Monthly Archives: July 2012

The Truth About The Great “Job Creator.”

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Former Governor and current Panderer-In-Chief, Mitt Romney, claims that he has the experience to put our economy on the fast track.  The question is, the fast track to where?

In his 15 years at Bain Capital, Romney made tens of millions by buying companies and dismantling them, or firing employees and outsourcing jobs to China.  Indeed, according to a story published in Vanity Fair, Bain itself found that during the period of 2002 to 2007, there is “little evidence that private equity owners, overall, added value” to the companies they took over.  Instead, the company found that most of its profits were the result of overall economic growth, rising stock markets and leverage.

More disturbing, the Vanity Fair article found that Romney used every conceivable trick to avoid paying federal income taxes.  Not only did he stash money in a secret Swiss bank account.  He stashed an estimated $30 million in Bain Capital Funds in the Cayman Islands.  In another questionable transaction, he shifted funds to his wife’s name in order to avoid taxes.  There’s even the mystery of how Romney’s IRA, with contribution ceilings of $2,000 per year for 15 years, now contains up to $102 million!

So, while most Americans play by the rules and pay up to 35 percent of their income in taxes, the great “Job Creator” deposited millions off-shore in order to avoid paying taxes to the country he wants to run?  And in the process, he destroyed American companies and jobs?

If this man collects a single vote from an ordinary working American, that’s one more than he deserves.

Willing Ourselves To A Better Economy.

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As several economists have told me, we get the economy we want.  If we think the economy is good, we will buy what we want or need.  Our purchases will increase sales for retailers.  That will increase manufacturing, and the economy will thrive.  As a result, tax revenue grows and our deficits decrease.

On the other hand, if we think the economy is going to be bad, we will restrict spending and increase saving.  If enough people do this, our economy will be pushed into recession, jobs will be cut, tax revenues drop and our deficits and national debt will grow.

Most people know this, especially large corporations, the wealthy and politicians.  And they often manipulate these principles in order to cash in on easy money.  The losers of this sort of manipulation are almost always ordinary working people.

Everyone knows about the principle of buy low, sell high.  So if you’re among the wealthy and powerful, it doesn’t benefit you if the economy grows at a steady, sustainable rate.  In order to really cash in, you need to create periods of high growth, followed by recessions.  In the midst of a recession, you buy low.  Then at the peak of growth, you sell high.  That’s why a chart of our economic history looks like a ride through the Rocky Mountains.

The interest of the wealthy and powerful is obviously money.  But why would politicians be interested in such a strategy of manipulation?

In a word, Power.

If the opposition is in power, the GOP (Guardians Of Privilege) starts screaming about inflation, deficits, debt and other issues in order to frighten ordinary people.  If they scream loud enough and long enough, a large percentage of our population will hold onto their cash in preparation for the coming calamity and delay purchases.  As a result, the economy struggles.

That’s what’s been happening for the past 3+ years.

In order to make President Obama fail, Teapublicans have howled about “outrageous” deficits.  They talk about “saddling our grandchildren with oppressive, overwhelming debt.”  They’ve scared voters about illegal immigrants taking their jobs.  They’ve talked about an “out-of-control government” and “the end of freedom.” 

Unfortunately, the Tea Party, the religious right and others have scooped up this load of dung as if it were gold in the streets.

The only way to avoid being buried by the dung is to call it what it really is.  And to let everyone know that the people spreading the dung are the southern-most end of a north bound elephant.

Playing With Fire.

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Following the Supreme Court decision that affirmed the Affordable Care Act is constitutional, Mitt Romney and other Teapublicans are furious.  Indeed, the Panderer-In-Chief has said he will repeal and replace “RomneyCare”…er…”ObamaCare” his first day in office.

That must be of great solace to those who are fighting our nation’s wildfires.

You see, most of these firefighters are part-time government employees, so they are ineligible for benefits, including healthcare insurance!  What profit-hungry insurance company would want them?  After all, they are not only susceptible to burns and falling trees, they deal with dangerous equipment such as chainsaws, axes, shovels and chemical sprayers.  In addition, these firefighters inhale lots of smoke which can lead to lung disease and other long-term effects.

The insurance costs based on actuarial tables for these people must be astronomical.  And since, the firefighters are paid between $25,000 and $35,000 per year, most would not be able to afford healthcare insurance if it was made available to them.

But thanks to the Affordable Care Act, in 2014 these people will be eligible for healthcare benefits.  Insurance companies will not be able to charge them enormous premiums or deny coverage.  And, if the firefighters are unable to afford the premiums, they will receive financial help.

ObamaCare?  Yes, it would seem that President Obama is the only one who actually does care about people such as these.

UPDATE:  President Obama really does care!  By presidential order, the firefighters now have healthcare coverage as federal employees.