” in the 2020 race, Williamson’s campaign announced that it would appoint 99 “Virtual Iowa Caucus Captains” (each assigned to a single county) to turn out supporters in both the virtual and in-person caucuses.[51]

Williamson officially launched her presidential campaign in Los Angeles on January 28, 2019,[52] in front of an audience of 2,000 attendees, and appointed Maurice Daniel, who served alongside Donna Brazile in Dick Gephardt‘s campaign for the Democratic nomination in 1988, as her national campaign manager,[49] with her campaign committee, “Marianne Williamson for President”, officially filed on February 4.[53] Following her Los Angeles announcement, she held her Iowa kickoff in Des Moines on January 31.[54]

On February 16, in addition to scheduling another trip to New Hampshire, Williamson’s campaign announced the appointment of former Congressman Paul Hodes, who represented New Hampshire’s 2nd congressional district from 2007 to 2011, as New Hampshire state director and senior campaign advisor.[55] Former Georgia state assemblywoman Gloria Bromell Tinubu, who returned to South Carolina in 2011 to run for Congress in the state’s 7th districtand later joined Phil Noble‘s bid for governor in 2018 as his running mate, served as South Carolina state director and national senior advisor to the Williamson campaign,[56] but later ceased working with the campaign.[57]

On May 9, Williamson’s campaign announced that she had received enough contributions from unique donors to enter the official primary debates,[58] having raised $1.5 million in the first quarter of 2019, during which the campaign received donations from 46,663 unique individuals.[59] She subsequently met the polling criteria, with three unique polls at 1% from qualifying pollsters, on May 23.[60] In June, Williamson confirmed that she moved to Des Moines, Iowa in advance of the 2020 caucuses.[61]

Political positions

Williamson claims to be a “pretty straight-line progressive Democrat”, supporting an increase of the federal minimum wage to $15 per hour, reducing income inequality, addressing climate change, and tackling student loan debt.[62] She backs a “Medicare for All model”, Deferred Action for Childhood Arrivals (DACA) and a pathway to citizenship for undocumented immigrants without a “serious criminal background”, and says that the U.S. needs to be an “honest broker” in the Israeli–Palestinian conflict.[63]

She ranks climate change as “the greatest moral challenge of our generation” and backs the Green New Deal.[64] She has called for the establishment of a Department of Peace to expand global diplomacy, mediation, and educational and economic development.[65] She also voices support for stricter gun control, criminal justice reform, improving public education, free college tuition, raising the top marginal tax rate to a point where high earners pay “their fair share of taxes”, describing her policies as a “renovation” of a “sociopathiceconomic system” focused on “short-term profit maximization”.[49] She appeared to oppose mandatory vaccinations when she described them as “Orwellian” and stating “To me, it’s no different than the abortion debate.”[66] She later stated that she misspoke, and “I support vaccines. Public safety must be carefully balanced with the right of individuals to make their own decisions.”[67] According to the Los Angeles Times, she “has a history of skeptical comments about vaccinations.”[67][68]

Her signature campaign promise is a call for $100 billion in reparations for slavery to be distributed over 10 years by a group of black leaders for selected “economic and education projects”,[49][69] and later suggested distributing $200 to $500 billion on The Breakfast Club,[70] a sum far greater than any other primary contenders support. In doing so, Williamson became the only candidate in the Democratic field to submit a detailed plan for reparations for black Americans, though fellow Democratic presidential candidates Elizabeth Warren and Kamala Harris later pledged support for reparations in late February 2019.[71]

Personal life

Williamson was briefly married.[13] In 1990, she gave birth to a daughter, India Emma.[72]

Bibliography

References …

External links

https://en.wikipedia.org/wiki/Marianne_Williamson

 

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The Pronk Pops Show 1278, June 20, 2019, Part 1– Story 1: President Trump: “Iran made a very big mistake” — Option A: Strong Message and Done , Option B: One Missile Attack and Done, Option C: Total War With Iran and World Recession Due To Spike in Oil and Gas Prices — Videos — Story 2: Federal Reserve Board Votes To Keep Federal Funds Target Range of 2.25% to 2.5% Waiting For July 2019 Jobs Report and Second Quarter Real GDP Growth Rate Number — Videos — Story 3: Creepy, Sleepy, Dopey Joey Biden in Praise of Civility of Democrat Segregationist Senators — Radical Extremist Democrats (REDS) Attack Biden — Videos — Part 2– Story 4: President Trump Pushes All The Right Buttons in 2020 Stump Speech in Orlando, Florida — Boom Boom Boom — Send Them Home — MAGA MAGA MAGA — Lock Them Up — Four More Years — Keep America Great — Win Win Win — Videos

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The Pronk Pops Show Podcasts

Pronk Pops Show 1278 June 20, 2019 

Pronk Pops Show 1277 June 19, 2019

Pronk Pops Show 1276 June 18, 2019

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Pronk Pops Show 1274 June 13, 2019

Pronk Pops Show 1273 June 12, 2019

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Pronk Pops Show 1260 May 20, 2019

Pronk Pops Show 1259 May 16, 2019

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Pronk Pops Show 1257 May 14, 2019

Pronk Pops Show 1256 May 13, 2019

Pronk Pops Show 1255 May 10, 2019

Pronk Pops Show 1254 May 9, 2019

Pronk Pops Show 1253 May 8, 2019

Pronk Pops Show 1252 May 7, 2019

Pronk Pops Show 1251 May 6, 2019

Pronk Pops Show 1250 May 3, 2019

Pronk Pops Show 1249 May 2, 2019

Pronk Pops Show 1248 May 1, 2019

Pronk Pops Show 1247 April 30, 2019

Pronk Pops Show 1246 April 29, 2019

Pronk Pops Show 1245 April 26, 2019

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Pronk Pops Show 1242 April 23, 2019

Pronk Pops Show 1241 April 18, 2019

Pronk Pops Show 1240 April 16, 2019

Pronk Pops Show 1239 April 15, 2019

Pronk Pops Show 1238 April 11, 2019

Pronk Pops Show 1237 April 10, 2019

Pronk Pops Show 1236 April 9, 2019

Pronk Pops Show 1235 April 8, 2019

Pronk Pops Show 1234 April 5, 2019

Pronk Pops Show 1233 April 4, 2019

Pronk Pops Show 1232 April 1, 2019 Part 2

Pronk Pops Show 1232 March 29, 2019 Part 1

Pronk Pops Show 1231 March 28, 2019

Pronk Pops Show 1230 March 27, 2019

Pronk Pops Show 1229 March 26, 2019

Pronk Pops Show 1228 March 25, 2019

Pronk Pops Show 1227 March 21, 2019

Pronk Pops Show 1226 March 20, 2019

Pronk Pops Show 1225 March 19, 2019

Pronk Pops Show 1224 March 18, 2019

Pronk Pops Show 1223 March 8, 2019

Pronk Pops Show 1222 March 7, 2019

Pronk Pops Show 1221 March 6, 2019

Pronk Pops Show 1220 March 5, 2019

Pronk Pops Show 1219 March 4, 2019

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Story 1: President Trump: “Iran made a very big mistake” — Option A: Strong Message and Done, Option B: One Missile Attack and Done, Option C: Total War With Iran and World Recession Due To Spike in Oil and Gas Prices — Videos —

Tucker: Washington is war-hungry

Pentagon releases footage of US drone being shot down by Iran

LIVE: President Trump first comments after Iran shoots down US Drone | June 20th 2019

US is bringing the Iranian economy to its knees: Nile Gardiner

Oil prices rise after Iran shoots down US drone

40% Chance of 2020 U.S.-Iran Military Conflict: Eurasia CEO

Iran shoots down US drone as tensions escalate

Video shows Iran shooting down US drone

Iran says it shot down US drone ‘violating Iranian air space’ amid growing tensions

Iran Shot Down U.S. Drone to Disrupt Trade in Persian Gulf, Senior U.S. Military Official Says

President Trump makes first comments after Iran shoots down U.S. Drone | ABC News Special Report

Iran says it’s ‘ready for war’

Iran shoots down US military spy drone | DW News

Iran says it will breach nuclear deal ‘in days’ as its uranium stockpile limit nears

Is The U.S. Going To War With Iran? | AJ+

Iran’s foreign minister accuses US, Mideast of provoking conflict

Iran’s Zarif thrashes Trump, “US driven by pathological obsession” (Munich Security Conference 2019)

Can air strikes take out Iran’s nuclear facilities?

Did Trump Just Blink or Bluff in Standoff With Iran?

Anthony Halpin

Bloomberg

Was it all a bluff? After news leaked that President Donald Trump approved and then called off U.S. airstrikes on Iran last night, it emerged he’d warned Tehran about an imminent attack while insisting he was against a war.

Today, as airlines began re-routing flights away from the Strait of Hormuz, Iran’s Foreign Ministry called in the Swiss ambassador, who also represents U.S. interests, for talks.

Was the outreach why Trump abandoned the strikes? Or was this the latest example of the whipsaw approach from a president who’s twice attacked Syria but also backed away from using force after lashing out at Iran and North Korea?

The leak of Trump’s about-face also speaks volumes about the battle for influence in the White House. Hardliners clearly thought they’d convinced him to back a tough response to Iran’s downing of a U.S. Navy drone. Yet Trump was elected on a pledge to pull out of Middle East wars.

The president, who governs with the cliffhanger style of his Apprentice TV show, thrives on keeping supporters hooked on dramatic twists.

But as his 2020 re-election campaign gains steam, the stakes now include the prospect of armed conflict and instability in a region that supplies a third of the world’s oil.

Global Headlines

Biden’s burden | Democratic front-runner Joe Biden is encountering the same pitfalls as other seasoned politicians who’ve found their experience and record can be a liability. The former Delaware senator’s struggles to defend his remarks this week about finding common ground with two segregationists is an early sign of the trouble he could have explaining a complicated voting record and his nostalgia for a Washington collegiality that has steadily diminished since he was first elected in 1972.

Border control | Trump praised Mexico’s efforts to crack down on migrants crossing the border into the U.S. after the two countries entered an agreement aimed at stemming the flow of people entering Mexico from Central America. Mexico will take greater control of its southern border and ask foreigners to register their arrival.

Osaka drama | Before Trump, Group of 20 summits were dull if worthy affairs. This year’s gathering in Osaka, Japan next week promises to be anything but, as the U.S. president holds talks with China’s Xi Jinping after threatening to escalate their trade conflict. The best-case scenario would be a pause in new U.S. tariffs and a resumption of negotiations that broke down in May. The worst-case would be a new Cold War between the two largest economies.

Favorites flushed | European Union leaders cast aside the candidates who’ve dominated the race to head the next EU Commission and will start from scratch less than two weeks before a self-imposed deadline. The decision at a summit in Brussels extends gridlock that has left investors in the dark over a series of critical posts including the next president of the European Central Bank.

Bad air | As climate change tops political agendas from Washington to New Delhi, there’s no solution in sight for the bad air choking Europe’s poorest countries. While the EU has focused mostly on stability in the volatile Balkans, health problems and lost productivity from air pollution cost the continent more than 10 billion euros a year. Obsolete coal plants and cars spew smog and hundreds of thousands of people burn tires, wood and trash to stay warm.

What to Watch

Boris Johnson and Jeremy Hunt will go head-to-head in the contest to become the U.K.’s next prime minister as they seek votes from the Conservative Party’s 160,000 grassroots members over the next month. Ukraine’s Constitutional Court threw out a challenge to a decree by President Volodymyr Zelenskiy ordering early parliamentary elections. The ruling confirmed a vote will take place next month and a new government should be in place by the fall. Turkey reruns the election for mayor of Istanbul on Sunday, pitting former prime minister and ruling AK Party candidate Binali Yildirim against opposition challenger Ekrem Imamoglu, who was stripped of his narrow victory in the March 31 ballot.

And finally…The U.K. is poised to generate more energy from low-carbon sources than from fossil fuels for the first time since the Industrial Revolution. Wind, solar, hydro and nuclear plants provided 48% of the nation’s power in the first five months of this year. The U.K. has gone without burning coal, the dirtiest fossil fuel, for the equivalent of 80 days so far in 2019, including one stretch of 18 days in a row.

–With assistance from Kathleen Hunter and Daniel Ten Kate.

https://news.yahoo.com/did-trump-just-blink-bluff-100815556.html

Trump says Iran made ‘big mistake’ by taking down US drone

today

President Donald Trump speaks during a meeting with Canadian Prime Minister Justin Trudeau in the Oval Office of the White House, Thursday, June 20, 2019, in Washington. Trump declared Thursday that “Iran made a very big mistake” in shooting down a U.S. drone but suggested it was an accident rather than a strategic error. (AP Photo/Evan Vucci)

WASHINGTON (AP) — President Donald Trump declared Thursday that “Iran made a very big mistake” by shooting down a U.S. surveillance drone over the Strait of Hormuz but suggested it was a foolish error rather than an intentional escalation of the tensions that have led to rising fears of open military conflict.

Asked about a U.S. response, the president said pointedly, “You’ll soon find out.”

The downing of the huge, unmanned aircraft , which Iran portrayed as a deliberate defense of its territory rather than a mistake, was a stark reminder of the risk of military conflict between U.S. and Iranian forces as the Trump administration combines a “maximum pressure” campaign of economic sanctions against Iran with a buildup of American forces in the region.

The drone — which has a wingspan wider than a Boeing 737 — entered Iranian airspace “despite repeated radio warnings” and was shot down by Iran, acting under the U.N. Charter which allows self-defense action “if an armed attack occurs,” Iran’s U.N. Ambassador Majid Takht Ravanchi said in a letter to the U.N. secretary-general.

Donald Trump is playing down Iran's downing of an American drone, saying that it might have been a mistake executed by someone just being "loose and stupid." He said it was a "new wrinkle" in escalating tensions between the U.S. and Iran. (June 20)

Trump, who has said he wants to avoid war and negotiate with Iran over its nuclear ambitions, appeared to play down the significance of the shootdown.

He cast it as “a new wrinkle … a new fly in the ointment.” Yet he also said that “this country will not stand for it, that I can tell you.”

Shortly before Trump spoke, Air Force Lt. Gen. Joseph Guastella, commander of U.S. Central Command air forces in the region, took a more pointed view of the shootdown in an area where Trump has blamed Iran for attacking shipping vessels.

“This attack is an attempt to disrupt our ability to monitor the area following recent threats to international shipping and free flow of commerce,” he said.

The Trump administration has been putting increasing economic pressure on Iran for more than a year. It reinstated punishing sanctions following Trump’s decision to pull the U.S. out of an international agreement intended to limit Iran’s nuclear program in exchange for relief from earlier sanctions.

The other world powers who remain signed on to the nuclear deal have set a meeting to discuss the U.S. withdrawal and Iran’s announced plans to increase its uranium stockpile for June 28, a date far enough in the future to perhaps allow tensions to cool.

Citing Iranian threats, the U.S. recently sent an aircraft carrier to the Persian Gulf region and deployed additional troops alongside the tens of thousands already there. All this has raised fears that a miscalculation or further rise in tensions could push the U.S. and Iran into an open conflict 40 years after Tehran’s Islamic Revolution.

“We do not have any intention for war with any country, but we are fully ready for war,” Revolutionary Guard commander Gen. Hossein Salami said in a televised address.

The paramilitary Guard, which answers only to Supreme Leader Ayatollah Ali Khamenei, said it shot down the drone at 4:05 a.m. Thursday when it entered Iranian airspace near the Kouhmobarak district in southern Iran’s Hormozgan province. Kouhmobarak is about 1,200 kilometers (750 miles) southeast of Tehran.

The first U.S. reaction was Trump’s Thursday morning tweet of six forceful words: “Iran made a very big mistake.”

But later, while meeting with Canadian Prime Minister Justin Trudeau, Trump said, “I would imagine it was a general or somebody that made a mistake in shooting that drone down.

He said the American drone was unarmed and unmanned and “clearly over international waters.” It would have “made a big, big difference” if someone had been inside, he said.

“I find it hard to believe it was intentional, if you want to know the truth,” Trump said. “I think that it could have been somebody who was loose and stupid that did it.”

Taking issue with the U.S. version of where the attack occurred, Iranian Foreign Minister Mohammad Javad Zarif tweeted that his country had retrieved sections of the military drone “in OUR territorial waters where it was shot down.” He said, “We don’t seek war but will zealously defend our skies, land & waters.”

U.S. Gen. Guastella disputed that contention, telling reporters that the aircraft was 34 kilometers (21 miles) from the nearest Iranian territory and flying at high altitude when struck by a surface-to-air missile. The U.S. military has not commented on the mission of the remotely piloted aircraft that can fly higher than 10 miles in altitude and stay in the air for over 24 hours at a time.

One U.S. official said there was a second American aircraft in the area that was able to get video and imagery of the drone when it was shot down.

Congressional leaders came to the White House for an hour-long briefing in the Situation Room late Thursday with top national security officials including Secretary of State Mike Pompeo, CIA Director Gina Haspel, Joint Chiefs Chairman Gen. Joseph Dunford acting Defense Secretary Patrick Shanahan and Army Secretary Mark Esper, whom Trump has said he’ll nominate as Pentagon chief.

The Senate’s top Democrat called the downing of the American drone “deeply concerning” and accused the administration of not having an Iran strategy and keeping Congress and the rest of the nation in the dark.

“The president needs to explain to the American people why he’s driving us toward another endless conflict in the Middle East,” said Sen. Chuck Schumer of New York.

House Speaker Nancy Pelosi said she didn’t think Trump wanted war with Iran and the American people have “no appetite” for it either. She said the U.S. needs to be “strong and strategic” about protecting its interests but “cannot be reckless.”

Talking tougher, Republican Sen. Lindsey Graham of South Carolina called Iran a “murderous regime” and said, “If they’re itching for a fight they’re going to get one.”

“We’re a lot closer today than we were yesterday, and only God knows what tomorrow brings,” said Graham, a Trump ally who talked with the president by telephone.

The senator also focused on the issue of Iran’s nuclear ambitions, saying its leaders have refused to negotiate after Trump withdrew the U.S. from the international agreement to limit Iranian development of nuclear weapons.

Graham said it’s imperative that the U.S. clearly tell the Iranians that any attempt to increase uranium enrichment will be seen as a “hostile act against the United States and our allies in Israel and will not go unanswered.”

Another factor: This all comes as Trump is launching his re-election campaign. He ran for president promising to bring American troops home from the Middle East and Afghanistan and has repeatedly said he wants to keep America out of “endless wars.”

Ari Fleischer, who was press secretary for President George W. Bush, cautioned against thinking about politics when weighing any response to Iran.

“I suspect a successful limited counter-strike, such as taking out the missile battery that fired at the drone or the sinking of an unmanned Iranian vessel, would be seen as a well-calibrated show of resolve and discipline,” Fleischer said in an interview. He added that “if we do nothing, Iran may strike again thinking it has impunity.”

https://apnews.com/84ad15edb7324472bb867852059a0a7a

Iran shoots down US surveillance drone, heightening tensions

29 minutes ago

In this Oct. 24, 2018, photo released by the U.S. Air Force, members of the 7th Reconnaissance Squadron prepare to launch an RQ-4 Global Hawk at Naval Air Station Sigonella, Italy. Iran’s Revolutionary Guard shot down a U.S. RQ-4 Global Hawk on Thursday, June 20, 2019, amid heightened tensions between Tehran and Washington over its collapsing nuclear deal with world powers, American and Iranian officials said, though they disputed the circumstances of the incident. (Staff Sgt. Ramon A. Adelan/U.S. Air Force via AP)

TEHRAN, Iran (AP) — Iran’s Revolutionary Guard shot down a U.S. surveillance drone Thursday in the Strait of Hormuz, marking the first time the Islamic Republic directly attacked the American military amid tensions over Tehran’s unraveling nuclear deal with world powers.

The two countries disputed the circumstances leading up to an Iranian surface-to-air missile bringing down the U.S. Navy RQ-4A Global Hawk, an unmanned aircraft with a wingspan larger than a Boeing 737 jetliner and costing over $100 million.

Iran said the drone “violated” its territorial airspace, while the U.S. called the missile fire “an unprovoked attack” in international airspace over the narrow mouth of the Persian Gulf and President Donald Trump tweeted that “Iran made a very big mistake!”

Trump later appeared to play down the incident, telling reporters in the Oval Office that he had a feeling that “a general or somebody” being “loose and stupid” made a mistake in shooting down the drone.

AP Graphic

The incident immediately heightened the crisis already gripping the wider region, which is rooted in Trump withdrawing the U.S. a year ago from Iran’s 2015 nuclear deal and imposing crippling new sanctions on Tehran. Recently, Iran quadrupled its production of low-enriched uranium to be on pace to break one of the deal’s terms by next week while threatening to raise enrichment closer to weapons-grade levels on July 7 if Europe doesn’t offer it a new deal.

Citing unspecified Iranian threats, the U.S. has sent an aircraft carrier to the Middle East and deployed additional troops alongside the tens of thousands already there. All this has raised fears that a miscalculation or further rise in tensions could push the U.S. and Iran into an open conflict 40 years after Tehran’s Islamic Revolution.

“We do not have any intention for war with any country, but we are fully ready for war,” Revolutionary Guard commander Gen. Hossein Salami said in a televised address.

The paramilitary Guard, which answers only to Supreme Leader Ayatollah Ali Khamenei, said it shot down the drone at 4:05 a.m. Thursday when it entered Iranian airspace near the Kouhmobarak district in southern Iran’s Hormozgan province. Kouhmobarak is about 1,200 kilometers (750 miles) southeast of Tehran.

Iran’s Revolutionary Guard commander Gen. Hossein Salami. (Sepahnews via AP)

The drone took off from the southern Persian Gulf and collected data from Iranian territory, including the southern port of Chahbahar near Iran’s border with Pakistan, the Guard said in comments that appeared aimed at showing it could track the aircraft.

The U.S. military has not commented on the mission of the remotely piloted aircraft that can fly higher than 10 miles in altitude and stay in the air for over 24 hours at a time.

Iran used its air defense system known as Third of Khordad to shoot down the drone — a truck-based missile system that can fire up to 18 miles (30 kilometers) into the sky, the semi-official Fars news agency reported.

Iranian state TV later broadcast video it described as the moment the Guard launched the surface-to-air missile that struck the U.S. drone. Chants of “God is great!” could be heard as a fireball appeared in the darkened sky.

Typically, militaries worldwide call out to errant aircraft entering their airspace before firing. It’s unclear whether Iran gave any warning before opening fire. The U.S. military says Iran fired on and missed another drone last week near the Strait of Hormuz, the narrow mouth of the Persian Gulf through which 20% of all global oil moves.

The U.S. has been worried about international shipping through the strategic waterway since tankers were damaged in May and June in what Washington has blamed on limpet mines from Iran, although Tehran denied involvement.. On Wednesday in the United Arab Emirates, the U.S. Navy showed fragments of mines that it said bore “a striking resemblance” to those seen in Iran

The RQ-4 Global Hawk was at least 34 kilometers from Iranian territory when it was shot down by an Iranian surface-to-air missile, said Air Force Lt. Gen. Joseph Guastella, commander of the U.S. Central Command. He said it was an attempt to disrupt U.S. efforts to monitor the Persian Gulf region.

But Salami, speaking to a crowd in the western city of Sanandaj, described the American drone as “violating our national security border.”

“Borders are our red line,” the Revolutionary Guard general said. “Any enemy that violates the borders will be annihilated.”

Iran’s Foreign Ministry also said the drone entered Iranian airspace, and Foreign Minister Mohammad Javad Zarif tweeted it would take its case to the U.N. He later tweeted that Iran retrieved parts of the drone in its territorial waters.

Russian President Vladimir Putin urged caution, warning any war between Iran and the U.S. would be a “catastrophe for the region as a minimum.”

Israeli Prime Minister Benjamin Netanyahu urged support for U.S. efforts to halt what he called escalating Iranian provocations.

“In the last 24 hours, Iran has intensified its aggression against the United States and against all of us,” he said.

U.N. Secretary-General Antonio Guterres expressed concern and urged all parties to “avoid any action that could inflame the situation,” said U.N. spokesman Stephane Dujarric.

America stations some RQ-4 Global Hawks at the Al-Dhafra Air Base in the UAE, near the capital of Abu Dhabi. Associated Press journalists saw the drones on the base’s tarmac during a March 2016 visit by then-Vice President Joe Biden. The U.S. military occasionally publishes images from there of the drones, which have a distinctive hump-shaped front and an engine atop the fuselage.

Iran has claimed to have shot down U.S. drones before. In the most famous incident, in December 2011, Iran seized an RQ-170 Sentinel flown by the CIA to monitor Iranian nuclear sites after it entered Iranian airspace from neighboring Afghanistan. Iran later reverse-engineered the drone to create their own variants.

Elsewhere in the region Thursday, Saudi Arabia said Yemen’s Iranian-backed Houthi rebels fired a rocket at a desalination plant in al-Shuqaiq, a city in the kingdom’s Jizan province. The state-run Saudi Press Agency quoted military spokesman Col. Turki al-Maliki as saying it caused no damage or casualties.

The Yemeni rebel Al-Masirah satellite news channel earlier said the Houthis targeted a power plant in Jizan, near the kingdom’s border with Yemen, with a cruise missile.

A coalition led by Saudi Arabia, a key U.S. ally, has been battling the Houthis since March 2015 in Yemen, the Arab world’s poorest nation now pushed to the brink of famine by the conflict. In recent weeks, the Houthis have launched a new campaign sending missiles and bomb-laden drones into Saudi Arabia.

https://apnews.com/e4316eb989d5499c9828350de8524963

 

 

Story 2: Federal Reserve Board Votes To Keep Federal Funds Target Range of 2.25% to 2.5% Waiting For July 2019 Jobs Report and Second Quarter Real GDP Growth Rate Number — Videos

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Trump slams Fed over interest rate policy

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S&P 500 closes at new record as Wall Street bets Fed will lower rates, Dow surges nearly 250 points

VIDEO02:12
The S&P 500 just closed at a record high — Here’s what four experts say to watch

Stocks rallied on Thursday, led by strong gains in tech and energy shares, as Wall Street cheered the possibility that the Federal Reserve will cut interest rates next month.

The S&P 500 surged 1% to 2,954.18, a record close. The broad index also hit an intraday record of 2,958.06. The Dow Jones Industrial Average closed 249.17 points higher at 26,753.17. The Nasdaq Composite gained 0.8% to end the day at 8,051.34.

The yield on the 10-year Treasury fell below 2% for the first time since November 2016. Investors cheered the decline in the benchmark for mortgage rates and corporate bonds.

The energy sector rose more than 2% to lead all 11 S&P 500 sectors higher as oil prices jumped. Tech gained 1.4% after shares of Oracle surged more than 8% on stronger-than-forecast earnings. General Electric’s 2.8% rise pushed the industrials sector up more than 1.6% on the day.

“Markets are based on numbers and perception. If the perception is rates are getting cut, that’s going to drive markets higher,” said Kathy Entwistle, senior vice president of wealth management at UBS. “UBS’ stance up until yesterday was we wouldn’t see any rate cuts this year. Now we see a much larger chance of a 50-basis-point cut.”

The Fed said Wednesday it stands ready to battle growing global and domestic economic risks as they took stock of intensifying trade tensions and growing concerns about inflation. Most Fed policymakers slashed their rate outlook for the rest of the calendar year by approximately half a percentage point in the previous session, while Chairman Jerome Powell said others agree the case for lower rates is building.

Policymakers also dropped “patient” from the Fed’s statement and acknowledged that inflation is “running below” its 2% objective.

Market participants viewed the overall tone from the U.S. central bank as more dovish than expected. Traders are now pricing in a 100% chance of a rate cutnext month, according to the CME FedWatch tool.

With Thursday’s gains, the market has now erased the steep losses recorded by the major indexes in May, which were sparked by trade fears. The S&P 500 and Dow both fell more than 6% while the Nasdaq lost 7.9% last month. The three indexes were up more than 7% for June.

China and the U.S. hiked tariffs on billions of dollars worth of their goods in May. Stocks turned around this month as traders bet the rising trade tensions, coupled with weaker economic data, would lead the Fed to ease its monetary policy stance.

The Fed’s message on Wednesday sent the 10-year Treasury yield to as low as 1.974% before ending the day around 2.02%. The yield stood at 2.8% in January.

“The FOMC reinforced the market’s conviction,” said Steve Blitz, chief U.S. economist at TS Lombard, in a note. “Barring a dramatic turnaround in the data, the next move is a cut – perhaps even a 50bp reduction.”

