RSN Fundraising Banner
FB Share
Email This Page
add comment
Politics
Roberts Embraces Right's Fake History Print
Sunday, 01 July 2012 17:50

Parry writes: "The US Supreme Court went to the brink of striking down a major act of social legislation for the first time since the New Deal before being pulled back by Chief Justice John Roberts."

Supreme Court Chief Justice John Roberts. (photo: Joe Raedle/Getty Images)
Supreme Court Chief Justice John Roberts. (photo: Joe Raedle/Getty Images)



Roberts Embraces Right's Fake History

By Robert Parry, Consortium News

01 July 12

 

.S. Supreme Court Chief Justice John Roberts is getting praise from some quarters - and condemnation from others - for judging the 2010 health-care law constitutional, but in doing so Roberts also established, now as a constitutional principle, the false historical analysis that has long dominated right-wing legal circles.

Although giving the Affordable Care Act a thumbs-up by citing Congress' taxing authority, Roberts gave a thumbs-down to Congress' reliance on the Commerce Clause to justify the law's legality. In that part of his ruling, Roberts, in effect, rewrote the nation's founding document, second-guessing the Framers' decision to grant Congress sweeping power to regulate interstate commerce.

In Roberts's decision, you find references to the faux founding history that the Right has been assembling over the past several decades, including "research" funded by right-wing billionaires such as the Koch Brothers, who have bankrolled libertarian think tanks like Cato and academic centers at places such as George Mason University.

While the American Left has largely sat on the sidelines, the Right has been busy cherry-picking a few quotes here and there from the Framers to turn the likes of James Madison (the Constitution's chief architect) into free-marketeers who wanted a weak federal government and believed fervently in states' rights.

Roberts, like the other four right-wing justices on the Supreme Court, was born and raised professionally in this incubator of manufactured history - and that "group think" colored his legal "reasoning" in striking down the Commerce Clause as a constitutional foundation for the Affordable Care Act.

So, for instance, you have Roberts making the obligatory right-wing reference to Madison's Federalist Paper No. 45, in which Madison sought to play down how radical a transformation, from state to federal power, he had engineered in the Constitution.

Rather than view this essay in context - or even note Madison's expressed enthusiasm for the Commerce Clause in No. 45 - the Right seizes on Madison's rhetorical efforts to deflect the Anti-Federalist attacks by claiming that some of the Constitution's federal powers were contained in the Articles of Confederation, albeit in far weaker form.

In Federalist Paper No. 45, entitled "The Alleged Danger From the Powers of the Union to the State Governments Considered," Madison wrote: "If the new Constitution be examined with accuracy, it will be found that the change which it proposes consists much less in the addition of NEW POWERS to the Union, than in the invigoration of its ORIGINAL POWERS."

Today's Right also trumpets Madison's summation, that "the powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite."

But the Right ignores another part of No. 45, in which Madison writes: "The regulation of commerce, it is true, is a new power; but that seems to be an addition which few oppose, and from which no apprehensions are entertained."

The Constitution's Power Grab

The Right also dances around the context of the Constitution itself. It was the greatest shift of power from the states to the federal government in American history, but the Right never wants to admit that fact.

The Constitution can only be understood in contrast to what it replaced, the Articles of Confederation. That original governing framework (from 1777 to 1787) failed the nation because it made the states sovereign and independent and left the federal government weak and dependent, essentially a supplicant begging the states for resources.

Madison and his Virginian ally, General George Washington, were among the earliest to understand the profound flaws of the Articles of Confederation. Washington's experience was perhaps the most searing since he watched his Continental Army suffer from lack of supplies and shortage of pay because states reneged on promises to fund the central government.

After the Revolutionary War, key Founders also recognized that U.S. independence was endangered by how weak the federal government was under the Articles of Confederation. One particular concern was how European powers tried to play off one state or region against another through the manipulation of commercial relations.

This threat - and the need for a more coordinated policy toward national commerce - gave rise to Madison's idea of giving the central government control over interstate commerce, a proposal that Madison first raised as a possible amendment to the Articles of Confederation.

Madison "sponsored a resolution instructing Virginia congressmen to vote to give the federal government the authority to regulate commerce for twenty-five years," wrote Chris DeRose in Founding Rivals.

Madison's resolution won the support of General Washington, who wrote to Madison, saying: "The [commerce] proposition in my opinion is so self evident that I confess I am at a loss to discover wherein lies the weight of the objection to the measure. We are either a united people, or we are not. If the former, let us, in all matters of a general concern act as a nation, which have national objects to promote, and a national character to support. If we are not, let us no longer act a farce by pretending it to be."

Though Madison's amendment failed, he kept the idea alive as part of a more drastic scheme to consolidate power in the hands of the federal government through a constitutional convention.

