False Profits is now available for purchase here in ePub, PDF, and .mobi formats, as well as in the Kindle Store.
Despite reports that the recession may be over, the unemployment rate is more than ten percent and home foreclosures are at a record high. It’s no secret that the U.S. economy is in shambles because of the recent housing bubble. However, according to Dean Baker, Co-Director of the Center for Economic and Policy Research, the people who looked the other way as the eight trillion dollar housing bubble grew unchecked are trying to rewrite history by downplaying the impact of the bubble. In Baker’s new book, False Profits: Recovering from the Bubble Economy, he recounts the strategies used by the country’s top economic policymakers to keep the American public unaware of their failure to recognize the housing bubble and to take steps to rein it in before it grew to unprecedented levels, resulting in the loss of millions of jobs, homes, and the life savings for tens of millions of people.
Dean Baker is the co-director of the Center for Economic Policy and Research in Washington DC. He is author of several books, including Plunder and Blunder: The Rise and Fall of the Bubble Economy (PoliPoint), The United States Since 1980 (Cambridge University Press), The Conservative Nanny State (Lulu), and Social Security: The Phony Crisis (with Mark Weisbrot; University of Chicago Press). A columnist for the Guardian, The American Prospect, and Truthout.org, Baker writes regularly for the Washington Post, The Atlantic, and the Financial Times, and appears frequently on National Public Radio, CNN, CNBC, and PBS’s NewsHour. He received his B.A. from Swarthmore College and his Ph.D. in economics from the University of Michigan.“What caused the Great Crisis? Who was responsible? How bad is it? What should we do now? In False Profits, Dean Baker blows away smokescreens and names the real culprits. Along the way, he hands up an indictment of economists — in government and academia — who for years could not see what was in front of their noses.”
— James K. Galbraith, author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too
“Dean Baker’s False Profits is simply the best succinct explanation of the causes, cures, dynamics, and politics of the financial crisis — an indispensable book.”
— Robert Kuttner, co-editor, The American Prospect
“Dean Baker has an incredible ability to simplify the complex and distill economic history into its most critical components. In False Profits, he squarely lays the blame for our current financial mess on the anemic leaderships of an elite group of men who remain unaccountable. After delivering this necessary dose of truth, Baker outlines practical solutions to achieve lasting future stability — solutions Washington should take seriously, before Wall Street is allowed to inhale many more trillions of our taxpayer dollars.”
— Nomi Prins, author of It Takes a Pillage: Behind the Bailouts, Bonuses, and Backroom Deals from Washington to Wall Street
“Dean Baker warned us what was coming. Alas, the government and most economists ignored him. They denied that a housing bubble existed and would soon collapse with devastating consequences. Now we can read why Dean got it right when so many experts were blind. The story is intriguing — and deeply disturbing.”
— William Greider, national affairs correspondent, The Nation,
and author of Come Home, America
[...] Read about Dean Baker’s Book: http://p3books.com/falseprofits/ [...]
Dean Baker’s False Profits is excerpted at yesmagazine.org
http://www.yesmagazine.org/new-economy/out-of-work-or-overworked/
[...] Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of False Profits: Recovering from the Bubble Economy. He also has a blog on the American Prospect, “Beat the Press,” where he discusses the [...]
I’m looking forward to reading Dean Baker’s new book. He’s one of the most insightful analysts of the economy.
Dean Baker, “The Great Recession: How We Got Here and How We Get Out”
Shambaugh Auditorium – The University of Iowa
Wednesday, January 27, 2010
7:00 PM – 9:00 PM
http://www.clas.uiowa.edu/events/2010/01/27baker.shtml
CFPA would stop economy-gutting bubbles’ from ever reaching their bursting points – By Dean Baker
http://www.sacbee.com/847/story/2496265.html
$14,000 Billion Surplus missed
NOTE—Numbers are rounded and are not exact. Simplistic. Purpose here is for an Overview.
Will be exact in my forthcoming book.
No Reagan or Bush Tax Cuts for the very Rich.
Today we would have a $14,000B SURPLUS
NO DEBT.
$14,000 Billion SURPLUS
24 X $750B=$18,000B Revenue missed (1985-2009)
5 X $1700B=$8,500B Revenue missed (2004-2009)
Total $26,500 Billion of Revenue missed
Debt is close to $12,000B
$26,500B of Revenue and we would have no Debt but a $14,000B Surplus
Now you know what occurred?