The dollar also took a hit against other major currencies. The dollar index dropped 0.5% to 96.65, led by a 0.6% slide in the euro. The yen and Canadian dollar also rose against the U.S. currency.

Energy shares got a boost from higher oil prices. The Energy Select Sector SPDR Fund (XLE) climbed 2.2% as shares of Exxon Mobil gained 1.7%. Oil prices surged 5.4% after a U.S. official said a drone was shot down over Iranian airspace.

Meanwhile, Slack shares surged more than 40% in their first day of trading. The stock closed above $38 after setting a reference price of $26.

https://www.cnbc.com/2019/06/20/stock-market-dow-futures-higher-after-fed-raises-rate-cut-hopes.html

Federal Open Market Committee

About the FOMC

Recent FOMC press conference

June 19, 2019

FOMC Transcripts and other historical materials

The term “monetary policy” refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.

The Federal Reserve controls the three tools of monetary policy–open market operationsthe discount rate, and reserve requirements. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.

Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services.

Structure of the FOMC

The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. The rotating seats are filled from the following four groups of Banks, one Bank president from each group: Boston, Philadelphia, and Richmond; Cleveland and Chicago; Atlanta, St. Louis, and Dallas; and Minneapolis, Kansas City, and San Francisco. Nonvoting Reserve Bank presidents attend the meetings of the Committee, participate in the discussions, and contribute to the Committee’s assessment of the economy and policy options.

The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.

For more detail on the FOMC and monetary policy, see section 2 of the brochure on the structure of the Federal Reserve Systemand chapter 2 of Purposes & Functions of the Federal Reserve System. FOMC Rules and Authorizations are also available online.

2019 Committee Members

Alternate Members

Federal Reserve Bank Rotation on the FOMC

Committee membership changes at the first regularly scheduled meeting of the year.

2020 2021 2022
Members New York
Cleveland
Philadelphia
Dallas
Minneapolis
New York
Chicago
Richmond
Atlanta
San Francisco
New York
Cleveland
Boston
St. Louis
Kansas City
Alternate
Members
New York
Chicago
Richmond
Atlanta
San Francisco
New York
Cleveland
Boston
St. Louis
Kansas City
New York
Chicago
Philadelphia
Dallas
Minneapolis

 †For the Federal Reserve Bank of New York, the First Vice President is the alternate for the President. Return to table

For additional information, please use the FOMC FOIA request form.

https://www.federalreserve.gov/monetarypolicy/fomc.htm

 

Fed holds rates steady, but opens the door for a rate cut in the future

The action sets up a possible confrontation between Fed Chairman Jerome Powell and President Donald Trump, who has been pressuring the Fed to cut rates. Just Tuesday, Trump said “let’s see what he does” at the Fed meeting when asked if he still wants to demote Powell.

At the post-statement news conference, Powell was asked about his future as chairman. “I think the law is clear that I have a four year term, and I fully intend to serve it,” he said.

The strong majority for this month’s decision contrasted with a sharp difference of opinion on what happens next.

The committee provided an important nod to those worried about slower growth: It dropped the word “patient” in  describing its approach to policy. The characterization was a key part of the Fed “pivot” earlier this year that signaled to the market a more dovish approach to rates.

“The Fed didn’t surprise investors with the decision to maintain rates, but the split vote tells us that a cut is on the way and it’s increasingly likely that will be in July, as bond markets have been hoping,” said Neil Birrell, chief investment officer at Premier Asset Management.

“This was probably the compromise decision — it wasn’t shocking and should offer some reassurance,” Steve Rick, chief economist at CUNA Mutual Group, said in a note. “The FOMC will still want to closely monitor the stress fractures from the bond market, middling housing and auto sales numbers, and an increasingly uncertain global economic landscape in the coming months.”

The statement also changed wording to concede that inflation is “running below” the Fed’s 2% objective. In their forecast for headline inflation this year, officials slashed the estimate to 1.5% from March’s 1.8%. Core inflation, which excludes volatile food and energy prices, is likely now to be 1.8% from March’s 2%, according to the quarterly summary of economic projections also released Wednesday.

‘In light of these uncertainties’

The committee changed language from its May statement to indicate that economic activity is “rising at a moderate rate,” a downgrade from “solid.”

In their baseline scenario, FOMC members said they still expect “sustained expansion of economic activity” and a move toward 2% inflation, but realize that “uncertainties about this outlook have increased.”

“In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective,” the statement said. The “act as appropriate to sustain the expansion” language mirrors a statement from Powell in early June.

Very reasonable to think Fed will cut rates twice this year: Strategist

The committee characterized the labor market as “strong” with “solid” jobs growth, despite May’s disappointing nonfarm payrolls growth of 75,000. The statement further said that household spending “appears to have picked up from earlier in the year.”

The changes came amid what appeared to be little consensus among the committee about where rates go next.

Divided Fed

According to the “dot plot” of individual members’ expectations, eight members favor one cut this year while the same number voted in favor of the status quo and one still wants a rate hike. Bullard and Minneapolis Fed President Neel Kashkari have led the public discussion about the potential for rate cuts, while other members have been less firm.

Into 2020, the Fed consensus was a bit stronger, with nine members wanting a cut to a funds rate around 2.1%. The direction changes, though, in 2021, with indications of an increase of about a quarter-point, culminating in an expected long-run value of 2.5%. The funds rate most recently was trading at 2.37%.

Traders in the thin and volatile funds market had been pricing in a 26% chance of a cut at this week’s meeting. Later in the year, though, the probability for a July easing rose to 82.5% and the chances of a second cut in December were most recently at 60.4%. The market expects a third cut to come around March of 2020.

While the statement language offered some significant changes, estimates in the summary of economic projections, other than inflation, moved little from March. GDP growth is still expected to be 2.1% for the year – it was 3.1% in the first quarter, and the Atlanta Fed is forecasting a 2% gain in the second quarter. The unemployment rate is now expected to hold at a 50-year low of 3.6%, against the March forecast of 3.7%.

https://www.cnbc.com/2019/06/19/fed-decision-fed-leaves-rates-unchanged.html

10-year Treasury yield drops below 2% for first time since November 2016

Federal funds rate

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Federal Funds Rate compared to U.S. Treasury interest rates

2 to 10 year treasury yield spread

Inflation (blue) compared to federal funds rate (red)

Quarterly gross domestic product compared to Federal Funds Rate.

Federal Funds Rate and Treasury interest rates from 2002-2019

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions’ reserve requirements. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.[1][2]

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

The Federal Reserve uses open market operations to make the federal funds effective rate follow the federal funds target rate. The target rate is chosen in part to influence the money supply in the U.S. economy[3]

Contents

Mechanism

Financial institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10%[4] of the total value of the bank’s demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accountsNOWs, and other deposits that can be used to make payments) the reserve requirement in 2007–2008 was 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is set by the governors of the Federal Reserve, which they enforce by open market operations and adjustments in the interest rate on reserves.[5] The target rate is almost always what is meant by the media referring to the Federal Reserve “changing interest rates.” The actual federal funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it does set the specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting’s agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media.

Applications

Interbank borrowing is essentially a way for banks to quickly raise money. For example, a bank may want to finance a major industrial effort but may not have the time to wait for deposits or interest (on loan payments) to come in. In such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate.

Raising the federal funds rate will dissuade banks from taking out such inter-bank loans, which in turn will make cash that much harder to procure. Conversely, dropping the interest rates will encourage banks to borrow money and therefore invest more freely.[6] This interest rate is used as a regulatory tool to control how freely the U.S. economy operates.

By setting a higher discount rate the Federal Bank discourages banks from requisitioning funds from the Federal Bank, yet positions itself as a lender of last resort.

Comparison with LIBOR

Though the London Interbank Offered Rate (LIBOR) and the federal funds rate are concerned with the same action, i.e. interbank loans, they are distinct from one another, as follows:

  • The target federal funds rate is a target interest rate that is set by the FOMC for implementing U.S. monetary policies.
  • The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies’ securities).[7]
  • LIBOR is based on a questionnaire where a selection of banks guess the rates at which they could borrow money from other banks.
  • LIBOR may or may not be used to derive business terms. It is not fixed beforehand and is not meant to have macroeconomic ramifications.[8]

Predictions by the market

Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market. The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market’s expectations of future Fed policy changes. Based on CME Group 30-Day Fed Fund futures prices, which have long been used to express the market’s views on the likelihood of changes in U.S. monetary policy, the CME Group FedWatch tool allows market participants to view the probability of an upcoming Fed Rate hike. One set of such implied probabilities is published by the Cleveland Fed.

Historical rates

As of 19 December 2018 the target range for the Federal Funds Rate is 2.25–2.50%.[9] This represents the ninth increase in the target rate since tightening began in December 2015.[10]

The last full cycle of rate increases occurred between June 2004 and June 2006 as rates steadily rose from 1.00% to 5.25%. The target rate remained at 5.25% for over a year, until the Federal Reserve began lowering rates in September 2007. The last cycle of easing monetary policy through the rate was conducted from September 2007 to December 2008 as the target rate fell from 5.25% to a range of 0.00–0.25%. Between December 2008 and December 2015 the target rate remained at 0.00–0.25%, the lowest rate in the Federal Reserve’s history, as a reaction to the Financial crisis of 2007–2008 and its aftermath. According to Jack A. Ablin, chief investment officer at Harris Private Bank, one reason for this unprecedented move of having a range, rather than a specific rate, was because a rate of 0% could have had problematic implications for money market funds, whose fees could then outpace yields.[11]

Federal funds rate history and recessions.png

Explanation of federal funds rate decisions

When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, the price of borrowed funds – the federal funds rate – falls. Conversely, when the Committee wishes to increase the federal funds rate, they will instruct the Desk Manager to sell government securities, thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply. When supply is taken away and everything else remains constant, the interest rate will normally rise.[12]

The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth. In fact, the Committee’s lowering has recently predated recessions,[13] in order to stimulate the economy and cushion the fall. Reducing the federal funds rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.

The charts linked below show the relation between S&P 500 and interest rates.

  • July 13, 1990 — Sept 4, 1992: 8.00%–3.00% (Includes 1990–1991 recession)[14][15]
  • Feb 1, 1995 — Nov 17, 1998: 6.00–4.75 [16][17][18]
  • May 16, 2000 — June 25, 2003: 6.50–1.00 (Includes 2001 recession)[19][20][21]
  • June 29, 2006 — (Oct. 29 2008): 5.25–1.00[22]
  • Dec 16, 2008 — 0.0–0.25[23]
  • Dec 16, 2015 — 0.25–0.50[24]
  • Dec 14, 2016 — 0.50–0.75[25]
  • Mar 15, 2017 — 0.75–1.00[26]
  • Jun 14, 2017 — 1.00–1.25[27]
  • Dec 13, 2017 — 1.25–1.50[28]
  • Mar 21, 2018 — 1.50–1.75[29]
  • Jun 13, 2018 — 1.75–2.00[30]
  • Sep 26, 2018 — 2.00–2.25[9]
  • Dec 19, 2018 — 2.25–2.50[31]

Bill Gross of PIMCO suggested that in the prior 15 years ending in 2007, in each instance where the fed funds rate was higher than the nominal GDP growth rate, assets such as stocks and housing fell.[32]

International effects

A low federal funds rate makes investments in developing countries such as China or Mexico more attractive. A high federal funds rate makes investments outside the United States less attractive. The long period of a very low federal funds rate from 2009 forward resulted in an increase in investment in developing countries. As the United States began to return to a higher rate in 2013 investments in the United States became more attractive and the rate of investment in developing countries began to fall. The rate also affects the value of currency, a higher rate increasing the value of the U.S. dollar and decreasing the value of currencies such as the Mexican peso.[33]

See also

References

  1. ^ “Fedpoints: Federal Funds”Federal Reserve Bank of New York. August 2007. Retrieved October 2, 2011.
  2. ^ “The Implementation of Monetary Policy”. The Federal Reserve System: Purposes & Functions(PDF). Washington, D.C.: Federal Reserve Board. August 24, 2011. p. 4. Retrieved October 2, 2011.
  3. ^ “Monetary Policy, Open Market Operations”. Federal Reserve Bank. January 30, 2008. Archived from the original on April 13, 2001. Retrieved January 30, 2008.
  4. ^ “Reserve Requirements”. Board of Governors of The Federal Reserve System. December 16, 2015.
  5. ^ Stefan Homburg (2017) A Study in Monetary Macroeconomics, Oxford University Press, ISBN978-0-19-880753-7.
  6. ^ “Fed funds rate”. Bankrate, Inc. March 2016.
  7. ^ Cheryl L. Edwards (November 1997). Gerard Sinzdak. “Open Market Operations in the 1990s”(PDF)Federal Reserve Bulletin (PDF).
  8. ^ “BBA LIBOR – Frequently asked questions”. British Bankers’ Association. March 21, 2006. Archived from the original on February 16, 2007.
  9. Jump up to:ab “Federal Reserve issues FOMC statement” (Press release). Board of Governors of the Federal Reserve System. December 19, 2018. Retrieved June 2, 2019.
  10. ^ Tankersley, Jim (March 21, 2018). “Fed Raises Interest Rates for Sixth Time Since Financial Crisis”The New York Times. Retrieved March 22, 2018.
  11. ^ “4:56 p.m. US-Closing Stocks”. Associated Press. December 16, 2008. Archived from the original on July 18, 2012.
  12. ^ David Waring (February 19, 2008). “An Explanation of How The Fed Moves Interest Rates”. InformedTrades.com. Archived from the original on May 5, 2015. Retrieved July 20, 2009.
  13. ^ “Historical Changes of the Target Federal Funds and Discount Rates, 1971 to present”. New York Federal Reserve Branch. February 19, 2010. Archived from the original on December 21, 2008.
  14. ^ “$SPX 1990-06-12 1992-10-04 (rate drop chart)”. StockCharts.com.
  15. ^ “$SPX 1992-08-04 1995-03-01 (rate rise chart)”. StockCharts.com.
  16. ^ “$SPX 1995-01-01 1997-01-01 (rate drop chart)”. StockCharts.com.
  17. ^ “$SPX 1996-12-01 1998-10-17 (rate drop chart)”. StockCharts.com.
  18. ^ “$SPX 1998-09-17 2000-06-16 (rate rise chart)”. StockCharts.com.
  19. ^ “$SPX 2000-04-16 2002-01-01 (rate drop chart)”. StockCharts.com.
  20. ^ “$SPX 2002-01-01 2003-07-25 (rate drop chart)”. StockCharts.com.
  21. ^ “$SPX 2003-06-25 2006-06-29 (rate rise chart)”. StockCharts.com.
  22. ^ “$SPX 2006-06-29 2008-06-01 (rate drop chart)”. StockCharts.com.
  23. ^ “Press Release”. Board of Governors of The Federal Reserve System. December 16, 2008.
  24. ^ “Open Market Operations”. Board of Governors of The Federal Reserve System. December 16, 2015.
  25. ^ “Decisions Regarding Monetary Policy Implementation”. Board of Governors of The Federal Reserve System. Archived from the original on December 15, 2016.
  26. ^ Cox, Jeff (March 15, 2017). “Fed raises rates at March meeting”CNBC. Retrieved March 15, 2017.
  27. ^ “Federal Reserve issues FOMC statement”. Board of Governors of The Federal Reserve System. June 14, 2017.
  28. ^ “Federal Reserve issues FOMC statement”. Board of Governors of The Federal Reserve System. December 13, 2017.
  29. ^ “Federal Reserve issues FOMC statement”. Board of Governors of The Federal Reserve System. March 21, 2018.
  30. ^ “Federal Reserve issues FOMC statement”. Board of Governors of The Federal Reserve System. June 13, 2018.
  31. ^ “Federal Reserve issues FOMC statement”. Board of Governors of The Federal Reserve System. December 19, 2018.
  32. ^ Shaw, Richard (January 7, 2007). “The Bond Yield Curve as an Economic Crystal Ball”. Retrieved April 3, 2011.
  33. ^ Peter S. Goodman, Keith Bradsher and Neil Gough (March 16, 2017). “The Fed Acts. Workers in Mexico and Merchants in Malaysia Suffer”The New York Times. Retrieved March 18,2017Rising interest rates in the United States are driving money out of many developing countries, straining governments and pinching consumers around the globe.

External links

https://en.wikipedia.org/wiki/Federal_funds_rate

The Impact of an Inverted Yield Curve

The term yield curve refers to the relationship between the short- and long-term interest rates of fixed-income securities issued by the U.S. Treasury. An inverted yield curve occurs when short-term interest rates exceed long-term rates.

From an economic perspective, an inverted yield curve is a noteworthy event. Below, we explain this rare phenomenon, discuss its impact on consumers and investors, and tell you how to adjust your portfolio to account for it.

Interest Rates and Yield Curves

Typically, short-term interest rates are lower than long-term rates, so the yield curve slopes upwards, reflecting higher yields for longer-term investments. This is referred to as a normal yield curve. When the spread between short-term and long-term interest rates narrows, the yield curve begins to flatten. A flat yield curve is often seen during the transition from a normal yield curve to an inverted one.

Normal Yield Curve

Figure 1 – A normal yield curve

What Does an Inverted Yield Curve Suggest?

Historically, an inverted yield curve has been viewed as an indicator of a pending economic recession. When short-term interest rates exceed long-term rates, market sentiment suggests that the long-term outlook is poor and that the yields offered by long-term fixed income will continue to fall.

More recently, this viewpoint has been called into question, as foreign purchases of securities issued by the U.S. Treasury have created a high and sustained level of demand for products backed by U.S. government debt. When investors are aggressively seeking debt instruments, the debtor can offer lower interest rates. When this occurs, many argue that it is the laws of supply and demand, rather than impending economic doom and gloom, that enable lenders to attract buyers without having to pay higher interest rates.

Inverted Yield Curve

Figure 2 – An inverted yield curve: note the inverse relationship between yield and maturity

Inverted yield curves have been relatively rare, due in large part to longer-than-average periods between recessions since the early 1990s. For example, the economic expansions that began in March 1991, November 2001 and June 2009 were three of the four longest economic expansions since World War II. During these long periods, the question often arises as to whether an inverted yield curve can happen again.

Economic cycles, regardless of their length, have historically transitioned from growth to recession and back again. Inverted yield curves are an essential element of these cycles, preceding every recession since 1956. Considering the consistency of this pattern, an inverted yield will likely form again if the current expansion fades to recession.

Upward sloping yield curves are a natural extension of the higher risks associated with long maturities. In a growing economy, investors also demand higher yields at the long end of the curve to compensate for the opportunity cost of investing in bonds versus other asset classes, and to maintain an acceptable spread over inflation rates.

As the economic cycle begins to slow, perhaps due to interest rate hikes by the Federal Reserve Bank, the upward slope of the yield curve tends to flatten as short-term rates increase and longer yields stay stable or decline slightly. In this environment, investors see long-term yields as an acceptable substitute for the potential of lower returns in equities and other asset classes, which tend to increase bond prices and reduce yields.

Inverted Yield Curve Impact on Consumers

In addition to its impact on investors, an inverted yield curve also has an impact on consumers. For example, homebuyers financing their properties with adjustable-rate mortgages (ARMs) have interest-rate schedules that are periodically updated based on short-term interest rates. When short-term rates are higher than long-term rates, payments on ARMs tend to rise. When this occurs, fixed-rate loans may be more attractive than adjustable-rate loans.

Lines of credit are affected in a similar manner. In both cases, consumers must dedicate a larger portion of their incomes toward servicing existing debt. This reduces expendable income and has a negative effect on the economy as a whole.

The Formation of an Inverted Yield Curve

As concerns of an impending recession increase, investors tend to buy long Treasury bonds based on the premise that they offer a safe harbor from falling equities markets, provide preservation of capital and have potential for appreciation in value as interest rates decline. As a result of the rotation to long maturities, yields can fall below short-term rates, forming an inverted yield curve. Since 1956, equities have peaked six times after the start of an inversion, and the economy has fallen into recession within seven to 24 months.

As of 2017, the most recent inverted yield curve first appeared in August 2006, as the Fed raised short-term interest rates in response to overheating equity, real estate and mortgage markets. The inversion of the yield curve preceded the peak of the Standard & Poor’s 500 in October 2007 by 14 months and the official start of the recession in December 2007 by 16 months. However, a growing number of 2018 economic outlooks from investment firms are suggesting that an inverted yield curve could be on the horizon, citing the narrowing spread between short- and long-dated Treasuries.

If history is any precedent, the current business cycle will progress, and slowing in the economy may eventually become evident. If concerns of the next recession rise to the point where investors see the purchase of long-dated Treasuries as the best option for their portfolios, there is a high likelihood that the next inverted yield curve will take shape.

Inverted Yield Curve Impact on Fixed-Income Investors

A yield curve inversion has the greatest impact on fixed-income investors. In normal circumstances, long-term investments have higher yields; because investors are risking their money for longer periods of time, they are rewarded with higher payouts. An inverted curve eliminates the risk premium for long-term investments, allowing investors to get better returns with short-term investments.

When the spread between U.S. Treasuries (a risk-free investment) and higher-risk corporate alternatives is at historical lows, it is often an easy decision to invest in lower-risk vehicles. In such cases, purchasing a Treasury-backed security provides a yield similar to the yield on junk bondscorporate bondsreal estate investment trusts (REITs) and other debt instruments, but without the risk inherent in these vehicles. Money market funds and certificates of deposit (CDs) may also be attractive – particularly when a one-year CD is paying yields comparable to those on a 10-year Treasury bond.

Inverted Yield Curve Impact on Equity Investors

When the yield curve becomes inverted, profit margins fall for companies that borrow cash at short-term rates and lend at long-term rates, such as community banks. Likewise, hedge funds are often forced to take on increased risk in order to achieve their desired level of returns.

In fact, a bad bet on Russian interest rates is largely credited for the demise of Long-Term Capital Management, a well-known hedge fund run by bond trader John Meriwether.

Despite their consequences for some parties, yield-curve inversions tend to have less impact on consumer staples and healthcare companies, which are not interest-rate dependent. This relationship becomes clear when an inverted yield curve precedes a recession. When this occurs, investors tend to turn to defensive stocks, such as those in the food, oil and tobacco industries, which are often less affected by downturns in the economy.

The Bottom Line

While experts question whether or not an inverted yield curve remains a strong indicator of pending economic recession, keep in mind that history is littered with portfolios that were devastated when investors blindly followed predictions about how “it’s different this time.” Most recently, shortsighted equity investors spouting this mantra participated in the “tech wreck,” snapping up shares in tech companies at inflated prices even though these firms had no hope of ever making a profit.

If you want to be a smart investor, ignore the noise. Instead of spending time and effort trying to figure out what the future will bring, construct your portfolio based on long-term thinking and long-term convictions – not short-term market movements.

For your short-term income needs, do the obvious: choose the investment with the highest yield, but keep in mind that inversions are an anomaly and they don’t last forever. When the inversion ends, adjust your portfolio accordingly.

Story 3: Creepy, Sleepy, Dopey, Joey Biden in Praise of Civility of Democrat Segregationist Senators Eastland (Mississippi) and Talmadge (Georgia) Who Got Things Done — Radical Extremist Democrats (REDS) Attack Biden — Lying Lunatic Leftist Losers and Big Lie Media Playing Identity Politics and Divide and Conquer — Videos —

Biden’s ties to segregationist senator spark campaign tension

Biden’s ties to segregationist senator spark campaign tension

SUSAN WALSH / AP

Joe Biden was a freshman senator, the youngest member of the august body, when he reached out to an older colleague for help on one of his early legislative proposals: The courts were ordering racially segregated school districts to bus children to create more integrated classrooms, a practice Biden opposed and wanted to change.

“I want you to know that I very much appreciate your help during this week’s Committee meeting in attemptingto bring my antibusing legislation to a vote,” Biden wrote on June 30, 1977.

The recipient of Biden’s entreaty was Sen. James Eastland, at the time a well-known segregationist who had called blacks “an inferior race” and once vowed to prevent blacks and whites from eating together in Washington. The exchange, revealed in a series of letters, offers a new glimpse into an old relationship that erupted this week as a major controversy for Biden’s presidential campaign.Biden on Wednesday night described his relationship with Eastland as one he “had to put up with.” He said of his relationships with Eastland and another staunch segregationist and southern Democrat, Sen. Herman Talmadge of Georgia, that “the fact of the matter is that we were able to do it because we were able to win — we were able to beat them on everything they stood for.”

But the letters show a different type of relationship, one in which they were aligned on a legislative issue. Biden said at the time that he did not think that busing was the best way to integrate schools in Delaware and that systemic racism should be dealt with by investing in schools and improving housing policies.

The letters were provided Thursday to the Washington Post by the University of Mississippi, which houses Eastland’s archived papers. They were reported in April by CNN.

Biden’s campaign late Thursday issued a statement saying that “the insinuation that Joe Biden shared the same views as Eastland on segregation is a lie.”

“Plain and simple. Joe Biden has dedicated his career to fighting for civil rights,” the statement said.

The controversy over Biden’s comments this week have continued to reverberate at a crucial time in the campaign, with matters of race dominating the political discussion ahead of several prominent gatherings, including the first presidential debate next week and a multicandidate event before black voters in South Carolina on Friday. It has emerged as a complex political problem for Biden, who has been trying to campaign as a civil rights champion while explaining past views that are out of step with today’s Democratic base.

Biden’s Wednesday remarks sparked one of the sharpest intra-Democrat exchanges of the campaign, when Sen. Cory Booker of New Jersey, one of his black 2020 rivals, criticized both Biden’s work with segregationists and the language that he used in describing it.

On Wednesday, Biden called Booker. Biden’s campaign also distributed talking points to supporters, emphasizing that Eastland and Talmadge “were people who he fundamentally disagreed with on the issue of civil rights.”

Late Thursday, the former vice president met with a small group that included black members of Congress, one of the participants said.

Divisions also emerged in Biden’s campaign over how he should handle such situations. Aides alternately argued that he simply misspoke in telling the anecdote, that he shouldn’t be telling it at all or that his remarks demonstrate his ability to work with those with whom he disagrees and the words were being purposefully twisted for political gain.

The letters show that Biden’s courtship of Eastland started in 1972, before he had taken office, and that he wrote to the older senator listing his top six committee assignment requests, with Foreign Relations and Judiciary at the top. A few weeks later, Biden thanked Eastland, writing that he was “flattered and grateful” for his help. He also referred to the December 1972 car crash that killed his wife and daughter and injured his two sons.

“Despite my preoccupation with family matters at this time, I intend to place the highest priority on attending to my committee responsibilities,” Biden wrote.

Biden supporters have repeatedly pointed to his efforts on civil rights issues to cast him as a champion of equality. Not only did he share an eight-year partnership with the first black president, he also worked alongside black leaders throughout his career on extending the Voting Rights Act, amending the Fair Housing Act and creating the holiday honoring the Rev. Martin Luther King Jr.et in the debate over the merits of busing as a solution to greater integration, Biden’s avowed stance against it put him at odds with some civil rights leaders.

 

 

It was in that context that he courted the support of Eastland — at the time the chairman of the Senate Judiciary Committee — as well as other senators.

In one letter, on March 2, 1977, Biden outlined legislation he was filing to restrict busing practices.

“My bill strikes at the heart of the injustice of court ordered busing,” he wrote to Eastland. “It prohibits the federal courts from disrupting our educational system in the name of the constitution where there is no evidence that the governmental officials intended to discriminate.”

“I believe there is growing sentiment in the Congress to curb unnecessary busing,” he added. The Senate two years earlier had passed a Biden amendment that prohibited the federal Department of Health, Education and Welfare from ordering busing to achieve school integration.

 

“That was the first time the U.S. Senate took a firm stand in opposition to busing,” Biden wrote. “The Supreme Court seems to have recognized that busing simply cannot be justified in cases where state and local officials intended no discrimination.”

In later letters to Eastland, Biden continued pushing his legislation.

“I want you to know that I very much appreciate your help during this week’s Committee meeting in attempting to bring my antibusing legislation to a vote,” Biden wrote on June 30, 1977.

The next year, he continued to push for antibusing legislation and again wrote to Eastland.

“Since your support was essential to having our bill reported out by the Judiciary Committee, I want to personally ask your continued support and alert you to our intentions,” Biden wrote on Aug 22, 1978. “Your participation in floor debate would be welcomed.”

After Biden’s remarks at the Wednesday night fund-raiser, advisers played down his comments about Eastland as a garbled rendition of a familiar Biden anecdote. In particular, they sought to excuse Biden for saying that Eastland didn’t refer to him as “boy” — an insult leveled at black men — but as “son.”