On Dec. 9, 1785, Madison wrote to fellow Virginian James Monroe that "It is more probable that the other idea of a convention of commissioners from the states for deliberating on the state of commerce and the degree of power which ought to be lodged in Congress, will be attempted." [See DeRose's Founding Rivals.]

Rewriting the Rules

When that day arrived in spring 1787 - with a convention called in Philadelphia to amend the Articles of Confederation - Madison unveiled his radical alternative, not simply some modifications to the Articles but an entirely new system that wiped away the Articles' language about the "independence" and "sovereignty" of the states.

On May 29, 1787, the first day of substantive debate at the Constitutional Convention, a fellow Virginian, Edmund Randolph, presented Madison's framework. Madison's Commerce Clause was there from the start, except that instead of a 25-year grant of federal authority, the central government's control of interstate commerce would be permanent.

Madison's convention notes on Randolph's presentation recount him saying that "there were many advantages, which the U. S. might acquire, which were not attainable under the confederation - such as a productive impost [or tax] - counteraction of the commercial regulations of other nations - pushing of commerce ad libitum - &c &c."

In other words, the Founders - at their most "originalist" moment - understood the value of the federal government taking action to negate the commercial advantages of other countries and to take steps for "pushing of [American] commerce." The "ad libitum - &c &c" notation suggests that Randolph provided other examples off the top of his head.

Historian Bill Chapman has summarized Randolph's point as saying "we needed a government that could co-ordinate commerce in order to compete effectively with other nations."

So, from the very start of the debate on a new Constitution, Madison and other key Framers recognized that a legitimate role of the U.S. Congress was to ensure that the nation could match up against other countries economically and could address problems impeding the nation's economic strength and welfare.

Through the hot summer of 1787, the Convention delegates debated Madison's plan, amid the give-and-take of compromise, reining in a few of Madison's most radical ideas. Contrary to the Right's current propaganda, Madison actually favored even a more powerful central government than the Convention eventually adopted.

Madison wanted Congress to have veto power over state laws, a provision that was dropped though federal statutes and treaties were made "the supreme law of the land" and thus federal courts could strike down state laws that were deemed in violation.

Opposition Rises

Despite some concessions, the Constitution emerged from the secret meetings in Philadelphia as a stunning assertion of federal power - a reality not lost on some influential politicians who favored a continuation of the states' "independence" and "sovereignty" that were explicitly recognized by the Articles of Confederation, but which disappeared in the Constitution.

Anti-Federalists correctly recognized what had happened and soon rallied strong opposition to the new governing framework. As dissidents from the Pennsylvania delegation wrote: "We dissent … because the powers vested in Congress by this constitution, must necessarily annihilate and absorb the legislative, executive, and judicial powers of the several states, and produce from their ruins one consolidated government."

As resistance to Madison's federal power-grab spread - and as states elected delegates to ratifying conventions - Madison feared that his constitutional masterwork would go down to defeat or be subjected to a second convention that might remove important federal powers like the Commerce Clause.

So, Madison - along with Alexander Hamilton and John Jay - began a series of essays, called the Federalist Papers, designed to counter the fierce attacks by the Anti-Federalists against the broad assertion of federal power in the Constitution.

Madison's strategy was essentially to insist that the drastic changes contained in the Constitution were not all that drastic, an approach he took both as a delegate to the Virginia ratifying convention and in the Federalist Papers. But Madison also touted the advantages of the Constitution and especially the Commerce Clause.

For instance, in Federalist Paper No. 14, Madison envisioned major construction projects under the powers granted by the Commerce Clause.

"[T]he union will be daily facilitated by new improvements," Madison wrote. "Roads will everywhere be shortened, and kept in better order; accommodations for travelers will be multiplied and meliorated; an interior navigation on our eastern side will be opened throughout, or nearly throughout the whole extent of the Thirteen States.

"The communication between the western and Atlantic districts, and between different parts of each, will be rendered more and more easy by those numerous canals with which the beneficence of nature has intersected our country, and which art finds it so little difficult to connect and complete."

What Madison demonstrated in No. 14 was a core reality about the Founders - that, by and large, they were practical men seeking to build a strong and unified nation. They also viewed the Constitution as a flexible document designed to meet America's ever-changing needs, not simply the challenges of the late 18th Century.

Twisting the Facts

But today's Right will never accept facts and reason if they go against a desired propaganda theme. The outcome comes first and the rationale is assembled later to support the desired conclusion. Then, the faux history is packaged and distributed through the Right's multi-billion-dollar media infrastructure.

Thus, many Americans think they are defending the nation's founding principles when they buy tri-corner hats at a costume store, unfurl their "Don't Tread on Me" flags, and denounce the evils of "guv-mint." They insist that the last thing the Founders would permit would be a "mandate" to buy a private product.

