Category Archives: Economy

What Does Your Party Stand For?

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These days, it’s popular to say that there is no real difference between the political parties; that they are both in the pockets of large corporations. While it is true that, following recent Supreme Court decisions, both parties rely on the wealthy for campaign donations, there are sizeable differences in what the two parties stand for.

Based on its actions of the past 50 years, here’s what the Republican Party stands for: Large corporations, increased corporate welfare, increased mining, increased oil production, increased deforestation, increased corporate farming, increased corporate fishing, off-shoring of jobs and corporate profits, unfettered financial markets, tax cuts for corporations, tax cuts for the wealthy, privatization of Social Security, elimination of Medicaid and Medicare, elimination of Obamacare, more defense spending, more wars, more militarization of police, more guns (except at GOP events), the end of legal abortions, reduced access to contraception, elimination of the minimum wage, elimination of food stamps for the needy, elimination of estate taxes, elimination of labor unions, elimination of defined benefit pensions (except for corporate executives), elimination of family leave (except for corporate executives), elimination of the EPA, elimination of the FDA, elimination of the Dept. of Labor, elimination of the Dept. of Education, elimination of free public education, deportation of all undocumented immigrants, discrimination against women, discrimination against college students, discrimination against people of color, discrimination against gays, discrimination against non-Christians, a new Constitution based on the Ten Commandments, and limited voting rights based on color, age and income.

Here’s what the Democratic Party stands for: Virtually everything the Republican Party is against.

I truly wish all of this was an exaggeration. But, in fact, all of these policies have been supported by one or more of the GOP presidential candidates either by words or action.

The US Is No Longer A Democracy. Here’s How It Happened.

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Last year, a study from Princeton and Northwestern universities, “Testing Theories of American Politics: Elites, Interest Groups and Average Citizens,” concluded that the US government no longer represents the interests of the majority of the nation’s citizens. Instead, it panders to the rich and powerful.

In other words, the US has become an oligarchy defined as a government by the few, a small group that exercises control especially for corrupt and selfish purposes.

More recently, President Jimmy Carter, commenting on how big money has subverted our elections, said, “It violates the essence of what made America a great country in its political system. Now it’s just an oligarchy with unlimited political bribery being the essence of getting the nominations.”

The US didn’t become an oligarchy by accident. We got here as the result of a long list of political decisions designed to pander to the wealthy and the powerful. Here’s how:

During the 1800s, the US went from a largely agrarian society to a society based on the industrial revolution. This created some extremely wealthy individuals often referred to as the “Robber Barons,” who took advantage of cheap labor created by the influx of immigrants. They paid little and subjected their employees to horrific working conditions. During this so-called Gilded Age, the wealthy chose the candidates and ran the nation until the masses began to rebel.

In the early 1900s, the Gilded Age ended when workers began to unionize. The wealthy responded by hiring the police and ex-military (the American Legion) to break the labor strikes by bashing some heads. In reality, it was America’s second civil war.

When the Great Depression struck, the nation moved even further toward socialism which caused the wealthy to try to arrange the assassination of President Franklin Roosevelt. In fact, many of the industrialists wanted the nation’s government to reflect the fascist governments of Italy and Germany. Their agenda was interrupted with the bombing of Pearl Harbor, World War II and the revelations of the Nazi death camps. And they were forced to accept the will of the masses until the 1970s when President Richard Nixon and Vice-President Spiro Agnew attacked the new media in order to deflect criticism of their policies.

By raising questions about the objectivity of the media which were embraced by conservatives, it set the stage (intentionally or not) for the Reagan administration and its economic policy of “Trickle Down” theory. This was nothing more than a return to the “Horse and Sparrow” economics of the gilded age, during which government policies were carefully crafted to benefit the wealthy under the theory that if you feed enough oats (money) to the horses (the wealthy) enough will fall on the road to feed the sparrows (the masses).