“He just misspoke,” said one Biden adviser. “The way Biden usually tells the story, he says Eastland didn’t call him ‘senator,’ he called him ‘son,’ ” the adviser said. “Eastland called him ‘boy’ and ‘son’ also. This was Eastland’s way of diminishing young senators.”

In the campaign statement Thursday, Biden’s national press secretary, Jamal Brown, said Biden’s “strong support for equal housing, equal education and equal job opportunities were clear to all Delawareans in the 1970s.”

Biden sought to ensure that black students received “the resources necessary to deliver the quality education they deserved,” he said.

Brown added that throughout his public life, Biden “fought the institutional problems that created de facto segregated school systems and neighborhoods in the first place: redlining, school lines drawn to keep races and classes separate and housing patterns and discrimination.”

Almost the entire Democratic field is set to attend a fish fry Friday night hosted by House Majority Whip James Clyburn, a leading black figure in the state and one who has remained supportive of Biden.

It would be the first public appearance Biden is making with the same Democratic presidential hopefuls who have heaped criticism on him for the comment.

In demanding an apology, Booker said Wednesday that Biden’s “relationships with proud segregationists are not the model for how we make America a safer and more inclusive place for black people, and for everyone.”

Asked about Booker’s remarks by reporters, Biden declined to offer an apology and instead demanded one from Booker. The two men later spoke privately.

“Cory shared directly what he said publicly — including helping Vice President Biden understand why the word ‘boy’ is painful to so many,” said Sabrina Singh, a Booker campaign spokeswoman. “Cory believes that Vice President Biden should take responsibility for what he said and apologize to those who were hurt.”

Biden’s campaign would not elaborate on the call, but it is clear the topic could linger over the coming days.

Biden has scheduled a sit-down interview with MSNBC, his campaign has been sending out talking points to surrogates, and some black supporters are eager to hear the former vice president offer a fuller explanation.

“I think he’s got to address it head on and show people what his line of thinking was,” said Antjuan Seawright, a Democratic strategist in South Carolina who is close with Biden’s team. “I don’t think they need to get off course with their strategy. I just think they have to address it as it comes up and move on.”

Other Biden supporters, however, think he’s taking just the right approach and standing by his long-held beliefs.

I encouraged campaign staff that I know to say: ‘Don’t back off on this. This is precisely why you’re the right guy in the right place at the right time.’ And I was glad to see that he didn’t,” said Dave O’Brien, a longtime Biden supporter in Cedar Rapids, Iowa.

“You know that some of the other issues, he’s got to evolve with the times, which he has,” O’Brien added. “But there are points where you need to make a stand, so I was very glad to see him not back off on this issue.”

https://www.inquirer.com/politics/nation/joe-biden-james-eastland-segregation-democratic-primary-20190621.htmlPosted: June 20, 2019 – 10:59 PM

Biden not apologizing for remarks on segregationist senators

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Democratic presidential candidate, former Vice President Joe Biden, speaks at the Poor People’s Moral Action Congress presidential forum in Washington, Monday, June 17, 2019. (AP Photo/Susan Walsh)

Joe Biden refused calls to apologize Wednesday for saying that the Senate “got things done” with “civility” even when the body included segregationists with whom he disagreed.

His rivals for the Democratic presidential nomination, including the two major black candidates in the contest, roundly criticized Biden’s comments. But Biden didn’t back down and was particularly defiant in the face of criticism from New Jersey Sen. Cory Booker, who said the former vice president should apologize for his remarks.

Biden countered that it was Booker who should apologize because the senator “should know better” than to question his commitment to civil rights.

“There’s not a racist bone in my body,” Biden said. “I’ve been involved in civil rights my whole career.”

Speaking on CNN, Booker responded: “I was raised to speak truth to power and that I shall never apologize for doing that. And Vice President Biden shouldn’t need this lesson.”

The firestorm is quickly becoming one of the most intense disputes of the Democratic presidential primary, underscoring the hazards for Biden as he tries to turn his decades of Washington experience into an advantage. Instead, he’s infuriating Democrats who say he’s out of step with the diverse party of the 21st century and potentially undermining his argument that he’s the most electable candidate in the race.

The controversy began at a New York fundraiser Tuesday when Biden pointed to long-dead segregationist senators James Eastland of Mississippi and Herman Talmadge of Georgia to argue that Washington functioned more smoothly a generation ago than under today’s “broken” hyperpartisanship.

“We didn’t agree on much of anything,” Biden said of the two men, who were prominent senators when Biden was elected in 1972. Biden described Talmadge as “one of the meanest guys I ever knew” and said Eastland called him “son,” though not “boy,” a reference to the racist way many whites addressed black men at the time.

Yet even in that Senate, Biden said, “At least there was some civility. We got things done.”

A pile on from Biden’s rivals quickly ensued. Booker said he was disappointed by Biden’s remarks.

“I have to tell Vice President Biden, as someone I respect, that he is wrong for using his relationships with Eastland and Talmadge as examples of how to bring our country together,” said Booker, who is African American.

New York City Mayor Bill de Blasio, a fellow Democratic presidential candidate and a white man who is married to a black woman, tweeted: “It’s 2019 & @JoeBiden is longing for the good old days of ‘civility’ typified by James Eastland. Eastland thought my multiracial family should be illegal.”

California Sen. Kamala Harris, a black presidential candidate, said Biden was “coddling” segregationists in a way that “suggests to me that he doesn’t understand … the dark history of our country” — a characterization Biden’s campaign rejects.

Former Texas Rep. Beto O’Rourke, another 2020 candidate, said, “For the vice president to somehow say that what we’re seeing in this country today is a function of partisanship or a lack of bipartisanship completely ignores the legacy of slavery and the active suppression of African Americans and communities of color right now.”

The tumult comes at a crucial point in the campaign. Biden is still recovering from controversy he sparked earlier this month when he angered many Democrats by saying he didn’t support federal taxpayer money supporting abortion. He later reversed his position.

He’s among the more than 20 candidates who will descend on South Carolina this weekend to make their case to black voters at a series of Democratic events.

Meanwhile, most Democratic White House hopefuls will again gather in Miami next week for the first presidential debate of the primary season. Biden will almost certainly come under fire there for his comments this week.

He sought to defuse the tension on Wednesday by saying he was trying to argue that leaders sometimes have to work with people they disagree with to achieve goals, such as renewing the Voting Rights Act.

“The point I’m making is you don’t have to agree. You don’t have to like the people in terms of their views,” he said Wednesday. “But you just simply make the case and you beat them without changing the system.”

He has received support from some black leaders. Cedric Richmond, Biden’s campaign co-chairman and former Congressional Black Caucus chairman, said Biden’s opponents deliberately ignored the full context of his argument for a more functional government.

“Maybe there’s a better way to say it, but we have to work with people, and that’s a fact,” Richmond said, noting he dealt recently with President Donald Trump to pass a long-sought criminal justice overhaul. “I question (Trump’s) racial sensitivity, a whole bunch of things about his character … but we worked together.”

Likewise, Richmond said, Biden mentioned Jim Crow-era senators to emphasize the depths of disagreements elected officials sometimes navigate. “If he gets elected president, we don’t have 60 votes in the Senate” to overcome filibusters, Richmond noted. “He could be less genuine and say, ‘We’re just going to do all these things.’ But we already have a president like that. (Biden) knows we have to build consensus.”

Biden also drew a qualified defense from Republican Sen. Tim Scott of South Carolina, the only black senator from his party. Scott said that Biden “should have used a different group of senators” to make his point but that his remarks “have nothing to do with his position on race” issues. Scott said the reaction reflects an intense environment for Democrats in which the desire to defeat Trump means “anything the front-runner says that is off by a little bit” will be magnified.

https://apnews.com/5b57473cfcda44e4b35c8a40759a26fc

The gloves come off in the Democratic primary

This was the week that the battle for the nomination got real.

The tenor of the Democratic presidential primary has verged on courteous from the start: To the extent that Democrats went after Joe Biden, it was usually not by name. And Bernie Sanders and Elizabeth Warren kept their rivalry decidedly civil.

This week, with the first debates of the election season days away, the gentility came to an end.

Biden’s remarks at a New York fundraiser that “at least there was some civility” when he worked with segregationists in the Senate unleashed a torrent of criticism from his rivals and the left. And a story in POLITICO about centrists coming around to Warren as an “anybody but Bernie” alternative set off Sanders and his allies.

“We knew the primary wouldn’t be all puppies and rainbows forever,” said Ben LaBolt, a former adviser to Barack Obama. “And as the debates approach you can see a new dynamic emerging.”

The reaction from Biden’s rivals to his comments was fierce.

New York Mayor Bill de Blasio, whose wife is African American, noted that one of the segregationists Biden invoked, James Eastland of Mississippi, would have outlawed his marriage. Sen. Cory Booker, who is black, took offense that Biden seemed to make light of Eastland calling him “son” but not “boy.”

“You don’t joke about calling black men ‘boys’,” Booker said.

Booker called on Biden to apologize but Biden took a different path. Outside a fundraiser Wednesday night, a defiant Biden said he had nothing to be sorry for and that it’s Booker who should apologize for questioning someone without “a racist bone in my body.”

“He knows better,” Biden said.

The crossfire marked some of the most direct and intense exchanges so far of the 2020 primary campaign. And it signals that with less than a week until the first televised debate, the field is done tiptoeing around.

“Running for president is no tea party. It’s a battle. And it is customary for candidates to begin to engage at this stage. The polite preliminaries are over,” said Democratic strategist and former Obama hand David Axelrod. “And since there is generally broad agreement on issues, if not solutions, the disputes necessarily turn on other things.”

In a separate episode, Sanders dispatched a tweet that was viewed as a sideswipe of Warren.

“The cat is out of the bag. The corporate wing of the Democratic Party is publicly ‘anybody but Bernie,’” Sanders wrote on Twitter, sharing a POLITICO storyheadlined: “Warren emerges as potential compromise nominee.”

Sanders faced his own backlash over the remark.

“If we had a multi-party parliament, it’d be pretty normal for Sanders and Warren to campaign against each other for leadership in a Social Democratic Party. That said, I still find this move pretty dissapointing [sic] and unnecessary. Draw contrasts if you want, but not like this,” tweeted Waleed Shadid, communications director of the progressive group Justice Democrats.

Shadid later noted that Sanders on CNN said his remark was targeted at the moderate think tank Third Way, and not Warren.

Still, the escalating tensions come as Warren is gaining on Sanders in polls. She leapfrogged him in recent surveys in Nevada and California. And a Monmouth University poll released Wednesday showed Warren and Sanders virtually tied for second, with Warren, at 15 percent, gaining five points in one month. Biden still led the field at 32 percent.

“Biden’s numbers have held up higher than expected and a number of challengers are going after his gaffes more aggressively than before,” LaBolt said. “Warren has begun eating into Bernie’s numbers and he is trying to fend her off.”

Still, one Democratic veteran of the 2016 campaign, ex-Sanders adviser Mark Longabaugh, said the current tangles are nothing like what he experienced in that campaign. There’s plenty of time for it to get there, but it hasn’t happened yet.

“I don’t know if the gloves are off. I think the gloves may be getting a little loose — pulling out the fingertips to take the gloves off.” Longabaugh said. “Having been through the 2015-16 experience, I gotta tell ya, that was much more combative than anything you’ve seen in this race — not anything close.”

Not far from anyone’s mind are the first debates in Miami on Wednesday and Thursday next week.

“While this type of engagement is expected,” LaBolt said, “candidates should be careful not to cross any lines that could significantly damage potential nominees for the general.”

https://www.politico.com/story/2019/06/20/2020-election-democratic-primary-1373202

 

 

Part 2– Story 4: President Trump Pushes All The Right Buttons in 2020 Stump Speech in Orlando, Florida –Send Them Home — Lock Them Up — Four More Years — Videos

TRUMP 2020: President Trump Re-Election Campaign Rally – FULL SPEECH

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With Florida rally, Trump aims for a 2020 campaign ‘reset’

Trump to launch 2020 re-election bid in Florida

Orlando preps for huge crowds for Trump rally

Crowds grow for Trump rally in Orlando

People are lining up for President Trump’s event on Tuesday

THE PRESIDENT IS BACK: President Trump Returns From MASSIVE Orlando Rally

The Memo: Can Trump run as an outsider?

President Trump is running for reelection as an outsider candidate. But it’s a knotty challenge for someone who holds the world’s most powerful office.

Trump’s speech in Orlando, Fla., on Tuesday, which officially launched his 2020 bid, was rife with rhetoric portraying himself — and by extension his supporters — as victims of nefarious elites.

The president said that he and his allies were besieged by a “permanent political class” and “an unholy alliance of lobbyists and donors and special interests.”

“Our patriotic movement has been under assault from the very first day,” Trump insisted at one point. Moments before, he told the crowd, “the swamp is fighting back so viciously and violently.”

It’s the kind of language that makes Democrats roll their eyes. Trump, they note, is a billionaire property developer, born into wealth, who won the presidency on his first attempt — yet he portrays himself as the tribune of “the forgotten men and women of our country” whom he invoked in his January 2017 inaugural address.

But Trump’s unconventionality might, in itself, help him retain some kind of outsider cachet in a way that is unusual for an incumbent president.

“For any other president, yes, it is a challenge,” said Alex Conant, a Republican strategist who worked for Sen. Marco Rubio (R-Fla.) in the 2016 presidential primaries.

“But Trump is unlike any other president. Trump has been at war with the establishment since the moment he set foot in the White House,” he said.

It is certainly true that Trump was viewed with suspicion by the Republican Party from the time he began his presidential run — and that his language and attitudes are viewed with distaste by much of the Beltway political class.

But dislike for Trump’s personal antics is hardly confined to D.C. elites.

A Pew Research Center poll in March showed pluralities of the public believing that he was not “trustworthy,” “even-tempered” or “well-informed.”

For all Trump’s supposed concern with less affluent Americans, 56 percent of the respondents in the Pew poll said they did not believe he cared about “people like me,” whereas just 40 percent said he did care.

The GOP has largely made peace with him, with former rivals including Sens. Lindsey Graham (S.C.) and Rand Paul (Ky.) becoming enthusiastic supporters, congressional dissenters such as former Rep. Mark Sanford(R-S.C.) having been defeated in primaries and Trump now in firm control of the party apparatus.

Skeptics also point to both policies and personnel — from the steep cut in the corporate tax rate in 2017 to the 16-month run of the ethically challenged Scott Pruitt as head of the Environmental Protection Agency — as evidence that the swamp has remained undrained under Trump.

But Trump allies are insistent that the president’s feel for the cultural mores of blue-collar America remains a potent and underrated political weapon.

“He is certainly an outsider to the political establishment. They still don’t get him and he is not coming around to their way of thinking,” said Barry Bennett, who worked as a senior adviser to Trump’s 2016 campaign. “He may live inside the gates but he does not live inside the establishment. … I don’t know anyone who believes he has become some kind of Georgetown socialite.”

Michael Caputo, a longtime Trump friend, insisted, “I have never ever met anyone, any Trump supporter, who believes anything else besides the fact that he’s an outsider.”

There is clearly a political dividend to be gained if Trump can hold onto his outsider image.

In the recent past, voters in presidential elections have often chosen the candidate seen as less steeped in the ways of Washington.

Former President Obama won election twice as a change agent, initially winning the White House as the first black president and then securing a second term over GOP nominee Mitt Romney, the personification of a genteel Republican establishment.

Former President George W. Bush had only a tenuous claim to outsider status, given he was the son of a president — yet his campaign was able to paint then-Sen. John Kerry (D-Mass.) as a creature of Washington in the 2004 presidential election.

Before that, former President Clinton used his down-home Arkansas image as a weapon against an incumbent president, Bush’s father, George H.W Bush, and then won a second term over another GOP establishment favorite, then-Sen. Bob Dole (Kan.).

Independent observers acknowledge that Trump’s style, divisive though it is, could help him be seen as much more of a disruptor even than these recent predecessors.

“It’s almost impossible for an incumbent to run as an outsider, but Trump has held onto that credential,” said Tobe Berkovitz, a Boston University professor who specializes in political communications. “He is parlaying that into how he sees himself — running against the Democrats, the media, the elites.”

Republicans, meanwhile, argue that Trump’s outsider image could be especially useful if Democrats pick former Vice President Joe Biden as their nominee.

Biden, in their telling, is much easier to brand as a creature of Washington given his decades in the Senate. There will be a different challenge if Democrats instead choose one of Biden’s rivals who is a fresher face on the national political scene, such as Sen. Elizabeth Warren (D-Mass.) or Sen Kamala Harris (D-Calif.); or more radical, such as Sen. Bernie Sanders(I-Vt.).

Trump, billionaire Manhattanite though he may be, has long used the idea that he is sneered at by a snobbish elite to his own advantage.

On Tuesday, he told his supporters that Democrats “want to destroy you.”

It was a stark and visceral remark even by Trump’s standards.

But, after his 2016 victory, even his critics can’t be so sure it won’t work.

https://thehill.com/homenews/the-memo/449436-the-memo-can-trump-run-as-an-outsider

A Second Term for What?

Trump can’t win by relitigating 2016 and playing only to his base.

President Donald Trump looks on during a rally at the Amway Center in Orlando, Florida to officially launch his 2020 campaign on June 18.PHOTO: MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES

President Trump announced his campaign for a second term at a rally in Orlando on Tuesday evening that recounted his first-term record and 2016 victory before thousands of rapturous supporters. The only thing missing was an agenda for 2020.

The most striking fact of his speech was how backward looking it was. Every incumbent needs to remind voters of his record, Mr. Trump more than most because the media are so hostile.

Donald Trump Launches Campaign

The President is also right that his opponents have refused to recognize the legitimacy of his election. House Democrats may still try to impeach him for not obstructing an investigation into what wasn’t a conspiracy with Russia. His sense of “grievance,” to quote the media meme about his speech, on that point is entirely justified.

Yet Mr. Trump is asking for four more years, and his preoccupation with vindicating 2016 won’t resonate much beyond his core supporters. Most voters have moved on from 2016, which is why a majority opposes impeachment in every poll. They don’t much care about Mr. Trump’s greatest hits about Hillary Clinton, who alas for the President will not be on the ballot in 2020. They want to know why they should take a risk on Mr. Trump and his volatile character for another term.

This is all the more important given the way his first term has evolved on policy. One paradox is that his main policy successes have come from pursuing a conventional conservative agenda. The failures have been on the issues like trade and immigration that are the most identified with Trumpian disruption.

The economy’s renewed growth spurt came from tax reform, deregulation, liberating energy production and ending the anti-business harassment of the Obama years. His remaking of the judiciary and rebuilding of the military unite Republicans of all stripes. Criminal justice reform was the result of years of spade work on the right and left.

Mr. Trump deserves credit for pursuing all of this despite often ferocious opposition that might have intimidated a different GOP President. That’s true in particular of his withdrawal from the Iran nuclear deal and the Paris climate accord, where U.S. Democratic and media opinion is aligned with Europe’s elites.

On immigration, however, the President missed a chance to strike a deal trading more border security (including his wall) for legalizing Dreamers. He must now confront the asylum crisis at the border with no help from Democrats. On trade, Mr. Trump has disrupted global rules but has put nothing new and stable in their place. Asking voters to believe he’ll do better on these issues in a second term isn’t likely to turn many swing voters his way.

The other paradox of the Trump Presidency is his low approval rating despite a stronger economy. The polls show his approval rating on the economy is above 50% but his overall approval is 44.3% in the Real Clear Politics average. The difference is best explained by Mr. Trump’s polarizing behavior, which has alienated in particular college-educated voters and Republican women. In the latest Wall Street Journal-NBC poll, Mr. Trump is underwater with white college-educated women by a remarkable 20 percentage points.

Mr. Trump may figure he can persuade some of those skeptics by making the Democratic nominee even more unpopular than he is. If the Democrats oblige by nominating Bernie Sanders or Elizabeth Warren, that might be possible. But that is making a bet on the other party’s mistake, and a re-election campaign is typically a referendum on the incumbent.

Which is all the more reason to offer voters something more for a second term. He could put Democrats on the spot for high housing prices and homelessness by talking about restrictive zoning for elites and high property taxes. He could offer to reform higher education by making schools responsible for some of the debt of students who can’t repay loans, or invigorate vocational education to help young people who can’t go to college.

He could package health-care proposals to expand choice, reduce prices and make insurance portable; his administration has already proposed some of them. He could advance his theme of “draining the swamp” by offering ideas to reform the civil service. We’d include entitlement reform, but then Mr. Trump has shown no interest and we don’t believe in political miracles.

This is far from an exhaustive list, and Mr. Trump won’t win as a policy wonk in any case. But Mr. Trump also won’t win by relitigating the 2016 election or playing only to his political base. He needs more than he offered voters on Tuesday night.

Opinion: Countering Trump With Reliability, Not Bold Agenda

Opinion: Countering Trump With Reliability, Not Bold Agenda
A Fox News poll has found that Democrats prefer a “steady” candidate to a “big agenda” candidate. But going up against the scale of Donald Trump will be tough, so how do frontrunners Joe Biden, Bernie Sanders and Elizabeth Warren compare? Image: Getty

‘This election is about you. Your family, your future & the fate of YOUR country’: Trump lays it on the line at 20,000-strong Orlando rally as he kicks off 2020 re-election campaign with his entire family and obligatory digs at ‘Crooked Hillary’

  • The president spent the first half-hour of a Tuesday night rally hammering his old foe Hillary Clinton 
  • Trump said his team wondered if it should hold the rally in a venue which can hold 20,000 people
  • ‘Not only did we fill it up, but we had 120,000 requests… Congratulations!’ the president said to cheers
  • The president’s daughter-in-law, Lara Trump, invited the criticism when she wound up an arena of supporters
  • Husband Eric, who spoke after her, had a crowd of more than 20,000 screaming, ‘CNN Sucks!’ 
  • ‘He loves this country and we, as a family, love this country. We’re going to fight like hell,’ Eric said 
  •  Donald Trump Jr. mocked Joe Biden before the rowdy crowd that waited in the heat and rain for hours
  • ‘He gets up on the stump. It’s so stupid,’ he said, claiming the ex-VP has four-person crowds 

President Trump spent a Tuesday night rally he’d advertised as a 2020 kickoff hammering his old foe Hillary Clinton for acid washing her emails and failing to deliver on her pledge to beat him, while Democrats vying for the party’s nomination now escaped his wrath.

Noting that he’s under constant media scrutiny, Trump said that he’d be sent to the slammer if he ordered aides to destroy potential evidence.

‘But, can you imagine if I got a subpoena, think of this, if I got a subpoena for emails, if I deleted one email like a love note to Melania, it’s the electric chair for Trump,’ he claimed in a campaign speech in Orlando.

Trump said subpoenas he’s receiving are not about Democratic claims that his campaign may have colluded with Russia.

‘The Democrats don’t care about Russia, they only care about their own political power. They went after my family, my business, my finances, my employees, almost everyone that I’ve ever known or worked with,’ he argued. ‘But they are really going after you. That’s what it’s all about. It’s not about us, it’s about you. They tried to erase your vote, erase your legacy of the greatest campaign and the greatest election probably in the history of our country.’

U.S. President Donald Trump and first lady Melania Trump arrive on stage to formally kick off his re-election bid with a campaign rally in Orlando. He kicked off first official 2020 rally by claiming 120,000 people submitted requests to attend

U.S. President Donald Trump and first lady Melania Trump arrive on stage to formally kick off his re-election bid with a campaign rally in Orlando. He kicked off first official 2020 rally by claiming 120,000 people submitted requests to attend
First lady Melania Trump speaks as Trump looks on. Trump's first official campaign rally of 2020 opened much the way his 2016 candidacy ended - with his audience chanting 'Lock her Up!' in a slam on former Democratic opponent Hillary Clinton

First lady Melania Trump speaks as Trump looks on. Trump’s first official campaign rally of 2020 opened much the way his 2016 candidacy ended – with his audience chanting ‘Lock her Up!’ in a slam on former Democratic opponent Hillary Clinton

Trump's campaign turned the area outside the arena that can seat 20,000 people into a festival-like atmosphere with music and food trucks to help supporters pass the time

Trump’s campaign turned the area outside the arena that can seat 20,000 people into a festival-like atmosphere with music and food trucks to help supporters pass the time

Michael Boulos, Tiffany Trump, Lara Trump, Eric Trump, Jared Kushner, Ivanka Trump, Kimberly Guilfoyle, and Donald Trump Jr. arrive at a rally for US President Donald Trump

FLOTUS Melania introduces her husband at Trump 2020 rally

The president said, ‘They wanted to deny you the future you demanded and the future that America deserved and that now America is getting. Our radical Democrat opponents are driven by hatred, prejudice and rage. They want to destroy you, and they want to destroy our country as we know it. Not acceptable, it’s not going to happen. Not gonna happen.’

Trump claimed that Democrats as a party would use the ‘power of the law to punish their opponents’ if they’re handed the reigns to the country.

‘Imagine if we had a Democrat president and a Democrat Congress in 2020. They would shut down your free speech, use the power of the law to punish their opponents – which they’re trying to do now anyway – they’ll always be trying to shield themselves,’ he claimed. ‘They will strip Americans of their Constitutional rights while flooding the country with illegal immigrants in the hopes it will expand their political base and they’ll get votes someplace down the future. That’s what it’s about.’

Broad attacks on the Democratic Party and ‘radical socialism’ were the most stringent assaults that Trump would levy all night.

He said, ‘More than 120 Democrats in Congress have also signed up to support “Crazy Bernie Sanders” socialist government takeover of health care.

‘He seems not to be doing too well lately,’ the president said as an aside. ‘They want to end Medicare as we know it and terminate the private health insurance of 180 million Americans who love their health insurance. America will never be a socialist country.’

It was his only mention at the rally of one of his most formidable opponents. Former Democratic President Joe Biden was also a footnote in the speech, earning two mentions, as a part of the ‘Obama-Biden’ duo that Trump said ruined American foreign policy and drove down the nation’s economy.

‘Remember the statement from the previous administration? Would need a magic wand to bring back manufacturing? Well, tell “Sleepy Joe” that we found the magic wand. That’s a sleepy guy,’ the president added.

Trump outlined his vision tweeting: ‘Don’t ever forget – this election is about YOU. It is about YOUR family, YOUR future, & the fate of YOUR COUNTRY. We begin our campaign with the best record, the best results, the best agenda, & the only positive VISION for our Country’s future! #Trump2020’

The Trumps said their family has been under attack since the family patriarch declared his candidacy for president in 2015. Jared Kushner, left, Ivanka Trump arrive for the official launch of the Trump 2020 campaign

The Trumps said their family has been under attack since the family patriarch declared his candidacy for president in 2015. Jared Kushner, left, Ivanka Trump arrive for the official launch of the Trump 2020 campaign

Donald Trump Jr. channeled his attacks to his father’s current opponents, mocking leading Democratic candidate Joe Biden before the rowdy crowd that waited in the heat and rain for hours, and days in some cases, to see the sitting president. Kimberly Guilfoyle, left, and Donald Trump Jr. pictured

Donald Trump Jr. channeled his attacks to his father’s current opponents, mocking leading Democratic candidate Joe Biden before the rowdy crowd that waited in the heat and rain for hours, and days in some cases, to see the sitting president. Kimberly Guilfoyle, left, and Donald Trump Jr. pictured

Senior adviser Jared Kushner, Ivanka Trump and Kimberly Guilfoyle, watch as President Donald Trump speaks at his re-election kickoff rally at the Amway Center

Senior adviser Jared Kushner, Ivanka Trump and Kimberly Guilfoyle, watch as President Donald Trump speaks at his re-election kickoff rally at the Amway Center

Trump rails against Democrats, Mueller and ‘fake news’ at 2020 rally
Trump’s first official campaign rally of 2020 opened much the way his 2016 candidacy ended – with his audience chanting ‘Lock her Up!’ in a slam on former Democratic opponent Clinton.

The president’s daughter-in-law, Lara Trump, invited the criticism first. She wound up an arena of supporters with a claim that the media was saying Clinton was going to be the 45th President of the United States days before the election. ‘They have always been wrong,’ she declared.

Attacks on the media as ‘fake news’ and ‘dishonest’ from Lara and her husband Eric, who spoke after her, had a crowd of more than 20,000 screaming ‘CNN Sucks!’ minutes later.

The Trumps said their family has been under attack from one group or another since the family patriarch declared his candidacy for president in 2015.

‘He loves this country and we, as a family, love this country. And guys we are going to fight like hell – our family is going to fight like hell for this country. We will never ever stop fighting, and we will never ever, ever stop winning,’ the president’s son said. ‘And guys, we love you very much. We’re all going to be spending a lot of time in Florida. We’re going to be spending a lot of time in Florida. So we’re going to see you.’

