Category Archives: Corporations

Contrasting British Politics With Ours.

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On a recent trip to Scotland, I participated in a rally for Scottish independence…a Scotland independent of the United Kingdom. Although I strongly believe that outsiders should not be involved in local politics, I joined the march in support of my friends.

What I experienced was extraordinary.

The leaders of the Scottish independence movement were positive, upbeat and forward-thinking. Despite the fact that the people of Scotland have been underrepresented since the formation of the UK, there was no anger; no frustration on display. On the “telly,” there were reasoned discussions and debates. One evening, representatives of both sides debated the issues with facts and little emotion. The moderator interrupted on numerous occasions to ask a follow-up question or to challenge a viewpoint. Over the course of the debate, the viewers, and probably the participants, had a genuine opportunity to learn.

Now imagine something similar transpiring in the US.

Imagine if the so-called “Independent Republic of Texas” followed through on years of threats to secede from the US. Imagine the vitriol and anger. Imagine the rancor and misinformation that would dominate our media. Imagine the long list of talking points that would be “reported” by Fox News Channel, MSNBC and the rest of our mass media.
By the time the process was over, most of the rest of us would be ready to secede from each other.

In fact, we’re now experiencing incredibly high levels of vitriol over a much lesser issue…simple budget negotiations.

Now ask yourself, why? Are the citizens of Scotland and the UK really so very different from us? Why are Britons able to remain civil while debating issues of political import? Why can British reporters hold politicians accountable when our reporters can’t? Why are British elections held over a matter of weeks, while US elections are now perpetual? Why are millionaires, billionaires and corporations unable to secretly buy votes for British candidates, while they are allowed to own most US candidates and offices?

I don’t have the answers. But if we want this “grand experiment in democracy” to last, we better find some fast!

Who’s Really Responsible For Our National Debt?

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It’s popular for the Republican Party to blame our $16.7 trillion debt on President Obama. Certainly, like all presidents, he has some responsibility for it. But a much larger share of the responsibility goes to President Reagan, President George H.W. Bush and, most especially, President George W. Bush.

You see, the increase in spending in 2009 following the economic collapse of 2008 should rightfully be attributed to the Bush administration. That’s because the 2009 deficit was the result of a spending bill, including the Troubled Asset Relief Program (TARP), authorized by Congress in October of 2008 and signed by President Bush months before Obama took office. In fact, spending in the first year of any administration is always the result of the previous administration. Properly credit 2009 spending to Republicans, and you’ll discover that President Obama has been responsible for the lowest spending increases since Eisenhower. Similarly, he is responsible for the most rapid cuts to our deficit in more than 50 years!

While it’s true that the debt has increased 18.5 percent since Obama became president, as discussed, he should not be held responsible for most of that increase. Even so, it’s still less than the 20.7 percent increase in national debt that accrued during George W. Bush’s second term. And it’s only marginally greater than the 13 percent increase during Bush Sr’s term, and the 11.3 percent increase during Reagan’s first term.

A better measure of Obama’s spending comes courtesy of Rick Ungar, a contributor to Forbes Magazine (hardly a bastion of liberalism). According to Ungar, in President Obama’s first term, overall government spending grew just 1.4 percent as compared to 7.3 percent in George W. Bush’s first term and 8.1 percent in Bush’s second term!

So why do Republicans continue to place the blame on Obama? First, it’s a matter of political convenience to portray Obama as a “tax and spend” liberal. Second, the narrative is relatively believable since government spending skyrocketed during the first year of the Obama administration. Third, the media has done a very poor job of countering Republican misinformation.

In order to truly understand the federal debt, you have to look at the history of US borrowing.

Following the Revolutionary War, the US debt stood at roughly 35 percent of Gross Domestic Product (GDP). It again reached that level following the Civil War. In both instances, the debt was brought down by a combination of increased revenues and spending restraint. During WW I, the US debt again rose to approximately 35 percent of GDP. Before it could be paid down, our economy collapsed leading to the Great Depression. That was quickly followed by WWII. The two events caused the debt to soar to more than 117 percent of GDP. But, through a combination of post-war prosperity and income tax rates of up to 91 percent during the Eisenhower administration, the debt was again brought under control.