Reagan portrayed the government and its regulation of industry as the enemy. He attacked labor unions. He lowered taxes for the wealthy. He increased the amount of money exempted from estate taxes. He deregulated the media by eliminating the Fairness Doctrine which held media accountable to serve in the public interest. And he lowered capital gains taxes, which allowed the wealthy to keep more of their primary sources of income – interest and dividends from investments.

With the wealthy allowed to accumulate more money, labor unions on the defensive and an emasculated press, the table was set for the oligarchs. All of this was made worse by Grover Norquist, Jack Abramoff and Ralph Reed who showed the Republican National Committee that it could thrive by eliminating compromises from our political discussions and treating politics as war – a blood sport. Former House Speaker Newt Gingrich took congressional dysfunction a step further by transforming the GOP into a parliamentary-style party in which the entire Party is unified on every vote. If you dare to break ranks with Party, you are punished in the next primary and election.

Add to all of this the more than $28 billion lobbying industry, which is financed almost exclusively by the rich and the powerful, the American Legislative Exchange Council (ALEC), which writes laws on behalf of its corporate sponsors then hands them to its conservative members to sponsor in their state legislatures where the bills are often passed with little discussion or examination, and the George W. Bush administration which cut income taxes for the rich by 4.6 percent and all but eliminated the estate tax.

The last major player is the conservative majority on the US Supreme Court, which by 3 decisions (Buckley v Valeo, Citizens United v FEC and McCutcheon v FEC) unleashed a torrent of money in campaign donations from the oligarchs. So much so, that candidates should have to wear NASCAR-style uniforms with labels of their sponsors. Indeed, of the nearly $400 million donated to presidential candidates so far this year, nearly half has come from fewer than 400 families!

Given all of this, no election in our history has been as critical as next year’s. We can either continue further down the road of oligarchy by electing candidates who try to divide us over social issues while pandering to the wealthy. Or we can elect candidates of change – real change. Candidates who will put the power of the government back in the hands of the people.

That’s why I support Bernie Sanders.

A Voter’s Guide To The GOP Debate.

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Now that the defacto head of the Republican Party, Roger Ailes of Fox News Channel, has announced the participants in the first GOP presidential debate, here are a few things you should know about the candidates:

Donald Trump – You already know he’s rich (he tells everyone at every opportunity) and that he’s a bully and blowhard. But did you know that, despite inheriting a fortune from his father, he has filed for bankruptcy protection four times? Or that, on multiple occasions, it has been reported that he has ties to the Mob? Or that Trump was the target of a 1979 bribery investigation? Or that virtually every statement he has made during his presidential campaign has been a lie? To learn more, watch the documentary at TrumpTheMovie.com.

Jeb Bush – You know that he is the son of George HW Bush and the brother of George W Bush. But do you know that it is well-documented that he actively subverted our democratic process by helping to steal the 2000 presidential election in Florida? Did you know that he has the same neo-con foreign policy advisors as his brother – the ones who led us into an unnecessary and unjustifiable war in Iraq? Did you know that the job growth he claims as governor of Florida came almost exclusively from the housing bubble? And that, when the bubble burst, the median income for Floridians declined by $5,700 – double that of the nation as a whole? Or that 200,000 fewer Florida families own their homes than in 2005?

Scott Walker – The only presidential candidate currently under indictment. John Dean, general counsel for the Nixon administration has said of Walker, “I find him more Nixonian than even Richard Nixon himself…a conservative without a conscience.” After Walker was elected, he has shown himself to be the ultimate bully and dictator. In addition to stripping state employee unions of collective bargaining rights, he led the gerrymandering of legislative districts, stacked the state’s Supreme Court then rewrote campaign finance laws and tried to narrow the open records law.

And what about Wisconsin’s economy under Walker? Thanks to GOP-style tax cuts, the state’s spending exceeds revenue, the state’s GDP ratio has dropped to -9.9 percent and the state’s federal spending to revenue ratio has nearly doubled. Wisconsin now receives $1.59 for each $1.00 it contributes in taxes.

