Category Archives: Democrats

Cutting Through The GOP’s Economic Talking Points.

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Almost from the first day President Obama took office, conservatives have howled about his economic policies. They blamed him for growing the national debt. They blamed him for record deficits. They created the Tea Party to protest taxes, even though they were at historic lows.They labeled Obama a socialist for saving the auto industry. They called him a fascist and a communist for signing the Affordable Care Act. And they campaigned on the need for government budget cuts in 2010 and 2012.

Democrats countered that the growing debt and deficits were the result of President George W. Bush’s policies. For his part, President Obama refused to place blame on the previous administration. Instead, he pointed to the irresponsible behavior of Wall Street and the resulting economic crash. And though he has cut the deficit faster than any previous president, he has repeatedly stated that unemployment is still too high and the economy too fragile for more draconian cuts.

So what’s the reality? Who’s right?

Bob Deitrick, a principal of Polaris Financial Partners, and Lew Goldfarb, a business attorney, conducted an exhaustive study of US presidencies from 1929 to 2009. That particular time period was selected because each party controlled the White House for exactly 40 years during that time. What Deitrick and Goldfarb found was that Democratic presidents have been better for the economy than Republicans! Their findings were published in the book Bulls, Bears and the Ballot Box.

Interestingly, the administration that ranked highest was the JFK/LBJ administration. (The authors combined the two due to Kennedy’s assassination.) In descending order, the next five were Clinton, FDR, Eisenhower, Truman and Reagan.

The book did not cover Obama’s performance since he had not been in office long enough to make judgments. Yet when Deitrick discussed more recent data in a Forbes interview, he declared, “By all measures, President Obama has outperformed every modern president.” That’s because Obama has reduced the deficit from 10 percent of GDP (Gross Domestic Product) at the end of the Bush presidency to just 4 percent today! This is more the result of growth than budget cuts. It’s the result of Obama’s stimulus plan combined with his decision to save the auto industry. And as the economy continues to grow, the deficit is expected to be just 2 percent of GDP by 2015.

Obviously, presidents who refuse to cut taxes for the wealthy and who refuse to start unnecessary wars are good for the economy.

Still, President Obama is facing a particularly troubling economic reality – that of income inequality. As a report by the nonpartisan Congressional Budget Office has shown, from 1979 to 2007, the share of income for the top fifth of our population has grown 10 percent. During the same period, all other households saw their share of income decline by 2-3 percent.

This can be fixed. But it will likely take more than a Democrat in the White House. It will take a Democrat-controlled Congress.

The Conservative War Against Labor.

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In the years following the Great Depression, labor unions were popular and thriving. The Wagner Act of 1935, also known as the National Labor Relations Act, guaranteed workers the right to collective bargaining and the right to strike. As a result, union workers, particularly those in mining and manufacturing, experienced dramatic gains in salaries and benefits, along with safer working conditions.

Corporations didn’t give up these things without a fight. But public sentiment was temporarily on the side of workers and World War II demanded unity between corporations and unions.

The end of World War II and the beginning of the Cold War gave corporations a new opportunity to undermine unions with the rise of Sen. Joseph McCarthy (R-WI) and his House Un-American Affairs Committee (HUAC). Likely emboldened by President Truman’s loyalty program intended to discredit Democratic rival Henry Wallace (former V.P. to FDR, nuclear disarmament advocate and pro-labor candidate) prior to the 1948 presidential election, McCarthy launched a witch hunt in search of communist sympathizers. News of the Soviet Union’s growing nuclear capability spawned a national paranoia that allowed McCarthy to portray labor unions as a communist front .

By the time McCarthy’s lies and un-Constitutional tactics were exposed, hundreds of Americans had been imprisoned, thousands more had lost their jobs and tens of thousands had been investigated. The victims included those who had supported Wallace, civil rights leaders, union leaders…even the unions’ rank and file.

The unraveling of the HUAC may have posed another setback for corporations and the wealthy, but McCarthy’s accusations left many suspicious of organized labor, even as labor unions continued to help build the middle class. Finally, in the 1980’s, anti-union forces suceeded in electing a president sympathetic to their cause – Ronald Reagan. When the Professional Air Traffic Controllers Organization (PATCO) went on strike, violating a law banning strikes by government workers, Reagan fired all 11,345 members who failed to return to work.

