Max Weber Was a Class-Conscious Champion of the Bourgeoisie

During the Cold War, US sociologists lionized Max Weber as a superior alternative to Karl Marx. For all his brilliance, Weber’s social theory glosses over the violent, exploitative nature of capitalism and serves as a pessimistic defense of the status quo.

Sociologist Max Weber, photographed in 1918. (Wikimedia Commons)

Almost every student who studies sociology has heard of Max Weber. Few, however, are aware of how he came to occupy such a preeminent place in its canon.

After all, Weber’s influence was minimal in the immediate decades after his death. Between 1922 and 1947, his key book, Economy and Society, sold just two thousand copies in his native Germany.

Weber’s subsequent rise to a position of extraordinary importance did not merely stem from a belated recognition of his intellectual virtues. Opponents of Marxism in the social sciences seized upon Weber as an alternative to Marx in explaining how societies function and change.

In doing so, they downplayed the partisan political views that shaped Weber’s thinking and the shortcomings of his social theory.

Cold War Sociology

Weber owes his current reputation primarily to Talcott Parsons, the leading theoretician of US sociology during the Cold War. Parsons saw the German thinker as having been engaged in a fight “against the positivist tendencies of Marxian historical materialism” by emphasizing the role of values.

In 1939, Parsons received a letter from the Austrian neoliberal ideologue Friedrich von Hayek, who urged him to revise a translation of Economy and Society. Hayek regarded Weber as an important ideological forerunner of his because his methodological individualism drew on the Austrian school of economics.

As Weber had written:

If I have become a sociologist . . . it is mainly to exorcise the specter of collective conceptions which still lingers among us. . . . Sociology can only process from the action of one or more separate individuals and must therefore adopt strictly individualistic methods.

After the intervention by Parsons, US academics “Americanized” Weber to make him appear as a value-free sociologist. Editors eliminated earlier references in Economy and Society to “the flotsam of African and Asiatic savages” from the armies of Germany’s enemies during World War I. They selected texts that formed the core of Weber’s contribution to sociology.

Max Weber owes his current reputation primarily to Talcott Parsons, the leading theoretician of US sociology during the Cold War.

Crucially, Weber was awarded the prize for sophistication in his debate with Marx. According to this perspective, Weber had rejected Marx’s supposedly crude, two-class model of modern society in favor of a multiclass model. As an alternative to Marx’s economic determinism, he had put forward a multifactor understanding of causation. And instead of offering naive hopes of a better world, he had warned against the danger of bureaucratization.

This assessment of Weber’s contribution was not just confined to the Right. New Left critics like C. Wright Mills, whose book The Power Elite pointed to the interlinking of military, corporate, and political elites in US society, also saw Weber as the originator of key insights into stratification and domination.

Depoliticizing Weber

One way this sociological consensus was achieved was through the construction of Weber as an apolitical figure. Universities taught his theories in an abstract fashion, referring to “Society” in general rather than specific formations.

Writers like Wolfgang Mommsen later situated Weber’s political and social theories in the context of early twentieth-century Germany, but the dominant approach to Weber deemed this context to be irrelevant to the timeless insights that he had produced. However, such a separation is not possible in reality, because Weber’s right-wing nationalism permeates his sociological theories.

“A class-conscious bourgeois” was how Weber once described himself. As a young man, he joined the Evangelical Social Congress and the Pan German League, described by one writer, Michael Stürmer, as “the voice of Germany’s most vicious nationalism.” He was an imperialist who advocated colonization, claiming that

we need more room externally . . . the broad masses of our people should become aware that the expansion of Germany’s power is the only thing which can ensure for them a permanent livelihood.

In his first main study, which looked at the situation of agricultural laborers in eastern Germany, Weber attacked Polish migrant workers, denouncing “the Slavic invasion which would mean a cultural regression of major proportions.”

Weber’s right-wing nationalism permeates his sociological theories. ‘A class-conscious bourgeois’ was how he once described himself.