Mike Huckabee – Once a fairly moderate governor, Huckabee seems to have gone nuts. Maybe it’s because you have to be batcrap crazy to win in the GOP. Maybe he spent too much time on Fox News Channel. Or maybe he’s been hearing too many voices. He calls evolution a theory (By the same standard, gravity is just a theory), not an established fact. He doesn’t believe in gay marriage, contraception, abortion or transgender rights. He wants to change the Constitution so it’s in God’s standards. He thinks it would be great if Americans were forced at gunpoint, if necessary, to listen to every message from David Barton (evangelist and author). And he is delusional enough to believe that most of our Founding Fathers were clergymen. (Yeah, that’s why they called for separation of Church and State.)

Marco Rubio – The GOP’s great Latino hope, Rubio has long claimed to be a refugee of Castro’s Cuba. Only the records show that his family left Cuba more than two years before the Cuban Revolution. He doesn’t believe man has contributed to climate change. He doesn’t believe in the minimum wage, abortion or employer coverage of contraception. He does, however, support comprehensive immigration reform. And though he receives a handsome salary as a US Senator, he moonlights as a university teacher, causing him to miss 99 Senate votes in 4 years – 8.3 percent!

Ben Carson – He’s smart and a celebrated surgeon, but when it comes to politics, he’s a wacko as they come. He supports a flat tax (he calls it a “proportional tax” in reference to the biblical tithe) which would destroy the poor and the middle class. He is stridently anti-gay rights, believing homosexuality is a choice and he likens gay marriage to pedophilia and bestiality. He said the Affordable Care Act is “the worst thing that has happened to this nation since slavery.” His answer to Obamacare is creating a health savings account for every American at birth. Apparently, when the money in the account has run out (and for many it will), you die.

Rand Paul – Anti-government, anti-tax, anti-abortion, anti-gun control and pro-states’ rights. He believes the primary Constitutional function of the federal government is national defense. ‘Nuff said.

Ted Cruz – Mr. filibuster and Tea Party darling. Cruz’s only real accomplishments prior to the Senate were to strengthen the NRA, help prepare testimony for the impeachment of President Bill Clinton and help steal the 2000 election for George W Bush. In the Senate, about all he has done is to shut down the government, sponsor bills to repeal Obamacare and lie. Of the 50 statements fact-checked by Politifact Texas, 35 have been rated mostly false, false or pants on fire false.

Chris Christie – A bully who showed his true colors with Bridgegate, the conspiracy to punish a mayor who did not support his re-election. He also sold out his constituents by allowing Exxon Mobil to pay less than 3 percent of the cost to clean up the environmental contamination at two sites. And, under Christie’s leadership, New Jersey’s credit rating has been downgraded nine times in five years.

John Kasich – Literally, one of only three GOP candidates (the others, Jim Gilmore and George Pataki, were not included in the debate) who has a history of success and working across the aisle. Of course, that means he doesn’t stand a chance of getting the GOP nomination.

So there you have it. That’s the list of leading GOP presidential candidates. Proceed with caution.

What If The US Were Like The EU?

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The corporate media propagandists have portrayed Greece as a debtor nation unable to get its fiscal house in order due to the laziness and greed of its people. They fail to report that Greece is only in its current situation largely as the result of the US-created mortgage crisis and the greed of huge international banks.

It’s more convenient to blame the Greek crisis on pensions and a bloated government.

But the fact is, prior to the mortgage crisis, the nation’s debt was roughly 8.3 percent of GDP. Then Goldman-Sachs…yes that Goldman-Sachs…”helped” Greece hide its debt through a risky, off-the-books derivative. When the world markets crashed in 2008, Greece’s debt-to-GDP ratio exploded to 100 percent of GDP. And that number continues to climb.

Why?

As many of the world’s most respected economists will tell you, increased debt is the inevitable result of extreme austerity. As Greece increases lay-offs of government employees, the unemployed workers have less to spend. As a result, small businesses suffer, which results in more lay-offs and lower tax revenues. The result is a downward spiral from which it is difficult to escape.

