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On the eve of the Republican presidential debate, there was one GOP candidate who spent a good deal of time making the circuit on liberal political shows. His name is Buddy Roemer. A former congressman and governor of Louisiana, Roemer is an affable guy who shoots straight and interacts with the likes of Jon Stewart and Rachel Maddow with ease. He handled “gotcha” questions, like “Why won’t they include you in the debate” with honesty and a smile, and he honed in on America’s most pernicious political problem — money in politics — with the laser focus of SEAL Team 6.
Pretty much a dyed-in-the-wool Democrat, as I watched Roemer engage, first with Maddow and later with Stewart, I found myself thinking, “Might I actually vote for a Republican?” I am in total agreement with Governor Roemer’s argument that the corrupting effect of money in politics is our nation’s #1 political problem. Listening to Roemer speak so clearly on the issue, “You can’t tackle the jobs problem, the budget problem, the tax problem . . . without tackling the first problem,” I was starting to feel a lot like I did when then Illinois State Senator Obama took the podium at the 2004 convention. When Roemer labeled the system “institutionally corrupt” and continued with, “Corporations have never made more money than they are right now. They wrote the tax code, and they really don’t give a damn about the rest of America,” I was consumed with but one thought — finally, a politician willing to fight the beast.
The impact of hearing a politician speak so honestly about the cancer that permeates every corner of our political system was unnerving; the effect was more than surprise or glee; it was physiological. Money in politics is the shadow system that the kabuki theater is designed to hide — it is the freaking elephant in the room. More than $4 billion was spent on the 2010 campaign, and 2012 is expected to run a tab of over $6 billion. Large corporate contributors, like those in the financial sector, which spends more than any other and tops President Obama’s donor list, don’t donate out of patriotism. Their campaign contributions are investments — investments that pay far better returns than what the market can offer. And make no mistake, they don’t care about jobs or people or America. They are singly focused on one item and one item only — profits.
So, might a candidate who’s willing to take on our nation’s most crippling political problem deserve my vote — even if he is a Republican? Heck, Roemer’s even to the left of many Democrats on the issue of trade with China and the job-killing effects of policies labeled “free” trade. Well, as it turns out, while Buddy Roemer is an anomaly — a Republican who doesn’t contend that tax cuts and deregulation will fix everything short of curing cancer — he really is still a Republican.
Roemer wants to reduce federal spending to 18% of GDP, while “significantly lowering the marginal tax rate for both individuals and corporations,” a position that sounds a whole bunch like feed the wealthy and starve the beast. He appears to be a hawk who still believes that we need to “strengthen national defense” and views the lingering military occupation of Iraq and Afghanistan as real wars, instead of the nation-building efforts that they are. He supports the typical GOP claptrap about “domestic sources of energy,” placing emphasis on oil, coal and natural gas, while paying lip service to alternatives. His energy policy actually calls for the elimination of the Department of Energy. Sadly, he also joins in lock-step with the repeal Obamacare crazies — even resorting to the inane “government takeover of healthcare” line.
Damn it! I knew it was too good to be true. Still, if the corruption of a bought government were to be addressed, all of our elected officials would be once again free to act on behalf of the people. But would that gain be worth voting for somebody with whom you disagree on most other issues?
The situation begs many questions: how much would legislation actually change? Why can’t we have a Democrat who will take on money in politics? Where the hell is Obama on the issue? I’d be absolutely giddy to hear the President say, “America, we can’t get anything done because your government has been purchased by special interests.” It’s such a no-brainer to win popular support that you’d have to ask yourself why no sitting politician or candidate (besides Roemer) will take it on . . . if you didn’t already know the answer.
In the end, I’m afraid I can’t vote for Roemer, but the man has earned my respect. He may differ from me on an ideological basis, but he’s certainly not one of the talking-point-without-substance, corporate puppet, GOP politicians who dominate the field today. The man is a considered conservative, the type that once led the Republicans and did hold country over party. He may not get my vote, but I will contribute to his election campaign. I think he’s exactly what the GOP needs to pull it back into the ranks of the politically sane.
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Article first published as Capitalism and Democracy, Out of Balance in America? on Technorati.