However, the Right again shuns history, such as the fact that the Second Congress, which included Madison and many other Founders, passed the Militia Acts mandating that every white male of military age must purchase a musket and related supplies. The law was signed by George Washington, another Founder. [See Consortiumnews.com's "The Founders' Musket Mandate."]

In striking down the Commerce Clause as a justification for the Affordable Care Act, Roberts also parroted the Right's propaganda line that it is not commerce when an American chooses not to buy health insurance. However, that ignores the fact that virtually every American is involved in the commerce of medicine from birth and reenters that "market" periodically, especially near the end of life.

The failure of some people to obtain health insurance, to essentially choose to self-insure, is still part of the larger commerce of medicine, which operates across state lines and thus is within the congressional power to regulate interstate commerce.

Yet, Roberts joined his right-wing colleagues in saying that the Commerce Clause only allows regulation of "existing commercial activity" and that the insurance mandate "compels individuals to become active in commerce by purchasing a product," a principle that Roberts said could lead the federal government to require other mandatory purchases.

However, Justice Ruth Bader Ginsburg, writing for the four more liberal justices, noted the fallacy of Roberts's argument. "Unlike the market for almost any other product or service," she wrote, "the market for medical care is one in which all individuals inevitably participate."

In the end, Roberts found a way to square his right-wing ideology with his concern that a five-to-four partisan vote to strike down a major piece of social legislation - for the first time since the 1930s - would damage public faith in the Supreme Court.

But he delivered a consolation prize to his right-wing compatriots by essentially rewriting the Constitution's Commerce Clause, which has been a bęte noire to the Right since the days of Franklin Roosevelt's New Deal and the Civil Rights Era of the 1950s and 1960s.

Honest Conservatives

More intellectually honest conservatives recognized the historical reality that the Framers intended the Commerce Clause to be a power limited only by the political will of the elected branches.

For instance, a legal opinion written by conservative U.S. Appeals Court senior judge Laurence Silberman affirmed the constitutionality of the Affordable Care Act on Nov. 8, 2011. Silberman, an appointee of President Ronald Reagan, explained how the law - including the individual mandate - fit with the Commerce Clause and prior legal precedents.

"We look first to the text of the Constitution," Silberman wrote in his opinion. "Article I, § 8, cl. 3, states: 'The Congress shall have Power . . . To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.' (Emphasis added by Silberman).

"At the time the Constitution was fashioned, to 'regulate' meant, as it does now, '[t]o adjust by rule or method,' as well as '[t]o direct.' To 'direct,' in turn, included '[t]o prescribe certain measure[s]; to mark out a certain course,' and '[t]o order; to command.'

"In other words, to 'regulate' can mean to require action, and nothing in the definition appears to limit that power only to those already active in relation to an interstate market. Nor was the term 'commerce' limited to only existing commerce. There is therefore no textual support for appellants' argument" that mandating the purchase of health insurance is unconstitutional.

Silberman's opinion also examined decades of Supreme Court precedents that affirmed the power of Congress to establish regulations over various national markets.

"Today, the only recognized limitations are that (1) Congress may not regulate non-economic behavior based solely on an attenuated link to interstate commerce, and (2) Congress may not regulate intrastate economic behavior if its aggregate impact on interstate commerce is negligible," Silberman wrote.

Neither limitation applied to the health-care law, Silberman noted, because medical insurance was an economic activity and had sizable interstate implications.

As for the claim that people had a constitutional right not to participate in the purchase of health insurance, Silberman was not persuaded. For instance, he cited a Supreme Court precedent that a farmer who wished to raise wheat for his own consumption could still face federal restrictions because his production (and that of other likeminded farmers) could affect the overall supply of wheat and thus undermine federal policy regarding the wheat market.

Silberman also recognized Congress's power to address difficult national problems, like the tens of millions of Americans who lack health insurance but whose eventual use of medical services would inevitably shift billions of dollars in costs onto Americans who must pay higher insurance rates as a result, what courts call "substantial effects."

"The shift to the 'substantial effects' doctrine in the early twentieth century recognized the reality that national economic problems are often the result of millions of individuals engaging in behavior that, in isolation, is seemingly unrelated to interstate commerce," Silberman wrote.

"Its very premise is that the magnitude of any one individual's actions is irrelevant; the only thing that matters is whether the national problem Congress has identified is one that substantially affects interstate commerce. …

"It is irrelevant that an indeterminate number of healthy, uninsured persons will never consume health care, and will therefore never affect the interstate market. Broad regulation is an inherent feature of Congress's constitutional authority in this area; to regulate complex, nationwide economic problems is to necessarily deal in generalities.