For example, Greece’s unemployment now stands at approximately 28 percent or roughly the same percentage as the US during the Great Depression! Worse, youth unemployment is nearly 50 percent. And 40 percent of Greece’s children now live in poverty. But pay no attention to those numbers…the international banks are profiting and, as long as Greece remains in the EU, most of the world’s stock markets are soaring.

The problem is that the EU has no form of wealth redistribution like that of the US. Imagine if we treated our poorest states in the same manner the EU is treating Greece. North Dakota now has a debt ratio of -89 percent. In other words, in 2014, North Dakota received $7.51 from the federal government for every $1.00 it contributed in federal income taxes. Many other states also routinely run in the red. Ironically, most of those are also politically red. Alabama, Alaska, Arizona, Indiana, Kentucky, Mississippi, Montana, South Carolina, West Virginia and Wisconsin all receive more from the federal government than they contribute. Should we then force austerity on them and force them to payback the difference with interest?

That’s what the EU is doing to Greece.

And what of California, Colorado, Delaware, Illinois, Massachusetts, Minnesota, Nebraska, New York, New Jersey, Rhode Island, et al, who contribute far more in taxes than they receive? California contributes $236.5 billion more than it receives. That’s enough to single-handedly cover the deficits of Alabama, Alaska, Arizona, Indiana, Kentucky, Mississippi, Montana, North Dakota, Tennessee and West Virginia combined. What if we had the EU system and California acted like Germany? Many of those states would now be facing excruciating austerity, skyrocketing unemployment and debilitating poverty.

Teapublicans are fond of saying that, unless we cut spending and cut taxes, the US will become another Greece. That’s simply not true. Economically, our nation has little in common with Greece. The only way our economy could begin to resemble Greece’s is if we resort to self-imposed austerity as the Teapublicans recommend.

Rick Perry Reveals The Right Wing Agenda.

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It would seem that 2012’s “Ooops” candidate has had another “Ooops” moment. In launching his 2016 presidential bid, he finally remembered the 3 federal departments he would eliminate: the Department of Education, the Department of Labor and the Department of Energy. And that’s not all. He would also eliminate the Environmental Protection Agency, the IRS, Medicare, Medicaid, Social Security and, of course, Obamacare.

He’s also not very keen on the Department of the Interior and the legal system, saying “It’s [America] in jeopardy because of taxes; it’s in jeopardy because of regulation; it’s in jeopardy because of a legal system that’s run amok. And I think it’s time for us to just hand it over to God and say, “God, You’re going to have to fix this.”

That’s the ticket.

Perry believes that we don’t have to worry about the state of our crumbling infrastructure, our militarized police departments, our over-stressed environment, our large corporate polluters, global warming, growing inequality, rampant racism, debilitating poverty, political polarization, and our for-hire Congress.

All we have to do is let God run the country. Oh, wait. How, exactly, can he do that? Since He doesn’t talk to all (many) of us, who will be his interpreter? Who will carry out His orders? Why Teapublicans, of course! According to the right, only they are the true patriots; only they have a close relationship with God; only they know what God wants.

Is that what you believe? That Teapublicans are the only moral, God-fearing politicians? If so, then how do you explain the pedophilia of Dennis Hastert? How do you explain the adultery of Newt Gingrich, Bob Livingston and so many other Teapublicans? How do you explain the war-mongering of John McCain and Lindsey Graham? How do you explain the GOP’s uncaring attitude toward the poor? How do you explain the GOP’s embrace of the rich and powerful? How do you explain the GOP’s lack of interest in preserving the environment and all of God’s creatures?

You can’t…because it simply defies explanation.

The real problem for the GOP is that Perry was, in a manner of speaking, speaking out of school. You see, his beliefs are the same as those of most – if not all – of the declared GOP candidates. And the GOP would rather not have you know about them. They don’t want seniors to know that they want to eliminate Social Security and Medicare as “socialism.” They don’t want you to know that they consider public education “socialism.” They don’t want you to know that they are against worker’s rights and any form of collective bargaining. They don’t want you to know that they are deep in the pockets of the oil companies and are paid to do their bidding. They don’t want you to know that they simply don’t care about the poor.