Donald Trump Jr. channeled his attacks to his father’s current opponents, mocking Biden before the rowdy crowd that waited in the heat and rain for hours, and days in some cases, to see the sitting president.

‘I don’t know about you, but I look around this room and when Joe Biden’s putting about seven people in an audience, I’m saying, “I think they may be a little wrong with the polling.” But what they hell do I know?’ he said.

National polls show Biden beating Trump in a general election. A Quinnipiac University survey that came out Tuesday found that the former vice president would beat Trump by nine points, 50 – 41, the newly-released poll showed.

Vermont Sen. Bernie Sanders would win by a similar margin, 48 – 42, while other top Democrats would perform in the poll’s margin of error.

Trump campaign manager Brad Parscale told DailyMail.com inside the rally that Quinnipiac is ‘c**p’ in response to the latest poll showing bad news in a critical swing state for the controversial president.

Trump had already warned the public that this official launch of 2020 campaign would be 'wild,' after supporters camped out in tents for more than 30 hours to save their places at the front of a massive line that would ensure them floor seats

US First Lady Melania Trump greets US Vice President Mike Pence. Trump set the tone for the monster rally in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour

US First Lady Melania Trump greets US Vice President Mike Pence. Trump set the tone for the monster rally in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour

Lara Trump takes to the stage before her father-in-law United States President Donald Trump arrives on stage to announce his candidacy for a second presidential term at the Amway Center

Lara Trump takes to the stage before her father-in-law United States President Donald Trump arrives on stage to announce his candidacy for a second presidential term at the Amway Center

Donald Trump Jr. throws hats to supporters at the rally. He mocked Joe Biden before the rowdy crowd that waited for hours

Donald Trump Jr. throws hats to supporters at the rally. He mocked Joe Biden before the rowdy crowd that waited for hours

Trump attacks Democrats at his Orlando rally
Don Jr. brushed off the threat from Biden, 76, as he campaigned for his father, 73, on Tuesday in Orlando. He called Biden and his competitors a ‘clown show’ and gave the Democrat a new nickname. ‘Sloppy Joe,’ he called him, as he hit Biden for flip-flopping.

‘He gets up on the stump. It’s so stupid,’ he said. ‘To his group of about four people in the audience, “Government has failed you.” Usually, as he’s groping someone. It ain’t pretty, but there’s something off with that guy.’

The president’s son said he agrees that government is broken and it’s a problem. ‘The problem is Joe, you’ve been in government for almost 50 years. If government failed you, maybe you’re the problem Joe Biden,’ he said. ‘It’s not rocket science.’

Trump warned the public that the campaign rally would be ‘wild,’ and Don Jr. helped him deliver on the pledge.

He mocked Biden’s pledge to cure cancer, asking, ‘Why the hell didn’t you do that over the last 50 years, Joe?’

Don Jr. blamed the media for giving Biden a pass. ‘Why did not one of them say, “Well, Joe, how exactly are you going to do that?” And why didn’t you do that in the last eight years as vice president and the prior 40 years in government and the Senate?’

His father later claimed that he’d cure cancer in remarks that followed. ‘We will push onward with new medical frontiers. We will come up with the cures to many, many problems, to many, many diseases, including cancer and others and we’re getting closer all the time,’ he said.

Attacks on Clinton and media were a common theme throughout the night, with Trump pausing and waiting for his supporters to cheer, ‘CNN SUCKS!’ and ‘Lock her Up!’ as he talked about the former secretary of state’s acid-washed emails and her loss to him in the last election.

‘It was all an illegal attempt to overturn the results of our election, spy on our campaign, which is what they did,’ he complained.

Trump meets fans after stepping off Air Force One upon arrival at Miami International Airport in Miami

Trump meets fans after stepping off Air Force One upon arrival at Miami International Airport in Miami

Vice President Mike Pence, escorted in by Karen Pence, speaks before Trump takes the stage on Tuesday evening

A man holds up a sign as the crowd waits for US President Donald Trump to arrive at a rally at the Amway Center in Orlando, Florida to officially launch his 2020 campaign

A man holds up a sign as the crowd waits for US President Donald Trump to arrive at a rally at the Amway Center in Orlando, Florida to officially launch his 2020 campaign

Melania's spokesperson Stephanie Grisham speaks with White House senior advisor Kellyanne Conway at the campaign rally

Melania’s spokesperson Stephanie Grisham speaks with White House senior advisor Kellyanne Conway at the campaign rally

President Trump said as he opened the event that he could feel the ‘magic’ in Orlando – a play on the name of the city’s professional basketball team.

He spoke to supporters in the same arena that the team plays in, which is a venue that can hold roughly 20,000 people.

‘You know, I said, “This is a very big arena for a Tuesday night.” I said, “You know, if we have about three or four empty seats, the fake news will say – headlines: he didn’t fill up the arena.” So I said maybe we shouldn’t take the chance, maybe we shouldn’t go to Orlando, maybe we should go someplace else,’ Trump said in his opening remarks. ‘I said, “No, I think we’ll go to Orlando.” And, not only did we fill it up, but we had 120,000 requests. That means you folks have come out very, very good.’

Supporters camped out in tents for more than 30 hours to save their places at the front of a massive line that would ensure them floor seats at Tuesday evening’s show.

Saundra Kiczenski, a Michigan native who works in retail, waited from 7am on Monday. She said she’d been to rallies in support of the president in 15 states. She spent Monday night on the pavement in a sleeping bag.

‘I took the hotel pillow and slept on the ground,’ she told DailyMail.com on Tuesday afternoon as she waited to get in.

The Republican incumbent set the tone for the monster rally in Florida he’d be appearing at in the evening in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour.

‘The Fake News doesn’t report it, but Republican enthusiasm is at an all time high. Look what is going on in Orlando, Florida, right now! People have never seen anything like it (unless you play a guitar). Going to be wild – See you later!’ he tweeted on Tuesday morning.

A cover band with aging rockers who call themselves ‘The Guzzlers’ revved up the crowd under a beating sun at a ‘festival’ the campaign held in an outdoor parking lot, where vendors sold a captive and cramped group sodas, snow cones and Trump umbrellas.

Sweltering heat that topped 87 degrees soon turned to pouring rain, giving the umbrellas a dual purpose for supporters like Richard Snowden who chose to remain.

A resident of Las Vegas, Nevada, Snowden said he’d be ‘remiss’ to have skipped the kickoff. He told DailyMail.com from the comfort of a party-style tent his group had pitched that he’d attended 54 rallies since Trump announced his candidacy for office in 2015.

But even Snowden called himself a pragmatist and said of the president’s reelection odds, ‘I don’t think it’s going to be a cakewalk.’

‘The incumbency will help. He won’t catch them flat-footed this time,’ he observed, as he waited for the rally to begin. ‘And he won’t have the dislike of Hillary working in his favor,’ he said in remarks that proved to prescient.

The Republican incumbent set the tone for the monster rally in Florida he'd be appearing at in the evening in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour

 

The US President and First Lady Melania Trump are pictured stepping off Air Force One upon arrival at Orlando International Airport in Orlando, Florida Tuesday

The US President and First Lady Melania Trump are pictured stepping off Air Force One upon arrival at Orlando International Airport in Orlando, Florida Tuesday

Special advisor to the US president Jared Kushner and White House Press Secretary Sarah Huckabee Sanders wait for the arrival of US President Donald Trump and First Lady Melania Trump at Orlando International Airport

Michael Boulos and Tiffany Trump wait for the arrival of US President Donald Trump and First Lady Melania Trump at Orlando International Airport in Orlando

Special advisor to the US president Jared Kushner and White House Press Secretary Sarah Huckabee Sanders, left, and Michael Boulos and Tiffany Trump, right, wait for the arrival of US President Donald Trump and First Lady Melania Trump at Orlando International Airport on Tuesday

Donald Trump is putting an advisory on his Orlando rally, saying the official launch of 2020 campaign will be 'wild,' after supporters camped out in tents to save their places in line like they were waiting in line for a free concert with Rihanna

Donald Trump is putting an advisory on his Orlando rally, saying the official launch of 2020 campaign will be ‘wild,’ after supporters camped out in tents to save their places in line like they were waiting in line for a free concert with Rihanna

Supporters of President Donald Trump wait in line hours before the arena doors open for a campaign rally Tuesday

Supporters of President Donald Trump wait in line hours before the arena doors open for a campaign rally Tuesday

Patriotic colors: Trump supporters came in red white and blue for the campaign kick-off

Patriotic colors: Trump supporters came in red white and blue for the campaign kick-off

Determined: The early start was an attempt by the fanatical Trump backers to be at the front of the crowd for the campaign kick-off

Determined: The early start was an attempt by the fanatical Trump backers to be at the front of the crowd for the campaign kick-off

https://www.dailymail.co.uk/news/article-7156179/Trumps-2020-kickoff-features-media-bashing-attacks-Joe-Biden-old-foe-Hillary-Clinton.html

 

Trump, in 2020 campaign mode, calls Democrats ‘radical’

today

President Donald Trump jabbed at the press and poked the political establishment he ran against in 2016 as he kicked off his reelection campaign with a grievance-filled rally focused more on settling scores than laying out his agenda for a possible second term.

Addressing a crowd of thousands at Orlando’s Amway Center on Tuesday night, Trump complained he was “under assault from the very first day” of his presidency by a “fake news media” and an “illegal witch hunt” that had tried to keep him and his supporters down.

He painted a disturbing picture of what life would look like if he loses in 2020, accusing his critics of “un-American conduct” and saying Democrats “want to destroy you and they want to destroy our country as we know it.”

“A vote for any Democrat in 2020 is a vote for the rise of radical socialism and the destruction of the American dream,” he said. Trump made only passing mention of any of the Democrats running to replace him even as he tossed out “radical” and “unhinged” to describe the rival party.

Trump has long railed against the special counsel’s investigation into Russian meddling in the 2016 election and the ongoing probes by House Democrats in the aftermath of Robert Mueller’s report .

President Donald Trump officially kicked off his re-election campaign Tuesday with a grievance-filled Florida rally. "We're going to keep it better than ever before," he declared. (June 18)

The apocalyptic language and finger-pointing made clear that Trump’s 2020 campaign will probably look a whole lot like his run three years ago. Even after two-and-a-half years in the Oval Office, Trump remains focused on energizing his base and offering himself as a political outsider running against Washington.

Republican Party Chairwoman Ronna McDaniel tweeted Wednesday morning that Trump had raised $24.8 million in less than 24 hours for his reelection.

In his speech, Trump spent considerably more time focused on former Democratic rival Hillary Clinton than on his current 2020 challengers, even though she is not on the ballot.

Thousands of Trump supporters began gathering outside the arena on Monday.

“Trump has been the best president we’ve ever had,” said Ron Freitas, a retired Merchant Marine and registered Democrat from Orlando.

Hundreds of anti-Trump protesters clapped and took photos when a 20-foot (6-meter) blimp of a snarling Trump baby in a diaper was inflated. Some members of the far-right hate group Proud Boys were also spotted marching outside the rally.

Trump aides scheduled the kickoff near the four-year anniversary of the day when the former reality television star and New York tabloid fixture launched his longshot campaign for president with a famous escalator ride in front of a crowd that included paid actors.

Trump spoke fondly of his 2016 race, calling it “a defining moment in American history.” He said that in the years since, he had upended Washington, staring down “a corrupt and broken political establishment” and restoring a government “of, for and by the people.”

He never has really stopped running. He filed for reelection on Jan. 20, 2017, the day of his inauguration, and held his first 2020 rally in February, 2017, in nearby Melbourne. He has continued holding his signature “Make America Great Again” rallies in the months since.

Trump asked the crowd whether he should stick with “Make America Great Again” or upgrade his slogan. His new one — “Keep America Great” — was greeted with boisterous cheers.

Trump is hoping to replicate the dynamics that allowed him to take charge of the Republican Party and then the presidency as an insurgent intent on disrupting the status quo. In 2016, he successfully appealed to disaffected voters who felt left behind by economic dislocation and demographic shifts. He has no intention of abandoning that mantle, even if he is the face of the institutions he looks to disrupt.

The president underscored that on the eve of the rally in must-win Florida, returning to the hardline immigration themes of his first campaign by tweeting that next week, Immigration and Customs Enforcement “will begin the process of removing the millions of illegal aliens who have illicitly found their way into the United States.”

That promise, which came with no details and sparked Democratic condemnation, seemed to offer a peek into a campaign that will largely be fought along the same lines as his first bid, with very few new policy proposals for a second term.

Early Democratic front-runner Joe Biden said Trump’s politics are “all about dividing us” in ways that are “dangerous — truly, truly dangerous.”

Another leading Democratic contender, Vermont Sen. Bernie Sanders, said Trump had delivered “an hour-and-a-half speech of lies, distortions and total, absolute nonsense.”

But those involved in the president’s reelection effort believe his version of populism, combined with his mantra to “Drain the Swamp,” still resonates, despite his administration’s ties with lobbyists and corporations and the Trump family’s apparent efforts to profit off the presidency.Critics have pointed out his constant promotion for his golf courses, both at home and abroad, and note that this daughter, White House senior aide Ivanka Trump, made $4 million last year from her stake in the president’s Washington hotel, which has become a favored destination for foreign nationals looking to curry favor with the administration.

Advisers believe that, in an age of extreme polarization, many Trump backers view their support for the president as part of their identity, one not easily shaken. They point to his seemingly unmovable support with his base supporters as evidence that he is still viewed the same way he was as a candidate: a political rebel.

Trump tried to make the case that he had made good on his 2016 promises, including cracking down on illegal immigration and boosting jobs.

Near the rally’s end, Trump ran through a list of promises for a second term, pledging a new immigration system, new trade deals, a health care overhaul and a cure for cancer and “many diseases,” including eradicating AIDS in America.

https://apnews.com/947182a691e6498ca4488e9fc8f9e4b5

President Trump spent a Tuesday night rally he’d advertised as a 2020 kickoff hammering his old foe Hillary Clinton for acid washing her emails and failing to deliver on her pledge to beat him, while Democrats vying for the party’s nomination now escaped his wrath.

Noting that he’s under constant media scrutiny, Trump said that he’d be sent to the slammer if he ordered aides to destroy potential evidence.

‘But, can you imagine if I got a subpoena, think of this, if I got a subpoena for emails, if I deleted one email like a love note to Melania, it’s the electric chair for Trump,’ he claimed in a campaign speech in Orlando.

Trump said subpoenas he’s receiving are not about Democratic claims that his campaign may have colluded with Russia.

 

A sunshine state of mind! Melania and Donald Trump gaze lovingly at one another as they leave the White House hand-in-hand and head to Florida for the president’s 2020 rally

  • Trump, 73, and Melania, 49, departed the White House together on Tuesday to fly to Florida
  • The President will be officially launching his 2020 campaign with a rally at the Amway Center
  • The first lady wore a summery $2,290 white eyelet Andrew Gin dress with a pair of red and white polka-dot heels
  • She grinned at her husband as they walked hand-in-hand to Marine One
  • Melania is not expected to speak at the event, which will include an estimated 20,000 people

Donald and Melania Trump had a rare romantic public moment on Tuesday as the two left the White House for Orlando, Florida.

The President and first lady walked hand-in-hand across the South Lawn of the White House before boarding Marine One on their way to Trump’s 2020 campaign kickoff rally.

Cameras caught the couple sharing a warm smile as they held onto each other, Trump, 73, dressed in a navy suit and red tie and his 49-year-old wife took advantage of the June heat in a $2,290 summery white eyelet dress from Andrew Gin, and red polka-dot heels.

All smiles: Donald and Melania Trump held hands and beamed at one another as they walked across the White House lawn to begin their trip to Orlando, Florida, on Tuesday

All smiles: Donald and Melania Trump held hands and beamed at one another as they walked across the White House lawn to begin their trip to Orlando, Florida, on Tuesday

Ready to get away! The 49-year-old first lady couldn't wipe the smile off her face as she and the president strolled across the South Lawn

Ready to get away! The 49-year-old first lady couldn’t wipe the smile off her face as she and the president strolled across the South Lawn

On their way: They appeared to be in good spirits as they set out for Orlando, Florida+19

On their way: They appeared to be in good spirits as they set out for Orlando, Florida

Hands on: At one point, Trump clasped one of Melania's hands in both of his own+19

Hands on: At one point, Trump clasped one of Melania’s hands in both of his own

The couple isn’t typically much for PDA but shared an intimate smile as they walked passed photographers.

They held each other’s hands, with Trump stopping at one point in order to clasp Melania’s left hand in both of his own.

Melania beat the heat, which is hovering in the mid-to-high 80s in Washington, D.C. today, in a breezy but figure-flaunting white sleeveless dress, which featured a seasonally appropriate eyelet patter with floral cutouts on the top.

She accessorized with a pair of dark sunglasses and red and white pointy-toe pumps. while wearing her brown hair blown out around her shoulders.

The couple, who married in 2005, celebrated their 14th wedding anniversary in January, just one year less than he was married to his first wife Ivana.

The couple grinned as they boarded Marine One and then switched planes for Air Force One at Andrews Air Force Base in Maryland.

Hot out here: Melania wore a summery white eyelet dress for the occasion, as temperatures soared into the high 80s+19

Hot out here: Melania wore a summery white eyelet dress for the occasion, as temperatures soared into the high 80s

Protection: She shielded her eyes behind a pair of sunglasses+19

Protection: She shielded her eyes behind a pair of sunglasses

High heels: On her feet were a pair of red polka dot pointy-toe pumps+19

High heels: On her feet were a pair of red polka dot pointy-toe pumps

Ready to go: The well-coiffed first lady had her hair and nails done+19

Ready to go: The well-coiffed first lady had her hair and nails done

They’re flying down not to Mar-a-Lago but Orlando, where Trump is kicking off his 2020 presidential campaign at the Amway Center in front of an estimated 20,000 people.

Trump’s campaign is transforming the area outside the arena to have a festival-like atmosphere, with music and food trucks to help supporters pass the time.

The most coveted positions are not seats at all, but standing positions near the front of the stage. Backers of the president in that area are likely to get a handshake, a selfie or Trump’s autograph at the event that formally marks the beginning of his campaign for a second term.

All of Trump’s children and his wife Melania will be with him at the event, sources told DailyMail.com, as will the Mike Pence, the president’s running mate and the nation’s vice president.

The first lady does not plan to make formal remarks on Tuesday night, her office said, but given the president’s tendency to call on people to speak, she could end up addressing the crowd.

Donald Trump, Jr., on the other hand is expected to give remarks before the rally.

Beat the heat: Melania kept breezy in the lightweight dress+19

It will likely also serve her well in the Florida heat+19

Beat the heat: Melania kept breezy in the lightweight dress, which will likely also serve her well in the Florida heat

Staying behind: The first lady does not plan to make formal remarks on Tuesday night, her office said+19

Staying behind: The first lady does not plan to make formal remarks on Tuesday night, her office said

Change of plan? The couple's 13-year-old son Barron is also expected to be at the rally, but was not seen traveling with them+19

Change of plan? The couple’s 13-year-old son Barron is also expected to be at the rally, but was not seen traveling with them

Family affair: Trump's adult children — Ivanka, Don Jr., Eric, and Tiffany — are also expected to be there+19

Family affair: Trump’s adult children — Ivanka, Don Jr., Eric, and Tiffany — are also expected to be there

Melania continued to smile at her husband as they switched planes at Joint Base Andrews+19

Melania continued to smile at her husband as they switched planes at Joint Base Andrews

See ya! Trump waved goodbye as they boarded the plane together+19

See ya! Trump waved goodbye as they boarded the plane together

The president’s eldest son is a frequent presence at campaign events — with and without his father — and often serves as a warm-up act for the president’s supporters. He’s also campaigned and raised money for other Republican candidates since his father entered politics.

His girlfriend Kimberly Guilfoyle, a former Fox News personality, is also scheduled to be at the rally. She serves as a senior adviser to the president’s reelection campaign.

Senior advisers and family members to the president Jared Kushner and Ivanka Trump are also expected to be at the rally.

It’s unclear if Lara Trump, wife of Eric Trump, will be in Orlando. She serves as a senior adviser to the president’s campaign, but is also pregnant with the couple’s second child. She made a state trip to the UK in early June.

It will be 13-year-old Barron Trump’s first appearance at a campaign rally since his father took office.

Trump’s youngest daughter Tiffany, who has been less involved than her older siblings in her father’s campaigns and administration, will also be there.

Orlando Trump supporters stakeout spots ahead of rally

Waiting for him: The rally will mark the official launch of 2020 campaign+19

Waiting for him: The rally will mark the official launch of 2020 campaign

Patience: Supporters waited in line hours before the arena doors opened on Tuesday+19

Patience: Supporters waited in line hours before the arena doors opened on Tuesday

Patriotic colors: Trump supporters came in red white and blue for the campaign kick-off

Wild: The Republican incumbent set the tone in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour

President Trump release his 2020 campaign ad for re-election

The Republican incumbent set the tone for the monster rally in Florida he’d be appearing at this evening in a morning tweet that bashed the media and compared the scene outside the Amway Center to a rock tour.

‘The Fake News doesn’t report it, but Republican enthusiasm is at an all time high. Look what is going on in Orlando, Florida, right now! People have never seen anything like it (unless you play a guitar). Going to be wild – See you later!’ he said.

Trump had apparently dropped a claim that ‘thousands’ turned up on Monday, with about 250 people camping overnight. But the numbers grew steadily as temperatures soared in Orlando Tuesday, reaching 87 degrees before an hour-long downpour that soaked a waiting crowd.

A new Quinnipiac poll showed Trump losing Florida to Democratic nemesis Joe Biden. The former vice president would beat Trump by nine points, 50 – 41 per cent, the newly-released survey showed.

Vermont Sen. Bernie Sanders would win by a similar margin, 48 – 42, while other top Democrats would perform in the poll’s margin of error

https://www.dailymail.co.uk/femail/article-7155853/Melania-Trump-smiles-warmly-husband-depart-Orlando-campaign-kickoff-rally.html

 

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The Pronk Pops Show 1261, May 21, 2019, Story 1: Do Not Believe The Poll That 43% of Americans Believe That Socialism Would Be A Good Thing — More Capitalism and Less Socialism Would Be Excellent –Videos — Story 2: Progressive Socialist Democrats Want To Impeach Trump — Please Do and Lose — From Collusion Delusion To Obstruction Delusion To Democrats Destruction — Game Set Match — Videos

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Democratic Socialism is Still Socialism

Capitalism vs. Socialism

How Socialism Ruined My Country

Is Denmark Socialist?

Socialists and Other Grotesque Ingrates | Thomas E. Woods, Jr.

Socialism Makes People Selfish

Free Market Masters: Ludwig von Mises

Hayek on Socialism

Ludwig von Mises Speaks: Socialism versus Free Market Exchange (1970)

The Impossibility of Economic Calculation Under Socialism

Ten Things Millennials Should Know About Socialism | Thomas J. DiLorenzo

 

Four in 10 Americans Embrace Some Form of Socialism

Four in 10 Americans Embrace Some Form of Socialism

STORY HIGHLIGHTS

  • 43% of Americans say socialism would be a good thing for the country
  • 51% believe socialism would be a bad thing for the country
  • Americans split on viewing economy as free market or government controlled

WASHINGTON, D.C. — Americans today are more closely divided than they were earlier in the last century when asked whether some form of socialism would be a good or bad thing for the country. While 51% of U.S. adults say socialism would be a bad thing for the country, 43% believe it would be a good thing. Those results contrast with a 1942 Roper/Fortune survey that found 40% describing socialism as a bad thing, 25% a good thing and 34% not having an opinion.

More Americans Now See Socialism as a Good Thing for the Country
Would some form of socialism be a good thing or a bad thing for the country as a whole?
1942 2019 Change
% % pct. pts.
Good thing 25 43 +18
Bad thing 40 51 +11
No opinion 34 6 -28
Net “good thing” -15 -8 +7
Note: 1942 data gathered by Roper Center for Public Opinion Research
GALLUP

The Roper/Fortune survey is one of the oldest trend questions measuring attitudes on socialism in the U.S. Gallup’s update of the question in an April 17-30 survey finds Americans more likely to have an opinion on the matter now, as well as a smaller gap in the percentage calling socialism a bad thing vs. a good thing.

Previous Gallup research shows that Americans’ definition of socialism has changed over the years, with nearly one in four now associating the concept with social equality and 17% associating it with the more classical definition of having some degree of government control over the means of production. A majority of Democrats have said they view socialism positively in Gallup polling since 2010, including 57% in the most recent measure in 2018.

Outlook on Socialism Around the World

The April 17-30 survey also updates another historical question on socialism. Gallup first asked Americans in 1949 about their outlook on the spread of democracy over the next 50 years. At that time, seven in 10 Americans (72%) predicted that most countries in the world would have a democratic government. It’s important to note that in much of the political rhetoric of the time, the terms democracy and capitalism were more intimately intertwined than they are today, perhaps synonymous to many.

Americans’ Views on Future of Democracy and Socialism Globally
During the next 50 years, do you think most of the nations of the world will have a democratic government, a communist government or a socialist government?
1949 2019 Change
% % pct. pts.
Democratic 72 57 -15
Socialist 14 29 +15
Communist 9 6 -3
No opinion 5 8 +3
GALLUP

The current update on this question finds a marked increase in the percentage saying that most countries during the next 50 years will have a socialist government (29%). It is unclear whether this is due to the flourishing of democracies — particularly in Europe and Latin America — led by what are often described as social democrats, or whether a fundamental shift is taking place among some Americans in their views of socialism.

Government vs. Free Market

In the same April survey, Gallup asked Americans whether they would prefer mostly free market or government control over several economic and societal activities. Americans are most likely to prefer free market control in the areas of technological innovation and the distribution of wealth. Majorities also want the free market to drive the economy overall, wages, higher education and healthcare.

Preference for the government to serve as the primarily responsible actor only garners majority support for protecting online consumer privacy and the environment.

Majority Want Free Market to Lead on Many Fronts
Would you prefer to have the free market or the government be primarily responsible for what happens in each of the following areas?
Free market Government Net “free market”
% % pct. pts.
Technological innovation 75 19 +56
The distribution of wealth 68 28 +40
The economy overall 62 33 +29
Wages 62 35 +27
Higher education 56 41 +15
Healthcare 53 44 +9
Protecting consumers’ privacy online 40 57 -17
Environmental protection 30 66 -36
GALLUP, APRIL 17-30, 2019

Notably, more Americans favor free market than government control over healthcare and higher education, two areas in which Democratic politicians have made proposals to greatly expand government involvement. But at least four in 10 Americans appear sympathetic to policies that would increase the government’s role in those areas.

While there is ample support for a market-driven approach to many of the issues cited above, Americans are divided on how they describe the current state of the U.S. economy. When asked whether they think the U.S. economy leans more toward free market control or toward government control, 40% say it leans more toward government control while fewer say it leans toward free market control (34%). One in four describe it as an equal mix.

Stacked bar graph. Americans’ views of the current state of free market versus government control of the economy.

Bottom Line

Americans’ views on socialism are complex. While some recent data can easily lend to overstated conclusions, there are marked changes in Americans’ views of socialism when taking a longer, more historical look at the data. However, exactly what Americans mean by the term is nuanced and multifaceted. While half of Americans consider socialism as bad for the country, nearly two-thirds say that the U.S. economy is more influenced by the government than the free market, or that it reflects an equal mix of the two.

Additionally, while a majority of Democrats view socialism positively, that is not a major change in the eight years Gallup has tracked this metric. The major shift over this time has been the reduced rate of Democrats who now view capitalism positively (47%).

These data alone make it hard to generalize a simplistic conclusion about Americans’ opinions of, and willingness to entertain, socialism. But there are a few clear takeaways. About four in 10 Americans are accepting of some form of socialism or socialist policies, and Democrats currently have a more positive view of socialism than capitalism. In addition, the April survey found that 47% of Americans say they would vote for a socialist candidate for president. While that figure represents nearly half of the U.S. adult population, even higher percentages say they would vote for an atheist (58%) or Muslim (60%) presidential candidate.

However, when they are asked what role they would like to see the government play in certain areas of society, Americans continue to endorse the free market.

Shifting attitudes about socialism, capitalism, and the current economic and political systems in America — as well as what alternatives many see as solutions for current shortcomings — will continue to be a major focus for Gallup.

Learn more about how the Gallup Poll Social Series works.

