Smith 6-10

Question 1

1990s = expansion of part time/temporary work; The employment of temporary workers for extended period of time. Saves money because they don’t receive the same benefits/pay as regular employees. (Microsoft hires for 6 months, lays off for 100 days, rehires)

Answer 1

“Permatemping”

Question 2

A more uniform tax, takes a larger percentage taxes from those with low income than those with higher income.

Answer 2

Regressive taxation

Question 3

Banking Act of 1933;Purpose was to separate commercial banking from investment banking; separated safe reliable banks from investments banks only interested in increasing their own profits.

Answer 3

Glass-Steagall Act

Question 4

Warren Buffet; over the counter derivatives; Private deals deriving their value from something else (underlying asset); can’t be monitored/regulated because there is no initial exchange; Usually between banks; Brooksley Born

Answer 4

“Financial weapons of mass destruction”

Question 5

America is a low-mobility country, the rich stay rich and the poor stay poor; education alone doesn’t determine success, your family’s wealth + education does;

Answer 5

New “Caste Society”

Question 6

2000-09; rise in unemployment; fall in value of homes (by trillions); middle class families were sad af.

Answer 6

The “Zero Decade”

Question 7

The top 1% control nearly 40% of America’s wealth, income, and spending; Citigroup exploited this fact by pushing investments in businesses that cater to the rich; Lower Richistan - The Walton Family

Answer 7

The “Wealth Gap”

Question 8

Speculation that people the wealth gap grew because America favors the educated over those without higher education; this does not explain America’s concentration of wealth because others countries have experienced SBTC without the formation of a hyper rich class.

Answer 8

SBTC and the wealth gap

Question 9

U.S. Chamber of Commerce; the Business Roundtables; the National Association of Manufacturers; the National Federation of Independent Business; the National Restaurant Association; National Association of Wholesaler-Distributors(Dongen); Dominated WAshington lobbying representing 1.8 million businesses. Main goal was to keep taxes low for the rich (business owners/CEOs)

Answer 9

“The Gang of Six”

Question 10

The Gang of Six prevented Obama from extending tax cuts for the middle class without extending them for the super rich f*cks as well. Ended up extending tax cuts for everyone in the end.

Answer 10

Tax fight of 2010

Question 11

Sandy Weill merges travelers and Citicorp creating the first of many mega banks, resulting in/ as a result of the repeal of the Glass-Steagall Act. With the stock market crash in 2008, taxpayers were stuck with paying for the banks to prevent larger financial disasters.

Answer 11

Rise of “too big to fail”

Question 12

Fewer employees were given company financed pensions and switched to either nothing or funded their own 401ks. This along with not covering health insurance cut down employer cost burden.

Answer 12

Pensions to 401(k)s

Question 13

Bush cut taxes for the upper class/businesses with hopes that new start up businesses would create more jobs and spread wealth to the lower class; Wrong af.

Answer 13

Bush tax cuts

Question 14

federal law enacted in the United States to control the ways that financial institutions deal with the private information of individuals.

Answer 14

Gramm-Leach-Blyley Act

Question 15

Lawyer who headed the Commodity Futures Trading Commission; warned against over the counter derivatives; muzzled by the Gang of Six so she retired from GOVT like a loser.

Answer 15

Brooksley Born

Question 16

Edward Hymen: Tracked four items: income tax, social security tax, medical costs, and interest payments; Used to determine how much of a person’s income was being eaten away by those 4 unavoidable costs; rose from 24% to 42%

Answer 16

The “Misery Index”

Question 17

Companies weakened their cost burdens by making employees pay for their health insurance. (Walmart = douches)

Answer 17

The “Great Risk Shift”

Question 18

Even when the rest of the world suffers in financial disaster (collapse of 2008) the upper class still makes profits. Emphasizes the severity of income inequality.

Answer 18

The “New Plutocracy”

Question 19

Leads the Gang of Six in his pursuit of Tax Relief for corporations; George Bush referred to him as Dirkus (they had an alliance)

Answer 19

Dirk Van Dongen (Dirkus)

Question 20

corporate money grew with the lobbying industry, nothing was spent more than on business interests. Business lobbyists outnumbered labor lobbyists. the shadow government that has taken over K street was Washington corridor that is home to block after stately block of law firms and lobbying offices. these lobbyists do what it takes to hunt for votes on capitol hill. they are private but when it comes to public view for example when the business roundtable proposed giving shareholders the right to vote on CEO pay, bonuses, and options. Shareholders found out how much CEOs working for shareholders interests they got angry. But typical of lobbying in Washington were on low-profile.

Answer 20

K Street Shadow government

Question 21

Wall street recruits its lobbying army from the ranks of government; to regulate wall street financial services hired govt. officials as lobbyists. The team included all sorts of members of congress. The former staff aides for the houws\e and senate were the staffers that knew bout the law and access to key members of congress. the American financial industry grew and had power. Wall street’s laissez faire market became Washington’s wisdom, it was in every major financial policy battle under Clinton, Bush, and Obama.

Answer 21

Wall Street lobbyists

Question 22

Passing legislation over unanimous opposition of republicans was an achievement for Obama. but his gains were watered down with one loophole that banks speculate 3% of their assets & in another loophole that delayed implementing the Volker rule for 7 years . so banks wanted a bank-friendly president that wiped off completely the Volker rule. Voker said that the problem was the banks are too large, and reform was inadequate. so he suggested the banks should reduce size, limit activites

Answer 22

Paul Volcker’s warning