Don’t believe it?

Then take a close look at what’s happening in Teapublican-controlled states like Arizona, Kansas and Wisconsin. In those and other red states, the GOP has cut taxes for corporations and the wealthy and balanced the budgets on the backs of the poor, as well as the teachers and students. The results have been disastrous, yet they don’t seem to care.

Instead of admitting their mistake and addressing the problems, the GOP is doubling down. They want to expand the misery to the entire country.

You Can Take That To The Bank.

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That used to be a statement of certainty. Americans once considered the bank a place of safety for their money; an island of certainty in an uncertain world. No longer. With the repeal of Glass-Steagall in 1999, banks have become little more than high-end casinos – only casinos have some semblance of integrity.

When banks lost their high-stakes bets in 2008, they collapsed our economy. And, in an act of unparalleled hubris, they turned to taxpayers to help them avoid bankruptcy. Instead of paying a significant price for their wantonness, the “too-big-to-fail” banks continued with business as usual, even continuing to pay their executives six and seven-figure bonuses. Meanwhile, other Americans slogged through the greatest recession in history, losing as much as $7 trillion through a combination of home foreclosures, lost salaries, lost interest and lost pensions.

And who made off with most of that money? Why Wall Street, of course.

Given their recent history, one would expect that at least some of the bankers who caused the problems would have been convicted of crimes. They weren’t. Instead, they have continued to profit. Worse, they have continued to game the system. They continue to oppose the Dodd-Frank Wall Street Reform and Consumer Protection Act. They continue to oppose the Consumer Protection Agency. And they continue to gamble with your money.

In fact, since the banking collapse of 2008, bankers seem to have upped their game; engaging in numerous financial scams and committing outright crimes. To wit: UBS paid $2.3 billion in fines when it was discovered that one of its traders hid €5 billion in losses. Wells Fargo paid $175 million to settle accusations that it discriminated against African-Americans and Hispanic borrowers. JPMorgan Chase gambled $2 billion and lost nearly $6 billion. Barclays paid $450 million to settle charges that it manipulated LIBOR, the global interest rate, and UBS paid $1.5 billion to settle similar charges. USBC paid $1.9 billion to settle a money laundering probe. And Barclays was recently fined £284,432,000 for its role in rigging the foreign exchange market.

Though the banks have admitted to felonies and paid billions in fines, they have yet to pay any real penalty. As far as I can tell, only two bankers have gone to jail. And the rest are unrepentant. Indeed, a recent poll of Wall Street traders found that a significant percentage would be willing to commit a crime if it resulted in a payback of $10 million. (Keep in mind that, on Wall Street, $10 million is chump change.)

But instead of cracking down on the banksters, a GOP-controlled Congress seems determined to deregulate Wall Street. (They know who butters their bread or, more precisely, makes the majority of their campaign contributions.) So you don’t have to be a financial expert to know that there will be many more scandals to come.

You can take that to the bank…er…mattress…or whatever.

The Eleventh Hour For Earth.

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Half of all the species on Earth have disappeared in the last 40 years. In Malaysia, Indonesia, Africa and Brazil, the destruction of rain forests continues almost unabated endangering thousands more species of plants and animals while belching tons of carbon and methane into the atmosphere. The resulting increase in world temperatures from deforestation, gas and diesel-powered cars, and coal-fired power plants is causing the Greenland glaciers to lose 17 feet of elevation every year. Likewise, the Antarctic ice shelves and glaciers are melting at alarming rates. In addition, the Arctic sea ice is disappearing putting the future of Polar Bears, even indigenous people in jeopardy.

Greed has led to the near extinction of Northern White Rhinos with only 5 now left on the entire planet, and they’re only alive because they’re guarded 24/7 to protect them from poachers. Ivory poachers are killing African elephants at the rate of more than 33,000 per year. If that continues, wild African elephants will become extinct within 12 years! Tigers and many other species are also nearing extinction in the wild. Even bees and butterflies are endangered by our overuse of pesticides.