View complete question responses and trends

Capitalism

From Wikipedia, the free encyclopedia

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Capitalism is an economic system based on the private ownership of the means of production and their operation for profit.[1][2][3][4] Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets.[5][6] In a capitalist market economy, decision-making and investment are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.[7][8]

Economists, political economists, sociologists and historians have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free market capitalism, welfare capitalism and state capitalism. Different forms of capitalism feature varying degrees of free markets, public ownership,[9] obstacles to free competition and state-sanctioned social policies. The degree of competition in markets, the role of intervention and regulation, and the scope of state ownership vary across different models of capitalism.[10][11] The extent to which different markets are free as well as the rules defining private property are matters of politics and policy. Most existing capitalist economies are mixed economies, which combine elements of free markets with state intervention and in some cases economic planning.[12]

Market economies have existed under many forms of government and in many different times, places and cultures. Modern capitalist societies—marked by a universalization of money-based social relations, a consistently large and system-wide class of workers who must work for wages, and a capitalist class which owns the means of production—developed in Western Europe in a process that led to the Industrial Revolution. Capitalist systems with varying degrees of direct government intervention have since become dominant in the Western world and continue to spread. Over time, capitalist countries have experienced consistent economic growth and an increase in the standard of living.

Critics of capitalism argue that it establishes power in the hands of a minority capitalist class that exists through the exploitation of the majority working class and their labor; prioritizes profit over social good, natural resources and the environment; and is an engine of inequality, corruption and economic instabilities. Supporters argue that it provides better products and innovation through competition, disperses wealth to all productive people, promotes pluralism and decentralization of power, creates strong economic growth, and yields productivity and prosperity that greatly benefit society.

Contents

Etymology

Other terms sometimes used for capitalism:

The term “capitalist”, meaning an owner of capital, appears earlier than the term “capitalism” and it dates back to the mid-17th century. “Capitalism” is derived from capital, which evolved from capitale, a late Latin word based on caput, meaning “head”—also the origin of “chattel” and “cattle” in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries in the sense of referring to funds, stock of merchandise, sum of money or money carrying interest.[24]:232[25][26] By 1283, it was used in the sense of the capital assets of a trading firm and it was frequently interchanged with a number of other words—wealth, money, funds, goods, assets, property and so on.[24]:233

The Hollandische Mercurius uses “capitalists” in 1633 and 1654 to refer to owners of capital.[24]:234 In French, Étienne Clavier referred to capitalistes in 1788,[27] six years before its first recorded English usage by Arthur Young in his work Travels in France (1792).[26][28] In his Principles of Political Economy and Taxation (1817), David Ricardo referred to “the capitalist” many times.[29] Samuel Taylor Coleridge, an English poet, used “capitalist” in his work Table Talk (1823).[30] Pierre-Joseph Proudhon used the term “capitalist” in his first work, What is Property? (1840), to refer to the owners of capital. Benjamin Disraeli used the term “capitalist” in his 1845 work Sybil.[26]

The initial usage of the term “capitalism” in its modern sense has been attributed to Louis Blanc in 1850 (“What I call ‘capitalism’ that is to say the appropriation of capital by some to the exclusion of others”) and Pierre-Joseph Proudhon in 1861 (“Economic and social regime in which capital, the source of income, does not generally belong to those who make it work through their labour”).[24]:237 Karl Marx and Friedrich Engels referred to the “capitalistic system”[31][32] and to the “capitalist mode of production” in Capital (1867).[33] The use of the word “capitalism” in reference to an economic system appears twice in Volume I of Capital, p. 124 (German edition) and in Theories of Surplus Value, tome II, p. 493 (German edition). Marx did not extensively use the form capitalism, but instead those of capitalist and capitalist mode of production, which appear more than 2,600 times in the trilogy The Capital. According to the Oxford English Dictionary (OED), the term “capitalism” first appeared in English in 1854 in the novel The Newcomes by novelist William Makepeace Thackeray, where he meant “having ownership of capital”.[34] Also according to the OED, Carl Adolph Douai, a German American socialist and abolitionist, used the phrase “private capitalism” in 1863.

History

Capitalism in its modern form can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance, in city states like Florence.[35] Capital has existed incipiently on a small scale for centuries[36] in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labour. Simple commodity exchange and consequently simple commodity production, which are the initial basis for the growth of capital from trade, have a very long history. Classical Islam promulgated capitalist economic policies such as free trade and banking. Their use of Indo-Arabic numerals facilitated bookkeeping. These innovations migrated to Europe through trade partners in cities such as Venice and Pisa. The Italian mathematician Fibonacci traveled the Mediterranean talking to Arab traders, and returned to popularize the use of Indo-Arabic numerals in Europe.[37]

Capital and commercial trade thus existed for much of history, but it did not lead to industrialisation or dominate the production process of society. That required a set of conditions, including specific technologies of mass production, the ability to independently and privately own and trade in means of production, a class of workers willing to sell their labour power for a living, a legal framework promoting commerce, a physical infrastructure allowing the circulation of goods on a large scale and security for private accumulation. Many of these conditions do not currently exist in many Third World countries, although there is plenty of capital and labour. The obstacles for the development of capitalist markets are therefore less technical and more social, cultural and political.

Agrarian capitalism

The economic foundations of the feudal agricultural system began to shift substantially in 16th-century England as the manorial system had broken down and land began to become concentrated in the hands of fewer landlords with increasingly large estates. Instead of a serf-based system of labor, workers were increasingly employed as part of a broader and expanding money-based economy. The system put pressure on both landlords and tenants to increase the productivity of agriculture to make profit; the weakened coercive power of the aristocracy to extract peasant surpluses encouraged them to try better methods; and the tenants also had incentive to improve their methods in order to flourish in a competitive labor market. Terms of rent for land were becoming subject to economic market forces rather than to the previous stagnant system of custom and feudal obligation.[38][39]

By the early 17th century, England was a centralized state in which much of the feudal order of Medieval Europe had been swept away. This centralization was strengthened by a good system of roads and by a disproportionately large capital city, London. The capital acted as a central market hub for the entire country, creating a very large internal market for goods, contrasting with the fragmented feudal holdings that prevailed in most parts of the Continent.

Mercantilism

A painting of a French seaport from 1638 at the height of mercantilism

The economic doctrine prevailing from the 16th to the 18th centuries is commonly called mercantilism.[40][41] This period, the Age of Discovery, was associated with the geographic exploration of the foreign lands by merchant traders, especially from England and the Low Countries. Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist methods.[42] Most scholars consider the era of merchant capitalism and mercantilism as the origin of modern capitalism,[43][44] although Karl Polanyi argued that the hallmark of capitalism is the establishment of generalized markets for what he called the “fictitious commodities”, i.e. land, labor and money. Accordingly, he argued that “not until 1834 was a competitive labor market established in England, hence industrial capitalism as a social system cannot be said to have existed before that date”.[45]

Robert Clive after the Battle of Plassey, which began East India Company rule in India

England began a large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). A systematic and coherent explanation of balance of trade was made public through Thomas Mun‘s argument England’s Treasure by Forraign Trade, or the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in the 1620s and published in 1664.[46]

European merchants, backed by state controls, subsidies and monopolies, made most of their profits by buying and selling goods. In the words of Francis Bacon, the purpose of mercantilism was “the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of the soil; the regulation of prices…”.[47]

The British East India Company and the Dutch East India Company inaugurated an expansive era of commerce and trade.[48][49] These companies were characterized by their colonial and expansionary powers given to them by nation-states.[48] During this era, merchants, who had traded under the previous stage of mercantilism, invested capital in the East India Companies and other colonies, seeking a return on investment.

Industrial capitalism

A Watt steam engine: the steam engine fuelled primarily by coal propelled the Industrial Revolution in Great Britain[50]

In the mid-18th century, a new group of economic theorists, led by David Hume[51] and Adam Smith, challenged fundamental mercantilist doctrines such as the belief that the world’s wealth remained constant and that a state could only increase its wealth at the expense of another state.

During the Industrial Revolution, industrialists replaced merchants as a dominant factor in the capitalist system and affected the decline of the traditional handicraft skills of artisans, guilds and journeymen. Also during this period, the surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture. Industrial capitalism marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and the routine of work tasks; and finally established the global domination of the capitalist mode of production.[41]

Britain also abandoned its protectionist policy as embraced by mercantilism. In the 19th century, Richard Cobden and John Bright, who based their beliefs on the Manchester School, initiated a movement to lower tariffs.[52] In the 1840s, Britain adopted a less protectionist policy, with the repeal of the Corn Laws and the Navigation Acts.[41] Britain reduced tariffs and quotas, in line with David Ricardo’s advocacy for free trade.

Modern capitalism

The gold standard formed the financial basis of the international economy from 1870 to 1914

Capitalism was carried across the world by broader processes of globalization and by the beginning of the nineteenth century a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization.[53][page needed] Later in the 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide,[16][54] with the mixed economy being its dominant form in the industrialized Western world.

Industrialization allowed cheap production of household items using economies of scale while rapid population growth created sustained demand for commodities. Globalization in this period was decisively shaped by 18th-century imperialism.[53][page needed]

After the First and Second Opium Wars and the completion of British conquest of India, vast populations of these regions became ready consumers of European exports. Also in this period, areas of sub-Saharan Africa and the Pacific islands were colonised. The conquest of new parts of the globe, notably sub-Saharan Africa, by Europeans yielded valuable natural resources such as rubber, diamonds and coal and helped fuel trade and investment between the European imperial powers, their colonies and the United States:

The inhabitant of London could order by telephone, sipping his morning tea, the various products of the whole earth, and reasonably expect their early delivery upon his doorstep. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. What an extraordinary episode in the economic progress of man was that age which came to an end in August 1914.[55]

In this period, the global financial system was mainly tied to the gold standard. The United Kingdom first formally adopted this standard in 1821. Soon to follow were Canada in 1853, Newfoundland in 1865, the United States and Germany (de jure) in 1873. New technologies, such as the telegraph, the transatlantic cable, the radiotelephone, the steamship and railway allowed goods and information to move around the world at an unprecedented degree.[56]

The New York stock exchange traders’ floor (1963)

In the period following the global depression of the 1930s, the state played an increasingly prominent role in the capitalistic system throughout much of the world. The postwar boom ended in the late 1960s and early 1970s and the situation was worsened by the rise of stagflation.[57] Monetarism, a modification of Keynesianism that is more compatible with laissez-faire, gained increasing prominence in the capitalist world, especially under the leadership of Ronald Reagan in the United States and Margaret Thatcher in the United Kingdom in the 1980s. Public and political interest began shifting away from the so-called collectivist concerns of Keynes’s managed capitalism to a focus on individual choice, called “remarketized capitalism”.[58]

According to Harvard academic Shoshana Zuboff, a new genus of capitalism, surveillance capitalism, monetizes data acquired through surveillance.[59][60][61] She states it was first discovered and consolidated at Google, emerged due to the “coupling of the vast powers of the digital with the radical indifference and intrinsic narcissism of the financial capitalism and its neoliberal vision that have dominated commerce for at least three decades, especially in the Anglo economies”[60] and depends on the global architecture of computer mediation which produces a distributed and largely uncontested new expression of power she calls “Big Other”.[62]

Relationship to democracy

Many analysts[who?] assert that China is one of the main examples of state capitalism in the 21st century

The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of universal adult male suffrage in 19th-century Britain occurred along with the development of industrial capitalism and democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them.[63] However, according to some authors in the 20th-century, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies and single-party states.[41] Democratic peace theory asserts that democracies seldom fight other democracies, but critics of that theory suggest that this may be because of political similarity or stability rather than because they are democratic or capitalist. Moderate critics argue that though economic growth under capitalism has led to democracy in the past, it may not do so in the future as authoritarian regimes have been able to manage economic growth without making concessions to greater political freedom.[64][65]

Milton Friedman, one of the biggest supporters of the idea that capitalism promotes political freedom, argued that competitive capitalism allows economic and political power to be separate, ensuring that they do not clash with one another. Moderate critics have recently challenged this, stating that the current influence lobbying groups have had on policy in the United States is a contradiction, given the approval of Citizens United. This has led people to question the idea that competitive capitalism promotes political freedom. The ruling on Citizens United allows corporations to spend undisclosed and unregulated amounts of money on political campaigns, shifting outcomes to the interests and undermining true democracy. As explained in Robin Hahnel’s writings, the centerpiece of the ideological defense of the free market system is the concept of economic freedom and that supporters equate economic democracy with economic freedom and claim that only the free market system can provide economic freedom. According to Hahnel, there are a few objections to the premise that capitalism offers freedom through economic freedom. These objections are guided by critical questions about who or what decides whose freedoms are more protected. Often, the question of inequality is brought up when discussing how well capitalism promotes democracy. An argument that could stand is that economic growth can lead to inequality given that capital can be acquired at different rates by different people. In Capital in the Twenty-First Century, Thomas Piketty of the Paris School of Economics asserts that inequality is the inevitable consequence of economic growth in a capitalist economy and the resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built.[66]

States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law. Nonetheless, it often comes under fire for its brand of government which though democratic and consistently one of the least corrupt[67] it also operates largely under a one-party rule and does not vigorously defend freedom of expression given its government-regulated press as well as penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People’s Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet‘s rule in Chile led to economic growth and high levels of inequality[68] by using authoritarian means to create a safe environment for investment and capitalism. Similarly, Suharto‘s authoritarian reign and extirpation of the Communist Party of Indonesia allowed for the expansion of capitalism in Indonesia.[69][70]

Varieties of capitalism

Peter A. Hall and David Soskice argued that modern economies have developed two different forms of capitalism: liberal market economies (or LME) (e.g. the United States, the United Kingdom, Canada, New Zealand and Ireland) and coordinated market economies (CME) (e.g. Germany, Japan, Sweden and Austria). Those two types can be distinguished by the primary way in which firms coordinate with each other and other actors, such as trade unions. In LMEs, firms primarily coordinate their endeavors by way of hierarchies and market mechanisms. Coordinated market economies more heavily rely on non-market forms of interaction in the coordination of their relationship with other actors (for a detailed description see Varieties of Capitalism). These two forms of capitalisms developed different industrial relations, vocational training and education, corporate governance, inter-firm relations and relations with employees. The existence of these different forms of capitalism has important societal effects, especially in periods of crisis and instability. Since the early 2000s, the number of labor market outsiders has rapidly grown in Europe, especially among the youth, potentially influencing social and political participation. Using varieties of capitalism theory, it is possible to disentangle the different effects on social and political participation that an increase of labor market outsiders has in liberal and coordinated market economies (Ferragina et al., 2016).[71] The social and political disaffection, especially among the youth, seems to be more pronounced in liberal than coordinated market economies. This signals an important problem for liberal market economies in a period of crisis. If the market does not provide consistent job opportunities (as it has in previous decades), the shortcomings of liberal social security systems may depress social and political participation even further than in other capitalist economies.

Characteristics

In general, capitalism as an economic system and mode of production can be summarised by the following:[72]

The market

The price (P) of a product is determined by a balance between production at each price (supply, S) and the desires of those with purchasing power at each price (demand, D): this results in a market equilibrium, with a given quantity (Q) sold of the product, whereas a rise in demand would result in an increase in price and an increase in output

In free market and laissez-faire forms of capitalism, markets are used most extensively with minimal or no regulation over the pricing mechanism. In mixed economies, which are almost universal today,[80] markets continue to play a dominant role, but they are regulated to some extent by the state in order to correct market failures, promote social welfare, conserve natural resources, fund defense and public safety or other rationale. In state capitalist systems, markets are relied upon the least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital.

Supply is the amount of a good or service that is available for purchase or sale. Demand is the measure of value for a good that people are willing to buy at a given time. Prices tend to rise when demand for an available resource increases or its supply diminishes and fall with demand or when supply increases.

Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. In capitalist theory, competition leads to innovation and more affordable prices. Without competition, a monopoly or cartel may develop. A monopoly occurs when a firm is granted exclusivity over a market. Hence the firm can engage in rent seeking behaviors such as limiting output and raising prices because it has no fear of competition. A cartel is a group of firms that act together in a monopolistic manner to control output and prices.

Governments have implemented legislation for the purpose of preventing the creation of monopolies and cartels. In 1890, the Sherman Anti-Trust Act became the first legislation passed by the United States Congress to limit monopolies.[81]

Profit motive

The profit motive, in the theory in capitalism, is the desire to earn income in the form of profit. Stated differently, the reason for a business’s existence is to turn a profit. The profit motive functions according to rational choice theory, or the theory that individuals tend to pursue what is in their own best interests. Accordingly, businesses seek to benefit themselves and/or their shareholders by maximizing profit.

In capitalist theoretics, the profit motive is said to ensure that resources are being allocated efficiently. For instance, Austrian economist Henry Hazlitt explains: “If there is no profit in making an article, it is a sign that the labor and capital devoted to its production are misdirected: the value of the resources that must be used up in making the article is greater than the value of the article itself”.[82] In other words, profits let companies know whether an item is worth producing. Theoretically, in free and competitive markets maximising profit ensures that resources are not wasted.

Private property

The relationship between the state, its formal mechanisms and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary Peruvian economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in a formal property system where ownership and transactions are clearly recorded.[83]

According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the Enclosure Acts in England and similar legislation elsewhere were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to the development of capitalism.[84][85]

Market competition

In capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix: price, product, distribution and promotion. Merriam-Webster defines competition in business as “the effort of two or more parties acting independently to secure the business of a third party by offering the most favourable terms”.[86] It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses[87] and encouraging efficiency. Smith and other classical economists before Antoine Augustine Cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to a large number of sellers nor to a market in final equilibrium.[88] Competition is widespread throughout the market process. It is a condition where “buyers tend to compete with other buyers, and sellers tend to compete with other sellers”.[89] In offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on the market, competing for the attention and exchange resources of buyers. Competition results from scarcity—there is never enough to satisfy all conceivable human wants—and occurs “when people strive to meet the criteria that are being used to determine who gets what”.[89]

Economic growth

World’s GDP per capita shows exponential growth since the beginning of the Industrial Revolution[90]

Capitalism and the economy of the People’s Republic of China

Historically, capitalism has an ability to promote economic growth as measured by gross domestic product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith’s advocacy of letting a free market control production and price and allocate resources. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system.[91][92]

Between 1000 and 1820, the world economy grew sixfold, a faster rate than the population growth, so individuals enjoyed, on average, a 50% increase in income. Between 1820 and 1998, world economy grew 50-fold, a much faster rate than the population growth, so individuals enjoyed on average a 9-fold increase in income.[93] Over this period, in Europe, North America and Australasia the economy grew 19-fold per person, even though these regions already had a higher starting level; and in Japan, which was poor in 1820, the increase per person was 31-fold. In the Third World, there was an increase, but only 5-fold per person.[93]

As a mode of production

The capitalist mode of production refers to the systems of organising production and distribution within capitalist societies. Private money-making in various forms (renting, banking, merchant trade, production for profit and so on) preceded the development of the capitalist mode of production as such. The capitalist mode of production proper based on wage-labour and private ownership of the means of production and on industrial technology began to grow rapidly in Western Europe from the Industrial Revolution, later extending to most of the world.[citation needed]

The term capitalist mode of production is defined by private ownership of the means of production, extraction of surplus value by the owning class for the purpose of capital accumulation, wage-based labour and at least as far as commodities are concerned being market-based.[94]

Capitalism in the form of money-making activity has existed in the shape of merchants and money-lenders who acted as intermediaries between consumers and producers engaging in simple commodity production (hence the reference to “merchant capitalism“) since the beginnings of civilisation. What is specific about the “capitalist mode of production” is that most of the inputs and outputs of production are supplied through the market (i.e. they are commodities) and essentially all production is in this mode.[10] For example, in flourishing feudalism most or all of the factors of production including labour are owned by the feudal ruling class outright and the products may also be consumed without a market of any kind, it is production for use within the feudal social unit and for limited trade.[73] This has the important consequence that the whole organisation of the production process is reshaped and re-organised to conform with economic rationality as bounded by capitalism, which is expressed in price relationships between inputs and outputs (wages, non-labour factor costs, sales and profits) rather than the larger rational context faced by society overall—that is, the whole process is organised and re-shaped in order to conform to “commercial logic”. Essentially, capital accumulation comes to define economic rationality in capitalist production.[74]

A society, region or nation is capitalist if the predominant source of incomes and products being distributed is capitalist activity, but even so this does not yet mean necessarily that the capitalist mode of production is dominant in that society.

Supply and demand

The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D): the diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product

In capitalist economic structures, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at the current price) will equal the quantity supplied by producers (at the current price), resulting in an economic equilibrium for price and quantity.

The four basic laws of supply and demand are:[95]:37

  1. If demand increases (demand curve shifts to the right) and supply remains unchanged, then a shortage occurs, leading to a higher equilibrium price.
  2. If demand decreases (demand curve shifts to the left) and supply remains unchanged, then a surplus occurs, leading to a lower equilibrium price.
  3. If demand remains unchanged and supply increases (supply curve shifts to the right), then a surplus occurs, leading to a lower equilibrium price.
  4. If demand remains unchanged and supply decreases (supply curve shifts to the left), then a shortage occurs, leading to a higher equilibrium price.

Graphical representation of supply and demand

Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the goods, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis, the opposite of the standard convention for the representation of a mathematical function.

Since determinants of supply and demand other than the price of the goods in question are not explicitly represented in the supply-demand diagram, changes in the values of these variables are represented by moving the supply and demand curves (often described as “shifts” in the curves). By contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.

Supply schedule

A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied. Under the assumption of perfect competition, supply is determined by marginal cost. That is: firms will produce additional output while the cost of producing an extra unit of output is less than the price they would receive.

A hike in the cost of raw goods would decrease supply and shifting costs up while a discount would increase supply, shifting costs down and hurting producers as producer surplus decreases.

By its very nature, conceptualising a supply curve requires the firm to be a perfect competitor (i.e. to have no influence over the market price). This is true because each point on the supply curve is the answer to the question “If this firm is faced with this potential price, how much output will it be able to and willing to sell?”. If a firm has market power, its decision of how much output to provide to the market influences the market price, therefore the firm is not “faced with” any price and the question becomes less relevant.

Economists distinguish between the supply curve of an individual firm and between the market supply curve. The market supply curve is obtained by summing the quantities supplied by all suppliers at each potential price, thus in the graph of the supply curve individual firms’ supply curves are added horizontally to obtain the market supply curve.

Economists also distinguish the short-run market supply curve from the long-run market supply curve. In this context, two things are assumed constant by definition of the short run: the availability of one or more fixed inputs (typically physical capital) and the number of firms in the industry. In the long-run, firms can adjust their holdings of physical capital, enabling them to better adjust their quantity supplied at any given price. Furthermore, in the long-run potential competitors can enter or exit the industry in response to market conditions. For both of these reasons, long-run market supply curves are generally flatter than their short-run counterparts.

The determinants of supply are:

  1. Production costs: how much a goods costs to be produced. Production costs are the cost of the inputs; primarily labor, capital, energy and materials. They depend on the technology used in production and/or technological advances. See productivity.
  2. Firms’ expectations about future prices.
  3. Number of suppliers.

Demand schedule

A demand schedule, depicted graphically as the demand curve, represents the amount of some goods that buyers are willing and able to purchase at various prices, assuming all determinants of demand other than the price of the good in question, such as income, tastes and preferences, the price of substitute goods and the price of complementary goods, remain the same. According to the law of demand, the demand curve is almost always represented as downward-sloping, meaning that as price decreases, consumers will buy more of the good.[96]

Just like the supply curves reflect marginal cost curves, demand curves are determined by marginal utility curves.[97] Consumers will be willing to buy a given quantity of a good at a given price, if the marginal utility of additional consumption is equal to the opportunity cost determined by the price—that is, the marginal utility of alternative consumption choices. The demand schedule is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time.

While the aforementioned demand curve is generally downward-sloping, there may be rare examples of goods that have upward-sloping demand curves. Two different hypothetical types of goods with upward-sloping demand curves are Giffen goods (an inferior, but staple good) and Veblen goods (goods made more fashionable by a higher price).

By its very nature, conceptualising a demand curve requires that the purchaser be a perfect competitor—that is, that the purchaser has no influence over the market price. This is true because each point on the demand curve is the answer to the question “If this buyer is faced with this potential price, how much of the product will it purchase?”. If a buyer has market power, so its decision of how much to buy influences the market price, then the buyer is not “faced with” any price and the question is meaningless.

Like with supply curves, economists distinguish between the demand curve of an individual and the market demand curve. The market demand curve is obtained by summing the quantities demanded by all consumers at each potential price, thus in the graph of the demand curve individuals’ demand curves are added horizontally to obtain the market demand curve.

The determinants of demand are:

  1. Income.
  2. Tastes and preferences.
  3. Prices of related goods and services.
  4. Consumers’ expectations about future prices and incomes that can be checked.
  5. Number of potential consumers.

Equilibrium

In the context of supply and demand, economic equilibrium refers to a state where economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text-book model of perfect competition equilibrium occurs at the point at which quantity demanded and quantity supplied are equal.[98] Market equilibrium in this case refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. This price is often called the competitive price or market clearing price and will tend not to change unless demand or supply changes and the quantity is called “competitive quantity” or market clearing quantity.

Partial equilibrium

Partial equilibrium, as the name suggests, takes into consideration only a part of the market to attain equilibrium.

Jain proposes (attributed to George Stigler): “A partial equilibrium is one which is based on only a restricted range of data, a standard example is price of a single product, the prices of all other products being held fixed during the analysis”.[99]

The supply and demand model is a partial equilibrium model of economic equilibrium, where the clearance on the market of some specific goods is obtained independently from prices and quantities in other markets. In other words, the prices of all substitutes and complements as well as income levels of consumers are constant. This makes analysis much simpler than in a general equilibrium model which includes an entire economy.

Here the dynamic process is that prices adjust until supply equals demand. It is a powerfully simple technique that allows one to study equilibrium, efficiency and comparative statics. The stringency of the simplifying assumptions inherent in this approach make the model considerably more tractable, but it may produce results which while seemingly precise do not effectively model real world economic phenomena.

Partial equilibrium analysis examines the effects of policy action in creating equilibrium only in that particular sector or market which is directly affected, ignoring its effect in any other market or industry assuming that they being small will have little impact if any.

Hence this analysis is considered to be useful in constricted markets.

Léon Walras first formalised the idea of a one-period economic equilibrium of the general economic system, but it was French economist Antoine Augustin Cournot and English political economist Alfred Marshall who developed tractable models to analyse an economic system.

Empirical estimation

Demand and supply relations in a market can be statistically estimated from price, quantity and other data with sufficient information in the model. This can be done with simultaneous-equation methods of estimation in econometrics. Such methods allow solving for the model-relevant “structural coefficients”, the estimated algebraic counterparts of the theory. The parameter identification problem is a common issue in “structural estimation”. Typically, data on exogenous variables (that is, variables other than price and quantity, both of which are endogenous variables) are needed to perform such an estimation. An alternative to “structural estimation” is reduced-form estimation, which regresses each of the endogenous variables on the respective exogenous variables.

Macroeconomic uses of demand and supply

Demand and supply have also been generalised to explain macroeconomic variables in a market economy, including the quantity of total output and the general price level. The Aggregate Demand–Aggregate Supply model may be the most direct application of supply and demand to macroeconomics, but other macroeconomic models also use supply and demand. Compared to microeconomic uses of demand and supply, different (and more controversial) theoretical considerations apply to such macroeconomic counterparts as aggregate demand and aggregate supply. Demand and supply are also used in macroeconomic theory to relate money supply and money demand to interest rates and to relate labor supply and labor demand to wage rates.

History

According to Hamid S. Hosseini, the power of supply and demand was understood to some extent by several early Muslim scholars, such as fourteenth-century Mamluk scholar Ibn Taymiyyah, who wrote: “If desire for goods increases while its availability decreases, its price rises. On the other hand, if availability of the good increases and the desire for it decreases, the price comes down”.[100]

John Locke‘s 1691 work Some Considerations on the Consequences of the Lowering of Interest and the Raising of the Value of Money[101] includes an early and clear description of supply and demand and their relationship. In this description, demand is rent: “The price of any commodity rises or falls by the proportion of the number of buyer and sellers” and “that which regulates the price… [of goods] is nothing else but their quantity in proportion to their rent”.