Nor were these sentiments merely an expression of youthful zeal. Weber was an ardent supporter of Germany’s war effort in 1914, claiming that “the honor of our people bade us not to shrink this duty in a cowardly and slothful fashion.” At the end of his life, he advocated a form of plebiscitary democracy which would be so limited that Georg Lukács described it as no more than “a technical means to achieve a better functioning imperialism.” He also launched vicious attacks on the radical left after the war, claiming that “[Karl] Liebknecht belongs in the madhouse and Rosa Luxemburg in the zoo.”

Bourgeois Ideals

Weber’s wider political project faced two obstacles. One was the influence of the Marxist Social Democratic Party (SPD) inside the German working class. Attempts by conservatives like Otto von Bismarck to destroy it with repressive anti-socialist laws had failed, and Weber embarked on an ideological polemic instead. This polemic was an implicit rather than an explicit one: Weber rarely mentioned Marx or the SPD, but his aim was to create an alternative intellectual standpoint to theirs.

The second obstacle that Weber faced was the political immaturity of the class that he championed. Bismarck and the Junker aristocratic class had united Germany, not the bourgeois liberals who had put forward that goal in 1848. In Weber’s view, Bismarck and his class smothered the bourgeoisie with a state bureaucracy that hemmed in opportunities for expansion and imperialism. He wanted the bourgeoisie to “free itself from its unnatural association” with the Junkers and “return to the self-conscious cultivation of its own ideals.”

Weber rarely mentioned Karl Marx or the SPD, but his aim was to create an alternative intellectual standpoint to theirs.

Weber’s most famous book, The Protestant Ethic and the Spirit of Capitalism, blends together these two concerns. It provides an account of the rise of capitalism that gives the bourgeoise a sense of its historic mission and a positively charged moral strength. It also offers a method of interpreting history that counteracts Marx’s historical materialism and is designed to show how “ideas become effective forces in history.”

The central thesis of The Protestant Ethic is well known. According to Weber, the Reformation — in particular Martin Luther’s concept of a “calling” and John Calvin’s notion of “predestination” — produced a cultural change, giving rise to a society that no longer regarded moneymaking as dirty and sinful. A new moral imperative led to a “worldly asceticism,” which encouraged the accumulation of capital through a strict avoidance of all spontaneous enjoyment of life.

There is no doubt that Weber produced some valuable insights into how the Protestant religion functioned as an ideology that facilitated the emergence of capitalism. However, the book also contained a series of questionable assumptions that romanticized the transition to capitalism in Europe.

Capitalism and Religion

First of all, there is Weber’s definition of capitalism as an economic system based on “renewed profit by means of continuous rational . . . enterprise,” which rested on “the expectation of profit by the utilization of opportunities for exchange, that is on (formally) peaceful chances of profit.”  Yet as one modern-day exponent of the system, New York Times columnist Thomas Friedman, explained during the heyday of neoliberal globalization: “The hidden hand of the market will never work without a hidden fist — McDonald’s cannot flourish without McDonnell Douglas, the builder of the F-15.”

In other words, actually existing capitalism, then and now, does not function purely through market “rationality” but requires the armed power of the state to intimidate and colonize. Weber wanted to spiritualize the origins of the system so that the early capitalist appeared in the guise of a dour anti-hero driven by a moral duty that their religious convictions imposed. This framework simply airbrushed the brutality associated with the original accumulation of capital in terms of slavery or the theft of common land out of history.

Secondly, Weber can offer no explanation for the reception that Luther and Calvin received. Previous heretical movements such as the Hussites in Bohemia had offered similar ideas to those of Luther but found themselves crushed. Exploring the question of why Luther succeeded while the Hussites failed would have involved a discussion of the crisis provoked by “market feudalism.” Even prior to the Reformation, there was a wealthier class who demanded the right to hire rural labor, dispense with the tradition of “customary price,” and break free of guild restrictions.

Finally, Weber’s desire to show psychological effects that led directly from the theology of Protestantism to the “spirit of capitalism” forced him to standardize that theology around particular doctrines. In practice, however, the Protestant reformation was tremendously diverse.

Actually existing capitalism does not function purely through market ‘rationality’ but requires the armed power of the state to intimidate and colonize.