We have destroyed most of our great ocean reefs and we continue to dump oil, agrichemicals and trash into the oceans creating large dead zones and “islands” of plastic. Hundreds of large factory ships scoop up anything that swims into nets 24 hours a day, keeping those species that are valuable for sale and killing the rest.

Factory farming of cattle, pigs and poultry has led to the overuse of antibiotics that pollute our bodies and make bacteria increasingly immune to medicines. Dairy cows are treated like milk factories, fed a steady diet of hormones intended to cause them to give more milk. And most of the animals are confined in pens with little room to turn around. Moreover, the waste from these meat and milk factories pollutes our ground water and the animals create enormous amounts of methane released into the atmosphere to add to the greenhouse gases. At the same time, corporate farming of grains, fruits, vegetables and nuts have incorporated more herbicides and pesticides while stripping the flavor and nutrition from our food supply.

Oil companies, subsidized by US taxpayers, are searching farther and deeper for oil and gas while polluting the land and water wherever they go. Not only are they responsible for massive spills in our oceans. They are pumping millions of gallons of benzene and other chemicals into the ground which pollutes our ancient underground aquifers. Coal companies are removing entire mountaintops in Appalachia while destroying forests and streams. Manufacturers and refineries quietly dump their toxic waste into our streams or, if it is so toxic that it might raise alarms in the US, they ship it to third world nations for disposal.

At the same time we are destroying the planet with our greed, holy wars are being waged around the globe displacing millions of people in the name of God and Allah. The destruction is spurred on by military contractors who pump out weapons by the millions then traffic them globally in the name of “defense.”

Given all of these crises, you might expect that Congress is working overtime to find ways to end the destruction. But you’d be wrong. While the planet is quite literally melting down, our crack politicians are playing golf with the polluters; vacationing with the weapons manufacturers; sucking up to billionaire campaign donors; doling out subsidies to corporate farmers. And, instead of addressing the real issues, the GOP and its propaganda arms (Fox News Channel and talk radio) have voters in a tizzy over such issues as the religious freedom to discriminate against others, the imaginary “war on Christians” and the false narrative that “tree huggers” are standing in the way of job creation and higher wages.

And when GOP leaders are asked about climate change, they begin their denial with “I’m not a scientist” or “climate change is unproven.” Well, I’m not a scientist, either. But I have eyes and ears. I can see the effects of pollution. I can see films of rampant deforestation. I can read reports from climate scientists and environmental scientists. And I can listen to experts who flatly state that 2015 may be our last chance to begin the necessary changes to head off the cascading effects and downward spiral of climate change.

So what is the downside of committing to policies that will slow and eventually reverse the destruction of our planet?

There is none. Certainly, some industries and jobs will be negatively impacted. But far more will be created. Making positive changes such as reducing our consumption, changing to a more plant-based diet, and switching from carbon fuels to renewable energy sources such as solar, wind and biofuels should not be difficult. And the new industries these changes create will be the economic engines that drive our future…if we are to have a future on this planet.

Remembering The Greatest Economic Crash In History.

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Looking back at the market crash of 2008, it’s difficult to believe that it represented a greater loss of stock and home equity than any previous crash in American history. Though we may be impatient for a full recovery of jobs and middle class incomes, we should take a few moments to recognize that the quick action by Congress and the Federal Reserve did, in fact, work. The same can be said for President Obama’s automotive bailouts and economic stimulus which were opposed and derided by Teapublicans.

So you have not yet been able to find the job you want? Or you feel that you are being undervalued and underpaid? Your frustration is understandable. But, when compared to the aftermath of lesser crashes, it could have been a whole lot worse. We were not relegated to soup lines and work camps as our parents and grandparents were following the stock market crash of 1929. But had President Obama not ignored the Teapublicans’ call for austerity measures, we well might have been.

To fully appreciate what I mean, you need to look at the extent of the losses in 2008.