Accountants, plumbers, teachers . . . lawyers, barbers, technicians — people and societies have many needs and many professions to fill them. If your car’s broken, you take it to a mechanic. If it’s your body that’s ailing, you call a doctor. But what do you do when it’s the society itself that’s in need of emergency care?
America is hurting, and even those who love to wave the flag and speak of our greatness are hard pressed to argue otherwise. We have 15 million people out of work and long-term unemployment at a record high; 44 million Americans now live below the poverty line, with many millions unsure of the source for their next meal; real median household income has been in decline since the turn of the century, and those people now lucky enough to find a job often do so at a significant reduction in pay.
From coast to coast, American infrastructure is in decay, needing more than $3 trillion in repairs. Our healthcare costs continue to spiral out of control, with per-capita spending as a nation more than double the OECD (Organization for Economic Cooperation and Development) average — and in return we achieve inferior outcomes. The federal debt is presently over $14 trillion, about 94% of GDP, and the budgets of 46 states across the Union are in crisis, some approaching default.
Our education system is in disarray; we can’t seem to break our dependence on foreign oil and fossil fuels; we’re destroying our environment with pollution and activities like hydraulic fracturing; the foreclosure crisis is still wreaking havoc on the middle class; our manufacturing base has been decimated; private debt is at an all-time high; our trade balance is upside down — and worst of all — the American people seem more divided than at any time in modern history.
The fact of the matter is that if America were a car, it would be in desperate need of an overhaul; if it were a person, the transplant of multiple organs would be in order. Few and far between are any Americans who would argue that we’re not headed toward disaster, but fewer still are those who offer any real solutions. So, where do we turn for answers? Who do we call?
It is the responsibility of the government to “ensure domestic Tranquility” and “promote the general Welfare.” So, with the domestic climate being anything but tranquil, and the welfare in recent years far from general, it would seem sensible to look to government for leadership — after all, this is the reason for its existence. Our elected representatives are then the people we should call . . . but alas, that really hasn’t been working very well.
The problem is that far too many of those representatives have, in practice, changed employers. They no longer work for the American people. They’re now employed by our nation’s largest corporations. You see, elections are expensive. The 2010 edition ran up a tab exceeding $4 billion. And the sad truth is that the candidate who doesn’t have a sufficient war chest doesn’t get elected. So, unless they’re independently wealthy, candidates are forced to fill their chests with the donations of those willing and able to give. That all too often means taking money from those who the government is established to oversee.
Sadly, for the American people, the average citizen is but a pawn in this national game of influence purchasing. Even the capacity of organized labor, a favorite villain of the right, pales when compared to the might of Big Business to fund elections. In the 2010 campaign alone, business outspent labor by more than 15 times over — paying out nearly $1.3 billion to labor’s paltry $81 million. And make no mistake, those corporate donors don’t support candidates for altruistic reasons — they act only for profits, and they demand favors for their contributions.
Tragically (again, for the American people), many of the corporations controlling Congress actually have no national loyalties whatsoever. In fact, 83 of the 100 largest American corporations maintain foreign bank accounts and shelter their income in tax havens — many paying nothing in U.S. income tax. In fact, it’s so bad that General Electric, fourth on the Fortune 500, made profits of $10.3 billion in 2009, and Uncle Sam wound up owing them $1.1 billion. It’s estimated that companies using tax havens manage to evade more than $100 billion in U.S. taxes every year. The problem is actually so widespread that estimates conclude one-third of all global wealth is stashed in offshore accounts.
The realization that has thus far somehow escaped the American public is that we live today in a globalized economy, and the paradigm that “what’s good for General Motors is good for America” is a relic of times gone by. In all too many cases, what’s good for “American” corporations is actually a poison pill for the average American. And the loss of tax revenues stolen by multinational corporations that use American taxpayer funded infrastructure and services, from roads and utilities to police and fire protection, all without paying their fair share, is only the tip of the iceberg.
All one has to do to see the disconnect between corporate wealthfare and the wellbeing of the American people is to look at Wall Street’s recovery over the past two years and compare it to Main Street’s continued struggle. The Dow Jones, after dropping below 7,000 in March of 2009, was invigorated by the second TARP payout and climbed steadily to finish 2010 at 11,577 — a 77% rise. Bankers rejoiced and passed out record bonuses, $20.3 billion for 2009 and promises of even larger handouts for last year.