As the Marxist historian Christopher Hill explained, this school of thought tended to object to forms of mechanical action that did not involve the heart. It emphasized a morality that individuals imposed upon themselves rather than one coming from obedience to priests. As a result, Protestantism did not automatically lead to capitalism. The importance of the Reformation lay in how it undermined the obstacles to capitalist development that the rigid institutions and ceremonies of Catholicism imposed.

The weakness of Weber’s focus on religion to account for historical change stands out most clearly in two books that rarely make it on to the sociological canon. He wrote The Religion of India: The Sociology of Hinduism and Buddhism and The Religion of China: Confucianism and Taoism during his mature period in the midst of World War I. As well as identifying Hinduism and Confucianism as the key determinants that prevented the rise of capitalism in India and China, the two books are replete with condescending racism.

Weber builds on a previous notion expressed in The Protestant Ethic, according to which Asian culture lacked rationality compared to the West, but he now adds some outrageous stereotypes to the mix. He condemns the “unrestricted lust for gain of the Asiatics” and bizarrely claims that the Chinese people had an “absolute insensitivity to monotony.” He even claims that the Chinese language and script deprived its people “of the power of logos, of defining and reasoning.”

Weber’s neglect of material factors is the most evident lacuna in his analysis. There is little discussion of how colonialism in the shape of the East India Company or the Opium Wars waged by Britain for its right to impose drug trafficking on the people of China hindered the development of capitalism in these countries.

Iron Cages

Weber issued some famous warnings about the “iron cage of bureaucracy” that developed in modern societies. Despite what is often claimed, it is untrue that the concept never featured in Marx’s writings. In his Critique of Hegel’s Doctrine of the State (1843), he attacked the state bureaucracy for its claim to be a universal class that stood over the conflicting interests of civil society. According to Marx, its hierarchy was “the hierarchy of knowledge.”

Weber did produce some real insights into the formal structure of bureaucracies. He also dispensed with the myth that bureaucratic “red tape” was inefficient and only emerged in public institutions, noting that “very large modern capitalist enterprises are themselves unequaled models of bureaucratic organization.”

The focus on bureaucracy formed part of Weber’s more pessimistic defense of the social status quo. The dialectic underpinning his model of history is an oscillating pattern between bureaucracy and charisma. A great leader emerges to break free of the iron cage, but his successors are tragically fated to experience a routinization of that charisma.

For Weber, the broad masses will always be ruled by a small number of people who dominate a bureaucratic apparatus.

There is a poorly concealed strain of elitism throughout this view of history. For Weber, the broad masses will always be ruled by a small number of people who dominate a bureaucratic apparatus. In Parliament and Government in Germany, he makes a distinction between those who live from politics and those who live for politics.

The former blend in easily with the full-time bureaucracies of political parties. Only the latter figure can escape the constraints of bureaucracy to become “a politician of great stature,” because “it is easier for him, the more he has a fortune which gives him independence and makes him ‘available,’ not tied to a business (as entrepreneurs are) but a person with an unearned income.”

The US sociologist Alvin Gouldner attacked Weber’s theory as a suprahistorical “metaphysical pathos.” According to Gouldner, Weber had ignored many of the dysfunctions of bureaucracies in his ruler-centric vision, such as their tendency to split into competing empires, their culture of ultraconformism, and their stress on formal outward appearances.

In his own analysis of bureaucracy, the Belgian Marxist Ernest Mandel pointed out that the majority of people would hardly abstain from meetings and allow bureaucracies to dominate if they actually had the power to decide on the issues that shaped their lives. Apathy and acceptance of bureaucracy arise from a sense of powerlessness that is a necessary part of capitalist societies.

If that feeling of powerlessness was absolute, no revolts would be possible. Fortunately, however, history is full of examples of revolutions against states that commanded the highest levels of bureaucratic organization.

Stratification and Struggle

Almost every sociology course contains a module on stratification. The term is derived directly from Weber’s somewhat fragmentary writing on class, status, and party. To his credit, Weber recognized the reality of class conflict, in contrast to the functionalist school that dominated Cold War US sociology.

However, his concept of social class is simply one based on shared life chances. There is no reference to the sphere of production and crucially, the relationship between social classes is not one of exploitation. Weber’s multiclass model becomes a convenient way to separate off the rentier from the manufacturing capitalist, with the former receiving “unearned gains” while the latter does not.