"Congress reasonably determined that as a class, the uninsured create market failures; thus, the lack of harm attributable to any particular uninsured individual, like their lack of overt participation in a market, is of no consequence."

Silberman wrote that "Congress, which would, in our minds, clearly have the power to impose insurance purchase conditions on persons who appeared at a hospital for medical services - as rather useless as that would be - is merely imposing the mandate in reasonable anticipation of virtually inevitable future transactions in interstate commerce."

Silberman acknowledged that "the Supreme Court occasionally has treated a particular legislative device's lack of historical pedigree as evidence that the device may exceed Congress's constitutional bounds," but added that "we are obliged - and this might well be our most important consideration - to presume that acts of Congress are constitutional" absent "a clear showing to the contrary."

Ultimately, Chief Justice Roberts sought to split the decision, adding new limits on the Commerce Clause but finding a way to sustain the constitutionality of the act by citing a back-up justification in the congressional power to tax.

In that way, Roberts may deserve praise for a judicious choice, backing away from another instance in which the Supreme Court injected itself into ideological and partisan battles. But he has now enshrined the Right's bogus history of the Constitution into judicial precedent.



Robert Parry broke many of the Iran-Contra stories in the 1980s for the Associated Press and Newsweek. His latest book, "Neck Deep: The Disastrous Presidency of George W. Bush," was written with two of his sons, Sam and Nat, and can be ordered at neckdeepbook.com. His two previous books, "Secrecy & Privilege: The Rise of the Bush Dynasty from Watergate to Iraq" and "Lost History: Contras, Cocaine, the Press & 'Project Truth'" are also available there.

e-max.it: your social media marketing partner
 
Liberals, Don't Fight Corporations Print
Sunday, 01 July 2012 10:26

Excerpt: "Many progressives, frustrated over the past three years, have concluded that the political system is fundamentally broken because corporate power has been allowed to suffocate popular liberal policies."

President Franklin D. Roosevelt signing the National Recovery Act. (photo: Bettmann/Corbis)
President Franklin D. Roosevelt signing the National Recovery Act. (photo: Bettmann/Corbis)



Liberals, Don't Fight Corporations

By The New York Times | Editorial

01 July 12

 

RESIDENT OBAMA has endured much criticism of his legislative skills from his fellow progressives. His conciliatory approach has been compared unfavorably with Franklin D. Roosevelt’s gleeful pugnacity and Lyndon B. Johnson’s relentless arm-twisting. His willingness to strike deals with corporations has been tagged "business as usual." Many progressives, frustrated over the past three years, have concluded that the political system is fundamentally broken because corporate power has been allowed to suffocate popular liberal policies.

But the Supreme Court’s upholding of Mr. Obama’s health care law reminds us that the president’s approach has achieved significant results. If his liberal critics paused to assess how he achieved such results, they would not see a system paralyzed by corporations; they would see that the most liberal reforms in more than 40 years have been brought about because Mr. Obama views corporate power as a force to bargain with, not an enemy to vanquish.

The necessity of corporate support for, or at least acquiescence to, liberal policies is not a new development in the history of American liberalism. Indeed it has been one of its hallmarks.

Roosevelt may be remembered for his combativeness toward corporations; he famously said, "I welcome their hatred." But he said that in 1936, only after key New Deal legislation had passed with the help of the United States Chamber of Commerce and the American Bankers Association.

Early on, Roosevelt was quite adept at bargaining with corporations. In his first 100 days, to attract corporate support for the National Industrial Recovery Act, he won collective bargaining, minimum wages and maximum hours in exchange for a temporary suspension of antitrust law, so businesses could fix prices. To establish the Securities and Exchange Commission in 1934, he made concessions to Wall Street that scrapped statutory requirements in favor of regulatory flexibility. The following year, to allow the Federal Reserve to better conduct monetary policy, he gave bankers representation on the policy committee.

Johnson also found little value in warring with corporations. He won a Keynesian tax cut in early 1964, defeating budget-conscious conservatives, thanks to a broad coalition that included corporations. He attracted business support to back his first antipoverty bill by junking plans to promote family farming and push businesses to hire long-term unemployed people. He created the Transportation Department, in 1966, only after exempting resistant shipping interests from its jurisdiction. He incited a new era of environmental protection, increasing federal responsibility for cleaning air and water, while defusing corporate opposition by trading away federal pollution standards.

Democratic presidents typically pay dearly when they choose to fight corporations instead of deal with them. Jimmy Carter sapped his political capital in the first two years of his presidency by trying to pass, with belligerent anticorporate rhetoric, a National Energy Act that would reduce our dependence on oil. He gave two major national addresses intended to rally the public and fend off critics’ attacks. At a town hall, he lashed out at oil companies for enjoying "a position of privilege in our country for too long" and having undue influence in Congress. But these confrontational tactics failed to rouse enough public ire to trump that influence, and Mr. Carter settled for a far smaller energy bill than he originally demanded.