By the end of the Carter administration, the national debt had been reduced to 32.5 percent of GDP.

President Reagan’s expansive military spending during the Cold War once again caused the debt to soar, reaching more than 66.1 percent GDP. Under Clinton, it was reduced to 56.4 percent of GDP. Then, under George W. Bush, two wars (one of which was a war of choice) and lax government oversight led to the Great Recession – the worst economic calamity in nearly 80 years. At the same time, a Republican-led Congress cut taxes (and, therefore, revenue), particularly for the wealthy.

President Obama inherited a debt of more than 84 percent of GDP, along with a worldwide economic collapse, double-digit unemployment, spiraling health care costs, two wars estimated to have cost more than $6 trillion, a Congress that refused to rescind the Bush tax cuts, and a uniquely obstructionist Republican Party.

All of this was roughly the equivalent of combining the costs of World War II and the Great Depression without the primary mechanism needed to reduce the debt – taxes!

President Obama was left with few choices. He had to stimulate the economy through loans and tax cuts in order to put people back to work. This led to reduced revenue. He had to wind down the war of choice in Iraq as quickly as possible. He needed to stabilize the war in Afghanistan that had been allowed to languish under Bush at a cost of $1 million per soldier per year. Moreover, since few Americans had been asked to sacrifice for the wars in Iraq and Afghanistan, unlike World War II, they felt no need to pay for the wars through increased taxes. Indeed, even though federal income taxes were at a 50-year low, extremists funded by billionaires created the TEA (Taxed Enough Already) Party.

All of this led to the growth of our debt, which now equals nearly 102 percent of GDP.

Certainly, this debt is of great concern. But it’s not the short-term crisis Teapublicans would have you believe. (It’s the equivalent of a family earning $100,000/year holding a $102,000 mortgage.) And, without modest tax increases, there are few ways to reduce the debt.

One is to grow the economy, and according to most economists, including Lloyd Blankfein of Goldman Sachs, the economy is on the verge of significant, sustained growth if the nitwits in Congress would just get out of the way and stop dragging us from one self-inflicted crisis to another.

Two is to make cuts without adding to unemployment. (For example, we squander tens of billions each year on weapons systems that our military doesn’t even want, but Congress refuses to defund them because doing so would cost jobs.) And, once the economy shows sustained growth, programs such as food stamps can be cut – especially if we raise the minimum wage to reduce the large number of working poor who have little choice but to rely on government assistance.

In summary, contrary to what Teapublicans would have you believe, our national debt is not Obama’s debt. It’s the result of decades of wars, tax cuts, regulatory indifference, a struggling worldwide economy, out-of-control health care costs, greedy corporations that off-shore both jobs and profits, and a dysfunctional Congress that not only fails to help the economy. It makes decisions that are actually preventing economic recovery!

As a matter of fact, the Tea Party seems determined to force our nation into default. And, like the debt, they would have you believe that it’s all Obama’s fault.

How The People You Elect Are Turned Into Highly-Paid Puppets.

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On Tuesday, Heritage Action, the even more political arm of the Heritage Foundation, sent a memo to Republican Congressmen telling them to vote against the bipartisan Senate bill that would re-open our government. As a none-too-subtle threat, the memo noted that the organization would be “scoring” Congressional votes.

In other words, do as we say or we will make sure you have a difficult, and expensive, primary fight!

This is really nothing new. Well-financed ideological groups have controlled our Congress for decades. The four-million-member NRA has long scored votes at the state and national level regarding gun safety and other issues of interest. The US Chamber of Commerce has spent billions to elect officials who are friendly to large corporations. The American Medical Association, Big Pharma and the Insurance Institute of America have spent billions to protect their out-of-control profits in health care. Large corporations peddle influence through the American Legislative Exchange Council (ALEC). Even churches keep score, picking and choosing winners in elections.