The phrase “supply and demand” was first used by James Denham-Steuart in his Inquiry into the Principles of Political Economy, published in 1767. Adam Smith used the phrase in his 1776 book The Wealth of Nations, and David Ricardo titled one chapter of his 1817 work Principles of Political Economy and Taxation “On the Influence of Demand and Supply on Price”.[102]

In The Wealth of Nations, Smith generally assumed that the supply price was fixed, but that its “merit” (value) would decrease as its “scarcity” increased, in effect what was later called the law of demand also. In Principles of Political Economy and Taxation, Ricardo more rigorously laid down the idea of the assumptions that were used to build his ideas of supply and demand. Antoine Augustin Cournot first developed a mathematical model of supply and demand in his 1838 Researches into the Mathematical Principles of Wealth, including diagrams.

During the late 19th century, the marginalist school of thought emerged. This field mainly was started by Stanley Jevons, Carl Menger and Léon Walras. The key idea was that the price was set by the most expensive price—that is, the price at the margin. This was a substantial change from Adam Smith’s thoughts on determining the supply price.

In his 1870 essay “On the Graphical Representation of Supply and Demand”, Fleeming Jenkin in the course of “introduc[ing] the diagrammatic method into the English economic literature” published the first drawing of supply and demand curves therein,[103] including comparative statics from a shift of supply or demand and application to the labor market.[104] The model was further developed and popularized by Alfred Marshall in the 1890 textbook Principles of Economics.[102]

Role of government

In a capitalist system, the government does not prohibit private property or prevent individuals from working where they please. The government does not prevent firms from determining what wages they will pay and what prices they will charge for their products. However, many countries have minimum wage laws and minimum safety standards.

Under some versions of capitalism, the government carries out a number of economic functions, such as issuing money, supervising public utilities and enforcing private contracts. Many countries have competition laws that prohibit monopolies and cartels from forming. Despite anti-monopoly laws, large corporations can form near-monopolies in some industries. Such firms can temporarily drop prices and accept losses to prevent competition from entering the market and then raise them again once the threat of entry is reduced. In many countries, public utilities (e.g. electricity, heating fuel and communications) are able to operate as a monopoly under government regulation due to high economies of scale.

Government agencies regulate the standards of service in many industries, such as airlines and broadcasting as well as financing a wide range of programs. In addition, the government regulates the flow of capital and uses financial tools such as the interest rate to control factors such as inflation and unemployment.[105]

Relationship to political freedom

In his book The Road to Serfdom, Friedrich Hayek asserts that the economic freedom of capitalism is a requisite of political freedom. He argues that the market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman, Andrew Brennan and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression. In his view, transactions in a market economy are voluntary and that the wide diversity that voluntary activity permits is a fundamental threat to repressive political leaders and greatly diminish their power to coerce. Some of Friedman’s views were shared by John Maynard Keynes, who believed that capitalism is vital for freedom to survive and thrive.[106][107] Freedom House, an American think tank that conducts international research on and advocates for, democracy, political freedom and human rights, has argued “there is a high and statistically significant correlation between the level of political freedom as measured by Freedom House and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey“.[108]

Types of capitalism

There are many variants of capitalism in existence that differ according to country and region. They vary in their institutional makeup and by their economic policies. The common features among all the different forms of capitalism is that they are based on the production of goods and services for profit, predominantly market-based allocation of resources and they are structured upon the accumulation of capital. The major forms of capitalism are listed hereafter:

Advanced capitalism

Advanced capitalism is the situation that pertains to a society in which the capitalist model has been integrated and developed deeply and extensively for a prolonged period. Various writers identify Antonio Gramsci as an influential early theorist of advanced capitalism, even if he did not use the term himself. In his writings, Gramsci sought to explain how capitalism had adapted to avoid the revolutionary overthrow that had seemed inevitable in the 19th century. At the heart of his explanation was the decline of raw coercion as a tool of class power, replaced by use of civil society institutions to manipulate public ideology in the capitalists’ favour.[109][110][111]

Jürgen Habermas has been a major contributor to the analysis of advanced-capitalistic societies. Habermas observed four general features that characterise advanced capitalism:

  • Concentration of industrial activity in a few large firms.
  • Constant reliance on the state to stabilise the economic system.
  • A formally democratic government that legitimises the activities of the state and dissipates opposition to the system.
  • The use of nominal wage increases to pacify the most restless segments of the work force.[112]

Finance capitalism

In their critique of capitalism, Marxism and Leninism both emphasise the role of “finance capital” as the determining and ruling-class interest in capitalist society, particularly in the latter stages.[113][114]

Rudolf Hilferding is credited[by whom?] with first bringing the term “finance capitalism” into prominence through Finance Capital, his 1910 study of the links between German trusts, banks and monopolies—a study subsumed by Vladimir Lenin into Imperialism, the Highest Stage of Capitalism (1917), his analysis of the imperialist relations of the great world powers.[115] Lenin concluded that the banks at that time operated as “the chief nerve centres of the whole capitalist system of national economy”.[116] For the Comintern (founded in 1919), the phrase “dictatorship of finance capitalism”[117] became a regular one.

Fernnand Braudel would later point to two earlier periods when finance capitalism had emerged in human history—with the Genoese in the 16th century and with the Dutch in the 17th and 18th centuries—although at those points it developed from commercial capitalism.[118][need quotation to verify] Giovanni Arrighi extended Braudel’s analysis to suggest that a predominance of finance capitalism is a recurring, long-term phenomenon, whenever a previous phase of commercial/industrial capitalist expansion reaches a plateau.[119]

Mercantilism

The subscription room at Lloyd’s of London in the early 19th century

Mercantilism is a nationalist form of early capitalism that came into existence approximately in the late 16th century. It is characterized by the intertwining of national business interests to state-interest and imperialism; and consequently, the state apparatus is utilized to advance national business interests abroad. An example of this is colonists living in America who were only allowed to trade with and purchase goods from their respective mother countries (e.g. Britain, Portugal and France). Mercantilism was driven by the belief that the wealth of a nation is increased through a positive balance of trade with other nations—it corresponds to the phase of capitalist development sometimes called the primitive accumulation of capital.

Free market economy

Free market economy refers to a capitalist economic system where prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets and private ownership of productive enterprises. Laissez-faire is a more extensive form of free market economy where the role of the state is limited to protecting property rights, or for plumbline anarcho-capitalists, property rights are protected by private firms and market-generated law.

Social market economy

A social market economy is a nominally free market system where government intervention in price formation is kept to a minimum, but the state provides significant services in the area of social security, unemployment benefits and recognition of labor rights through national collective bargaining arrangements. This model is prominent in Western and Northern European countries as well as Japan, albeit in slightly different configurations. The vast majority of enterprises are privately owned in this economic model.

Rhine capitalism refers to the contemporary model of capitalism and adaptation of the social market model that exists in continental Western Europe today.

State capitalism

State capitalism is a capitalist market economy dominated by state-owned enterprises, where the state enterprises are organized as commercial, profit-seeking businesses. The designation has been used broadly throughout the 20th century to designate a number of different economic forms, ranging from state-ownership in market economies to the command economies of the former Eastern Bloc. According to Aldo Musacchio, a professor at Harvard Business School, state capitalism is a system in which governments, whether democratic or autocratic, exercise a widespread influence on the economy either through direct ownership or various subsidies. Musacchio notes a number of differences between today’s state capitalism and its predecessors. In his opinion, gone are the days when governments appointed bureaucrats to run companies: the world’s largest state-owned enterprises are now traded on the public markets and kept in good health by large institutional investors. Contemporary state capitalism is associated with the East Asian model of capitalism, dirigisme and the economy of Norway.[120] Alternatively, Merriam-Webster defines state capitalism as “an economic system in which private capitalism is modified by a varying degree of government ownership and control”.[121]

In Socialism: Utopian and Scientific, Friedrich Engels argued that state-owned enterprises would characterize the final stage of capitalism, consisting of ownership and management of large-scale production and communication by the bourgeois state.[122] In his writings, Vladimir Lenin characterized the economy of Soviet Russia as state capitalist, believing state capitalism to be an early step toward the development of socialism.[123][124]

Some economists and left-wing academics including Richard D. Wolff and Noam Chomsky argue that the economies of the former Soviet Union and Eastern bloc represented a form of state capitalism because their internal organization within enterprises and the system of wage labor remained intact.[125][126][127]

The term is not used by Austrian School economists to describe state ownership of the means of production. The economist Ludwig von Mises argued that the designation of “state capitalism” was simply a new label for the old labels of “state socialism” and “planned economy” and differed only in non-essentials from these earlier designations.[128]

The debate between proponents of private versus state capitalism is centered around questions of managerial efficacy, productive efficiency and fair distribution of wealth.

Corporate capitalism

Corporate capitalism is a free or mixed-market economy characterized by the dominance of hierarchical, bureaucratic corporations.

Mixed economy

A mixed economy is a largely market-based economy consisting of both private and public ownership of the means of production and economic interventionism through macroeconomic policies intended to correct market failures, reduce unemployment and keep inflation low. The degree of intervention in markets varies among different countries. Some mixed economies, such as France under dirigisme, also featured a degree of indirect economic planning over a largely capitalist-based economy.

Most modern capitalist economies are defined as “mixed economies” to some degree.[citation needed]

Others

Other variants of capitalism include:

Capital accumulation

The accumulation of capital is the process of “making money”, or growing an initial sum of money through investment in production. Capitalism is based on the accumulation of capital, whereby financial capital is invested in order to make a profit and then reinvested into further production in a continuous process of accumulation. In Marxian economic theory, this dynamic is called the law of value. Capital accumulation forms the basis of capitalism, where economic activity is structured around the accumulation of capital, defined as investment in order to realize a financial profit.[129] In this context, “capital” is defined as money or a financial asset invested for the purpose of making more money (whether in the form of profit, rent, interest, royalties, capital gain or some other kind of return).[130]

In mainstream economics, accounting and Marxian economics, capital accumulation is often equated with investment of profit income or saving, especially in real capital goods. The concentration and centralisation of capital are two of the results of such accumulation. In modern macroeconomics and econometrics, the phrase “capital formation” is often used in preference to “accumulation”, though the United Nations Conference on Trade and Development (UNCTAD) refers nowadays to “accumulation”. The term “accumulation” is occasionally used in national accounts.

Background

Accumulation can be measured as the monetary value of investments, the amount of income that is reinvested, or as the change in the value of assets owned (the increase in the value of the capital stock). Using company balance sheets, tax data and direct surveys as a basis, government statisticians estimate total investments and assets for the purpose of national accounts, national balance of payments and flow of funds statistics. The Reserve Banks and the Treasury usually provide interpretations and analysis of this data. Standard indicators include capital formation, gross fixed capital formation, fixed capital, household asset wealth and foreign direct investment.

Organisations such as the International Monetary Fund, the UNCTAD, the World Bank Group, the OECD and the Bank for International Settlements used national investment data to estimate world trends. The Bureau of Economic Analysis, Eurostat and the Japan Statistical Office provide data on the United States, Europe and Japan respectively. Other useful sources of investment information are business magazines such as Fortune, Forbes, The Economist, Business Week and so on as well as various corporate “watchdog” organisations and non-governmental organisation publications. A reputable scientific journal is the Review of Income & Wealth. In the case of the United States, the “Analytical Perspectives” document (an annex to the yearly budget) provides useful wealth and capital estimates applying to the whole country.

In Karl Marx‘ economic theory, capital accumulation refers to the operation whereby profits are reinvested increasing the total quantity of capital. Capital is viewed by Marx as expanding value, that is, in other terms, as a sum of capital, usually expressed in money, that is transformed through human labor into a larger value, extracted as profits and expressed as money. Here, capital is defined essentially as economic or commercial asset value in search of additional value or surplus-value. This requires property relations which enable objects of value to be appropriated and owned, and trading rights to be established. Capital accumulation has a double origin, namely in trade and in expropriation, both of a legal or illegal kind. The reason is that a stock of capital can be increased through a process of exchange or “trading up”, but also through directly taking an asset or resource from someone else without compensation. David Harvey calls this accumulation by dispossession.

The continuation and progress of capital accumulation depends on the removal of obstacles to the expansion of trade and this has historically often been a violent process. As markets expand, more and more new opportunities develop for accumulating capital because more and more types of goods and services can be traded in. However, capital accumulation may also confront resistance when people refuse to sell, or refuse to buy (for example a strike by investors or workers, or consumer resistance).

Concentration and centralisation

According to Marx, capital has the tendency for concentration and centralization in the hands of the wealthy. Marx explains: “It is concentration of capitals already formed, destruction of their individual independence, expropriation of capitalist by capitalist, transformation of many small into few large capitals. […] Capital grows in one place to a huge mass in a single hand, because it has in another place been lost by many. […] The battle of competition is fought by cheapening of commodities. The cheapness of commodities demands, caeteris paribus, on the productiveness of labour, and this again on the scale of production. Therefore, the larger capitals beat the smaller. It will further be remembered that, with the development of the capitalist mode of production, there is an increase in the minimum amount of individual capital necessary to carry on a business under its normal conditions. The smaller capitals, therefore, crowd into spheres of production which Modern Industry has only sporadically or incompletely got hold of. Here competition rages […] It always ends in the ruin of many small capitalists, whose capitals partly pass into the hands of their conquerors, partly vanish”.[131]

The rate of accumulation

In Marxian economics, the rate of accumulation is defined as (1) the value of the real net increase in the stock of capital in an accounting period; and (2) the proportion of realised surplus-value or profit-income which is reinvested, rather than consumed. This rate can be expressed by means of various ratios between the original capital outlay, the realised turnover, surplus-value or profit and reinvestments (e.g. the writings of the economist Michał Kalecki).

Other things being equal, the greater the amount of profit-income that is disbursed as personal earnings and used for consumptive purposes, the lower the savings rate and the lower the rate of accumulation is likely to be. However, earnings spent on consumption can also stimulate market demand and higher investment. This is the cause of endless controversies in economic theory about “how much to spend, and how much to save”.

In a boom period of capitalism, the growth of investments is cumulative, i.e. one investment leads to another, leading to a constantly expanding market, an expanding labor force and an increase in the standard of living for the majority of the people.[citation needed]

In a stagnating, decadent capitalism, the accumulation process is increasingly oriented towards investment on military and security forces, real estate, financial speculation and luxury consumption. In that case, income from value-adding production will decline in favour of interest, rent and tax income, with as a corollary an increase in the level of permanent unemployment. The more capital one owns, the more capital one can also borrow. The inverse is also true and this is one factor in the widening gap between the rich and the poor.[citation needed]

Ernest Mandel emphasised that the rhythm of capital accumulation and growth depended critically on (1) the division of a society’s social product between “necessary product” and “surplus product“; and (2) the division of the surplus product between investment and consumption. In turn, this allocation pattern reflected the outcome of competition among capitalists, competition between capitalists and workers and competition between workers. The pattern of capital accumulation can therefore never be simply explained by commercial factors as it also involved social factors and power relationships.

The circuit of capital accumulation from production

Strictly speaking, capital has accumulated only when realised profit income has been reinvested in capital assets. As suggested in the first volume of Marx’ Das Kapital, the process of capital accumulation in production has at least seven distinct but linked moments:

  • The initial investment of capital (which could be borrowed capital) in means of production and labor power.
  • The command over surplus-labour and its appropriation.
  • The valorisation (increase in value) of capital through production of new outputs.
  • The appropriation of the new output produced by employees, containing the added value.
  • The realisation of surplus-value through output sales.
  • The appropriation of realised surplus-value as (profit) income after deduction of costs.
  • The reinvestment of profit income in production.

All of these moments do not refer simply to an “economic” or commercial process. Rather, they assume the existence of legal, social, cultural and economic power conditions, without which creation, distribution and circulation of the new wealth could not occur. This becomes especially clear when the attempt is made to create a market where none exists, or where people refuse to trade.

Simple and expanded reproduction

In the second volume of Das Kapital, Marx continues the story and shows that with the aid of bank credit capital in search of growth can more or less smoothly mutate from one form to another, alternately taking the form of money capital (liquid deposits, securities and so on), commodity capital (tradable products, real estate and the like), or production capital (means of production and labor power).

His discussion of the simple and expanded reproduction of the conditions of production offers a more sophisticated model of the parameters of the accumulation process as a whole. At simple reproduction, a sufficient amount is produced to sustain society at the given living standard; the stock of capital stays constant. At expanded reproduction, more product-value is produced than is necessary to sustain society at a given living standard (a surplus product); the additional product-value is available for investments which enlarge the scale and variety of production.

The bourgeois claim there is no economic law according to which capital is necessarily re-invested in the expansion of production, that such depends on anticipated profitability, market expectations and perceptions of investment risk. Such statements only explain the subjective experiences of investors and ignore the objective realities which would influence such opinions. As Marx states in the second volume of Das Kapital, simple reproduction only exists if the variable and surplus capital realised by Dept. 1—producers of means of production—exactly equals that of the constant capital of Dept. 2, producers of articles of consumption (p. 524). Such equilibrium rests on various assumptions, such as a constant labor supply (no population growth). Accumulation does not imply a necessary change in total magnitude of value produced, but can simply refer to a change in the composition of an industry (p. 514).

Ernest Mandel introduced the additional concept of contracted economic reproduction, i.e. reduced accumulation where business operating at a loss outnumbers growing business, or economic reproduction on a decreasing scale, for example due to wars, natural disasters or devalorisation.

Balanced economic growth requires that different factors in the accumulation process expand in appropriate proportions. However, markets themselves cannot spontaneously create that balance and in fact what drives business activity is precisely the imbalances between supply and demand: inequality is the motor of growth. This partly explains why the worldwide pattern of economic growth is very uneven and unequal, even although markets have existed almost everywhere for a very long-time. Some people argue that it also explains government regulation of market trade and protectionism.

Capital accumulation as social relation

“Accumulation of capital” sometimes also refers in Marxist writings to the reproduction of capitalist social relations (institutions) on a larger scale over time, i.e. the expansion of the size of the proletariat and of the wealth owned by the bourgeoisie.

This interpretation emphasises that capital ownership, predicated on command over labor, is a social relation: the growth of capital implies the growth of the working class (a “law of accumulation“). In the first volume of Das Kapital, Marx had illustrated this idea with reference to Edward Gibbon Wakefield‘s theory of colonisation:

Wakefield discovered that in the Colonies, property in money, means of subsistence, machines, and other means of production, does not as yet stamp a man as a capitalist if there be wanting the correlative—the wage-worker, the other man who is compelled to sell himself of his own free-will. He discovered that capital is not a thing, but a social relation between persons, established by the instrumentality of things. Mr. Peel, he moans, took with him from England to Swan River, West Australia, means of subsistence and of production to the amount of £50,000. Mr. Peel had the foresight to bring with him, besides, 3,000 persons of the working-class, men, women, and children. Once arrived at his destination, ‘Mr. Peel was left without a servant to make his bed or fetch him water from the river.’ Unhappy Mr. Peel, who provided for everything except the export of English modes of production to Swan River!

— Das Kapital, vol. 1, ch. 33

In the third volume of Das Kapital, Marx refers to the “fetishism of capital” reaching its highest point with interest-bearing capital because now capital seems to grow of its own accord without anybody doing anything:

The relations of capital assume their most externalised and most fetish-like form in interest-bearing capital. We have here M − M ′ {\displaystyle M-M’} , money creating more money, self-expanding value, without the process that effectuates these two extremes. In merchant’s capital, M − C − M ′ {\displaystyle M-C-M’} , there is at least the general form of the capitalistic movement, although it confines itself solely to the sphere of circulation, so that profit appears merely as profit derived from alienation; but it is at least seen to be the product of a social relation, not the product of a mere thing. […] This is obliterated in M − M ′ {\displaystyle M-M’} , the form of interest-bearing capital. […] The thing (money, commodity, value) is now capital even as a mere thing, and capital appears as a mere thing. The result of the entire process of reproduction appears as a property inherent in the thing itself. It depends on the owner of the money, i.e., of the commodity in its continually exchangeable form, whether he wants to spend it as money or loan it out as capital. In interest-bearing capital, therefore, this automatic fetish, self-expanding value, money generating money, are brought out in their pure state and in this form it no longer bears the birth-marks of its origin. The social relation is consummated in the relation of a thing, of money, to itself. Instead of the actual transformation of money into capital, we see here only form without content.

— Das Kapital, vol. 1, ch. 24

Wage labour

An industrial worker amidst heavy steel semi-products (Kinex Bearings, Bytča, Slovakia, c. 1995–2000)

Wage labour refers to the sale of labour under a formal or informal employment contract to an employer.[132] These transactions usually occur in a labour market where wages are market determined.[133] Individuals who possess and supply financial capital or labor to productive ventures often become owners, either jointly (as shareholders) or individually. In Marxist economics, these owners of the means of production and suppliers of capital are generally called capitalists. The description of the role of the capitalist has shifted, first referring to a useless intermediary between producers to an employer of producers and eventually came to refer to owners of the means of production.[134] Labor includes all physical and mental human resources, including entrepreneurial capacity and management skills, which are needed to produce products and services. Production is the act of making goods or services by applying labor power.[135][136]

Critics of the capitalist mode of production see wage labour as a major, if not defining, aspect of hierarchical industrial systems. Most opponents of the institution support worker self-management and economic democracy as alternatives to both wage labour and to capitalism. While most opponents of the wage system blame the capitalist owners of the means of production for its existence, most anarchists and other libertarian socialists also hold the state as equally responsible as it exists as a tool utilised by capitalists to subsidise themselves and protect the institution of private ownership of the means of production. As some opponents of wage labour take influence from Marxist propositions, many are opposed to private property, but maintain respect for personal property.

Types

The most common form of wage labour currently is ordinary direct, or “full-time”, employment in which a free worker sells his or her labour for an indeterminate time (from a few years to the entire career of the worker) in return for a money-wage or salary and a continuing relationship with the employer which it does not in general offer contractors or other irregular staff. However, wage labour takes many other forms and explicit as opposed to implicit (i.e. conditioned by local labour and tax law) contracts are not uncommon. Economic history shows a great variety of ways in which labour is traded and exchanged. The differences show up in the form of:

  • Employment status: a worker could be employed full-time, part-time, or on a casual basis. He or she could be employed for example temporarily for a specific project only, or on a permanent basis. Part-time wage labour could combine with part-time self-employment. The worker could be employed also as an apprentice.
  • Civil (legal) status: the worker could for example be a free citizen, an indentured labourer, the subject of forced labour (including some prison or army labour); a worker could be assigned by the political authorities to a task, they could be a semi-slave or a serf bound to the land who is hired out part of the time. So the labour might be performed on a more or less voluntary basis, or on a more or less involuntary basis, in which there are many gradations.
  • Method of payment (remuneration or compensation): the work done could be paid “in cash” (a money-wage) or “in kind” (through receiving goods and/or services), or in the form of “piece rates” where the wage is directly dependent on how much the worker produces. In some cases, the worker might be paid in the form of credit used to buy goods and services, or in the form of stock options or shares in an enterprise.
  • Method of hiring: the worker might engage in a labour-contract on his or her own initiative, or he or she might hire out their labour as part of a group. However, he or she may also hire out their labour via an intermediary (such as an employment agency) to a third party. In this case, he or she is paid by the intermediary, but works for a third party which pays the intermediary. In some cases, labour is subcontracted several times, with several intermediaries. Another possibility is that the worker is assigned or posted to a job by a political authority, or that an agency hires out a worker to an enterprise together with the means of production.

Effects of war

The common view among economic historians is that the Great Depression ended with the advent of World War II (assembling the North American B-25 Mitchell at Kansas City, 1942)

War typically causes the diversion, destruction and creation of capital assets as capital assets are both destroyed or consumed and diverted to types of production needed to fight the war. Many assets are wasted and in some few cases created specifically to fight a war. War driven demands may be a powerful stimulus for the accumulation of capital and production capability in limited areas and market expansion outside the immediate theatre of war. Often this has induced laws against perceived and real war profiteering.

The total hours worked in the United States rose by 34 percent during World War II, even though the military draft reduced the civilian labor force by 11 percent.[137]

War destruction can be illustrated by looking at World War II. Industrial war damage was heaviest in Japan, where 1/4 of factory buildings and 1/3 of plant and equipment were destroyed; 1/7 of electric power-generating capacity was destroyed and 6/7 of oil refining capacity. The Japanese merchant fleet lost 80% of their ships. In Germany in 1944, when air attacks were heaviest, 6.5% of machine tools were damaged or destroyed, but around 90% were later repaired. About 10% of steel production capacity was lost. In Europe, the United States and the Soviet Union enormous resources were accumulated and ultimately dissipated as planes, ships, tanks and so on were built and then lost or destroyed.

Germany’s total war damage was estimated at about 17.5% of the pre-war total capital stock by value, i.e. about 1/6. In the Berlin area alone, there were 8 million refugees lacking basic necessities. In 1945, less than 10% of the railways were still operating. 2,395 rail bridges were destroyed and a total of 7,500 bridges, 10,000 locomotives and more than 100,000 goods wagons were destroyed. Less than 40% of the remaining locomotives were operational.

However, by the first quarter of 1946 European rail traffic, which was given assistance and preferences (by Western appointed military governors) for resources and material as an essential asset, regained its prewar operational level. At the end of the year, 90% of Germany’s railway lines were operating again. In retrospect, the rapidity of infrastructure reconstruction appears astonishing.

Initially, in May 1945 newly installed United States president Harry S. Truman‘s directive had been that no steps would be taken towards economic rehabilitation of Germany. In fact, the initial industry plan of 1946 prohibited production in excess of half of the 1938 level; the iron and steel industry was allowed to produce only less than a third of pre-war output. These plans were rapidly revised and better plans were instituted. In 1946, over 10% of Germany’s physical capital stock (plant and equipment) was also dismantled and confiscated, most of it going to the Soviet Union. By 1947, industrial production in Germany was at 1/3 of the 1938 level and industrial investment at about 1/2 the 1938 level.

The first big strike-wave in the Ruhr occurred in early 1947—it was about food rations and housing, but soon there were demands for nationalisation. However, the United States appointed military governor (Newman) stated at the time that he had the power to break strikes by withholding food rations. The clear message was “no work, no eat”. As the military controls in Western Germany were nearly all relinquished and the Germans were allowed to rebuild their own economy with Marshall Plan aid things rapidly improved. By 1951, German industrial production had overtaken the prewar level. The Marshall Aid funds were important, but after the currency reform (which permitted German capitalists to revalue their assets) and the establishment of a new political system much more important was the commitment of the United States to rebuilding German capitalism and establishing a free market economy and government, rather than keeping Germany in a weak position. Initially, average real wages remained low, lower even than in 1938, until the early 1950s while profitability was unusually high. So the total investment fund, aided by credits, was also high, resulting in a high rate of capital accumulation which was nearly all reinvested in new construction or new tools. This was called the German economic miracle or Wirtschaftswunder.[138]

In Italy, the victorious Allies did three things in 1945: they imposed their absolute military authority; they quickly disarmed the Italian partisans from a very large stock of weapons; and they agreed to a state guarantee of wage payments as well as a veto on all sackings of workers from their jobs.[139] Although the Italian Communist Party grew very large immediately after the war ended—it achieved a membership of 1.7 million people in a population of 45 million—it was outmaneuvered through a complicated political battle by the Christian Democrats after three years.[140] In the 1950s, an economic boom began in Italy, at first fueled by internal demand and then also by exports.[141]

In modern times, it has often been possible to rebuild physical capital assets destroyed in wars completely within the space of about 10 years, except in cases of severe pollution by chemical warfare or other kinds of irreparable devastation. However, damage to human capital has been much more devastating in terms of fatalities (in the case of World War II, about 55 million deaths), permanent physical disability, enduring ethnic hostility and psychological injuries which have effects for at least several generations.