There are, of course, different fractions within the capitalist class, but these divisions are much less absolute than Weber imagined them to be. His concern was to create a “national economic policy” that would guard against “the disarmament of its own nation by fanatical interest groups or the unworthy apostles of economic peace.” Hence the separation of usurious finance from healthy manufacturing.

Weber’s greatest contemporary influence probably comes through his concept of status, which is defined as a measure of prestige and honor. Many writers use this concept to claim that there is a fundamental division between white-collar and blue-collar employees. According to this argument, white-collar employees tend to focus on erecting barriers to exclude those below them from entering their profession. As this segment of the workforce grows, the working class as the agent of change supposedly disappears.

Weber recognized the reality of class conflict, in contrast to the functionalist school that dominated Cold War US sociology.

However, we should note that the social distinction between office and manual workers was much greater in Weber’s time than it is today. Moreover, Weber’s concept of status slips uneasily between precapitalist and modern periods. By using the German term Stand, which can be translated by the English words “estate” or “status,” Weber ossified this division between different categories of workers.

The reality today is that white-collar employees are subject to much greater monitoring at work than in the past. They are the target of productivity-enhancing measures such as key performance indicators and their work contracts are often precarious. Moreover, they are frequently more heavily unionized than in earlier periods.

In other words, as Harry Braverman pointed out in his work Labor and Monopoly Capital, they have been proletarianized. By neglecting the role of exploitation in class relations, Weberian sociology misses this important dynamic.

The criticisms made above are not an argument for removing Weber from the sociological cannon. It is important to understand how capitalist ideology is constructed. By studying Weber in his real political context, we can learn a lot about that process of construction.

Disastrous Proxy Wars by Great Powers Create Military, Monetary, Financial and Economic Chaos Worldwide

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Russian ‘Kinzhal’ hypersonic missile destroys Kiev’s US-made ‘Patriot’ air defense system

CNN immediately resorted to damage control to save the “Patriot’s” reputation, as it only arrived late last month and just recently entered service, claiming that “a US-made ‘Patriot’ air defense system was likely damaged, but not destroyed”.

Ron DeSantis Is Giving Away Florida Pension Money to Wall Street Donors

Florida governor Ron DeSantis has been putting huge sums of state retirement money into underperforming private equity firms that have donated to his campaign efforts.

Florida governor Ron DeSantis speaks to guests at the Republican Party of Marathon County Lincoln Day Dinner annual fundraiser on May 6, 2023 in Rothschild, Wisconsin. (Scott Olson / Getty Images)

Florida governor and Republican presidential hopeful Ron DeSantis has been crusading against “woke” investments for allegedly threatening his state employees’ retirement funds. But the most imminent threat to Florida public employees’ retirement dollars appears to be the massive state pension investments that have gone to some of the Republican Party’s Wall Street donors under DeSantis’s watch.

Despite a federal anti-corruption rule designed to prevent donors from receiving pension investments, private equity executives have donated millions to political groups supporting DeSantis, all while the governor oversaw the transfer of more than $1 billion of Florida public employees’ retirement dollars into these donors’ high-fee, high-risk “alternative investments.”

Our review found that had the state pension fund instead been invested in a simple, low-cost index fund, compared to its present mix of holdings, teachers, police officers, and other state employees would have about $10 billion more in their retirement funds.

“From a distance, it sure looks like the pensioners are getting hurt here,” Kathleen Clark, an ethics expert and professor at the Washington University in Saint Louis School of Law, told us. “It certainly seems like it raises the distinct possibility that the decisions that the pension board is making may be serving DeSantis’ political interests and not the pensioners’ interest.”

The low-return, high-fee investment strategy under DeSantis — who serves with two other Republicans on the state pension board — has been harmful for the state’s retirees, who had already been struggling with subpar retirement payouts.

But under DeSantis’s leadership, the state pension fund’s investments have been a boon for financial firms whose executives have delivered huge donations to the Republican Governors Association (RGA), which has pumped $22 million into the Friends of Ron DeSantis, a political committee that supported DeSantis’s gubernatorial campaigns and is expected to finance a super PAC supporting his 2024 presidential bid. Friends of Ron DeSantis was the largest recipient of RGA cash last cycle.