What is new is the sheer amount of money and power now exerted by outside interests. Following the Supreme Court decision that equates money with free speech and the decision to equate corporations with people, the amount of money in politics has increased dramatically. In 1998, it’s estimated that $1.6 billion was spent on US elections. In 2012, that number exceeded $6.2 billion! And the Supreme Court is currently hearing a case that could further open the floodgates.

There are now dozens of highly-partisan “think tanks,” PACs, SuperPACs and lobbying groups that hold out the carrot of campaign financing and brandish a whip for any legislators who get out of line.

If an elected official wants to retain some semblance of independence from the big-money interests, he or she has to constantly beg constituents for money. Is it any wonder, then, that within a month of the 2012 election results, candidates were campaigning to raise funds for their re-election?

Most Americans can see the problem, but they continue to hold their noses and vote for candidates who are more interested in their re-election than the interests of our nation. There is only one way to stop it…stop it! Stop voting for candidates who put corporations ahead of people. Stop voting for candidates who put the interests of their party ahead of the interests of our nation.

Just stop it!

Falling Behind Russia.

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For those Americans who still consider Russia a rival of the US, I have bad news. We have fallen behind the Great Russian Bear in one important economic category: Russia is one of the few nations on the planet with more economic disparity than ours.

In the US, the top one percent own 40 percent of the nation’s wealth, while the bottom 80 percent own just 7 percent. But in Russia, just 110 people own 35 percent of the nation’s wealth! According to a report by Credit Suisse, “Russia has the highest level of wealth inequality in the world, apart from small Caribbean nations with resident billionaires.”

Damn those Russians! We used to be number one!

Of course, this means our greedy billionaires will need to step up their game. We know they’re trying. The Koch brothers funded the government shutdown over “Obamacare” in order to maintain the status quo. Wall Street, the health care industry, and defense contractors have increased their lobbying groups in Washington. And the US Supreme Court is currently hearing a court case that may allow the obscenely wealthy to better purchase politicians and political favors under the guise of free speech.

But even that may not be enough. So the bought-and-paid-for Teapublicans are working overtime to privatize Social Security, Medicare, our military, prisons, schools and every other institution in the US. The claim is that this will make the institutions run more efficiently and more cheaply. But, in reality, privatization merely makes these institutions less responsive while adding to their costs and the corporations’ bottom lines.

But who are the poor and the middle class to complain? This is about national pride. We’re exceptional!  We have to be number one. USA! USA! USA!

If Teapublicans Want To Be Taken Seriously, They Should Lose The Superiority Complex.

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They need to stop claiming that they’re the only real patriots; stop pretending to be the only true protectors of liberty; stop wrapping themselves and their ideas in the US flag; stop quoting the Founding Fathers, at least until they read the Constitution – the whole Constitution – and stop believing that God has taken their side.

Most of all, they need to lose the anger and hate!

There are some important questions our nation needs to answer in our future. What should we expect of our government? What government programs are essential? Which ones can be cut? When does government become an intrusion into our lives? What should be the role of the US in the world? How much military spending is enough? How much is too much? What is the role of money in elections? How much influence should the wealthy and corporations be able to buy? What, if any, role should religion have in government? What can be done to keep ever more lethal weaponry out of the hands of criminals and the mentally ill? What should be done with the millions of undocumented immigrants who are already in our country?

These are all legitimate questions that need to be answered. But we can’t have an honest debate as long as one side assumes that it has all the answers and, worse yet, that the other side has no place at the table.

Our government was founded to provide for life, liberty and the pursuit of happiness for our citizens. All of our citizens. Not those of one political party, ethnic group, race or religious belief.

The Founding Fathers argued intensely over the powers of our government. They debated their positions in the Federalist papers. Those on the side of a strong, central government won. As a result of the Framers’ decisions, our nation has had unparalleled success.

We should not hate our government or each other. We should debate loudly, but respectfully. The only ones who deserve our wrath are those who don’t vote and those who dismiss the views of others. That includes those who would hold our government hostage until they get their way!

GOP’s Age Warfare.

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Teapublicans always whine about what they refer to as “class warfare” whenever anyone wants to level the playing field between the wealthy and the middle class. But now they are waging a war on those 50 and older by trying to privatize Social Security and Medicare. To push their agenda of destroying “entitlements,” the Tea Party says these safety net programs are unfair to millennials who have to contribute to the programs.