Criticism

Critics of capitalism associate the economic system with social inequality; unfair distribution of wealth and power; materialism; repression of workers and trade unionists; social alienation; economic inequality; unemployment; and economic instability. Many socialists consider capitalism to be irrational in that production and the direction of the economy are unplanned, creating many inconsistencies and internal contradictions.[142] Capitalism and individual property rights have been associated with the tragedy of the anticommons where owners are unable to agree. Marxian economist Richard D. Wolff postulates that capitalist economies prioritize profits and capital accumulation over the social needs of communities and capitalist enterprises rarely include the workers in the basic decisions of the enterprise.[143] Democratic socialists argue that the role of the state in a capitalist society is to defend the interests of the bourgeoisie.[144] These states take actions to implement such things as unified national markets, national currencies and customs system.[144] Capitalism and capitalist governments have also been criticized as oligarchic in nature[145][146][147] due to the inevitable inequality[148][149] characteristic of economic progress.[150][151]

Some labor historians and scholars have argued that unfree labor—by slaves, indentured servants, prisoners or other coerced persons—is compatible with capitalist relations. Tom Brass argued that unfree labor is acceptable to capital.[152][153] Historian Greg Grandin argues that capitalism has its origins in slavery, saying that “[w]hen historians talk about the Atlantic market revolution, they are talking about capitalism. And when they are talking about capitalism, they are talking about slavery.”[154] Some historians, including Edward E. Baptist and Sven Beckert, assert that slavery was an integral component in the violent development of American and global capitalism.[155][156] The Slovenian continental philosopher Slavoj Žižek posits that the new era of global capitalism has ushered in new forms of contemporary slavery, including migrant workers deprived of basic civil rights on the Arabian Peninsula, the total control of workers in Asian sweatshops, and the use of forced labor in the exploitation of natural resources in Central Africa.[157]

According to Immanuel Wallerstein, institutional racism has been “one of the most significant pillars” of the capitalist system and serves as “the ideological justification for the hierarchization of the work-force and its highly unequal distributions of reward”.[158]

Many aspects of capitalism have come under attack from the anti-globalization movement, which is primarily opposed to corporate capitalism. Environmentalists have argued that capitalism requires continual economic growth and that it will inevitably deplete the finite natural resources of Earth and cause mass extinctions of animal and plant life.[159][160][161] Such critics argue that while neoliberalism, the ideological backbone of contemporary globalized capitalism, has indeed increased global trade, it has also destroyed traditional ways of life, exacerbated inequality and increased global poverty—with more living today in abject poverty than before neoliberalism and that environmental indicators indicate massive environmental degradation since the late 1970s.[22][162][163][164]

Some scholars blame the financial crisis of 2007–2008 on the neoliberal capitalist model.[171] Following the banking crisis of 2007, Alan Greenspan told the United States Congress on 23 October 2008 that “[t]his modern risk-management paradigm held sway for decades. The whole intellectual edifice, however, collapsed in the summer of last year”,[172] and that “I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in firms […] I was shocked”.[173]

Many religions have criticized or opposed specific elements of capitalism. Traditional Judaism, Christianity, and Islam forbid lending money at interest,[174][175] although alternative methods of banking have been developed. Some Christians have criticized capitalism for its materialist aspects and its inability to account for the wellbeing of all people.[176] Many of Jesus’ parables deal with economic concerns: farming, shepherding, being in debt, doing hard labor, being excluded from banquets and the houses of the rich and have implications for wealth and power distribution.[177][178] Catholic scholars and clergy have often criticized capitalism because of its disenfranchisement of the poor, often promoting distributism as an alternative. In his 84-page apostolic exhortation Evangelii gaudium, Catholic Pope Francis described unfettered capitalism as “a new tyranny” and called on world leaders to fight rising poverty and inequality:[179]

Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system. Meanwhile, the excluded are still waiting.[180]

Proponents of capitalism argue that it creates more prosperity than any other economic system and that its benefits are mainly to the ordinary person.[181] Critics of capitalism variously associate it with economic instability,[182] an inability to provide for the well-being of all people[183] and an unsustainable danger to the natural environment.[159] Socialists maintain that although capitalism is superior to all previously existing economic systems (such as feudalism or slavery), the contradiction between class interests will only be resolved by advancing into a completely new social system of production and distribution in which all persons have an equal relationship to the means of production.[184]

The term capitalism in its modern sense is often attributed to Karl Marx.[42][185] In his Das Kapital, Marx analyzed the “capitalist mode of production” using a method of understanding today known as Marxism. However, Marx himself rarely used the term “capitalism” while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels. In the 20th century, defenders of the capitalist system often replaced the term capitalism with phrases such as free enterprise and private enterprise and replaced capitalist with rentier and investor in reaction to the negative connotations associated with capitalism.[134]

The profit motive

The majority of criticisms against the profit motive centre on the idea that the profit motive encourages selfishness and greed, rather than serve the public good or necessarily creating an increase in net wealth. Critics of the profit motive contend that companies disregard morals or public safety in the pursuit of profits.[186][187][188][189]

Free market economists counter that the profit motive, coupled with competition, actually reduces the final price of an item for consumption, rather than raising it. They argue that businesses profit by selling a good at a lower price and at a greater volume than the competition. Economist Thomas Sowell uses supermarkets as an example to illustrate this point: “It has been estimated that a supermarket makes a clear profit of about a penny on a dollar of sales. If that sounds pretty skimpy, remember that it is collecting that penny on every dollar at several cash registers simultaneously and, in many cases, around the clock”.[190]

American economist Milton Friedman has argued that greed and self-interest are universal human traits. On a 1979 episode of The Phil Donahue Show, Friedman states: “The world runs on individuals pursuing their separate interests”. He continues by explaining that only in capitalist countries, where individuals can pursue their own self-interest, people have been able to escape from “grinding poverty”.[191]

Comparison to slavery

Pinkerton guards escort strikebreakers in Buchtel, Ohio, 1884

Wage labor has long been compared to slavery.[192][193][194][195] As a result, the phrase “wage slavery” is often utilized as a pejorative for wage labor.[196] Similarly, advocates of slavery looked upon the “comparative evils of Slave Society and of Free Society, of slavery to human Masters and slavery to Capital”[197] and proceeded to argue that wage slavery was actually worse than chattel slavery.[198] Slavery apologists like George Fitzhugh contended that workers only accepted wage labor with the passage of time as they became “familiarised and inattentive to the infected social atmosphere they continually inhale”.[197] Scholars have debated the exact relationship between wage labor, slavery, and capitalism at length, especially for the Antebellum South.[199]

Similarities between wage labor and slavery were noted as early as Cicero in Ancient Rome, such as in De Officiis.[200] With the advent of the Industrial Revolution, thinkers such as Pierre-Joseph Proudhon and Karl Marx elaborated the comparison between wage labor and slavery in the context of a critique of societal property not intended for active personal use[201][202] while Luddites emphasized the dehumanisation brought about by machines. Before the American Civil War, Southern defenders of African American slavery invoked the concept of wage slavery to favorably compare the condition of their slaves to workers in the North.[203][204] The United States abolished slavery during the Civil War, but labor union activists found the metaphor useful. According to Lawrence Glickman, in the Gilded Age “references abounded in the labor press, and it is hard to find a speech by a labour leader without the phrase”.[205]

The slave, together with his labour-power, was sold to his owner once for all. […] The [wage] labourer, on the other hand, sells his very self, and that by fractions. […] He [belongs] to the capitalist class; and it is for him […] to find a buyer in this capitalist class.[206]

Karl Marx

According to Noam Chomsky, analysis of the psychological implications of wage slavery goes back to the Enlightenment era. In his 1791 book On the Limits of State Action, liberal thinker Wilhelm von Humboldt explained how “whatever does not spring from a man’s free choice, or is only the result of instruction and guidance, does not enter into his very nature; he does not perform it with truly human energies, but merely with mechanical exactness” and so when the laborer works under external control, “we may admire what he does, but we despise what he is”.[207] Both the Milgram and Stanford experiments have been found useful in the psychological study of wage-based workplace relations.[208] Additionally, as per anthropologist David Graeber, the earliest wage labor contracts we know about were in fact contracts for the rental of chattel slaves (usually the owner would receive a share of the money and the slave another, with which to maintain his or her living expenses). According to Graeber, such arrangements were quite common in New World slavery as well, whether in the United States or Brazil.[209] C. L. R. James argued in The Black Jacobins that most of the techniques of human organisation employed on factory workers during the Industrial Revolution were first developed on slave plantations.[210]

Girl pulling a coal tub in mine, from official report of the British parliamentary commission in the mid 19th century[211]

Some anti-capitalist thinkers claim that the elite maintain wage slavery and a divided working class through their influence over the media and entertainment industry,[212][213] educational institutions, unjust laws, nationalist and corporate propaganda, pressures and incentives to internalize values serviceable to the power structure, state violence, fear of unemployment[214] and a historical legacy of exploitation and profit accumulation/transfer under prior systems, which shaped the development of economic theory:

Adam Smith noted that employers often conspire together to keep wages low:[215]

The interest of the dealers… in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public… [They] have generally an interest to deceive and even to oppress the public… We rarely hear, it has been said, of the combinations of masters, though frequently of those of workmen. But whoever imagines, upon this account, that masters rarely combine, is as ignorant of the world as of the subject. Masters are always and everywhere in a sort of tacit, but constant and uniform combination, not to raise the wages of labor above their actual rate… It is not, however, difficult to foresee which of the two parties must, upon all ordinary occasions, have the advantage in the dispute, and force the other into a compliance with their terms.

Aristotle made the statement that “the citizens must not live a mechanic or a mercantile life (for such a life is ignoble and inimical to virtue), nor yet must those who are to be citizens in the best state be tillers of the soil (for leisure is needed both for the development of virtue and for active participation in politics)”,[216] often paraphrased as “all paid jobs absorb and degrade the mind”.[217] Cicero wrote in 44 BC that “vulgar are the means of livelihood of all hired workmen whom we pay for mere manual labour, not for artistic skill; for in their case the very wage they receive is a pledge of their slavery”.[218] Somewhat similar criticisms have also been expressed by some proponents of liberalism, like Henry George,[219][220] Silvio Gesell and Thomas Paine[221] as well as the Distributist school of thought within the Roman Catholic Church.

To Marxist and anarchist thinkers like Mikhail Bakunin and Peter Kropotkin, wage slavery was a class condition in place due to the existence of private property and the state. This class situation rested primarily on:

  1. The existence of property not intended for active use.
  2. The concentration of ownership in few hands.
  3. The lack of direct access by workers to the means of production and consumption goods.
  4. The perpetuation of a reserve army of unemployed workers.

For Marxists, labor as commodity, which is how they regard wage labor,[222] provides a fundamental point of attack against capitalism.[223] “It can be persuasively argued”, noted one concerned philosopher, “that the conception of the worker’s labour as a commodity confirms Marx’s stigmatization of the wage system of private capitalism as ‘wage-slavery;’ that is, as an instrument of the capitalist’s for reducing the worker’s condition to that of a slave, if not below it”.[224] That this objection is fundamental follows immediately from Marx’s conclusion that wage labor is the very foundation of capitalism: “Without a class dependent on wages, the moment individuals confront each other as free persons, there can be no production of surplus value; without the production of surplus-value there can be no capitalist production, and hence no capital and no capitalist!”.[225]

Marxian responses

Marx considered capitalism to be a historically specific mode of production (the way in which the productive property is owned and controlled, combined with the corresponding social relations between individuals based on their connection with the process of production).[41]

The “capitalistic era” according to Karl Marx dates from 16th-century merchants and small urban workshops.[40] Marx knew that wage labour existed on a modest scale for centuries before capitalist industry. For Marx, the capitalist stage of development or “bourgeois society” represented the most advanced form of social organization to date, but he also thought that the working classes would come to power in a worldwide socialist or communist transformation of human society as the end of the series of first aristocratic, then capitalist and finally working class rule was reached.[226][227]

Following Adam Smith, Marx distinguished the use value of commodities from their exchange value in the market. According to Marx, capital is created with the purchase of commodities for the purpose of creating new commodities with an exchange value higher than the sum of the original purchases. For Marx, the use of labor power had itself become a commodity under capitalism and the exchange value of labor power, as reflected in the wage, is less than the value it produces for the capitalist.

This difference in values, he argues, constitutes surplus value, which the capitalists extract and accumulate. In his book Capital, Marx argues that the capitalist mode of production is distinguished by how the owners of capital extract this surplus from workers—all prior class societies had extracted surplus labor, but capitalism was new in doing so via the sale-value of produced commodities.[228] He argues that a core requirement of a capitalist society is that a large portion of the population must not possess sources of self-sustenance that would allow them to be independent and are instead forced to sell their labor for a wage.[229][230][231]

In conjunction with his criticism of capitalism was Marx’s belief that the working class, due to its relationship to the means of production and numerical superiority under capitalism, would be the driving force behind the socialist revolution.[232] This argument is intertwined with Marx’ version of the labor theory of value arguing that labor is the source of all value and thus of profit.

In Imperialism, the Highest Stage of Capitalism (1916), Vladimir Lenin further developed Marxist theory and argued that capitalism necessarily led to monopoly capitalism and the export of capital—which he also called “imperialism”—to find new markets and resources, representing the last and highest stage of capitalism.[233] Some 20th century Marxian economists consider capitalism to be a social formation where capitalist class processes dominate, but are not exclusive.[234]

To these thinkers, capitalist class processes are simply those in which surplus labor takes the form of surplus value, usable as capital; other tendencies for utilization of labor nonetheless exist simultaneously in existing societies where capitalist processes predominate. However, other late Marxian thinkers argue that a social formation as a whole may be classed as capitalist if capitalism is the mode by which a surplus is extracted, even if this surplus is not produced by capitalist activity as when an absolute majority of the population is engaged in non-capitalist economic activity.[235]

In Limits to Capital (1982), David Harvey outlines an overdetermined, “spatially restless” capitalism coupled with the spatiality of crisis formation and resolution.[236] Harvey used Marx’s theory of crisis to aid his argument that capitalism must have its “fixes”, but that we cannot predetermine what fixes will be implemented, nor in what form they will be. His work on contractions of capital accumulation and international movements of capitalist modes of production and money flows has been influential.[237] According to Harvey, capitalism creates the conditions for volatile and geographically uneven development [238]

Sociologists such as Ulrich Beck envisioned the society of risk as a new cultural value which saw risk as a commodity to be exchanged in globalized economies. This theory suggested that disasters and capitalist economy were inevitably entwined. Disasters allow the introduction of economic programs which otherwise would be rejected as well as decentralizing the class structure in production.[239]

Criticisms on the environmental sustainability of capitalism

Scholars argue that the capitalist approach to environmental economics does not take into consideration the preserving of natural resources.[240] Capitalism creates three ecological problems: growth, technology, and consumption.[241] The growth problem results from the nature of capitalism, as it focuses around the accumulation of Capital.[241]  The innovation of new technologies has an impact on the environmental future as they serve as a capitalist tool in which environmental technologies can result in the expansion of the system.[242] Consumption is focused around the capital accumulation of commodities and neglects the use-value of production.[241]

Supply and demand

At least two assumptions are necessary for the validity of the standard model: first, that supply and demand are independent; and second, that supply is “constrained by a fixed resource”. If these conditions do not hold, then the Marshallian model cannot be sustained. Sraffa’s critique focused on the inconsistency (except in implausible circumstances) of partial equilibrium analysis and the rationale for the upward slope of the supply curve in a market for a produced consumption good.[243] The notability of Sraffa’s critique is also demonstrated by Paul A. Samuelson‘s comments and engagements with it over many years, for example:

What a cleaned-up version of Sraffa (1926) establishes is how nearly empty are all of Marshall’s partial equilibrium boxes. To a logical purist of Wittgenstein and Sraffa class, the Marshallian partial equilibrium box of constant cost is even more empty than the box of increasing cost.[244]

Aggregate excess demand in a market is the difference between the quantity demanded and the quantity supplied as a function of price. In the model with an upward-sloping supply curve and downward-sloping demand curve, the aggregate excess demand function only intersects the axis at one point, namely at the point where the supply and demand curves intersect. The Sonnenschein–Mantel–Debreu theorem shows that the standard model cannot be rigorously derived in general from general equilibrium theory.[245]

The model of prices being determined by supply and demand assumes perfect competition. However, “economists have no adequate model of how individuals and firms adjust prices in a competitive model. If all participants are price-takers by definition, then the actor who adjusts prices to eliminate excess demand is not specified”.[246] Goodwin, Nelson, Ackerman and Weisskopf write:

If we mistakenly confuse precision with accuracy, then we might be misled into thinking that an explanation expressed in precise mathematical or graphical terms is somehow more rigorous or useful than one that takes into account particulars of history, institutions or business strategy. This is not the case. Therefore, it is important not to put too much confidence in the apparent precision of supply and demand graphs. Supply and demand analysis is a useful precisely formulated conceptual tool that clever people have devised to help us gain an abstract understanding of a complex world. It does not—nor should it be expected to—give us in addition an accurate and complete description of any particular real world market.[247]

Externalities

Market failure occurs when an externality is present and a market will often either under-produce a product with a positive externalisation or overproduce a product that generates a negative externalisation.[citation needed] Air pollution, for instance, is a negative externalisation that cannot be easily incorporated into markets as the world’s air is not owned and then sold for use to polluters.[citation needed] So too much pollution could be emitted and people not involved in the production pay the cost of the pollution instead of the firm that initially emitted the air pollution.[citation needed] Critics of market failure theory, like Ronald Coase, Harold Demsetz and James M. Buchanan, argue that government programs and policies also fall short of absolute perfection.[citation needed] While all nations currently have some kind of market regulations, the desirable degree of regulation is disputed.[citation needed]

Counter-criticisms

Austrian School

Austrian School economists have argued that capitalism can organize itself into a complex system without an external guidance or central planning mechanism. Friedrich Hayek considered the phenomenon of self-organisation as underpinning capitalism. Prices serve as a signal as to the urgent and unfilled wants of people and the opportunity to earn profits if successful, or absorb losses if resources are used poorly or left idle, gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Thus the activities of millions of people, each seeking his own interest, are coordinated.[248]

Ayn Rand

The novelist and philosopher Ayn Rand made positive moral defenses of laissez-faire capitalism, most notably in her 1957 novel Atlas Shrugged and in her 1966 collection of essays Capitalism: The Unknown Ideal. She argued that capitalism should be supported on moral grounds, not just on the basis of practical benefits.[249][250] Her ideas have had significant influence over conservative and libertarian supporters of capitalism, especially within the American Tea Party movement.[251] Rand defined capitalism as “a social system based on the recognition of individual rights, including property rights, in which all property is privately owned”.[252] According to Rand, the role of government in a capitalist state has three broad categories of proper functions: first, the police “to protect men from criminals”; second, the armed services “to protect men from foreign invaders”; and third, the law courts “to settle disputes among men according to objective laws”.[253]

See also

References …

https://en.wikipedia.org/wiki/Capitalism

 

Socialism

From Wikipedia, the free encyclopedia

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Socialism is a range of economic and social systems characterised by social ownership of the means of production and workers’ self-management,[10] as well as the political theories and movements associated with them.[11] Social ownership can be public, collective or cooperative ownership, or citizen ownership of equity.[12] There are many varieties of socialism and there is no single definition encapsulating all of them,[13] with social ownership being the common element shared by its various forms.[5][14][15]

Socialist systems are divided into non-market and market forms.[16] Non-market socialism involves the substitution of factor markets and money with engineering and technical criteria based on calculation performed in-kind, thereby producing an economic mechanism that functions according to different economic laws from those of capitalism. Non-market socialism aims to circumvent the inefficiencies and crises traditionally associated with capital accumulation and the profit system.[25] By contrast, market socialism retains the use of monetary prices, factor markets and in some cases the profit motive, with respect to the operation of socially owned enterprises and the allocation of capital goods between them. Profits generated by these firms would be controlled directly by the workforce of each firm, or accrue to society at large in the form of a social dividend.[26][27][28] The socialist calculation debate concerns the feasibility and methods of resource allocation for a socialist system.

Socialist politics has been both internationalist and nationalist in orientation; organised through political parties and opposed to party politics; at times overlapping with trade unions, and at other times independent and critical of unions; and present in both industrialised and developing nations.[29] Originating within the socialist movement, social democracy has embraced a mixed economy with a market that includes substantial state intervention in the form of income redistribution, regulation, and a welfare state. Economic democracy proposes a sort of market socialism where there is more decentralised control of companies, currencies, investments, and natural resources.

The socialist political movement includes a set of political philosophies that originated in the revolutionary movements of the mid-to-late 18th century and out of concern for the social problems that were associated with capitalism.[13] By the late 19th century, after the work of Karl Marx and his collaborator Friedrich Engels, socialism had come to signify opposition to capitalism and advocacy for a post-capitalist system based on some form of social ownership of the means of production.[30][31] By the 1920s, social democracy and communism had become the two dominant political tendencies within the international socialist movement.[32] By this time, socialism emerged as “the most influential secular movement of the twentieth century, worldwide. It is a political ideology (or world view), a wide and divided political movement”[33] and while the emergence of the Soviet Union as the world’s first nominally socialist state led to socialism’s widespread association with the Soviet economic model, some economists and intellectuals argued that in practice the model functioned as a form of state capitalism[34][35][36] or a non-planned administrative or command economy.[37][38] Socialist parties and ideas remain a political force with varying degrees of power and influence on all continents, heading national governments in many countries around the world. Today, some socialists have also adopted the causes of other social movements, such as environmentalism, feminism and progressivism.[39] In 21st century America, the term socialism, without clear definition, has become a pejorative used by conservatives to taint liberal and progressive policies, proposals, and public figures.[40]

Contents

Etymology

For Andrew Vincent, “[t]he word ‘socialism’ finds its root in the Latin sociare, which means to combine or to share. The related, more technical term in Roman and then medieval law was societas. This latter word could mean companionship and fellowship as well as the more legalistic idea of a consensual contract between freemen”.[41]

The term “socialism” was created by Henri de Saint-Simon, one of the founders of what would later be labelled “utopian socialism“. Simon coined the term as a contrast to the liberal doctrine of “individualism“, which stressed that people act or should act as if they are in isolation from one another.[42] The original “utopian” socialists condemned liberal individualism for failing to address social concerns during the industrial revolution, including poverty, social oppression and gross inequalities in wealth, thus viewing liberal individualism as degenerating society into supporting selfish egoism that harmed community life through promoting a society based on competition.[42] They presented socialism as an alternative to liberal individualism based on the shared ownership of resources, although their proposals for socialism differed significantly. Saint-Simon proposed economic planning, scientific administration and the application of modern scientific advancements to the organisation of society. By contrast, Robert Owen proposed the organisation of production and ownership in cooperatives.[42][43]

The term “socialism” is also attributed to Pierre Leroux[44] and to Marie Roch Louis Reybaud in France; and to Robert Owen in Britain who became one of the fathers of the cooperative movement.[45][46]

The modern definition and usage of “socialism” settled by the 1860s, becoming the predominant term among the group of words “co-operative”, “mutualist” and “associationist”, which had previously been used as synonyms. The term “communism” also fell out of use during this period, despite earlier distinctions between socialism and communism from the 1840s.[47] An early distinction between socialism and communism was that the former aimed to only socialise production while the latter aimed to socialise both production and consumption (in the form of free access to final goods).[48] However, Marxists employed the term “socialism” in place of “communism” by 1888, which had come to be considered an old-fashion synonym for socialism. It was not until 1917 after the Bolshevik Revolution that “socialism” came to refer to a distinct stage between capitalism and communism, introduced by Vladimir Lenin as a means to defend the Bolshevik seizure of power against traditional Marxist criticisms that Russia’s productive forces were not sufficiently developed for socialist revolution.[49]

A distinction between “communist” and “socialist” as descriptors of political ideologies arose in 1918 after the Russian Social-Democratic Labour Party renamed itself to the All-Russian Communist Party, where communist came to specifically mean socialists who supported the politics and theories of Leninism, Bolshevism and later Marxism–Leninism,[50] although communist parties continued to describe themselves as socialists dedicated to socialism.[51]

The words “socialism” and “communism” eventually accorded with the adherents’ and opponents’ cultural attitude towards religion. In Christian Europe, communism was believed to be the atheist way of life. In Protestant England, the word “communism” was too culturally and aurally close to the Roman Catholic communion rite, hence English atheists denoted themselves socialists.[52] Friedrich Engels argued that in 1848, at the time when The Communist Manifesto was published, that “socialism was respectable on the continent, while communism was not”. The Owenites in England and the Fourierists in France were considered “respectable” socialists, while working-class movements that “proclaimed the necessity of total social change” denoted themselves communists. This latter branch of socialism produced the communist work of Étienne Cabet in France and Wilhelm Weitling in Germany.[53] The British moral philosopher John Stuart Mill also came to advocate a form of economic socialism within a liberal context. In later editions of his Principles of Political Economy (1848), Mill would argue that “as far as economic theory was concerned, there is nothing in principle in economic theory that precludes an economic order based on socialist policies”.[54][55] While democrats looked to the Revolutions of 1848 as a democratic revolution, which in the long run ensured liberty, equality and fraternity, Marxists denounced 1848 as a betrayal of working-class ideals by a bourgeoisie indifferent to the legitimate demands of the proletariat.[56]

History

Early socialism

Charles Fourier, influential early French socialist thinker

Socialist models and ideas espousing common or public ownership have existed since antiquity. The economy of the 3rd century BCE Mauryan Empire of India has been described as “a socialized monarchy” and “a sort of state socialism”.[57][58] It has been claimed—though controversially—that there were elements of socialist thought in the politics of classical Greek philosophers Plato[59] and Aristotle.[60] Mazdak the Younger (died c. 524 or 528 CE), a Persian communal proto-socialist,[61] instituted communal possessions and advocated the public good. Abū Dharr al-Ghifārī, a Companion of Prophet Muhammad, is credited by many as a principal antecedent of Islamic socialism.[62][63][64][65][66] The teachings of Jesus the messiah of the Christian religion are frequently highlighted as socialist in nature, though this is disputed.[67] Acts 4:35 records that the early church in Jerusalem ‘No one claimed that any of their possessions was their own’; however the pattern soon disappears from church history except within monasticism. Christian socialism was one of the founding threads of the UK Labour Party and is said to be a tradition going back 600 years to the uprising of Wat Tyler and John Ball.[68] In the period right after the French Revolution, activists and theorists like François-Noël Babeuf, Étienne-Gabriel Morelly, Philippe Buonarroti and Auguste Blanqui influenced the early French labour and socialist movements.[69] In Britain, Thomas Paine proposed a detailed plan to tax property owners to pay for the needs of the poor in Agrarian Justice[70] while Charles Hall wrote The Effects of Civilization on the People in European States, denouncing capitalism’s effects on the poor of his time[71] which influenced the utopian schemes of Thomas Spence.[72]

The first self-conscious socialist movements developed in the 1820s and 1830s. The Owenites, Saint-Simonians and Fourierists provided a series of coherent analyses and interpretations of society. They also, especially in the case of the Owenites, overlapped with a number of other working-class movements like the Chartists in the United Kingdom”.[73] The Chartists gathered significant numbers around the People’s Charter of 1838, which sought a number of democratic reforms focused on the extension of suffrage to all male adults. Leaders in the movement also called for a more equitable distribution of income and better living conditions for the working classes. The very first trade unions and consumers’ cooperative societies also emerged in the hinterland of the Chartist movement as a way of bolstering the fight for these demands.[74] A later important socialist thinker in France was Pierre-Joseph Proudhon, who proposed his philosophy of mutualism in which “everyone had an equal claim, either alone or as part of a small cooperative, to possess and use land and other resources as needed to make a living”.[75] There were also currents inspired by dissident Christianity of Christian socialism “often in Britain and then usually coming out of left liberal politics and a romantic anti-industrialism”[69] which produced theorists such as Edward Bellamy, Frederick Denison Maurice and Charles Kingsley.[76]

The first advocates of socialism favoured social levelling in order to create a meritocratic or technocratic society based on individual talent. Count Henri de Saint-Simon is regarded as the first individual to coin the term “socialism”.[77] Saint-Simon was fascinated by the enormous potential of science and technology and advocated a socialist society that would eliminate the disorderly aspects of capitalism and would be based on equal opportunities.[78][unreliable source?] He advocated the creation of a society in which each person was ranked according to his or her capacities and rewarded according to his or her work.[77] The key focus of Saint-Simon’s socialism was on administrative efficiency and industrialism and a belief that science was the key to progress.[79] This was accompanied by a desire to implement a rationally organised economy based on planning and geared towards large-scale scientific and material progress,[77] thus embodied a desire for a more directed or planned economy. Other early socialist thinkers, such as Thomas Hodgkin and Charles Hall, based their ideas on David Ricardo‘s economic theories. They reasoned that the equilibrium value of commodities approximated prices charged by the producer when those commodities were in elastic supply and that these producer prices corresponded to the embodied labour—the cost of the labour (essentially the wages paid) that was required to produce the commodities. The Ricardian socialists viewed profit, interest and rent as deductions from this exchange-value.[citation needed]

West European social critics, including Robert Owen, Charles Fourier, Pierre-Joseph Proudhon, Louis Blanc, Charles Hall, and Saint-Simon were the first modern socialists who criticised the excessive poverty and inequality of the Industrial Revolution. They advocated reform, with some such as Robert Owen advocating the transformation of society to small communities without private property. Robert Owen’s contribution to modern socialism was his understanding that actions and characteristics of individuals were largely determined by the social environment they were raised in and exposed to.[79] On the other hand, Charles Fourier advocated phalansteres which were communities that respected individual desires (including sexual preferences), affinities and creativity and saw that work has to be made enjoyable for people.[80] The ideas of Owen and Fourier were tried in practice in numerous intentional communities around Europe and the American continent in the mid-19th century.

