Category Archives: Economy

“Teabaggers”, “Birthers” and other racists.

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Demonstrators at this past weekend’s rally at the U.S. Capitol carried a powerful message. They toted signs with photos of President Obama wearing a Hitleresque moustache. There were signs that called Obama a socialist, a Marxist and even a Nazi. There were signs calling him a “Muslim Kenyan” and an “African Lyin’.” There were signs stating “Bury Obamacare with Kennedy” and “We came unarmed (this time).” The only things they were lacking were torches and pitchforks.

These messages were not just tasteless and threatening. They were revealing. They exposed those who carried them as a rabble of misinformed racists who are angry and aren’t going to take it anymore. But they can’t even say what “it” is. All they seem to know is that President Obama and Nancy Pelosi are the problem.

Could it be that these people simply can’t accept an African-American and a woman as our nation’s leaders?

Of course, Republicans dismiss any such claims. They’re fond of pointing to the demonstrations against President Bush. However, there’s a significant difference. During the Bush administration, political opponents attacked his policies. During the Obama administration, the opponents seem to want to attack Obama. And not just with words. Why else would the demonstrators feel it necessary to threaten violence? Why else would they feel the need to bring guns to demonstrations?

If it were economic policy that concerned these people, they would be protesting against Bush for overseeing the first real decline in median household income in recent history. If the issue was spending, these people would have brought out the torches and pitchforks during the Reagan years or as the result of the $2 trillion war in Iraq. If it were the housing crisis and resulting financial meltdown that concerned them, they would be looking to lynch Bush, Greenspan and Henry Paulson. And if rationed health care was the problem, they would be surrounding the headquarters of United Health Group, Cigna and Blue Cross/Blue Shield.

No, these people are not angry about policy. They believe their country is being taken away by a black man and a powerful woman. They’ve been fuming for many years as they’ve seen African, Asian and Latino immigrants arrive in large numbers. They’ve been told that their “values” and religions are under attack. They’ve been told that President Obama hates white people. They’re easily manipulated by Glenn Beck, Sean Hannity, Bill O’Reilly, Rush Limbaugh and organizations such as Fox News Network and Dick Armey’s FreedomWorks. They’re encouraged by elected officials like Dick Cheney, Sen. DeMint, Rep. Boehner and Rep. Cantor. Worse yet, they’re given publicity and credibility by a media too lazy or afraid to expose them for what they really are.

Rewarding unreasonable behavior.

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On the anniversary of 9/11, Republican spokesperson and renowned liar, Rush Limbaugh, chastised President Obama for trying to turn 9/11 into a day of public service.  Wow!  How dare the President want to commemorate the attacks on U.S. soil with something positive!  How dare the President try to encourage Americans to serve their nation! 

Certainly, the past President never encouraged public service and sacrifice.  In the wake of 9/11, Bush asked us to go shopping.  And while our young people were serving and dying in Afghanistan and Iraq, he pushed for tax cuts for the wealthiest Americans.  (I guess he believed that only the middle class and poor should sacrifice for their country.)  Bush refused to allow press coverage and photographs of the true cost of war.  Indeed, Republicans treated war much as the Wizard of Oz would.  “Pay no attention to what’s behind that curtain.”

But, in reality, Republican criticism has nothing to do with President Obama’s statements and actions.  He’ll be criticized by Republican pundits no matter what he says or does.   That’s not surprising.  After all, we’re talking about the same people who accused then-First Lady Hillary Clinton with murder relating to the so-called Travel-gate.  They’re the people who spent $60 million of taxpayers’ money to investigate Clinton’s investment loss in Whitewater.  They’re the same people who called Democrats “whack jobs” and “conspiracy nuts” for crying foul over the 2000 Florida election.   (Never mind the findings of an independent group of journalists who stated, “It’s clear that a significant majority of Floridians intended to vote for Al Gore.”)  And these are the same people who attacked the patriotism of a Vietnam War hero while supporting a candidate who got his powerful daddy to help him avoid the draft by getting him into the Air National Guard. 

Republicans are good at attacking.  In fact, they’re great at it.  Many of today’s Republican strategists learned at the knee of the masters; Tricky Dick Nixon and Spiro Agnew.  Republican attacks and tricks should not come as a surprise to anyone – least of all Democrats.

What is surprising is that Democrats continue to try to reason with them.  And, by doing so, they continue to encourage their bad behavior.  It’s astounding that Representative Joe Wilson can bellow “You lie” to President Obama in an address to a joint session of Congress.  It’s even more astounding that Democratic Senators reword the health care reform bill because of Wilson’s outburst.  (Despite the fact that the bill already clearly stated that health care coverage will be denied to illegal aliens, the wording was strengthened in response to Wilson.) 