The Dow Jones Industrials lost 778 points in one day – the greatest single day loss in history. It’s estimated that the market crash resulted in a $1.2 trillion loss of market equity. Looking at it another way, the Dow lost 33.8 percent for the full year – surpassed only by the bear markets of 1907 and 1931. Further, GDP contracted for more than a year. Unemployment rose from 5 percent to 10 percent before it began to drop. According to Zillow.com, $3.3 trillion in home equity was stripped from homeowners in 2008 as home values fell by 30 percent. Income levels fell, causing the net worth of households and non-profit organizations to fall by roughly $15 trillion. And the impact of the crash on retirement funds is virtually immeasurable. Indeed, those who were nearing retirement may never fully recover the money lost in their IRAs, 401ks and their defined benefit pension funds.

Despite all of that, our economy recovered remarkably quickly. If you don’t believe me, just look at the economies of many other advanced nations that are struggling with stagnation who mistakenly followed the advice of conservatives. By contrast, the GDP of the US is growing, our deficits have fallen at a dramatic rate and our national debt is now less than 3 percent of our GDP – and it would be much lower if Teapublicans hadn’t fought to give more tax breaks to corporations and the one percent. Certainly, income inequality is skyrocketing, but it was expanding long before the crash as a result of the Bush tax cuts. Yet rather than do something to address the issue, the GOP-led Congress has, instead, voted to eliminate estate taxes for the wealthiest 5,000 families in America!

Remember that the next time you hear someone claim that the GOP is the party of fiscal responsibility. It was GOP policies that led to the Great Recession. And, once again, it was Democratic leadership that led us out of it.

The Balanced Budget Fraud.

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It may sound like a good idea to require the federal government to balance the budget, but it’s nothing more than a thinly-disguised way for Teapublicans to shrink government and give corporations free reign to exploit people and resources.

Make no mistake, as soon as a balanced budget amendment is passed, if it ever is, Teapublicans will cut taxes at the first opportunity. That will result in less revenue, which, in turn, will result in large budget cuts. Of course, those cuts will not affect corporate welfare or the military-industrial complex. Instead, there will be cuts to regulatory agencies and safety nets. Already we’ve seen the GOP propose the repeal of the Affordable Care Act which will deny affordable health insurance to more than 16 million Americans. We’ve seen GOP-sponsored budgets that propose cuts to Medicaid, Medicare, Social Security and Supplemental Nutrition programs. We’ve seen Teapublican initiatives to defund the Department of Education, the Environmental Protection Agency, the IRS, and the Department of Labor.

All of this will be made much easier if Teapublicans can muster enough votes to pass a balanced budget amendment.

The truth is, our federal government has often operated at a deficit. Not because of bad management or negligence. But out of necessity. Indeed, the Constitution was created to replace the failed Articles of Confederation over federal deficits. The fledgling government had run up substantial debts during the Revolutionary War and, without a central government, it had no way of collecting the funds to repay those debts. And that’s but one example: Had FDR not expanded government programs to put people back to work, we likely would have never emerged from the Great Depression. Had the US not operated at a deficit, we would not have been able to conduct military operations for WWII and most of our other all-too-frequent wars.

The Reagan administration operated at massive deficits in an attempt to outspend the Soviet Union. The Bush administration operated at enormous deficits in order to create the Homeland Security Department and to prosecute the Afghan and Iraq Wars. And the Obama administration has operated at deficits (albeit steadily decreasing deficits) in order to wind down operations in Iraq and Afghanistan and to dig our economy out of the trench created by Bush.

Since 1975, only two administrations have produced surpluses, and both of them were Democrats! Taking it a step further, in the past 100 years, there have been eight Democratic presidents and nine Republicans. Five of the eight Democrats oversaw deficits smaller than they inherited, while seven of the nine Republicans oversaw deficits larger than they inherited.

Given their history, do you really think Teapublicans are pushing a balanced budget amendment out of a sense of fiscal responsibility?

Moreover, balanced budget requirements are no guarantee of fiscal responsibility. In Arizona, for example, once the legislature passed a balanced budget requirement, Teapublicans set about starving the state with tax cuts. Of course, those tax cuts have not been shared equally. The state not only cut taxes for the wealthy. It has cut corporate taxes for 24 of the past 25 years. Meanwhile, it has raised sales taxes to push the costs of government onto those who can least afford it. The resulting lack of revenue has, in turn, led to catastrophic cuts to education and other services.