Reflecting on the event, former Federal Reserve Chairman Alan Greenspan commented, “His [Reagan’s] action gave weight to the legal right of private employers, previously not fully exercised, to use their own discretion to both hire and discharge workers.”

The war against unions resumed in earnest.

Corporations began sending jobs offshore in search of labor willing to work for low wages and without benefits such as health insurance, disability insurance and unemployment insurance. The export of jobs also eliminated the need for worker pensions. (In the years since Reagan’s election, more than 85,000 defined benefit pension funds have been eliminated.) Many of the jobs that can’t be exported, like those at Walmart and McDonald’s, now pay so little that their employees require public assistance. And with fewer workers eligible to pay dues, many labor unions have been weakened.

Meanwhile, management compensation has soared. The savings on labor costs has resulted in million dollar annual salaries and bonuses for executives.

With money comes influence allowing corporations and industries to successfully lobby Congress for subsidies, tax write-offs and lower tax rates. In addition, many corporations have been allowed to avoid taxes by creating Post Office box “headquarters” in off-shore tax havens. The resulting drop in tax revenue led to increased deficits and greater debt. But, rather than rewrite the corporate tax code and raise taxes on those who could afford it, conservatives have seized the opportunity to cut social programs. They not only cut food stamps. They have targeted Medicaid, Medicare and Social Security, as well.

Not surprisingly, conservatives have also taken aim at the labor unions which represent government workers, such as teachers, firefighters and police. In particular, they want to eliminate government pensions. The argument is that, if private workers don’t have pensions and benefits, why should government workers? If successful, conservatives will have turned the clock back to the gilded age; the days prior to labor unions; the days of extreme wealth and extreme poverty.

Some say that we already have two Americas. I would argue three.

One is the America of the one percent; those who make lots of money and pay little to no income tax; those who can buy influence by donating to political campaigns and build new businesses with government subsidies financed with the taxes paid by others.

The second is the America of hard work, limited upward mobility and shrinking investments. In this America, you work ever longer hours in order to meet the corporate demands of increased productivity. Each year, you are forced to do more with less. For you, retirement may be little more than a dream. And for your children, college will become a financial burden they may never be able to repay.

The third America is one in which people work for so little money they can’t afford many of the necessities of life. According to the Working Poor Families Project, one in three American families are now among the working poor. One in six Americans and one in four children don’t know where the next meal is coming from, or even if there will be a next meal. In this America, more than 630,000 are chronically homeless and 3.5 million will experience homelessness in a given year. For many of these people, there is little hope that their circumstances will change. They not only lack political influence, many face new laws and obstacles intended to discourage them from voting.

Both President Obama and Pope Francis have recently called economic inequality the biggest problem we face. But President Obama can’t reduce inequality in America by himself. We will need a Congress that represents all Americans. We will need a sympathetic and unified citizenry. And we will need organized labor.

(As a footnote, I should make it clear that, having become part of middle management almost immediately following college graduation, I was ineligible for union membership. But, like most Americans, I was able to take advantage of the improved working conditions, salaries and benefits negotiated by labor unions.)

We Could All Learn From “The Jerk.”

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The Jerk, starring Steve Martin, has long been one of my favorite movies. Not only is it filled with great comedy, it is filled with wisdom and life lessons. One such lesson is represented by the scene in which Martin’s character, Navin, first sees his name listed in the phone book. “I am somebody!” he exclaims.

That should be meaningful to all of us since it represents the human need for acknowledgement and respect. In fact, I believe respect is one of the most basic of human needs right after air, food and water. None of us want to think that we will journey through life without leaving a mark or even being noticed. Indeed, many human conflicts could be avoided by simply showing respect for others.

Street gangs are formed as a result of seeking a sense of belonging. Usually, they band together when the individual members feel disrespected by others in their community. And they are willing to fight and die when they are disrespected by other gangs.

Likewise, consumers experience frustration and anger when corporations and other institutions treat them as mere sources of money instead of actually working to fulfill their needs. Workers feel unappreciated and disrespected when they are paid too little money, or when extra effort goes unnoticed. Civil rights issues, such as gay marriage, are as much about respect and fairness as they are about freedom and personal liberty.