The message to Republican extremists is that their extreme accusations and tactics work. 

So Republicans and their media supporters will continue to scare citizens with fabricated issues like “Death Panels”.  They’ll continue to raise fears that a Presidential speech to school children is an attempt to indoctrinate them.  And they’ll continue to compare a centrist African-American President who continues to search for bipartisanship to Adolph Hitler.  (How can anyone actually believe this stuff?) 

Someone once said, “You can’t reason with unreasonable people.”  Yet Democrats continue to try to reason with Republicans.  Why? 

The revealing nature of Republican attacks.

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Following Representative Wilson’s outburst during the President’s address before a joint session of Congress, I believe we have to ask ourselves some questions:  Is it a coincidence that the first such outburst was aimed at our first African-American President?  Is it a coincidence that the outburst came from a Congressman from South Carolina?  Is it coincidence that this is the first President accused of being born in another country despite indisputable evidence to the contrary?  Is it coincidence that this President is accused of creating death panels for senior citizens despite the facts?  Is it coincidence that this President is accused of trying to “indoctrinate our children” by merely encouraging them to work hard?  And is it coincidence that the number of death threats against our President has increased dramatically?

The conclusion is inescapable.  The attacks against President Obama represent more than a mere difference of opinion or ideology. 

From the moment he was sworn in, President Obama has been faced with an unprecedented combination of crises – a floundering economy, a failed financial system, a collapsed auto industry, millions of foreclosed homes, out of control health care costs, skyrocketing deficits and two wars.  These weren’t crises of his own making.  These were crises created under the previous administration.  Yet rather than rallying behind the President in the face of these crises as Democrats rallied behind Bush after 9/11, the Republicans have done everything possible to undermine Obama’s attempts to right our ship of state.   

Granted the attacks against President Obama are coming from a small, angry minority in Southern states.  (Okay, okay, I know I just described the Republican Party.)  But, in my lifetime, no President has faced such venomous and personal attacks.  Not Richard Nixon following the cover-up of the Watergate burglary.  Not Ronald Reagan following the cover-up of the sale of weapons to Iran.  Not George W. Bush following the lies that led to the unnecessary invasion of Iraq. 

Perhaps the real lesson of a Republican shouting “You lie!” at President Obama in the House chamber is this:  Pathological liars often assume everyone else is like them. 

The other side of Reaganomics:

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In a previous post, I stated my belief that Reaganomics was an utter failure.  That’s not entirely true.  It was a huge success for the wealthy.  It also successfully eroded the power of organized labor. 

When Reagan fired the striking air traffic controllers who were members of PATCO, I believe he inspired his followers to launch an attack on all labor unions.  Since that time, there has been a steady outsourcing of American manufacturing jobs to places like China, India, Indonesia and Mexico.   This has forced unions to make concessions with regard to wages and benefits.  The recent troubles of GM and Chrysler are good cases in point. 

During the debate over auto industry bail-outs, the discussion seemed to revolve around the wages and benefits of United Auto Workers.  Never mind the decades of questionable decisions by the company executives, along with their inflated salaries.  In the minds of many, the real problem is that UAW workers were paid more than their counterparts at Honda, Toyota, Nissan and other import brands.  The claims were that while the workers for foreign brands were paid approximately $45/hr, UAW workers were paid $70/hr or more.  Outrageous!  Right? 

Well, hold on a moment.  My UAW friends tell me that the figure of $70/hr not only included wages and benefits such as health care.  It also included the cost of benefits for recent retirees, plus all costs associated with workers – overtime costs, Social Security, Medicare, etc.  It even includes the cost of tools used by the workers!  Take away all of those costs and the actual average hourly wage was $29.78. 

But it’s not just lower wages the Reaganites are after.   What they really want to do is to rid corporations of the obligation for health and retirement benefits.  And what better way to accomplish than to crush organized labor? 

It took a couple of wars, the Great Depression and many bloody management/labor clashes for conditions to improve for American workers.  I fear that Reaganomics combined with globalization and the greed of CEOs may be leading us back to labor conditions similar to those under the robber Barons of the early 1900s when work was more like servitude.

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.

For me, the (Republican) party’s over.

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For many years, there was a tradition in politics. You could count on each side giving its “spin” on an issue in hopes of influencing voters to their point of view. If you didn’t have the time or inclination to research the issue on your own, you could be relatively certain that the truth was somewhere in the middle. But sometime in the 1990s that changed.