HERE IS THE BEEF
In 1980 the top 1% owned 20% of Total Financial Wealth
In 1989 it was 36%.
An 80% Increase via good old Ronnie enrich the rich policies and shaft middle class.
Even his David Stockman said his Tax Cut was Trojan Horse to enrich the rich.
Bush took over and now 20% own 93% of Total Financial non-home Wealth.
Top 2.7% got four times as much of Bush Tax Cuts as bottom 80%.
Those are, primarily, Wall Streeter who own our major corporations.
During Bush 8 sent 2,300,000 jobs to CHINA.
While getting huge bonuses on profits from Gambling..
While closing hundreds of plants in America.
While eliminating millions of jobs.
While buying our government.
The new–Wall Street of America–formerly USA
All Aboard! Next Boat to China in 2010 carries all jobs from Hanesbrands
Winston-Salem NC jobless thank you Wall Street.
p.s. Actually the Surplus would be much more.
The ultra rich got most of Income Increase since 1980.
A Tax Increase would have gotten us more of it
Rape Of Our Middle Class
EMPIRE DESTRUCTION
1980 to 2007
20 YEARS OF 3 CONSERVATIVE PRESIDENTS
18 years Conservative Senate
12 years Conservative House
6 years Total Conservative Control
Redistribution of Wealth to top 20%.
Folk! It is downhill slide for Middle Class.
FACTS—numbers rounded-
1946–1% owned 30% of Total Wealth
1980—20%–a 33% decline due to Estate Tax and High Top Income Tax Rate.
thence cometh conservatism
1989-36%
80% Increase in 8 years of Reaganism
1993-47%
2007–20% owned 93% of Total non home Financial Wealth
80% owned equity in homes.
Most major corporations are owned by WALL STREET RICH MEN CASINO
In 1945, corporations paid 35.4% of federal revenues and 7.4% in 2003
In 2000, 45% of corporations with revenue over 50 million paid no federal tax
Five Wall Street Banks own 75% of all Bank Deposits in America. 5.
Two own 20%.
Think that is not POWER???
FACT CHECK
In 8 years of Bush with 6 years of Total Control
They (wall street rich) created a Net New Jobs of 31,000(19.000?) per month.
Why? That is NET. You take the new jobs created and subtract the ones sent to China, etc
31,000! Wow! 19,000?
Bush took over after Clinton had created 237,000 Net New Jobs per month.
Reagan took Carter 218,000 net new jobs down to 175,000 per month.
Clinton left Bush a spending of 1830 B Per Year.
Bush doubled it to 3600 B.
Bush inherited a 5700B Debt from Clinton. He took it to 11,500B
20 years of 3 conservative presidents did this horrible thing.
Took the Debt of less than 1000B after 200 years and added on 8000B.
In 2009 they are spinning big time to blame Obama for huge debt.
Conservatives will spend millions to coverup their Big Recession.
Much of that 8000B Debt add-on went to WALL STREET GAMBLERS.
The people do not know what has happened to them.
Shhh! Do not awaken sleeping Democrats.
Forbes list of 400 Richest reveals how many became Billionaires via corporate
takeovers and Hedge Gambling
Right Wingers yell— Rich Pay most of taxes.
Income Taxes!Yes! They have most of the income.
From 1997 to 2001 the rich 1% took 24% of total national individual income growth
Yet! Conservatives transferred much of taxation from Rich to Middle Class. Reagan elimination of REVENUE SHARING a disaster for Middle Class where taxes were transferred from Rich Income taxes to Middle Class in State and Local Taxes.
Was it a Designed Act of taxation transfer by Conservatives.
In 2008 the Middle Class paid 30% of nominal Income in Federal-State-Local Taxes.
Top 10% paid 30% also. Progressive tax system?
Social Security Tax Increase in 1983 was it designed to hit the Middle Class and ease on the rich?
Greenspan + Reagan. 6.2% Tax on Middle Class. One earns $50,000 pays 6.2%. Earns $1,000,00 pays 6.4%. Earns $10,000,000 pays 1/10th of 1%. By design to keep rich rich?