The pension fund’s underperformance comes as Republican legislative leaders in April put the kibosh on restoring annual cost-of-living adjustments for public employees that were cut in the wake of the 2008 financial crisis.

The federal pay-to-play rule — which came into effect in 2011, in the wake of bribery scandals at pension funds across the country — was crafted to halt private equity firms and other investment managers from using campaign contributions to improperly influence pension-fund decision makers. But the financial firms receiving pension money have donated to the RGA rather than directly to DeSantis — and federal officials have declined to enforce the rule’s anti-circumvention provisions.

DeSantis and the RGA did not respond to questions from us.

“DeSantis Is Delivering for the Private Equity Industry”

As governor, DeSantis is the chairman of the Florida State Board of Administration (SBA), which appoints officials who make and approve investments for the state’s $180 billion retirement fund. The SBA’s other trustees are state attorney general Ashley Moody and state chief financial officer Jimmy Patronis, two Republicans who are close allies of DeSantis.

Over the past few years, many of the Wall Street interests benefiting from DeSantis’s private equity investments have donated money that has ended up funding the Florida governor’s political committee.

Many of the Wall Street interests benefiting from DeSantis’s private equity investments have donated money that has ended up funding the Florida governor’s political committee.

Take Aeolus Capital Management hedge fund, which received a $50 million commitment from the Florida pension fund in May 2019, four months after DeSantis became governor, and has since delivered a negligible 0.7 percent annual return for state pensioners in four years, compared to an average annual 15.75 percent return for the S&P 500 index of major stocks.

Paul Singer, the founder and co-CEO of Elliott Management, which as of 2020 owned a majority stake in Aeolus, a reinsurance hedge fund based in Bermuda, hosted a 2021 Colorado meeting of elite conservative billionaires, called the American Opportunity Alliance, where DeSantis appeared alongside former vice president Mike Pence and others. The following year, Singer pumped $750,000 into the RGA.

Three weeks after Singer’s donation, the RGA transferred $2 million into the Friends of Ron DeSantis group, which raised $177 million in the 2022 cycle. Singer also donated $500,000 to the RGA in March 2020.

Singer is well known on the world stage for buying up the debt of countries in the Global South, like Argentina, then aggressively calling on payment. Singer also chairs the Manhattan Institute, a conservative think tank that employs Chris Rufo and Ilya Shapiro, leading propagators of the “critical race theory” panic.

While there has not been reporting since 2020 that shows whether Elliott continues to hold a majority stake in Aeolus, the CEO that Elliott installed in 2020, Andrew Bernstein, remains in place. Neither Aeolus nor Elliott responded to repeated requests for comment from us.

Then there’s the private equity firm Thoma Bravo. At the end of March 2022, just four weeks after the Florida pension put $150 million into a Thoma Bravo fund, the group’s cofounder Carl Thoma donated $40,000 to the RGA. It came just two days after the RGA made its $2 million contribution to the DeSantis committee and appears to be Thoma’s first-ever contribution to the RGA.

The Florida pension made another $100 million commitment to a different Thoma Bravo fund in August of last year. The following month, Thoma doated another $100,000 to the RGA, and just two weeks later, the RGA donated $3 million to DeSantis.

Thoma Bravo has attracted controversy in the past year for its ownership of RealPage, a real estate technology platform that has driven coordinated increases in rent across the country, according to a ProPublica investigation.

Bradford Freeman of the private equity firm Freeman Spogli, meanwhile, donated $50,000 to the RGA in 2018, just seventeen days before the RGA gave $1 million to the DeSantis political committee. The next year, his firm received a $100 million commitment from the Florida pension.

In 2015, Freeman Spogli executives hosted fundraisers for former Florida governor Jeb Bush and paid him lucrative speaking fees, after he had overseen investments in the firm during his tenure as chair of the SBA

James Carey of Stone Point Capital donated $10,000 to the RGA just weeks before the 2018 election. The firm received two $100 million commitments from the Florida pension under DeSantis’s governorship, in 2020 and 2022, records show.