Or consider President Bill Clinton. In 1993, his health care task force largely resisted meeting with insurance lobbyists as it drafted legislation. In turn, the insurers didn’t wait for the legislation to be finalized before embarking on a vicious advertising campaign. When the first lady, Hillary Rodham Clinton, tried to belittle that effort, fund-raising for the insurance lobby skyrocketed and its advertising budget quintupled. Mr. Clinton, his bully pulpit diminished, couldn’t get Congress to vote on his bill. He suffered such a humiliating defeat that his ability to enact any other progressive reform was severely crippled.

The realities of corporate power cannot be wished away by any president, no matter how tough the talk, because corporations can and will spend freely during the legislative process. And when they are unified, they have the resources to dominate debate. Even the progressive holy grail - a constitutional amendment banning corporate campaign donations - would not stop that.

BUT when corporations are divided or mollified, reformers can breathe. The president can be heard. Business owners can be convinced that they will remain profitable. The dim prospect of perpetual gridlock can be trumped by the allure of regulatory certainty.

Just look at how Mr. Obama handled the health care law. Recently released e-mail exchanges between the White House and the pharmaceutical lobby, which detail a path of compromises that won the drug industry’s support for the Affordable Care Act, certainly look more like "business as usual" than "change." The e-mails include a White House promise of a "direct line of communication" to lobbyists, along with a suggestion to "stay quiet" about an agreement that buried a proposal for cheap drug imports.

But the e-mail trove is a case study in how liberal change becomes reality. The key to President Obama’s success was enlisting drug companies to pay for pro-reform advertisements. He also persuaded health insurers to forgo a major opposition campaign - by accepting the industry’s proposal for the individual mandate to buy private insurance and dropping plans for a competing public insurance option. As the final vote neared, the United States Chamber of Commerce and other organizations spent millions of dollars on advertisements attacking "Obamacare." But the pharmaceutical industry effectively matched the chamber’s money in supportive advertisements, blunting the impact of the criticism.

Health care was not an anomaly for Mr. Obama. His original stimulus package never faced well-financed conservative opposition in part because the United States Chamber of Commerce backed the business tax cuts in the package. We got a Consumer Financial Protection Bureau after Mr. Obama put Wall Street at ease by resisting proposals to cap the size of banks. New standards lifting average fuel-efficiency goals were set once the White House accepted the automakers’ demand for a review in 2021 and flexibility regarding light trucks. The food safety bill empowered the Food and Drug Administration to recall tainted items but won industry support by dropping a ban on bisphenol A, or BPA, a chemical used in food and beverage containers.

The necessity of forging coalitions with corporations is understandably difficult for progressives to accept. Every time it happens, corporations seem to quickly go back to their usual tricks. They lobby to weaken enforcement. They litigate to have rules overturned. They abandon politicians who risked compromise for them. Corporations are exasperating, irritating and untrustworthy partners.

But most of the time politics is exasperating and irritating, not euphoric and cathartic. As Roosevelt himself told a group of dissatisfied youth activists in 1940, "if you ever sit here you will learn that you cannot, just by shouting from the housetops, get what you want all the time."

As much as Roosevelt enjoyed pugnacity, he also understood its limits. Because Mr. Obama heeded this lesson of liberal history, there was a health care law for the Supreme Court to uphold.

e-max.it: your social media marketing partner
 
Can We Call It Class War Yet? Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=16090"><span class="small">Sarah Jaffe, AlterNet</span></a>   
Sunday, 01 July 2012 10:22

Jaffe writes: "Companies like Apple are squeezing their workers, leaving them to live on less, while lavishing pay and benefits on their executives."

Apple pays it's 30,000 store workers around $12 per hour, while nine of the company's top executives made a total of $441 million in 2011. (photo: Zastavki)
Apple pays it's 30,000 store workers around $12 per hour, while nine of the company's top executives made a total of $441 million in 2011. (photo: Zastavki)



Can We Call It Class War Yet?

By Sarah Jaffe, AlterNet

01 July 12

 

The middle class is being hollowed out; increasingly, there are the super-super-rich, and there are the rest of us.

his week, David Segal at the New York Times broke the news to America that not only was Apple - the computer and gadget manufacturer formerly seen as a symbol of good old American ingenuity - making its profits on the backs of abused factory workers in China, but also on poorly paid store employees here in the US.

Apple store workers, he wrote, make up a large majority of Apple's US workforce-30,000 out of 43,000 employees in this country-and they make about $25,000 a year, or about $12 an hour.