Paris Commune

The celebration of the election of the Commune on 28 March 1871—the Paris Commune was a major early implementation of socialist ideas

The Paris Commune was a government that briefly ruled Paris from 18 March (more formally, from 28 March) to 28 May 1871. The Commune was the result of an uprising in Paris after France was defeated in the Franco-Prussian War. The Commune elections held on 26 March elected a Commune council of 92 members, one member for each 20,000 residents.[81] Despite internal differences, the council began to organise the public services essential for a city of two million residents. It also reached a consensus on certain policies that tended towards a progressive, secular and highly democratic social democracy.

Because the Commune was only able to meet on fewer than 60 days in all, only a few decrees were actually implemented. These included the separation of church and state; the remission of rents owed for the entire period of the siege (during which payment had been suspended); the abolition of night work in the hundreds of Paris bakeries; the granting of pensions to the unmarried companions and children of National Guards killed on active service; and the free return, by the city pawnshops, of all workmen’s tools and household items valued up to 20 francs, pledged during the siege.[82] The Commune was concerned that skilled workers had been forced to pawn their tools during the war; the postponement of commercial debt obligations and the abolition of interest on the debts; and the right of employees to take over and run an enterprise if it were deserted by its owner. The Commune nonetheless recognised the previous owner’s right to compensation.[82]

First International

The International Workingmen’s Association (IWA), often called the First International, was founded in London in 1864. The International Workingmen’s Association united diverse revolutionary currents including French followers of Proudhon,[83] Blanquists, Philadelphes, English trade unionists, socialists and social democrats. The IWA held a preliminary conference in 1865 and had its first congress at Geneva in 1866. Due to the wide variety of philosophies present in the First International, there was conflict from the start. The first objections to Marx came from the mutualists who opposed communism and statism. However, shortly after Mikhail Bakunin and his followers (called collectivists while in the International) joined in 1868, the First International became polarised into two camps headed by Marx and Bakunin respectively.[84] The clearest differences between the groups emerged over their proposed strategies for achieving their visions of socialism. The First International became the first major international forum for the promulgation of socialist ideas.

The followers of Bakunin were called collectivist anarchists and sought to collectivise ownership of the means of production while retaining payment proportional to the amount and kind of labour of each individual. Like Proudhonists, they asserted the right of each individual to the product of his labour and to be remunerated for their particular contribution to production. By contrast, anarcho-communists sought collective ownership of both the means and the products of labour. Errico Malatesta put it: “[I]nstead of running the risk of making a confusion in trying to distinguish what you and I each do, let us all work and put everything in common. In this way each will give to society all that his strength permits until enough is produced for every one; and each will take all that he needs, limiting his needs only in those things of which there is not yet plenty for every one”.[85] Anarcho-communism as a coherent, modern economic-political philosophy was first formulated in the Italian section of the First International by Carlo Cafiero, Emilio Covelli, Errico Malatesta, Andrea Costa and other ex Mazzinian republicans.[86] Out of respect for Mikhail Bakunin, they did not make their differences with collectivist anarchism explicit until after Bakunin’s death.[87]

Syndicalism emerged in France inspired in part by the ideas of Pierre-Joseph Proudhon and later by Fernand Pelloutier and Georges Sorel.[88] It developed at the end of the 19th century out of the French trade-union movement (syndicat is the French word for trade union). It was a significant force in Italy and Spain in the early 20th century until it was crushed by the fascist regimes in those countries. In the United States, syndicalism appeared in the guise of the Industrial Workers of the World, or “Wobblies”, founded in 1905.[88] Syndicalism is an economic system where industries are organised into confederations (syndicates)[89] and the economy is managed by negotiation between specialists and worker representatives of each field, comprising multiple non-competitive categorised units.[90] Syndicalism is thus a form of communism and economic corporatism, but also refers to the political movement and tactics used to bring about this type of system. An influential anarchist movement based on syndicalist ideas is anarcho-syndicalism.[91] The International Workers Association is an international anarcho-syndicalist federation of various labour unions from different countries.

The Fabian Society is a British socialist organisation which was established with the purpose of advancing the principles of socialism via gradualist and reformist means.[92] The society laid many of the foundations of the Labour Party and subsequently affected the policies of states emerging from the decolonisation of the British Empire, most notably India and Singapore. Originally, the Fabian Society was committed to the establishment of a socialist economy, alongside a commitment to British imperialism as a progressive and modernising force.[93] Today, the society functions primarily as a think tank and is one of fifteen socialist societies affiliated with the Labour Party. Similar societies exist in Australia (the Australian Fabian Society), in Canada (the Douglas-Coldwell Foundation and the now disbanded League for Social Reconstruction) and in New Zealand.

Guild socialism is a political movement advocating workers’ control of industry through the medium of trade-related guilds “in an implied contractual relationship with the public”.[94] It originated in the United Kingdom and was at its most influential in the first quarter of the 20th century. Inspired by medieval guilds, theorists such as Samuel G. Hobson and G. D. H. Cole advocated the public ownership of industries and their organisation into guilds, each of which would be under the democratic control of its trade union. Guild socialists were less inclined than Fabians to invest power in a state.[88] At some point, like the American Knights of Labor, guild socialism wanted to abolish the wage system.[citation needed]

Second International

As the ideas of Marx and Engels took on flesh, particularly in central Europe, socialists sought to unite in an international organisation. In 1889 (the centennial of the French Revolution of 1789), the Second International was founded, with 384 delegates from twenty countries representing about 300 labour and socialist organisations.[95] It was termed the Socialist International and Engels was elected honorary president at the third congress in 1893. Anarchists were ejected and not allowed in, mainly due to pressure from Marxists.[96] It has been argued that at some point the Second International turned “into a battleground over the issue of libertarian versus authoritarian socialism. Not only did they effectively present themselves as champions of minority rights; they also provoked the German Marxists into demonstrating a dictatorial intolerance which was a factor in preventing the British labour movement from following the Marxist direction indicated by such leaders as H. M. Hyndman“.[96]

Reformism arose as an alternative to revolution. Eduard Bernstein was a leading social democrat in Germany who proposed the concept of evolutionary socialism. Revolutionary socialists quickly targeted reformism: Rosa Luxemburg condemned Bernstein’s Evolutionary Socialism in her 1900 essay Social Reform or Revolution?. Revolutionary socialism encompasses multiple social and political movements that may define “revolution” differently from one another. The Social Democratic Party (SPD) in Germany became the largest and most powerful socialist party in Europe, despite working illegally until the anti-socialist laws were dropped in 1890. In the 1893 elections, it gained 1,787,000 votes, a quarter of the total votes cast, according to Engels. In 1895, the year of his death, Engels emphasised the Communist Manifestos emphasis on winning, as a first step, the “battle of democracy”.[97]

Early 20th century

Antonio Gramsci, member of the Italian Socialist Party and later leader and theorist of the Communist Party of Italy

In Argentina the Socialist Party of Argentina was established in the 1890s led by, among others, Juan B. Justo and Nicolás Repetto, thus becoming the first mass party in the country and in Latin America. The party affiliated itself with the Second International.[98] Between 1924 and 1940 it was a member of the Labour and Socialist International.[99] In 1904, Australians elected Chris Watson as the first Australian Labor Party Prime Minister, becoming the first democratically elected social democrat. In 1909, the first Kibbutz was established in Palestine[100] by Russian Jewish Immigrants. The Kibbutz Movement would then expand through the 20th century following a doctrine of Zionist socialism.[101] The British Labour Party first won seats in the House of Commons in 1902. The International Socialist Commission (ISC, also known as Berne International) was formed in February 1919 at a meeting in Bern by parties that wanted to resurrect the Second International.[102]

By 1917, the patriotism of World War I changed into political radicalism in most of Europe, the United States and Australia. Other socialist parties from around the world who were beginning to gain importance in their national politics in the early 20th century included the Italian Socialist Party, the French Section of the Workers’ International, the Spanish Socialist Workers’ Party, the Swedish Social Democratic Party, the Russian Social Democratic Labour Party, the Socialist Party of America in the United States, the Argentinian Socialist Party and the Chilean Partido Obrero Socialista.

Russian Revolution

In February 1917, revolution exploded in Russia. Workers, soldiers and peasants established soviets (councils), the monarchy fell and a provisional government convoked pending the election of a constituent assembly. In April of that year, Vladimir Lenin, leader of the Bolshevik faction of socialists in Russia and known for his profound and controversial expansions of Marxism, was allowed to cross Germany to return to his country from exile in Switzerland.

Lenin had published essays on his analysis of imperialism, the monopoly and globalisation phase of capitalism as predicted by Marx, as well as analyses on the social conditions of his contemporary time. He observed that as capitalism had further developed in Europe and America, the workers remained unable to gain class consciousness so long as they were too busy working and concerned with how to make ends meet. He therefore proposed that the social revolution would require the leadership of a vanguard party of class-conscious revolutionaries from the educated and politically active part of the population.[103]

Upon arriving in Petrograd, Lenin declared that the revolution in Russia was not over but had only begun, and that the next step was for the workers’ soviets to take full state authority. He issued a thesis outlining the Bolshevik’s party programme, including rejection of any legitimacy in the provisional government and advocacy for state power to be given to the peasant and working class through the soviets. The Bolsheviks became the most influential force in the soviets and on 7 November the capitol of the provisional government was stormed by Bolshevik Red Guards in what afterwards known as the “Great October Socialist Revolution“. The rule of the provisional government was ended and the Russian Socialist Federative Soviet Republic—the world’s first constitutionally socialist state—was established. On 25 January 1918 at the Petrograd Soviet, Lenin declared “Long live the world socialist revolution!”[104] and proposed an immediate armistice on all fronts and transferred the land of the landed proprietors, the crown and the monasteries to the peasant committees without compensation.[105]

The day after assuming executive power on 25 January, Lenin wrote Draft Regulations on Workers’ Control, which granted workers control of businesses with more than five workers and office employees and access to all books, documents and stocks and whose decisions were to be “binding upon the owners of the enterprises”.[106] Governing through the elected soviets and in alliance with the peasant-based Left Socialist-Revolutionaries, the Bolshevik government began nationalising banks and industry; and disavowed the national debts of the deposed Romanov royal régime. It sued for peace, withdrawing from World War I and convoked a Constituent Assembly in which the peasant Socialist-Revolutionary Party (SR) won a majority.[107]

The Constituent Assembly elected Socialist-Revolutionary leader Victor Chernov President of a Russian republic, but rejected the Bolshevik proposal that it endorse the Soviet decrees on land, peace and workers’ control and acknowledge the power of the Soviets of Workers’, Soldiers’ and Peasants’ Deputies. The next day, the Bolsheviks declared that the assembly was elected on outdated party lists[108] and the All-Russian Central Executive Committee of the Soviets dissolved it.[109][110] In March 1919, world communist parties formed Comintern (also known as the Third International) at a meeting in Moscow.[111]

International Working Union of Socialist Parties

Parties which did not want to be a part of the resurrected Second International (ISC) or Comintern formed the International Working Union of Socialist Parties (IWUSP, also known as Vienna International/Vienna Union/Two-and-a-Half International) on 27 February 1921 at a conference in Vienna.[112] The ISC and the IWUSP joined to form the Labour and Socialist International (LSI) in May 1923 at a meeting in Hamburg[113] Left-wing groups which did not agree to the centralisation and abandonment of the soviets by the Bolshevik Party led left-wing uprisings against the Bolsheviks—such groups included Socialist Revolutionaries,[114] Left Socialist Revolutionaries, Mensheviks and anarchists.[115]

Within this left-wing discontent, the most large-scale events were the worker’s Kronstadt rebellion[116][117][118] and the anarchist led Revolutionary Insurrectionary Army of Ukraine uprising which controlled an area known as the Free Territory.[119][120][121]

Third International

The Bolshevik Russian Revolution of January 1918 engendered communist parties worldwide and their concomitant revolutions of 1917–1923. Few communists doubted that the Russian success of socialism depended on successful, working-class socialist revolutions in developed capitalist countries.[122][123] In 1919, Lenin and Trotsky organised the world’s communist parties into a new international association of workers—the Communist International (Comintern), also called the Third International.

The Russian Revolution also influenced uprisings in other countries around this time. The German Revolution of 1918–1919 resulted in the replacing Germany’s imperial government with a republic. The revolutionary period lasted from November 1918 until the formal establishment of the Weimar Republic in August 1919 and included an episode known as the Bavarian Soviet Republic[124][125][126][127] and the Spartacist uprising. In Italy, the events known as the Biennio Rosso[128][129] were characterised by mass strikes, worker manifestations and self-management experiments through land and factory occupations. In Turin and Milan, workers’ councils were formed and many factory occupations took place led by anarcho-syndicalists organised around the Unione Sindacale Italiana.[130]

By 1920, the Red Army under its commander Trotsky had largely defeated the royalist White Armies. In 1921, War Communism was ended and under the New Economic Policy (NEP) private ownership was allowed for small and medium peasant enterprises. While industry remained largely state-controlled, Lenin acknowledged that the NEP was a necessary capitalist measure for a country unripe for socialism. Profiteering returned in the form of “NEP men” and rich peasants (kulaks) gained power in the countryside.[131] Nevertheless, the role of Trotsky in this episode has been questioned by other socialists, including ex Trotskyists. In the United States, Dwight Macdonald broke with Trotsky and left the Trotskyist Socialist Workers Party by raising the question of the Kronstadt rebellion, which Trotsky as leader of the Soviet Red Army and the other Bolsheviks had brutally repressed. He then moved towards democratic socialism.[132] and anarchism.[133]

A similar critique of Trotsky’s role on the events around the Kronstadt rebellion was raised by the American anarchist Emma Goldman. In her essay “Trotsky Protests Too Much”, she says: “I admit, the dictatorship under Stalin’s rule has become monstrous. That does not, however, lessen the guilt of Leon Trotsky as one of the actors in the revolutionary drama of which Kronstadt was one of the bloodiest scenes”.[134]

Rosa Luxemburg, prominent Marxist revolutionary, leader of the Social Democratic Party of Germany and martyr and leader of the German Spartacist uprising in 1919

Fourth congress

In 1922, the fourth congress of the Communist International took up the policy of the United Front, urging communists to work with rank and file Social Democrats while remaining critical of their leaders, whom they criticised for betraying the working class by supporting the war efforts of their respective capitalist classes. For their part, the social democrats pointed to the dislocation caused by revolution and later the growing authoritarianism of the communist parties. When the Communist Party of Great Britain applied to affiliate to the Labour Party in 1920, it was turned down.

On seeing the Soviet State’s growing coercive power in 1923, a dying Lenin said Russia had reverted to “a bourgeois tsarist machine… barely varnished with socialism”.[135] After Lenin’s death in January 1924, the Communist Party of the Soviet Union—then increasingly under the control of Joseph Stalin—rejected the theory that socialism could not be built solely in the Soviet Union in favour of the concept of “Socialism in One Country“. Despite the marginalised Left Opposition‘s demand for the restoration of Soviet democracy, Stalin developed a bureaucratic, authoritarian government that was condemned by democratic socialists, anarchists and Trotskyists for undermining the initial socialist ideals of the Bolshevik Russian Revolution.[136][137][self-published source?][unreliable source?]

In 1924, the Mongolian People’s Republic was established and was ruled by the Mongolian People’s Party. The Russian Revolution and the appearance of the Soviet State motivated a worldwide current of national communist parties which ended having varying levels of political and social influence. Among these there appeared the Communist Party of France, the Communist Party USA, the Italian Communist Party, the Chinese Communist Party, the Mexican Communist Party, the Brazilian Communist Party, the Chilean Communist Party and the Communist Party of Indonesia.

Spanish Civil War

FAI militia during the Spanish Revolution in 1936

In Spain in 1936, the national anarcho-syndicalist trade union Confederación Nacional del Trabajo (CNT) initially refused to join a popular front electoral alliance and abstention by CNT supporters led to a right-wing election victory. In 1936, the CNT changed its policy and anarchist votes helped bring the popular front back to power. Months later, the former ruling class responded with an attempted coup, sparking the Spanish Civil War (1936–1939).[138]

In response to the army rebellion, an anarchist-inspired movement of peasants and workers, supported by armed militias, took control of Barcelona and of large areas of rural Spain where they collectivised the land.[139][139] The events known as the Spanish Revolution was a workers’ social revolution that began during the outbreak of the Spanish Civil War in 1936 and resulted in the widespread implementation of anarchist and more broadly libertarian socialist organisational principles throughout various portions of the country for two to three years, primarily Catalonia, Aragon, Andalusia and parts of Levante.

Much of Spain’s economy was put under worker control and in anarchist strongholds like Catalonia the figure was as high as 75%, but lower in areas with heavy Communist Party of Spain influence, as the Soviet-allied party actively resisted attempts at collectivisation enactment. Factories were run through worker committees, agrarian areas became collectivised and run as libertarian communes. Anarchist historian Sam Dolgoff estimated that about eight million people participated directly or indirectly in the Spanish Revolution.[140]

Mid-20th century

Post-World War II

Leon Trotsky‘s Fourth International was established in France in 1938 when Trotskyists argued that the Comintern or Third International had become irretrievably “lost to Stalinism” and thus incapable of leading the international working class to political power.[141] The rise of Nazism and the start of World War II led to the dissolution of the LSI in 1940. After the War, the Socialist International was formed in Frankfurt in July 1951 as a successor to the LSI.[142]

After World War II, social democratic governments introduced social reform and wealth redistribution via state welfare and taxation. Social democratic parties dominated post-war politics in countries such as France, Italy, Czechoslovakia, Belgium and Norway. At one point, France claimed to be the world’s most state-controlled capitalist country. The nationalised public utilities included Charbonnages de France (CDF), Electricité de France (EDF), Gaz de France (GDF), Air France, Banque de France and Régie Nationale des Usines Renault.[143]

In 1945, the British Labour Party led by Clement Attlee was elected to office based on a radical socialist programme. The Labour government nationalised major public utilities such as mines, gas, coal, electricity, rail, iron, steel and the Bank of England. British Petroleum was officially nationalised in 1951.[144] Anthony Crosland said that in 1956 25% of British industry was nationalised and that public employees, including those in nationalised industries, constituted a similar proportion of the country’s total employed population.[145] The Labour Governments of 1964–1970 and 1974–1979 intervened further.[146] It re-nationalised steel (1967, British Steel) after the Conservatives had denationalised it and nationalised car production (1976, British Leyland).[147] The National Health Service provided taxpayer-funded health care to everyone, free at the point of service.[148] Working-class housing was provided in council housing estates and university education became available via a school grant system.[149]

Nordic model

The Nordic model is a term for a form of social democracy common to the Nordic countries (Denmark, Iceland, Norway, Sweden and Finland).[150][151][152] During most of the post-war era, Sweden was governed by the Swedish Social Democratic Party largely in cooperation with trade unions and industry.[153] In Sweden, the Social Democratic Party held power from 1936 to 1976, 1982 to 1991, 1994 to 2006 and 2014 to present. Tage Erlander was the leader of the Swedish Social Democratic Party and led the government from 1946 to 1969, an uninterrupted tenure of twenty-three years, one of the longest in any democracy. From 1945 to 1962, the Norwegian Labour Party held an absolute majority in the parliament led by Einar Gerhardsen who was Prime Minister with seventeen years in office. This particular adaptation of the mixed market economy is characterised by more generous welfare states (relative to other developed countries), which are aimed specifically at enhancing individual autonomy, ensuring the universal provision of basic human rights and stabilising the economy. It is distinguished from other welfare states with similar goals by its emphasis on maximising labour force participation, promoting gender equality, egalitarian and extensive benefit levels, large magnitude of redistribution and expansionary fiscal policy.[154]

Soviet Union and Eastern Europe

The Soviet Union played a decisive role in the Allied victory in World War II.[155][156] After the war, the Soviet Union became a recognised superpower.[157] The Soviet era saw some of the most significant technological achievements of the 20th century, including the world’s first spacecraft and the first astronaut. The Soviet economy was the modern world’s first centrally planned economy. It was based on a system of state ownership of industry managed through Gosplan (the State Planning Commission), Gosbank (the State Bank) and the Gossnab (State Commission for Materials and Equipment Supply).

Economic planning was conducted through a series of Five-Year Plans. The emphasis was on fast development of heavy industry and the nation became one of the world’s top manufacturers of a large number of basic and heavy industrial products, but it lagged in light industrial production and consumer durables.[citation needed] Modernisation brought about a general increase in the standard of living.[158]

The Eastern Bloc was the group of former Communist states of Central and Eastern Europe, generally the Soviet Union and the countries of the Warsaw Pact[159][160][161] which included the People’s Republic of Poland, the German Democratic Republic, the People’s Republic of Hungary, the People’s Republic of Bulgaria, the Czechoslovak Socialist Republic, the Socialist Republic of Romania, the People’s Socialist Republic of Albania and the Socialist Federal Republic of Yugoslavia. The Hungarian Revolution of 1956 was a spontaneous nationwide revolt against the government of the People’s Republic of Hungary and its Soviet-imposed policies, lasting from 23 October until 10 November 1956. Soviet leader Nikita Khrushchev’s denunciation of the excesses of Stalin’s regime during the Twentieth Party Congress of the Communist Party of the Soviet Union on 1956[162] as well as the revolt in Hungary,[163][164][165][166] produced ideological fractures and disagreements within the communist and socialist parties of Western Europe.

Third World

In the post-war years, socialism became increasingly influential throughout the so-called Third World. Embracing a new Third World socialism, countries in Africa, Asia and Latin America often nationalised industries held by foreign owners. The Chinese Kuomintang Party, the previous ruling party in Taiwan, was referred to as having a socialist ideology since Kuomintang’s revolutionary ideology in the 1920s incorporated unique Chinese socialism as part of its ideology.[167][168] The Soviet Union trained Kuomintang revolutionaries in the Moscow Sun Yat-sen University. Movie theatres in the Soviet Union showed newsreels and clips of Chiang at Moscow Sun Yat-sen University portraits of Chiang were hung on the walls and in the Soviet May Day parades that year Chiang’s portrait was to be carried along with the portraits of Marx, Lenin, Stalin and other socialist leaders.[169]

The Chinese Revolution was the second stage in the Chinese Civil War which ended in the establishment of the People’s Republic of China led by the Chinese Communist Party. The term “Third World” was coined by French demographer Alfred Sauvy in 1952 on the model of the Third Estate, which according to the Abbé Sieyès represented everything, but was nothing “because at the end this ignored, exploited, scorned Third World like the Third Estate, wants to become something too”.

The emergence of this new political entity in the frame of the Cold War was complex and painful. Several tentatives were made to organise newly independent states in order to oppose a common front towards both the United States’ and the Soviet Union’s influence on them, with the consequences of the Sino-Soviet split already at works. The Non-Aligned Movement constituted itself around the main figures of Prime Minister Jawaharlal Nehru of India, President Sukarno of Indonesia, leader Josip Broz Tito of Yugoslavia and Gamal Abdel Nasser of Egypt who successfully opposed the French and British imperial powers during the 1956 Suez crisis. After the 1954 Geneva Conference which ended the French war against Ho Chi Minh in Vietnam, the 1955 Bandung Conference gathered Nasser, Nehru, Tito, Sukarno and Zhou Enlai, Premier of the People’s Republic of China.

As many African countries gained independence during the 1960s, some of them rejected capitalism in favour of a more afrocentric economic model. The main architects of African socialism were Julius Nyerere of Tanzania, Léopold Senghor of Senegal, Kwame Nkrumah of Ghana and Sékou Touré of Guinea.[170]

The Cuban Revolution (1953–1959) was an armed revolt conducted by Fidel Castro‘s 26th of July Movement and its allies against the government of Cuban President Fulgencio Batista. The revolution began in July 1953 and finally ousted Batista on 1 January 1959, replacing his government with Castro’s revolutionary state. Castro’s government later reformed along communist lines, becoming the Communist Party of Cuba in October 1965.[171]

In Indonesia, a right-wing military regime led by Suharto killed between 500,000 and one million people in 1965 and 1966, mainly to crush the growing influence of the Communist Party of Indonesia and other leftist sectors, with support from the United States government, which provided kill lists containing thousands of names of suspected high-ranking Communists.[172][173][174][175][176]

New Left

The New Left was a term used mainly in the United Kingdom and United States in reference to activists, educators, agitators and others in the 1960s and 1970s who sought to implement a broad range of reforms on issues such as gay rights, abortion, gender roles and drugs[177] in contrast to earlier leftist or Marxist movements that had taken a more vanguardist approach to social justice and focused mostly on labour unionisation and questions of social class.[178][179][180] The New Left rejected involvement with the labour movement and Marxism‘s historical theory of class struggle.[181]

In the United States, the New Left was associated with the Hippie movement and anti-war college campus protest movements as well as the black liberation movements such as the Black Panther Party.[182] While initially formed in opposition to the “Old Left” Democratic Party, groups composing the New Left gradually became central players in the Democratic coalition.[177]

Protests of 1968

The protests of 1968 represented a worldwide escalation of social conflicts, predominantly characterised by popular rebellions against military, capitalist and bureaucratic elites who responded with an escalation of political repression. These protests marked a turning point for the civil rights movement in the United States, which produced revolutionary movements like the Black Panther Party; the prominent civil rights leader Martin Luther King Jr. organised the “Poor People’s Campaign” to address issues of economic justice,[183] while personally showing sympathy with democratic socialism.[184] In reaction to the Tet Offensive, protests also sparked a broad movement in opposition to the Vietnam War all over the United States and even into London, Paris, Berlin and Rome. In 1968 in Carrara, Italy, the International of Anarchist Federations was founded during an international anarchist conference held there by the three existing European federations of France, the Italian and the Iberian Anarchist Federation as well as the Bulgarian federation in French exile.

Mass socialist or communist movements grew not only in the United States, but also in most European countries. The most spectacular manifestation of this were the May 1968 protests in France in which students linked up with strikes of up to ten million workers and for a few days the movement seemed capable of overthrowing the government.[citation needed]

In many other capitalist countries, struggles against dictatorships, state repression and colonisation were also marked by protests in 1968, such as the beginning of the Troubles in Northern Ireland, the Tlatelolco massacre in Mexico City and the escalation of guerrilla warfare against the military dictatorship in Brazil. Countries governed by communist parties had protests against bureaucratic and military elites. In Eastern Europe there were widespread protests that escalated particularly in the Prague Spring in Czechoslovakia. In response, Soviet Union occupied Czechoslovakia, but the occupation was denounced by the Italian and French[185] communist parties and the Communist Party of Finland. Few western European political leaders defended the occupation, among them the Portuguese communist secretary-general Álvaro Cunhal.[186] along with the Luxembourg party[185] and conservative factions of the Communist Party of Greece.[185]

In the Chinese Cultural Revolution, a social-political youth movement mobilised against “bourgeois” elements which were seen to be infiltrating the government and society at large, aiming to restore capitalism. This movement motivated Maoism-inspired movements around the world in the context of the Sino-Soviet split.[citation needed]

Late 20th century

Salvador Allende, President of Chile and member of the Socialist Party of Chile, whose presidency and life was ended by a CIA-backed military coup[187]

In Latin America in the 1960s, a socialist tendency within the catholic church appeared which was called liberation theology[188][189] which motivated even the Colombian priest Camilo Torres to enter the ELN guerrilla. In Chile, Salvador Allende, a physician and candidate for the Socialist Party of Chile, was elected president through democratic elections in 1970. In 1973, his government was ousted by the United States-backed military dictatorship of Augusto Pinochet, which lasted until the late 1980s.[190] Pinochet’s regime was a leader of Operation Condor, a U.S.-backed campaign of repression and state terrorism carried out by the intelligence services of the Southern Cone countries of Latin America to eliminate suspected Communist subversion.[191][192][193] In Jamaica, the democratic socialist[194] Michael Manley served as the fourth Prime Minister of Jamaica from 1972 to 1980 and from 1989 to 1992. According to opinion polls, he remains one of Jamaica’s most popular Prime Ministers since independence.[195] The Nicaraguan Revolution encompassed the rising opposition to the Somoza dictatorship in the 1960s and 1970s, the campaign led by the Sandinista National Liberation Front (FSLN) to violently oust the dictatorship in 1978–1979, the subsequent efforts of the FSLN to govern Nicaragua from 1979 until 1990[196] and the socialist measures which included wide-scale agrarian reform[197][198] and educational programs.[199] The People’s Revolutionary Government was proclaimed on 13 March 1979 in Grenada which was overthrown by armed forces of the United States in 1983. The