Category Archives: Corporations

Democrats can’t compare to Republicans.

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The continuing revelations of unethical, illegal and unconstitutional actions by the George W. Bush administration caused me to revisit the scandals of previous administrations during my lifetime.  I’m not talking about prurient sexual affairs.  I’m talking about the abuse of power by the Executive Branch and attempts to subvert our Constitution.

Let’s examine the record.  President Richard Nixon was forced out of office when it was discovered that he ordered his operatives to break into the Watergate offices of the Democratic National Committee.  He also authorized illegal wiretaps, improper tax audits, campaign fraud, and a variety of dirty tricks.  Then, when the actions of his operatives became public, he authorized an illegal slush fund to buy the operatives’ silence. 

In other words, Nixon not only tried to subvert our electoral process.  He obstructed justice.

Lost in the Watergate scandal is the fact that Nixon’s Vice-President, Spiro Agnew, pleaded no contest to charges of tax evasion and money-laundering.  His replacement, Gerald Ford, assumed the office of the Presidency after Nixon’s resignation in 1974 and became embroiled in controversy when he pardoned Nixon. 

Under President Ronald Reagan, the administration sold weapons to the Iranian government in order to finance Nicaraguan rebels (Contras) in violation of U.S. law.  The entire affair was kept secret from Congressional oversight committees, and when the affair was investigated, it was found that large volumes of documents had been destroyed by administration officials.  Although it was never proven that Reagan was directly involved in the scandal, it’s difficult to believe that he had no knowledge of the program.   

President George H.W. Bush not only pardoned most of those involved in the Iran-Contra affair.  On his watch, Savings & Loan institutions collapsed as the result of deregulation and overzealous lending as part of the real estate boom.  (Can it be possible that a near identical collapse of financial institutions during his son’s administration is just some sort of an eerie coincidence?)

Under President George W. Bush, the scandals were so numerous that Wikipedia has been forced to divide them into nine subcategories.  And Wikipedia doesn’t even list what may be the biggest failing of his presidency – ignoring clear warning of 9/11.  It has been well-documented that Bush ignored an August 2001 memo titled “Bin Laden determined to strike in the U.S.”  It even mentioned the possibility of hijackings.

Neither does Wikipedia list Tom Ridge’s assertions that Bush officials asked him to raise the terrorist alert levels to help manipulate voters leading up to the 2004 election. 

Wikipedia does, however, list the abuses at Abu Grahib, the false statements made during the run-up to the invasion of Iraq, false claims of weapons of mass destruction in Iraq, the outing of a CIA operative as payback for her husband exposing one of the claims used to sell the Iraq invasion, the politicization of the Justice Department through the dismissal of U.S. Attorneys for political reasons, the extraordinary renditions (read torture) of political prisoners, possible war crimes in Afghanistan, the imprisonment of detainees in Guantanamo without trial and without the right to know the charges against them, and the use of recess appointments to circumvent the Senate’s confirmation process.

Of course, there were also the no-bid contracts in Iraq for Halliburton and others, the out-sourcing of many of our military ops to Blackwater (aka Xe), the secret “hit squad” created by the CIA and Blackwater, the supposed legal foundation for torture, and many other issues which would be considered scandalous in more respectable administrations.

I can think of no equivalent scandals for Democratic administrations.  No attempts to subvert the Constitution.  No shadow governments.  No wars of convenience. 

Yet one of the true ironies of our current political climate is that conservatives have the unmitigated gall to accuse President Obama of perverting the Constitution by trying to rescue our economy and attempting to provide health care for all U.S. citizens.  They want to manufacture a scandal out of his birth certificate.  And they want to compare him to Hitler. 

Are conservatives so angry they lost the election that they can’t see the utter nonsense of their statements?  Or are they simply so gullible they’ll repeat anything Fox Noise, Rush Limbaugh and the NRA tell them to?  Whatever their reasons, the real question is this:  Given past performance, why would anyone vote for a Republican President ever again?

The end of voodoo economics?

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I was never a big fan of President George H.W. Bush although, compared to his son, he was a fabulous president.  And he did get one thing right – his description of Reagan’s theory of trickle-down economics.  That’s right.  It was George, the elder, who first appropriately labeled it “Voodoo” economics. 

The idea that cutting taxes for the wealthy would somehow benefit the rest of us never really made any sense.  It was clear to me that the wealthy would simply spend the extra money on themselves or invest it in the stock markets.  I couldn’t see how the theory would result in more jobs or increased living standards for everyone else.

What did make sense to me was the idea of cutting taxes on companies that created jobs, and Reaganomics did do that.  Unfortunately, the Reaganists relaxed or eliminated many of the regulations and safeguards that controlled corporations.  The result was tax cuts and tax credits for large corporations that took their manufacturing jobs overseas.  And due to the lack of regulation, many corporations created phony “headquarters” in the Bahamas and the Caymans to avoid paying taxes altogether.  Amazingly, Republicans refused to even consider banning these off-shore companies from receiving U.S. government contracts. 

How on Earth were U.S. citizens, other than corporate officers, supposed to benefit from that?

The short answer is that we didn’t.

In an op-ed column for The New York Times, Nobel Prize-winning economist Paul Krugman summarized the real effect of Reaganomics.  “…real incomes of the top .01 percent of Americans rose sevenfold between 1980 and 2007.  But the real income of the median family rose only 22 percent, less than a third its growth over the previous 27 years“.  Krugman also points out that “most of whatever gains ordinary Americans achieved came during the Clinton years “, and that President George W. Bush “…had the distinction of presiding over the first administration since Herbert Hoover in which the typical family failed to see any significant income gains”.

Of course, Krugman’s statistics don’t include the fiascos of 2008 in which the Fed started bailing out banks long before the public noticed; when gasoline prices hovered around $4 per gallon; when foreclosures dragged down the entire economy; and when the Bush and Obama administrations had to bail out Wall Street.  All of these issues are likely to make the final cost of Reaganomics look even worse.

Yet despite all evidence to the contrary and despite the near-disastrous collapse of our entire financial system under their leadership, Republicans still cling to the notion that the failed economic policy of their former leader and idol can cure our present-day problems.  “Make the Bush tax cuts permanent,” they say, “that will bring our economy back.” 

If Republicans should somehow regain control of Congress during the 2010 mid-term elections, be afraid, my friends.  Be very afraid.  Like other apparitions of black magic, voodoo economics may be more difficult to kill than you think.