While the pay-to-play rule “prohibits acts done indirectly, which, if done directly, would violate the rule,” it does not explicitly cover contributions to super PACs or 527 groups like the Republican and Democratic Governors Associations. This is true even if the super PACs were controlled by the politician in question, or the 527 group was funneling donations into the respected candidate.

In the case of Friends of Ron DeSantis, DeSantis filed a statement of solicitation with the Florida election officials in early 2018 declaring he had established the political committee, which can accept unlimited contributions.

Ron DeSantis filed a statement of solicitation with the Florida election officials in early 2018 declaring he had established the political committee, which can accept unlimited contributions.

“This situation makes it look like the Republican Governors Association is a way of laundering campaign contributions, as they’re allowing these entities to do indirectly what they cannot do directly,” said Clark, the Washington University ethics expert.

Eileen Appelbaum, the codirector of the Center for Economic and Policy Research and who studies private equity, said, “It’s pretty obvious that DeSantis is delivering for the private equity industry, and in exchange they’re providing funding for his campaigns.”

DeSantis recently filed a notice with state election officials notifying them that he is “no longer associated” with Friends of Ron DeSantis — a necessary move before the political committee can start funding the super PAC backing his potential 2024 campaign.

Anti-“Woke” Giveaways to Wall Street

For years, Florida public pensioners have received benefits well below the national norm. The average public pension that Florida public employees receive was just $23,712 per year in 2020, as opposed to the national average of $29,132.

Due to poor performance during the 2008 financial crisis, the Florida legislature reduced what it offered to state employees for their retirement. Pensions granted after July 2011 are not subject to cost-of-living adjustments, meaning that teachers and other public employees who retire in 2023 with thirty years of service receive less than two-thirds the cost-of-living adjustment that they would have received prior to July 2011.

Florida’s pension system has for years poured public employees’ retirement savings into so-called alternative investments, which include private equity, real estate, and hedge funds — a trend that has continued under DeSantis’ watch.

The state’s high-risk, high-fee strategy has resulted in an about $10 billion loss relative to a stock-bond index fund from fiscal years 2019 to 2022, our review has found.

Florida’s pension system has for years poured public employees’ retirement savings into so-called alternative investments, which include private equity, real estate, and hedge funds

During that same period, pension fees to investment managers have increased by 11 percent. Since DeSantis’s first year as governor, total investment management fees have risen from 0.26 percent of assets to 0.29 percent, an increase that cost the pension $54 million in additional fees in 2022.

“It should come as no surprise that an investment amateur would recklessly pump ever greater sums into the highest cost, poor-performing investments, who happen to make substantial political contributions,” said Edward Siedle, a former attorney with the Securities and Exchange Commission (SEC) who now resides in Florida.

Rather than rethink his investments into low-performing and politically connected investment funds, DeSantis has been vocally opposed to environmental, social, and governance (ESG) investing.

ESG considerations urge large investors, like pension funds and endowments, to consider the environmental and social impacts of their investments and assess the governance structure of firms. For years, ESG considerations were relatively uncontroversial, and to date even their proponents admit that they have had a limited impact on corporate behavior.

DeSantis launched his first volley against ESG in August 2022, when he and his fellow SBA trustees issued a resolution condemning the practice.

“Corporate power has increasingly been utilized to impose an ideological agenda on the American people through the perversion of financial investment priorities under the euphemistic banners of environmental, social, and corporate governance and diversity, inclusion, and equity,” DeSantis said. “With the resolution we passed today, the tax dollars and proxy votes of the people of Florida will no longer be commandeered by Wall Street financial firms . . . we are prioritizing the financial security of the people of Florida.”

DeSantis followed that resolution with changes to the pension’s investment policy and proxy voting guidelines — the guidelines the state uses to determine how it votes on shareholder resolutions. And in January, he further prohibited “woke ESG considerations,” implementing guidelines that would ensure “all investment decisions focus solely on maximizing the highest rate of return.”

“Thanks to the leadership of Governor DeSantis, the Florida Cabinet reaffirmed today that we don’t want a single penny of our dollars going to woke funds,” said Patronis, the state’s chief financial officer. “We need asset managers to be laser focused on returns and nothing more.”