Would the millennials rather contribute to their parents when the safety nets fail?

Would they rather take in their elderly parents and grandparents? Would they prefer to offer them transportation, feed them, clothe them, provide elder care, track their meds, and bathe them? Would they like to cover their health care costs?

There’s a reason that most civilized nations have safety nets, such as Social Security and Medicare. It’s because most compassionate people would rather not see the elderly broke, hungry, sick and homeless. The large corporate masters of the Republican Party and its Tea Party parasites, on the other hand, only care about their bottom lines. If increasing profits hurts some people, so what? Their overpaid and overstuffed executives won’t have to worry about retirement, and neither will their parents. In most cases, they can simply send a check to help out poor ol’ Mom and Dad.

Has it really come to this? Is the new GOP strategy to pit one generation against another? Has the GOP tired of taking money from the working poor and food stamps from children? Are the elderly the last people standing between them and the tax-free government they desire?

These words may seem cynical. But that’s far better than the cynical actions of today’s GOP.

An Ugly GOP Strategy Gets Even Uglier.

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As long ago as the late sixties and early eighties, Republican leaders developed a unique election strategy. They intentionally made politics so messy; so reprehensibly ugly; so divisive that many moderate voters became disgusted with the whole political process and tuned out. The idea was that by diminishing the votes of moderates, the primaries and elections would be decided by the most rabid conservative base.

At the same time, they attacked the mainstream news outlets in order to create distrust of the media and objective reporting. This allowed partisan talk show hosts and conservative pundits to confuse voters and control the political message.

It worked.

This strategy was at the heart of many GOP victories over the past 40 years. It was never more obvious than in the events leading up to the 2010 mid-term elections. And it would have worked again in 2012 if not for an energized  Democratic majority and a bartender who captured Mitt Romney’s comments about the 47 percent.

Not content with demoralizing and repulsing a large number of moderates, the GOP and its Tea Party parasites have set about passing voter ID laws designed to diminish the participation of other segments of the electorate…including the poor, the elderly and minorities. The fewer of these Democratic-leaning voters who participate, the easier it will be for conservatives to win elections.

Combine these strategies with the financial backing of large corporations and wealthy contributors such as the Koch brothers, and we might see a conservative landslide in 2014.

Given the changing demographics of our nation and the coming minority majority, these cynical GOP strategies can’t work for long and Teapublicans know it. But they can create a lot of mischief in the meantime. You need only look at the ultra-conservative bills that have been pushed through states with a Teapublican majority in the legislature and a Teapublican governor.

Arizona, North Carolina, Pennsylvania, Wisconsin, Texas and others have acted like States Gone Wild with their anti-woman, anti-abortion, anti-tax, anti-union, anti-minority and pro-gun legislation. Many of their measures are unpopular with a majority of their citizens. But the majority is helpless to do anything to stop the bills or overturn them until there’s a change in state governments. And change is unlikely anytime in the near future because of Teapublican gerrymandering designed to keep them in power for years.

The only chance for change is for moderates to become re-engaged; to tune out the relentless negative campaign ads; to look beyond the headlines; to ignore the sound bites; to approach elections by studying the candidates and their policies with the same attitude as studying for a college final; then vote!

Demanding A 50 Year Cover-Up For Doing Your Job?

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Our nation was built on representative government.  But our representatives are so concerned with re-election that many are now afraid to do what’s best for our nation. So much so, that they try to hide their actions from the very people they represent.

The on-going debate over the federal tax code is a case in point.

Before many senators were willing to venture opinions on the tax code, they needed to be assured by Senators Max Baucus (D-MT) and Orrin Hatch (R-UT) that any suggestions would be kept secret for 50 years! Exactly what, or who, are they afraid of?

In a word, you.

Thanks to the Baucus-Hatch declaration, senators may now solicit favors from the K Street lobbyists without fear of repercussions. They are now free to recommend tax loopholes for their largest campaign contributors and special interests without fear of discovery by the people they are supposed to represent. By the time anyone finds out, they’ll be dead and forgotten.