Was Destruction of S&Ls a deliberate act of wealth transfer from 400 local investors to individual Rich on Wall Street?
Key actor Michael Milken became a Multiple Billionaire with income of 550 Million in one year from raiding S&L deposits (plus) for his Rich Corporate Raiders on Wall Street.
Raiders like Perelman and Ichan became multiple Billionaires.
Sweat of Brow? Ho Ho.
Bush I had to borrow 140 Billion on 40 year bonds to pay for the raids on S&L’s by Wall Streeters.
140B creates many Billionaires and Millionaires. Depositors money was used by those Corporate Raiders and bankrupted the S&L then the government pay off to depositors by Federal Deposit Insurance created Debt for Middle Class.
The Tax Panel estimates that in 2010 the top 1 million with incomes exceeding $500,000 will earn 241 Billion more than 80 Million who will earn under $40,000. Christ, where art thou.
RAPE OF MIDDLE CLASS 1980-2007
Same ideology gave us Great Depression now Great Recession.
It is not a Depression due to:
Democratic Social Safety Nets such as
Social Security and Medicare and Unemployment tinsurance
Only the uninformed vote to send conservatives to Washington.
Some type of Revolt will take place in next decade.
Democrats will continue to allow Conservatives with their huge right wing talk shows spreading lies to blame them.
Democrats need a national Megaphone informing all the people as to what has been done and how they have been RAPED by a few million RICH on Wall Street who have taken their Wealth.
I ask one thing.
PROVE ME WRONG. With numbers and facts not usual vile name calling
cswinney2@triad.rr.com
author-Lifeaholic-Workaholic to Lifeaholic success
author-unpublished
All American Party-How Democrats created a great successful Middle Class and how Conservatives are determined to destroy it
I MISS BILL
CLINTON PRAISE-WITH PLEASURE
GDP–rose from 6300 to 11,600
NATIONAL INCOME-5,000 to 8,000 Billion–took 20 years to grow 2500B before Clinton
JOBS CREATED–over 22 million–record by far
AVERAGE WEEKLY EARNINGS–$360 to $478
AVERAGE WEEKLY HOURS WORKED–never hit 35.0–hit that mark 4 times in 80’s
UNEMPLOYMENT–from 7.2% down down down to 3.9%
WELFARE TO WORK—11,533,710 on federal roll in 1996 and 3,880,321 in 2007.
MINIMUM WAGE–$4.25 to $5.15
MINORITIES–did exceedingly well
HOME OWNERSHIP–hit all time high
DEFICIT–290 Billion to whoopee a SURPLUS
DEBT—-+28%—300% increase over prior12 years
FEDERAL SPENDING–+28%—80% under Reagan- who da true conservative?
DOW JONES AVERAGE–3,500 to 11,800 all it’s history to get to 3500 and Clinton zooms it
NASDAQ–700 to 5,000—all of it’s history to get to 700 and Clinton zooms it
VALUES INDEXES– almost all bad went down–good went up in zoom zoom zoom
FOREIGN AFFAIRS–Peace on Earth good will toward each other—Mark of a true Christian–what has Bush done to Peace on Earth?
POPULARITY—highest poll ratings in history during peacetime in AFRICA, ASIA AND EUROPE even 98.5% in Moscow–left office with highest gallup rating since it was started in 1920’s.
STAND UP FOR JUSTICE–evil conservatives spent $110,000,000 on hearings and investigations and caught— ONE— very evil man who took a few plane rides to events.
BOW YOUR HEADS–Thank you God for sending us a man of Bill Clinton’s character, intelligence, knowledge of governance, ability to face up to crises without whimpering and a great leader of the world.
THANK YOU GOD FOR THE GOOD TIMES THE CLINTON YEARS.
How could a good thing go so bad???
Drown it in a Bathtub ideology
Net New Jobs Per Year
Rounded numbers
Wall Street Journal 1-19-09
Clinton-2,900,000
Carter—2,600,000
Johnson-2,300,000
Reagan–2,000,000
Nixon—-1,700,000
Kennedy-1,200,000
Truman– 1,100,000
Ford——- 745,000
Bush I—– 625,000
Eisenhower 438,000
Bush II—- 375,000
Democrat—10,100,000
Republican– 5,883,000
Per Day In Office
Democrat—10,125 Days
Republican-13,149 Days
Jobs per day
Democrats-997
Republicans-447
QUESTION TO AMERICANS–WHY WOULD YOU VOTE FOR A REPUBLICAN
AND AGAINST YOUR/CHILDREN STANDARD OF LIVING? WHY?