Lawrence Mishel at the Economic Policy Institute notes that that's just a dollar above the federal poverty level. This for a company that paid nine of its top executives a total of $441 million in 2011.

"The discrepancy between Apple's profits/executive pay and its compensation to its workers is a particularly glaring example of what is occurring in the wider economy," Mishel writes.

And he's right. Also this week, Henry Blodget at Business Insider posted three charts that show just how out of whack our economic system really is. Corporate profits are now at an all-time high, while wages as a percent of the economy are at an all-time low, and fewer Americans are employed than at any time in the previous three decades.

Companies like Apple are squeezing their workers, leaving them to live on less, while lavishing pay and benefits on their executives. The death of lionized Apple chief Steve Jobs seems to have opened a floodgate of reporting and criticism of the company's labor practices, but all this really proves is that Jobs and his empire are no better than, and no different from the rest of the US business elite. Just like everyone else, they're taking their profits directly out of workers' pockets.

"One reason companies are so profitable is that they're paying employees less than they ever have as a share of GDP. And that, in turn, is one reason the economy is so weak: Those 'wages' are other companies' revenue," Blodget points out. And high unemployment makes workers willing to accept those poverty wages. When you're desperate for a job, any job is better than nothing.

Right-wingers from Michele Bachmann to Ron Paul have used high unemployment as an opportunity to call for eliminating the minimum wage entirely, letting companies decide just how little they think their workers are worth. Companies love to claim that if they're forced to pay more, they'll have to eliminate jobs, but these numbers show that actually, they're able to keep wages low and refuse to hire; available cheap labor supposedly leads to more job creation, but it's the hollow, gnawing fear created by ongoing high unemployment that keeps wages low and workers passive. And the rich are getting ever richer.

The "recession" is over-officially it ended in 2009, but for most people the pain was just beginning. Real incomes have continued to fall, governments continue to slash budgets while corporate profits just keep going up. This is the new normal.

And it's only going to get worse.

The rhetoric of austerity, sounded loudest from Republicans but often echoed by far too many Democrats, is a language of belt-tightening, of shared sacrifice, of somber speeches by pompous politicians who proclaim that they feel your pain while announcing budget cuts that freeze salaries, lay off workers and force more work onto those who remain. And CEOs use that same language when sorrowfully explaining why they simply can't create jobs. Morgan Stanley's CEO, James Gorman, beset by New Yorkers at his bank's shareholder meeting, blamed the lousy economy when asked why he hadn't created the jobs his company had promised the city in exchange for massive tax breaks.

Because that's what rich corporations are able to buy with their record profits; politicians who turn around and hand them even more money, often in the form of tax breaks that hollow out city and state budgets and force even more austerity, even more social service cuts that fall on the backs of the same underpaid workers. (Remember FreshDirect, handed $129 million in tax subsidies to create $8-an-hour jobs?)

Corporate taxes, too-at least the ones corporations actually pay-are at a 40-year low, with an effective tax rate paid of 12.1 percent. They've fallen from about 6 percent of GDP to less than 2 percent, according to ThinkProgress's Pat Garofalo. Once again, that's what you can buy when you'd rather pay politicians than your workers.

Chris Hayes, in his new book Twilight of the Elites, notes that the ultra-wealthy have spawned a whole "income defense" industry dedicated to preserving their wealth and power, an industry that works tirelessly to push policies that favor the rich. He writes:

Over the last decade, the political arm of the income defense industry has been wildly successful. The tax cuts passed by Bush and extended by Obama represent a total of $81.5 billion transferred from the state into the hands of the richest 1 percent. Meanwhile, hedge fund managers and their surrogates have deployed millions of dollars to lobbyists to maintain the so-called carried interest loophole, a provision of tax law that allows fund managers to classify much of their income drawn from investing gains as "carried interest" so that it is taxed at the low capital gains rate of 15 percent, rather than the marginal income rate, which would in most cases be more than twice that. It was this wrinkle in the law that helped Mitt Romney, a man worth an estimated quarter of a billion dollars, pay an effective tax rate of just under 14 percent in 2010. In 2008, 2009, and 2010, the House of Representatives passed a bill closing the loophole, only to see it beaten back by an intense wave of lobbying in the Senate.

With Citizens United, the Supreme Court gave the ultra-rich yet another weapon in the class war, another tool by which to control our politics. MIT economist Daren Acemoglu told ThinkProgress, "We already had a very serious problem. Instead of trying to stem that tide [of money in politics], we've done the opposite and we've now opened the sluice gate and said you can use that money with no restrictions whatsoever."