Not exactly representative government, is it?

In one declaration, Baucus and Hatch have exposed everything that’s wrong with our government. And it’s not just a problem with the federal government. Such secrecy and tricks are used and abused by governments at all levels…city, county and state.

Those with money can buy access to those who make the laws. After all, it takes money to run for office these days…lots of it. So defense contractors, the American Medical Association, health insurance, Big Pharma, Big Oil, Wall Street, multinational corporations, billionaires, the NRA and others write our laws. They write the very regulations that will govern them, and because they write them, they feel free to break them.

No money.  No access.

Only a very few politicians have demonstrated through their actions that they are immune to such power.  Senators Elizabeth Warren, Al Franken, Amy Klobuchar, Bernie Sanders and a very small number of others have stood on priniciple. They seem willing to do the right thing and explain their decisions to those who elected them.

Far too many others say one thing in public and do something far different behind closed doors. The Baucus-Hatch declaration…along with Senators Baucus and Hatch…needs to go.

Another Debt Ceiling Debacle?

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Teapublicans are always fond of relating government budgets to your household budget. It’s a lousy analogy. But let’s use it for the purposes of the debt ceiling debate.

Imagine if your family, concerned about its spending and debt, had a meeting and decided that you no longer wanted to pay any debts above…let’s say, $10,000.  And let’s say that your family couldn’t agree on spending cuts. For example, the father just doesn’t want to stop collecting expensive guns and driving luxury cars, the mother doesn’t want to give up health insurance and the 401K, and the kids don’t want to give up school and food.  So your family agrees to stop paying the mortgage, the utilities and the credit card companies.

What do you think would happen?

The mortgage company would foreclose on your home, the utilities would cut off electricity, water and gas, and the credit card companies would cut off any new purchases in addition to adding large penalties and interest to your outstanding balance.  Moreover, your family would be unable to borrow money from anyone else. And, if someone else was willing to risk loaning your family money, it would be at exhorbitant interest rates.

Does that sound like something you want to intentionally do to your family? No? Then why would you want to do that to your country?

What we have is a Republican Party that doesn’t want to give up the world’s most lavish military budget or tax cuts and welfare for our largest corporations. The Democratic Party doesn’t want to give up Social Security, Medicare, and access to health care and food stamps for the working poor. And the Tea Party parasites don’t want to spend anything because they don’t like the government anyway.

During the 2012 presidential election, we had a national debate about the direction of our nation and its budget. On these issues, the voters overwhelmingly supported the Democratic Party.  The results of that election should direct the conversation about government spending. Most important, there should be a conversation with all parties sitting down together and having an adult conversation about our nation’s future.

Unfortunately, the Tea Party parasites don’t want to do that, and the gutless Republican leaders are kowtowing to them.

Marketing Addiction.

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The development of e-cigarettes was a good thing. It provided an opportunity for those addicted to nicotine and the act of smoking to replace tobacco cigarettes with something less harmful…not only less harmful to themselves, but everyone around them.

Of course, some greedy corporations can’t settle for a good thing. They have to find ways to turn a positive into a negative and, in the process, make millions.

Not content to sell e-cigarettes as a replacement for tobacco, companies like Lorillard have decided to create a whole new generation of buyers by marketing e-cigarettes in a variety of candy flavors and using celebrities to make their products seem cutting-edge “cool.” It’s a strategy right out of the playbook of tobacco cigarette brands from the fifties through the eighties. (Remember Joe Camel?) And, though tobacco companies have been forced to diversify, they have continued the same marketing strategies in Asia and other countries that lack regulations.

Unfortunately, the tobacco and e-cigarette industries are not alone. It’s well-known that the largest brewers in the US aim their advertising at males aged 30 and younger… the younger the better. The idea is that, if brewers can capture the attention of males who are younger than drinking age, those males will have already established brand preferences by the time they’re old enough to buy beer.  That explains the preponderance of TV commercials with girls in bikinis and adolescent humor.

Such tactics, while not illegal, are certainly unethical. But given the rampant greed of corporations, they’re unlikely to change.