Oh! In understand. They are anti abortion, gay marriage and the Poor.
But But Jesus Christ was
We know but–WALL STREET IS OUR NEW GOD
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ GOD $$$$$$$$$$$$$$$$$$
Other Great books on our disasters
Stiglitz-FREE FALL superb
Krugman-GREAT UNRAVELING–awesome–numbers
Phillips–BOILING POINT–numbers-his notes equal a book
Reich-SUPER CAPITALISM
These 4 books tell it all.
Oh! I forgot The Best–COMING SOON—
ALL AMERICAN PARTY-HOW DEMOCRATS CREATED A GREAT MIDDLE CLASS AND CONSERVATIVES ARE DETERMINED TO DESTROY IT.
by dumb ugly old(85)happy man clarence swinney
burlingtonnc
author-Lifeaholic-Work For a Life not just a Living
cswinney2@triad.rr.com
DEMOCRAT ACCOMPLISHMENTS
list of 84
google
clarence swinney + democrat 84
+ democrats create wealth and jobs
Why do Democrats get led into traps and ignore greatness?
They sit mute while Conservatives have created a Reagam Myth as a Great president
Here is greatness–
Clintonomics vs Reaganomics
Comparing Democrat’s hero-CLINTON—versus Republican’s hero–
REAGAN
1.JOBS—grew by 43% more under Clinton.
2.GDP—grew by 57% more under Clinton.
3.DOW—grew by 700% more under Clinton..
4.NASDAQ-grew by 18 times as much under Clinton.
5.SPENDING–grew by 28% under Clinton—80% under Reagan.
6.DEBT—grew by 43% under Clinton—187% under Reagan.
7. DEFICITS—Clinton got a large surplus–grew by 112% under Reagan.
8.NATIONAL INCOME—grew by100% more under Clinton.
9.PERSONAL INCOME—Grew by 110% more under Clinton.
SOURCES—Bureau of Labor Statistics (www.BLS.Gov )–Economic Policy Institute (EPI.org)—Global & World Almanacs from 1980 to 2003 (annual issues)
http://www.the-hamster.com (chart taken from NY Times)
National Archives History on Presidents. http://www.nara.gov
LA Times 10-11-00 on Market–www.Find articles.com
A vote for a Republican is a vote for Less Success.
A vote to reduce the Standard of Living for all Americans.
How can a party be so dumb as to not promo success?
Have not read the book but in summary Baker states “they failed to recognize the housing bubble.” Extremely kind to use this description of what happened! I was seating in my house in Miami and watching TV news that showed people camped out to “buy” a dwelling. My next door neighbor bought two fancy condos (legal secretary) and our house helper making $13 dollars hour bought a townhouse to flip or rent. I KNEW BUT THE BIG SHOTS IN WASHDC. failed to recognize? Sorry but they KNEW, I KNEW, EVERYONE IN CONGRESS KNEW, THE PRESIDENT KNEW. Just come out and say it: Massive theft of the national Treasury. Bravo.
[...] Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of False Profits: Recovering from the Bubble Economy. He also has a blog on the American Prospect, “Beat the Press,” where he discusses the [...]
[...] and one of the nation’s leading progressive economists, for a discussion on his new book False Profits: Recovering from the Bubble Economy. False Profits recounts the causes of the economic meltdown, dissects the government’s [...]
[...] Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of False Profits: Recovering from the Bubble Economy. He also has a blog on the American Prospect, “Beat the Press,” where he discusses the [...]
[...] (PoliPointPress). His latest book, “False Profits: Recovering from the Bubble Economy” (PoliPointPress) will be available for purchase in ePub & .mobi formats, as well as in the Kindle Store, [...]
[...] of people I want to embarrass to death. But it is more important to me to promote my book “False Profits: Recovering from the Bubble Economy” and maybe pants the Washington establishment in the [...]
my article headed $14,000 Surplus was stupid.
No way.
I knew the total tax cut for Reagan was 750B and 1700B for Bush.