Since no Teapublican will ever again agree to raise taxes, the state is caught in a downward spiral fueled by ideologues, greedy corporations, self-serving politicians, dark money donations to lapdog candidates, and a series of “studies” and propaganda from conservative “think tanks.” It’s a death spiral from which the state may never recover.

Democracy Lost.

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In recent years, much has been written about growing inequality. It is, indeed, one of the most important issues of our time. And the effects of big money on our democracy have been devastating.

Sure, you may still be able to vote to elect those who are supposed to represent you. But that, alone, does not constitute democracy. Not only are the choices of candidates limited to two individuals – the only two who were able to climb their way up the political ladder in order to receive their parties’ blessings and, more important, their campaign funds. All too often, those who are elected are promised large campaign donations by corporations and industries in exchange for political favors. It is not necessarily quid pro quo, but the expectation for a return on the investment is there. So, too is the pressure.

In reality, such high stakes lobbying has long been a part of politics. But, over the past 35 years, things have gotten even worse.

In the late seventies, large US corporations began to see their hold on the world economy slip. New, lower-priced, high-quality imports – many of them made with robotics – from Japan and Germany began to push aside American-made products. US corporations responded by relocating manufacturing – first to the South, then off-shore – in search of lower-priced labor.

Perhaps, the most destructive response was the move to tie CEO compensation to the value of the companies’ share prices. This ushered in an era of ever-increasing CEO salaries and even more lucrative stock options for CEOs – a legalized form of insider trading. The result was for US corporations to seek ever lower-priced labor in countries where there is no regulation and no employee benefits. At the same time corporate profits have soared, employee salaries and corporate investments in the future have diminished – almost guaranteeing that the future will belong to foreign-based corporations. But why would our CEOs care? They and their money will be long gone before it matters.

Our corporations have used the threat of off-shoring jobs to extort our state and city governments. In exchange for their extortion, those governments have assumed many of the risks of corporate relocation or expansion by paying for needed infrastructure, cutting regulations, and delaying or eliminating corporate taxes.

Now these corporations are attempting to extort the federal government.

Unwilling to pay US income taxes on profits made off-shore, these corporations are stashing cash in foreign banks until the federal government agrees to “repatriate” the money at a greatly reduced tax rate. Of course, they’re justifying the extortion by saying that “repatriation” will lead to greater investments and more jobs in the US – the great “trickle down” fraud.

In reality, the money is more likely to be doled out to CEOs and other executives in the form of bonuses (as a reward for robbing ordinary taxpayers) and stock options.

In the meantime, corporations and billionaires have been working to rig the system. Realizing that buying Congress and our state legislatures is cheaper than paying lobbyists, people like the Koch brothers have stuffed the pockets of candidates willing to do their bidding. To pave the way, they pushed conservatives to stack the Supreme Court with ideologues such as Alito, Roberts, Scalia and Thomas. That inevitably led to favorable court rulings giving corporations the rights of people and all but eliminating limitations on political donations. They got the IRS to change its rules allowing “non-profits” to fund political campaigns. When they won control of legislatures, they gerrymandered congressional districts making it all but impossible for anyone but “their people” to win office. And they introduced Voter ID laws to suppress the votes of minorities and the poor.

In 2014, their efforts finally came to fruition. Having already bought the House in 2010, they now own the Senate. It’s no coincidence that the first bills to reach the House and Senate floors were to repeal “Obamacare” and to build the Koch…er…Keystone XL Pipeline. Senate Majority Leader Mitch McConnell has also made it clear that issues such as raising the minimum wage, equal pay for equal work, unemployment insurance and student loan costs will be pushed aside in favor of gutting regulations on health care and financial services and eviscerating the EPA.

If you’re still worried about the effects of so-called “dark money” on our democracy, don’t. Last year, our democracy officially became an oligarchy.