Meanwhile on Main Street, 2009 began with unemployment at 7.3% and climbed right along with the Dow to peak in October 2009 at just over 10%. Federal stimulus dollars helped to provide some relief, and 2010 ended with some improvement but still with the jobless rate at 9.4%, and the more reflective U6 rate, which includes the underemployed, stuck at nearly 17%. Yet, as bad as this sounds, the situation is worse still — much worse. The stark truth hidden beneath the published rates is that we now have the lowest labor force participation rate since April 1984 . . . long term unemployment is still rising and people are just not being counted anymore.
And what are those “American” corporations doing? Well, they are creating lots of jobs; it’s just that the majority of them are not in the U.S.. According to the Economic Policy Institute, “American” corporations created 2.4 million jobs in 2010, but nearly 60% of them, 1.4 million went to foreign nations.
Fueled by cheap foreign labor, free trade and government subsidies, the profits of American businesses are soaring. Posting their highest profits ever, $1.659 trillion in the third quarter of 2010, things are good for corporate America. There was a time when that would have translated into prosperity for the average American, but not so anymore. Today, American workers are in a race to the bottom. Their compensation is dropping while commodity prices are climbing. They struggle to provide the basic essentials for their families, while politicians and pundits are increasingly selling the tale of an unavoidable economic shift.
Americans are being sold a bad bill of goods that insists that they accept a new normal . . . one with high unemployment, low wages, weakened social safety nets, and in the final analysis — a lower standard of living. This is the path to continually increasing corporate profits in a globalized economy. Such profits require cheap labor, which means that unemployment will not stem until Americans are willing to work for third-world wages. This is the tyranny of the elite, and it’s a direct result of corporate control of the United States government.
Adam Smith’s invisible hand of the market is alive and well, and it’s painting a new America, one that’s increasingly focused on the wellbeing of We the Corporations instead of We the People. Fortunately, it doesn’t have to be this way, but it’s not going to change through the voluntary actions of a government that’s bought and paid for by those who benefit from exploiting the populace.
The bottom line is that Big Business and American politicians have developed a symbiotic relationship that’s poisonous to the people. Big Business thrives on low taxes, deregulation and cheap labor, and American politicians fund their elections on Big Business donations. The quid pro quo in Washington is operating with unprecedented precision, firing on all cylinders and serving well the needs of the economic elite.
The unavoidable truth is that American democracy has let down the American people —there is nobody to call when those charged with service have been corrupted and no longer seek the greater good. So, what do you do when there’s nobody to call? You do the best you can to tend to the matter yourself. In this case, that starts with asking a new question: what’s good for America?
Without doubt, the answer will most assuredly be in perfect harmony with what’s good for most Americans. And as was the design of the Founding Fathers — that will be a society consisting of a strong democracy intended to curb the excesses of its capitalism, not vice versa.
We need to get the money out of politics, and you can help.
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Article first published as Tax “Deal or No Deal” Ordeal on Technorati.
The details of President Obama’s tax “deal” were announced on Monday, and five days later Democrats are still strengthening their opposition. Viewed by many as a blackmail payment to Republicans who have held hostage any legislation to help hurting Americans until tax cuts for the top 2% were extended, Democrats from coast to coast are angry and active.
Opposition in the House is being led by Rep. Jay Inslee (D-WA) who, with Rep Nancy Pelosi’s (D-CA) help, has managed to coalesce the Democratic Caucus and intends to block the President’s proposal from reaching the floor. Meanwhile, the torch in the Senate is presently being carried by Senator Bernie Sanders of Vermont, who stood up today and independently filibustered against the bill for more than 8 hours.
Analysis of the bill reveals that not only will huge income tax benefits be extended to the top 2%, but an even more expensive estate tax gift will be given to the top one-tenth of 1%. In exchange, unemployment benefits that have historically always been granted when unemployment is above 7.2% will be extended, the bottom 98% of Americans will get the tax cuts the Republicans have held hostage, certain income tax credits will be extended, and there will be a one-year 2% rate reduction for Social Security withholding.