In his book released in February, DeSantis expanded his critiques of “woke” investments, calling for the “crippling” of the ESG movement.

DeSantis’s condemnation of ESG investing has come out of the broader culture wars, of which the governor is an eager participant. But combating ESG is also a major interest of Leonard Leo, a conservative strategist and cochair of the Federalist Society, who last year received the largest-known dark-money transfer in American history to advance the political interests of the religious right and reshape American politics.

In April, we reported that the leader of DeSantis’s new super PAC, Never Back Down, was deeply involved in orchestrating that $1.6 billion donation. Friends of Ron DeSantis could transfer its resources — $85 million at this point — to Never Back Down if DeSantis decides to run for president, according to the Washington Post.

But while the DeSantis administration claims to be fighting to stop Floridians’ tax dollars from being “commandeered by Wall Street financial firms” and ensuring asset managers are “laser focused on returns,” such priorities don’t seem to apply to the SBA’s private equity investment strategies.

Kent Perez, deputy executive director of the Florida SBA, said, “No elected officials, including SBA trustees, participate in, or approve the selection of individual investments.”

While the DeSantis administration claims to be fighting to stop Floridians’ tax dollars from being ‘commandeered by Wall Street financial firms,’ such priorities don’t seem to apply to the SBA’s private equity investment strategies.

Index funds have been championed by everyone from Warren Buffett to Jack Bogle, the founder of the world’s largest asset manager, because they deliver better returns by minimizing a central drag: fees. In contrast, the private equity, hedge funds, and private real investments massively expanded by the Florida SBA under DeSantis’ tenure come with fees that can be 5,000 percent higher than traditional index funds.

Siedle, for his part, said, “If DeSantis really wanted to improve the pension, he should try to change the organizational structure and usher in an era of transparency, so the public can see how the pension has been grossly mismanaged.”

“It Sure Looks Like the Pensioners Are Getting Hurt”

In their new book These Are the Plunderers: How Private Equity Runs — and Wrecks — America, journalist Gretchen Morgenson and financial policy analyst Joshua Rosner found that the SEC, especially under President Donald Trump, routinely waived enforcement penalties for any violations of the pay-to-play rule that was implemented in 2011 to prevent campaign contributions from having a corrosive influence at public pension funds.

In its twelve-year history, the SEC appears to have never enforced the rule’s anti-circumvention provision.

While the Biden administration has launched other rulemaking that would crack down on some of the private equity industry’s worst practices, including requiring expanded disclosure of performance and preferential terms offered to some investors but not others, it has not expanded enforcement of the pay-to-play rule beyond a modest crackdown in September against some minor firms.

In response to that minor enforcement action, Trump-appointed SEC commissioner Hester Peirce launched a broadside against the pay-to-play rule, calling it “an exceedingly blunt instrument.” Prior to her appointment in 2018, Peirce spent six years at the Koch-backed Mercatus Center at George Mason University.

“These pay-to-play rules were adopted because of the concern that political donations would distort the judgment of these governmental officials, that they would not just create bad public policy, but also negatively impact those whose money is at stake,” said Clark at the Washington University in Saint Louis.

Meanwhile, in early May, DeSantis doubled down on his crusade against “big banks and corporate activists who’ve colluded to inject woke ideology into the global marketplace,” signing legislation that would “block the use of ESG in all investment decisions at the state and local level” as well as in procurement and contracting.

“Through this legislation,” said DeSantis in a statement, “Florida will continue to lead the nation against big banks and corporate activists who’ve colluded to inject woke ideology into the global marketplace, regardless of the financial interests of beneficiaries.”

You can subscribe to David Sirota’s investigative journalism project, the Lever, here.

How Universal Basic Income Became the Pessimist’s Utopia

“What exactly do David Graeber, Milton Friedman, Charles Murray, Yannis Varoufakis, and Mark Zuckerberg have in common?” It sounds like the setup to a bad joke. The punch line may not be funny exactly, but it is revealing. Although they share practically nothing when it comes to their political commitments, they have all supported the […]

Business As Usual: Shutdown or Not, the Police State Will Continue to Flourish

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Orthodox singer Ishay Ribo first Israeli to star in Madison Square Garden

“I’ve pinched myself more than once to check if I was dreaming or it’s really going to happen,” said the popular singer/songwriter.

