Donald Sterling: It's Not Just The Racism... It's The Grotesque And Oppressive Nature Of Economic Inequality Writ Large

Sterling's wife, Rochelle, is suing his girlfriend, V. Stiviano, claiming she received more than $2.5 million in lavish gifts from the Clippers owner, including a $1.8 million duplex, a Ferrari, two Bentleys and a Range Rover

You've probably read a lot more about Republican Donald Sterling than you have about Dr. Gloria Bromell Tinubu, the Democratic nominee for SC-07. That's the way the media works. It's a big deal that Sterling, a lifelong racist and sociopathic bigot, is barred from even attending an NBA game... for life. It looks like at least three teams nudged the NBA into doing the right thing by making it clear they would be be... proactive during the playoffs. The Golden State Warriors-- the team about to play the Clippers-- were planning on warming up, lining up for the jump ball and then letting the ball bounce on the court as they walked off into the locker room on live TV. The NBA avoided the biggest playoff disaster in league history, although it;s worth keeping in mind that Sterling hurt far more people as a landlord than he did as an NBA owner.

As we've mentioned before, Gloria Tinubu is an extraordinary woman, an educator in the field of economics, not an expert on pro-basketball. But it's worthwhile to take a moment to read the guest post below about the Sterling affair:

Donald Sterling: A "Big Citizen" Teachable Moment
by Gloria Bromell Tinubu

The statements of Sterling provide Americans an opportunity to shed light on two major myths. The first myth is that racism is no longer a problem in the United States and, therefore, we can dispense of all laws or public policies that protect victims of historical racism. The second myth is that the majority of the wealth that is created under capitalism is due to the efforts of the owners of capital. I will address the first myth by simply saying that if you’re not convinced that racism still exists after Sterling’s statements, it is unlikely that there is any other evidence that would convince you. Notwithstanding, it is clear to me that there is a need for continued diligence in keeping racism and other forms of discrimination based on gender, age, or sexual orientation, from rearing its ugly head.

However, the second myth deserves equal attention because it’s at the heart of the current challenges facing American workers of all races all over the United States, that is, the question of who creates corporate value or wealth and whether or not our current economic and political systems fairly value and reward the real creators of wealth.

A World Bank study found that human capital accounts for 59% of the wealth of developed economies like the United States, while business capital only accounts for 16%. If it is not clear in any other area of business, it should be perfectly clear that much of the wealth created by professional sports teams can be directly attributed to human capital. The frontline employees, who are the players as well as their coaches, are the primary source of the wealth that is created.

So when Sterling says, “I support them [Black players] and give them food, and clothes, and cars, and houses. Who gives it to them? Does someone else give it to them? Who makes the game? Do I make the game, or do they make the game?” He just doesn’t get it. He doesn’t get the fact that the players make the game along with him but to a far greater degree. He does not get the fact that the wealth created by the team through ticket sales, ads, and sponsors are jointly created by the team supported by his capital with the lion’s share of that wealth being created by the players themselves. He does not get the fact he is not giving them anything. They are simply receiving a share of the wealth that they help to create.

Sterling does not get it, nor do thousands of business owners, CEOs, top managers, shareholders and their board of directors, some members of Congress, and certain members of our courts who continue to labor under the false illusion that corporate value or wealth is only created through the contributions of business capital.  This myth resulted in the Michigan Supreme Court concluding that the purpose of the corporation is no longer to serve the public good, but rather to maximize profits solely for the benefit of the owners of capital. While members of professional sports teams get a far greater share of the corporate wealth they help to create due to the collective bargaining power they get through their unions, the vast majority of American workers, particularly, front line low-wage workers, such as fast food and hospitality workers, rarely, if ever, do.

So, while this is truly an unfortunate occurrence, my hope is that we will learn from it and agree that all American workers deserve their fair share of the wealth they help to create. We must join together in calling on Congress, our Courts, and Corporate America, to form a new partnership for prosperity for all of America’s workers. These proud Americans account for at least 59% of the wealth that is created and 78% of “producible” wealth, that is, wealth created from human effort as opposed to natural resources.

However, just calling for a new partnership for prosperity will not be enough.  We, as citizens, must take our rightful place at the center of both our economy and our democracy by being the Big Citizens that they both demand of us to be. Only Big Citizens can counter-balance the influence of Big Business and the Big Government it has created for its benefit and interests.

Big Citizens know that the real “invisible hands” that make our economy work are the millions of hands of parents and grandparents, and women, in particular, who produce the human capital that is the primary source of wealth.

As Big Citizens, we recognize that the primary engine of economic growth is the investment that all kinds of families make in producing the human capital reflected in the American workforce. Big Citizens are demanding a fair return on family investment in the form of steady jobs that provide fair wages and benefits that will enable families to continue the important work of investing in our workforce while securing their version of the American Dream.

Just as Big Citizens are demanding a fair and swift response to Sterling’s racist remarks and appear to be getting that from the leadership of the NBA, Big Citizens are also demanding a fair and swift response to the economic distress faced by millions of America’s families.

While America’s families are dutifully investing in their human capital (as indicated by large student loan debts) and in the American workforce, they are continuing to see a smaller and smaller return on their investment in the form of job insecurity, low-wage and part-time jobs with few or no benefits. Millions of unemployed Americans are experiencing negative returns on their human capital investment as they continue to look for work even after losing meager unemployment benefits and as some members of Congress threaten to take benefits away from millions more. All of this is happening at the same time when large publicly held corporations are enjoying record profits. As the largest employers of low-wage workers (66%), these large corporations are not only enjoying record profits, but also higher cash holdings than before the recession.

Big Citizens are calling on leaders in Congress, in our Courts, and in Corporate America to follow the lead of the NBA, not only with regard to addressing racism and discrimination of all kinds, but also in protecting American workers’ right to unionize and engage in collective bargaining. Big Citizens are calling for a higher minimum wage that meets the self-sufficiency standard and for prevailing wages that will enable America’s families to continue investing in its human capital. In addition to the above, promoting more corporate structures that provide greater opportunities for employee ownership, such as employee-stock options and cooperatives as well as reforming corporate governance to protect human capital investments, are just a few of the clear-cut ways of building a fairer economy and ensuring democratic and economic freedom for all of America’s families.


UPDATE

If you'd like to see Gloria in Congress, instead of the Tea Party Republican representing SC-07 now, please consider contributing to her grassroots campaign here.