I first realized the change in 1999 when I visited the website of the Republican National Committee in search of quotes from conservative Republicans. What I found was “Gore Gaffs,” dozens of ridiculous statements attributed to then-Democratic presidential candidate, Al Gore. The only problem was that I recognized all of the quotes as having been made by Dan Quayle. I was dumbfounded. Why would the leadership of a political party lie about something that could so easily be disproved? For what possible benefit?

The only conceivable answer is a cynical one – the party believes that no one will actually recognize the lie or hold the party accountable. Unfortunately, “Gore Gaffs” foreshadowed an ugly and disturbing trend by the party.

The Bush administration used lies and half-truths to lead us into an unnecessary war in Iraq. It lied about the “outing” of a clandestine CIA agent whose husband publicly exposed administration lies during the run-up to the war. It lied about the firing of U.S. Attorneys. It lied about eaves-dropping on American citizens. The list of lies during the Bush administration is quite lengthy and growing. In fact, former Homeland Security Director, Tom Ridge, recently admitted that he was pressured to raise the security threat level in 2004 to help Bush get re-elected. And it was recently discovered that former Vice-President Dick Cheney and the CIA hired a mercenary force (Blackwater, aka Xe) to form an international hit squad that was unconstitutionally kept secret from Congress.

Complicit in all of the lies are Fox News and conservative talk radio hosts like Rush Limbaugh. Rush has long been known to make things up in order to whip his audience into a frenzy and increase his ratings. And, although Fox claims to be “fair and balanced”, it’s anything but. Former Bush Press Secretary, Scott McClellan, admitted that the administration used Fox to “get out its talking points.” It takes only a few minutes of viewing to realize that Fox News is simply a megaphone for Republican lies. But, of course, its viewers are so partisan or uninformed that they don’t care or don’t know.

During the 2008 presidential election, the GOP was in full attack mode. The difference in tone couldn’t have been more striking. Indeed, had one not known better, one might have concluded that all of the problems created by 8 years of the Bush administration were actually the fault of the Democrats.

The 2008 elections were a strong rebuke of the Republican Party and its policies. But rather than examining the policies that led to the election defeat, the party decided to redouble its attacks. Republicans and their surrogates blame the loss on perceived voter fraud by Acorn. And, with a lack of real leadership, the party has turned to Rush Limbaugh as its titular leader. He and other conservatives are not just “spinning” issues based on their point of view. They are creating, or at least repeating, lies in order to scare people about the new administration’s policies.

Attempts to rescue our financial system following its collapse under Bush are described as “socialist” and unnecessary government intervention. The same terms were used to describe the rescue of the auto industry, one of our nation’s few remaining manufacturing industries. A carbon cap and trade bill will “lead to the collapse of the energy industry and put millions out of work.” Health care reform is a “Nazi policy using death panels designed to kill granny” or an attempt to “put bureaucrats between you and your doctor.” Never mind that three government-run health care programs are run quite well. VA, Medicare and Medicaid are generally well-liked by those who participate in them.

At town hall meetings, angry conservatives have tried to shout down any real discussion of the issues, and, as if to make their shouts more forceful, some have brought loaded guns.

The Republican Congressmen and Senators refuse to discuss policies or the merits of legislative initiatives. They offer no counter-proposals. All they offer are lies, fear and more tax cuts for large corporations and the wealthy. And if any Republicans dare break ranks with their brethren on a single vote, they’re labeled RINOs (Republicans In Name Only) and they’re attacked by even more conservative candidates in the primaries.

For more than 30 years, the Republican Party has led an assault on the middle class and the poor with “trickle down” economics. In truth, under Republican leadership, the economy was reduced to a trickle. And none of the tax cuts have trickled down.

Indeed, a recent study found that the disparity between the wealthy and the rest of the population has reached the highest level since 1913, and the tax rate on the wealthy has dropped from 70 percent in 1980 to 35 percent in 2009. Thanks to Republican policies, as of 2007 .01 percent of the population controlled 10 percent of the wealth and 10 percent of the population controlled 49 percent of the wealth. And, if you want to consider the effect of Republican policies on health care reform, 47 million Americans are now uninsured, millions more are underinsured and nearly a million Americans will be forced into bankruptcy this year by illness.

This is why a fiscal conservative and social liberal like me no longer votes for Republicans. After 40 years as an independent, I am now a proud member of a party that respects me enough to not lie to me.