Overall, Obama’s back-room deal is sweet indeed for the wealthy and sweeter still the more wealthy one is. It does also give tax relief for the middle class, but according to Rep. Jan Schakowsky (D-IL) it will actually increase taxes on individuals making less than $20,000 or household making less than $40,000.
But in spite of the dire state of the economy, the immensity of the deficit and the plight of the middle class, Democratic opposition is not unanimous. Such Democratic stalwarts as Governor Ed Rendell of Pennsylvania have come out supporting approval of the proposal. And today, former President, Bill Clinton signed on to the list. To the person, these respected Democratic leaders assert that this is the best deal the democrats can get.
Sadly, it seems that President Obama, Governor Rendell, President Clinton and other Democrats who share their position are all completely missing the point. The situation we have in America right now is the result of decades of precisely the type of thinking these leaders espouse. It’s essentially business as usual deal making, and it gets us exactly NOWHERE. It’s the type of thinking that continues to build the bow wave that will soon wash across America again and take with it all but the wealthy who can weather the storm.
The fact of the matter is that the wellbeing of the majority of Americans has become so marginalized in the past 35 years that a huge portion of the populace now feels completely disenfranchised. The problem is so significant that less than 60% of registered voters typically bother to show up at the polls. But rather than address the core problem of voter participation, the process that President Obama and others in his best-we-can-get camp are pushing is focused on trying to sway the 19% of independents who form the center of this bare majority.
Enter the pendulum: this is the electoral system that created our present problem; the independents vote first one way and then the other — kick out the bums, become unsatisfied with the results, bring back the other bums — it’s a perpetual misery machine that pulses but never changes. It’s a closed system, and as stated by Einstein, it is therefore incapable of effecting real change.
If real change is what we want, then we must look outside of this closed system. We can no longer tolerate practices that serve only to maintain equilibrium, yet this is exactly what concentration on the 19% independent vote does. What’s needed is the introduction of new factors, the most significant of which should be an expanded electorate — a focus on tapping into that HUGE 40% or more of registered voters who stay home.
The Tea Party is evidence of the power of this phenomenon, albeit in a counterproductive direction. Allowed to continue, their discontent and belief that government is the enemy will form a vicious spiral that will only gain momentum. The President’s tax deal does nothing to alter this path. It is sadly a reinforcing mechanism that will help to sustain the descent.
What’s remarkable is that President Obama’s campaign of 2008 was the antithesis of the Tea Party movement. It too proved the power of expanding the electorate (62% turnout) and could have formed the roots of a peaceful revolution — a virtuous spiral. But alas it was not reinforced and was instead allowed to wither on the vine. Once elected, the President surrounded himself with status quo insiders and instead of being a force for real change became just another instrument of the establishment. He dedicated himself to doing what he had learned in Chicago politics — make deals. And in so doing, he failed in the most critical aspect of leading change; he failed to keep his supporters excited.
The President’s tax deal is a perpetuation of the system that’s responsible for the mess we’re in today. It offers temporary relief for structural problems and serves to exacerbate the issue of massive concentration of wealth — the very dynamic that brought us to economic collapse and a jobless recovery. The President’s deal does nothing to actually change the system, while potentially opening the door to further chipping away of our social safety net. It is at best a short term bandage that splits the proceeds evenly between the two sides, but where one side consists of 98% of all Americans and the other side is a minuscule elite minority.
Those on the left who advocate this deal are supporting the continued demise of the American middle class. Giving them the benefit of the doubt with regard to motive, they’re doing this because they believe that this is the best deal we can get. That belief is bred in the acceptance of 55% voter turnout and born of the notion that change must be sought by swinging that 19% independent vote. This is simple and utter defeatist nonsense.
The last thing we need moving forward are any more “deals.” What America needs is to excite the sleeping masses. Those who want to maintain the status quo fight diligently to break voter’s spirits and have them believe they can’t make any difference. Those who desire a better America need to break the trend. They need to motivate and inform the disenfranchised mass of voters who no longer participate. They need to give people a reason to get involved — and that will never result from making more back-room deals — it will only happen when the forces for change stand and differentiate themselves from the powers of resistance.