I used them as a cut each year which was wrong since they extended over several years before total was reached.
Clarence dumbo
My guess is that this book ought to be required reading for all members of congress
John
Obama got a Tsunami
Rape of Middle class from 1980 to 2009
SOLUTIONS–
A. Remove Social Security Cap–Why should very rich pay 1/1000th and Middle Class pay 6.2%
B. Increase Dividend Tax from 15 to 28%. Capital vs Labor. Be Fair.
Coal Miner pays 28% and man sitting on butt pays 15% Labor is as important as capital.
Try doing without either.
C. Estate Tax Increase.
D. Increase Corp profit Tax.
E. Public Finance Elections.–Candidate cannot use any money except that given by the public.
F. Wall Street—Revert back to selling stock to raise funds for corporations to create jobs. Eliminate the operations which are mere Gambling in a Rich Man’s Casino. Want to gamble go to Las Vegas.
Those suggestions will return us to Democratic Philosophy of PAY YOUR WAY.
Go away from Republican philosophy of– Spend and Borrow Let Kids Pay Tomorrow.
1945 to 1981–Each percentile increased in Wealth and Income almost evenly in percentage.
Reagan big tax cuts of 60% (70 to 28) for Richest, 40% to Big Corporations -Dividend Rate for Wall Street.
Tax Increases of biggest in history the Social Security Tax Increase–A Tax on elderly on 50% of Social Security Income–Five cent tax on Gas.
Bush Big Tax cuts for Very Rich.
RESULTS
from 1980 to 2007
Top 1% got 35.4% of Total Wealth Increase
Top 1% got 44.1% of Total Income Growth
In 2007 a not so pretty picture
NET WORTH
top 20% owned 85% of Total Wealth and bottom 80% owned 15%
Of nonhome wealth top 20% owned 93% and 80% owned 7%
top 20% got 60% of Total Income and 80% got 40%
It is a disaster for the future of the huge Middle Class. A small few own the majority.
Will we ever get a Congress and President willing to do what is FAIR.
Redistribute the Income and Wealth.
I fear for our future.
clarence swinney
political historian
Lifeaholics of America
author-Lifeaholic–workaholic to lifeaholic success
author unpublished-All American Party-How Democrats created a Great Middle Class
and Conservatives are determined to destroy it.
I MISS BILL
CLINTON PRAISE-WITH PLEASURE
GDP–rose from 6300 to 11,600
NATIONAL INCOME-5,000 to 8,000 Billion–took 20 years to grow 2500B before Clinton
JOBS CREATED–over 22 million–record by far
AVERAGE WEEKLY EARNINGS–$360 to $478
AVERAGE WEEKLY HOURS WORKED–never hit 35.0–hit that mark 4 times in 80’s
UNEMPLOYMENT–from 7.2% down down down to 3.9%
WELFARE TO WORK—11,533,710 on federal roll in 1996 and 3,880,321 in 2007.
MINIMUM WAGE–$4.25 to $5.15
MINORITIES–did exceedingly well
HOME OWNERSHIP–hit all time high
DEFICIT–290 Billion to whoopee a SURPLUS
DEBT—-+28%—300% increase over prior12 years
FEDERAL SPENDING–+28%—80% under Reagan- who da true conservative?
DOW JONES AVERAGE–3,500 to 11,800 all it’s history to get to 3500 and Clinton zooms it
NASDAQ–700 to 5,000—all of it’s history to get to 700 and Clinton zooms it
VALUES INDEXES– almost all bad went down–good went up in zoom zoom zoom
FOREIGN AFFAIRS–Peace on Earth good will toward each other—Mark of a true Christian–what has Bush done to Peace on Earth?
POPULARITY—highest poll ratings in history during peacetime in AFRICA, ASIA AND EUROPE even 98.5% in Moscow–left office with highest gallup rating since it was started in 1920’s.
STAND UP FOR JUSTICE–evil conservatives spent $110,000,000 on hearings and investigations and caught— ONE— very evil man who took a few plane rides to events.
BOW YOUR HEADS–Thank you God for sending us a man of Bill Clinton’s character, intelligence, knowledge of governance, ability to face up to crises without whimpering and a great leader of the world.
THANK YOU GOD FOR THE GOOD TIMES THE CLINTON YEARS.