It's bad enough when the rich use their money to buy themselves tax breaks that help them get even richer. But millionaires and billionaires from Bill Gates to Betsy DeVos to Mark Zuckerberg are also putting money into pet political ideas; on education, for example, where their money buys them outsized influence over policy. Politics has become a playground for the ultra-rich, where they get to test their pet theories on the rest of us and we're expected to smile and thank them for their charity.

It's not just tax breaks and subsidies that have created massive inequality-it's also full-on war on the only means of organized power that working people ever had: unions. Private-sector union density hovers around 7 percent right now, after years of concerted attacks, and for the last couple of years public sector unions have been in the 1 percent's crosshairs.

From the Supreme Court, where Samuel Alito wrote a majority decision attacking unions' ability to collect money from workers they represent for political activity, to the reelection of Scott Walker in Wisconsin, public-sector unions are under pressure. Politicians keep slashing public-sector jobs, keeping unemployment high and tax revenues low, and stalling the recovery, but they're also part of the attack on the one part of the economy that still has a strong union culture.

As unions declined, so have wages for most people. The Center for American Progress found in a study that as union membership decreases, so does the so-called middle class's share of national income. The middle class long served as a buffer between those at the top and those at the bottom. As long as the majority of Americans were comfortable, had decent jobs and pensions, and could send their kids to school, the wealthy could stay wealthy and the poor were pretty much just ignored. And that middle class was built through decades of union agitation, not just for higher wages and healthcare benefits, but for the eight-hour day, for the weekend, for safety in the workplace and some job security.

But now the middle class has been hollowed out. Increasingly, there are the super-super-rich, and there are the rest of us.

As Hayes writes, we're ruled by an ever-smaller group of elites who not only control all the resources, but all the power. The same people who are pushing wages downward are the ones paying for politicians' campaigns, and they're the same people on the boards of directors and trustees of our universities, our institutions-like JP Morgan Chase's Jamie Dimon, who serves on the Board of Directors of the Federal Reserve Bank of New York, the National Center on Addiction and Substance Abuse, the Harvard Business School, Catalyst, as well as on the Board of Trustees of New York University School of Medicine.

Meanwhile, for the vast majority of us, the recession that supposedly ended in 2009 looks more like a depression each day, and as long as low wages and high unemployment remain the order of the day, there's no recovery in sight.

e-max.it: your social media marketing partner
 
The Progressive President Speaks: About Damn Time Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=11104"><span class="small">Charles Pierce, Esquire</span></a>   
Thursday, 28 June 2012 14:45

Pierce writes: "The president finally has found the six-word answer on why health-care reform - any health-care reform - couldn't wait..."

President Obama reacts to health care decision. (photo: Luke Sharrett/AP)
President Obama reacts to health care decision. (photo: Luke Sharrett/AP)



The Progressive President Speaks: About Damn Time

By Charles Pierce, Esquire

28 June 12

 

http://www.youtube.com/watch?v=L6SDGNL8bOA

o hang your fortune on chance.

The president finally has found the six-word answer on why health-care reform - any health-care reform - couldn't wait until the second term, or on a jobs package, or on a Wall Street bailout, or something else that tickled Rahm Emanuel in his funny places. People were getting sick because they couldn't afford to stay well. People were dying because they couldn't afford to get well. This is a moral imperative with which every industrialized nation on the planet, except this one, had grappled successfully. And today, in reaction to the Supreme Court's decision largely upholding his own admittedly flawed attempt to come to grips with it, the president was more eloquent, and more convincing, than he's been at any point during the prolonged - and occasionally ridiculous - fight over the law itself. He talked about all those American citizens who had to worry "not just about the cost of getting sick, but the cost of getting well." Those people, he said, shouldn't be forced to "hang their fortunes on chance."

Contrast that with the Romneybot 2.0, meeping away on a balcony in Washington, forgetting that the Supreme Court also handed Governor Romney a considerable vindication of the (immensely popular) program he put in place here in Massachusetts - the one in which he called the individual mandate "a personal responsibility issue" - and talking in bloodless banalities about what he would keep and what he would throw out, and tossing out all kinds of meretricious figures about what's going to happen, and never really coming to grips with the millions of people who, at the moment, at least, do not have to hang their fortunes on chance.

The popular opinion among the pundits is that the president should now walk softly on this issue, or that the issue will fade as the campaign rolls on. I think that would be as big a mistake as his pulling back in the face of the manufactured outrage of 2010 was. The president should talk about this every day. He should pin the Massachusetts program to Romney's forehead. He should force the issue out of economics and into an argument about the general welfare (And he should, for the love of god, stop talking about our need to pay down The Deficit.) He got a win today. So did the people who no longer have to hang their fortunes on chance. To hell with repeal-and-replace. The president should run on maintain-and-improve. His defenders back when the law passed kept saying that the ACA was worth passing because it was the first step toward the progressive goal of universal coverage. If he really meant what he said today, that should be the president's position now and forever. We'll see how many fortunes the system will force to hang there on chance.

e-max.it: your social media marketing partner
 
Candidate Blank Print
Thursday, 28 June 2012 14:43

Blow writes: "Mitt Romney wants to run as the generic candidate, the every man and any man, undefined, nonspecific, the other guy, anybody but Obama."