By Batya Jerenberg, World Israel News

Ishay Ribo announced Monday that he will be headlining a show at New York’s Madison Square Garden (MSG), becoming the first Israeli to star in one of the most famous venues in the world.

“I’ve been keeping this inside for a long time, and I’ve pinched myself more than once to check if I was dreaming or if it’s really going to happen,” Ribo posted to his Facebook account about the September 3rd event.

“I never dreamed that I’d ever appear in Madison [Square Garden], the place where only huge international stars appear, and think that I’d get to play and sing my songs there, along with the liturgical poetry and tunes of the days of Selichot, with my talented friends!”

The concert is scheduled for the middle of the Hebrew month of Elul, when Selichot, special penitential prayers, are said in anticipation of the High Holy Days.

Ribo‘s lyrics, full of faith in God, and catchy pop music tunes have seemingly struck a wide chord in Israel, as he is one of very few performers whose songs are loved by both the religious and the secular sectors. Several of his works have topped the charts on radio stations that cater to very different publics, with Sibat HaSibot (Cause of Causes) being the most-played song in the country in 2021.

Four of his five albums have gone gold (15,000 copies sold), a fact made even more remarkable when knowing that he had to break into the music scene alone, self-releasing his initial album in 2014.

Ribo is an immigrant success story, as the French-born singer moved to the Jerusalem-area village of Kfar Adumim when he was eight years old.

The knitted skullcap-kipa clad singer gave his “eternal thanks” to all his supporters, family, friends and fans for enabling him to reach this pinnacle in his career. He also expressed gratitude to World Bnei Akiva, the religious Zionist youth movement that is sponsoring his show, and to God, because “I have no doubt that everything, but everything…is simply a miraculous process that goes against all my logic.”

While the legendary Shlomo Artzi appeared in MSG in 2017, he performed in a smaller theater in the complex. Other Israeli singers have gone on the main stage, but as part of other shows or as warm-up acts.

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Terror-supporting Arab MK ‘taking a step back’ from politics

Ayman Odeh has repeatedly made incendiary remarks demonizing Israel, including refusing to swear allegiance to the State of Israel when taking office.

By World Israel News Staff

The chairman of the influential Arab Joint List party announced on Tuesday that while he will remain in the Knesset until the next election, he is retiring from national politics.

Ayman Odeh, head of the Hadash-Ta’al party and the founding force behind the Joint List – which united four Arab-Israeli parties and saw them gain a record 15 seats in the Knesset in 2020 – posted on social media that he is “taking a step back” from the political scene.

A source close to Odeh told Maariv that the longtime party leader was retiring because “he wants to bring in new blood and refresh the political landscape.”

Referencing the Arab Ra’am party’s split from the Joint List and the Balad party’s failure to cross the electoral threshold in the November 2022 national election, the source added that Odeh “understands that there is currently no possibility of uniting the Arab parties… so he is taking action and making room [for new people].”

Some political analysts have speculated that Odeh is not planning on staying away from local politics and may run for mayor in his native Haifa.

“We didn’t know about it beforehand… We were in the national headquarters on Saturday, and it never came up,” former Hadash MK Issam Makhoul told Walla News. “It should have been mentioned if thoughts like that were in the air.”

Odeh did not provide a reason for the decision, simply thanking his constituents for their support in a statement and stating that he would continue to work towards “building unity” between Arabs and Jews.

While Odeh’s retirement statement referenced his supposed efforts towards peace, he has been investigated for incitement to terror during his term. Odeh has repeatedly made incendiary remarks demonizing Israel, including refusing to swear allegiance to the State of Israel when taking office.

In October 2021, Odeh attacked now-National Security Minister Itamar Ben-Gvir in a hospital corridor, outside of a room where a hunger-striking terrorist was receiving medical care.

Video showed that Odeh was clearly the aggressor in the incident, yet a police investigation into the fight was eventually closed.

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