The need for respect even leads nations into war when they feel that others are trying to take advantage of them. For example, the Cold War between the Soviet Union and the United States began as the result of President Truman’s bellicose and belligerent statements that showed contempt for our World War II ally. Truman thought that, since we were the only nation to hold the secret of nuclear weapons, he could use that power to disregard prior agreements and exact new concessions from the Soviets.

In other words, Truman ignored the Soviets’ need for respect.

This is a lesson that should be considered as we enter negotiations with Iran and as we press for new trade concessions from China. It’s what both Democrats and Republicans need to consider if they are to accomplish anything that will benefit our citizens during the next session of Congress. It’s what we all need to keep in mind as we interact with each other. Not just during the holiday season, but year ‘round.

As Aretha Franklin sang, “R-E-S-P-E-C-T…I got to have a little respect.” It’s what everyone needs and deserves.

Extremists And Cowards.

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Bullies and weaklings; a**holes and chickensh*ts; Teapublicans and Democrats.  Whatever you want to call them, many of the people who now take up seats in Congress generally fall into one of these two categories. Never has the distinction been more obvious than following the latest vote on “Obamacare.” 39 cowards chose to join the right wing extremists by voting for a bill to “fix” the Affordable Care Act (ACA) by requiring insurance companies to continue to sell junk insurance policies.

The cowards are Democrats who have revealed themselves to be far more concerned about being re-elected and doing what’s best for themselves than doing what’s right for their constituents and their country. Indeed, they are Democrats who have sold out their constituents, their campaign contributors, their congressional caucus and the president. Instead of standing up for health care reform, they stood up for the status quo. They stood up for insurance company profits. They stood up for lobbyists. They stood up with their hands out looking for large campaign contributions from the insurance industry and Big Pharma.

Certainly, many of these weaklings have been targeted by the Republican National Committee and its billionaire sponsors. I have a certain amount of sympathy for these people since right wing Super PACs have already spent millions to attack them more than a year before the mid-term elections. But, if you’re a progressive voter, what’s the point of supporting a representative who refuses to support you on something as important as the ACA? These cowards are forcing their supporters to hold their noses and choose the lesser of the two evils.

For the record, I don’t believe in so-called litmus tests for politicians. I believe in compromise and bipartisanship, but not at the expense of betraying those they are elected to represent. Voting to undermine the ACA by eliminating insurance standards is just such a betrayal.

From the beginning, the ACA has been a difficult undertaking. Everyone knew that its implementation would not be smooth, even in the best of circumstances. (We all know that the roll-out of Social Security, Medicare and Part D did not go smoothly.) In order to get the bill passed, the administration was forced to drop the public option that was intended to keep insurance companies honest by providing more competition. Congressmen and senators spent months and months adding amendments that would weaken the bill. Then many of those same people voted against it anyway.

The ACA faced unparalleled opposition from both inside and outside the beltway; from lobbyists; from the insurance industry; from the pharmaceutical industry; from the medical supply industry and more. Hundreds of millions of dollars have been spent in very public attempts to block it. Teapublicans have spent years bad-mouthing it and predicting that it would be a “train wreck.” They mischaracterized it as a “government takeover” of medicine. They said it would result in “government death panels.” The right wing media has called it “an end to liberty,” “socialism,” “fascism” and worse. The mainstream media has thrived on the controversy, reporting it as though it was some sporting event, trumpeting every setback and glitch. Now they are scoring the ACA by the numbers of people who have registered and purchased insurance policies.

Teapublicans made their opposition to the ACA the centerpiece of two election cycles. They have attempted to repeal the ACA or defund it more than 40 times. They even shut down the government in an attempt to defund the ACA.

Many Teapublican-controlled states refused to expand Medicaid leaving millions of their citizens without health insurance. Many of those same states refused to create insurance exchanges, forcing the federal government to pick up the slack and directing millions more Americans to the healthcare.gov website. At the same time, they cut funding for the website. They funded cyber attacks to disrupt the website. Then they held congressional “investigations” in order to call attention to the glitches.

And now, NOW, 39 so-called Democrats add to the headwinds by voting for a bill that would undermine the ACA? I can think of only two words to describe such a vote…cowardice and treachery! I spent the last election cycle supporting some of these people. I donated to their campaign funds. I can hardly wait until I receive another email from them asking for my support.

They won’t like the answer any more than I like their vote.