GOP Presidential candidate Mitt Romney. (photo: Getty Images)
GOP Presidential candidate Mitt Romney. (photo: Getty Images)



Candidate Blank

By Charles M. Blow, The New York Times

28 June 12

 

n autographed photo of Mitt Romney at an event in Salem, Va., on June 26.

I’m not sure I’ve ever seen anything like this.

If this is the Etch A Sketch phase of Mitt Romney’s campaign, he seems to want to freeze it the moment after you shake the toy, before you turn the knobs again: blank.

Mitt Romney wants to run as the generic candidate, the every man and any man, undefined, nonspecific, the other guy, anybody but Obama.

Romney inserts “economy” into every sentence but recoils from specificity like a slug from salt.

The Romney message is that he is the amorphous economic messiah come to save us all from the flailing of the inexperienced and ineffectual president. He can create jobs and make the economy grow, somehow. He can cut government spending and cut taxes, somehow. He can fix immigration and education, somehow. He can do a better job of dealing with the healthcare system and our entitlement programs, somehow.

But how, specifically? Just make him president and all will be revealed, too late for voters to rebel, leaving time only for regret. That is the Romney strategy: Obfuscate and delay. Stay loose and elusive. Hide in the fog until the search party passes.

This is the only way he has a shot because people don’t much like Mitt. According to an NBC News/Wall Street Journal survey released this week, only 35 percent of Romney supporters say that theirs will be a vote for Romney, rather than against President Obama. Fifty-eight percent say that they’ll be voting more against Obama than for Romney. (For comparison, 72 percent of Obama’s supporters say that they’ll be voting more for Obama than against Romney while only 22 percent said the opposite.)

Furthermore, both Gallup and the Pew Research Center have done polls on the candidates’ personal characteristics and Obama beats Romney on almost every measure except those related to the economy and leadership.

In the Gallup poll released this week, Obama has a double-digit lead over Romney in being likable, understanding the problems Americans face in their daily lives and being trustworthy and honest. Romney leads, but not by as much, on being a decisive leader and an effective manager of government.

In the Pew poll released last week, Obama enjoyed double digit leads on traits like being willing to take unpopular stands and work with the opposing party, having good judgment in a crisis and taking consistent positions. Romney leads, but not by as much, on being able to improve the economy.

Romney’s sole line of attack is a promise constructed of vapors and held together by wishes: He led a company that dramatically increased his wealth, so he can lead a country and nominally increase ours.

There is scant evidence that this is true, but through repetition he hopes to convert wishful thinking into hard truth. In fact, there is growing evidence that Romney’s business experience is littered with closed companies and outsourced jobs.

Last week The Washington Post pointed out:

During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission.

According to The Post’s political blog, The Fix, this was the Romney campaign’s response:

“This is a fundamentally flawed story that does not differentiate between domestic outsourcing versus offshoring nor versus work done overseas to support U.S. exports,” said Romney spokeswoman Andrea Saul. “Mitt Romney spent 25 years in the real world economy so he understands why jobs come and they go. As president, he will implement policies that make it easier and more attractive for companies to create jobs here at home. President Obama’s attacks on profit and job creators make it less attractive to create jobs in the U.S.”

“Outsourcing versus offshoring”? What is that? Is one of those when a job self-deports? You can’t be serious, Mr. Romney.

It is in no way clear that Romney’s record as a businessman qualifies him to be anything other than rich. And yet, by keeping his positions as vague as possible and rarely answering a question with any real specificity, he can remain the generic anti-Obama option, and remain competitive.

Frustratingly, this strategy is working. Romney and the president are virtually tied in the polls. Unless the media presses harder for Romney to respond to questions and blasts him when he doesn’t, the country will be in danger, if Romney wins, of gambling on what the policies of the president will be. But this responsibility doesn’t end with the media. Citizens must also demand answers. It is outrageous for Romney to be allowed to worm his way out of providing them.

Romney is cheating the public out of the truth.

e-max.it: your social media marketing partner
 
<< Start < Prev 3301 3302 3303 3304 3305 3306 3307 3308 3309 3310 Next > End >>

Page 3303 of 3432

THE NEW STREAMLINED RSN LOGIN PROCESS: Register once, then login and you are ready to comment. All you need is a Username and a Password of your choosing and you are free to comment whenever you like! Welcome to the Reader Supported News community.

RSNRSN