Absolutely the best article I’ve ever read on the origins of our economic problems. Once again, Rolling Stone is responsible for great investigative journalism!
http://www.rollingstone.com/politics/news/how-the-gop-became-the-party-of-the-rich-20111109
“Welfare moms are worse for our economy than welfare CEOs.”
For years, youve heard Teapublicans rail against freeloading welfare moms. They portray them as lazy, drug-addled minority women who turn themselves into baby factories to scam the system and live in relative luxury. Right?
In fact, a Teapublican candidate for the Nebraska Unicameral recently compared them to racoons saying, Theyre going to do it the easy way if we make it easy for them. And Florida Governor Rick Scott recently signed into law a bill that requires Floridians to submit urine, blood and hair samples before they can receive cash aid from the state.
However, according to the statistics, the majority of those who receive Aid For Dependent Children are white and receive benefits for 2 years or less. Half of all welfare recipients leave the program in the first two years. Most have only one or 2 children. And the majority are over 20 years old.
Many succumbed to the if you really love me, youll line. But many are divorced and a few are widowed. Contrary to Gov. Scotts expectations, very few are chemically dependent. And theyre hardly living in luxury.
For example, those who qualify for W-2 Transition (W-2 T) funds reserved for participants who have limited ability to work receive payments of $628 per month with a lifetime eligibility limit of 60 months. Not exactly what Teapublicans want you to believe about so-called welfare queens is it?
Now, lets examine the welfare kings of corporate America.
We have given millions of acres to mining companies while requiring no royalties in return. We gave railroads millions of acres and millions of dollars in subsidies for construction. We built and maintain 340,000 miles of logging roads for the timber industry in addition to giving them subsidies of more than $111 million annually. Subsidies to oil and gas companies total more than $40 billion per year.
We provide billions to corporations for the research and development of new drugs and new weapons systems, even providing foreign aid to other nations to help them buy our weapons. We offer corporations insurance at below market rates to encourage overseas investments in high-risk nations. We provide farm subsidies to corporate farmers. State and city governments provide incentives to attract large corporations. They also provide millions to help billionaire owners of sports franchises to build new stadiums and sports arenas.
And, lest you think the Troubled Asset Relief Program was the first time we bailed out financial institutions, dont forget that we forked over $500 billion to the savings and loan industry in the 1980s.
In short, we allow large corporations to privatize their profits and socialize their risks. Is it any wonder that in previous generations their owners were called “Robber Barons?”
I confess that I’ve long been confused about the intense (and, I believe irrational) hatred of President Obama, when it appears to me that he has been guilty of nothing more than trying to correct the problems created by the previous administration.
Upon reflection, I believe it stems from the Right’s unfailing belief in the so-called “free” market.
When the economy, led by the housing market and a lack of common-sense regulations, careened off a cliff in late 2008, the Bush administration recommended a bill to Congress that called for the US to spend billions in order to prop up the failing banks. Lacking the support of Republican leaders in Congress, the measure initially failed. But when the stock markets crashed as a result, enough Congressmen were persuaded to change their votes and the Troubled Asset Relief Program (TARP) went into effect.
The program ultimately stabilized the markets and the economy enough to prevent the Great Recession from turning into a second Great Depresssion. Yet many Republicans were furious. They believed TARP to be a government intrusion into the infallibility of free market principles. When President Obama subsequently offered government-backed loans to General Motors and Chrysler in order to stave off the collapse of the American automobile industry, the free market Republicans and Libertarians went ballistic.
Capitalizing on an idea by a Republican strategist, groups such as the Koch-funded American FreedomWorks spent millions to rally free market believers to protest. They labeled the movement a modern day Tea Party. It turned out to be the perfect way to inspire the Republican base which was dispirited following the 2008 elections.
Teapublicans deluded themselves into believing that the Great Recession was not the fault of the repeal of the Glass-Steagall Act or the Bush administrations lax oversight of the financial industry.
They focused, instead, on President Obamas attempts to fend off an economic Armegeddon. In addition, they convinced themselves that the national debt, which had doubled under President Bush, was now the fault of President Obama. They believed the auto bail-outs and economic stimulus were evidence that the administration was moving toward socialism. The Presidents eventual signing of a bill to reform the out-of-control healthcare system added even more fuel to the torches being carried by the Tea Party.
When viewed in context, the Teapublican fears seem irrational. But when viewed through a partisan lens and slavish devotion to free market principles, regardless of their consequences, the fears are understandable, if not logical.
Moreover, this helps to explain why so many lower and middle class Americans vote against their self-interest by supporting Republican candidates determined to transfer wealth upward through tax breaks for the wealthy.
Over many years of listening to Fox News pundits and Rush-to-the-table Limbaugh, these people have become convinced that all of their problems will be solved if only we rid ourselves of government intrusion and allow Teapublican leaders to work their free market magic. Indeed, these voters are likely convinced that the only thing standing between them and unimagined riches are evil Democrats, who in their Teapublican minds, are trying to replace capitalism with socialism, or worse yet, communism or fascism.
Never mind that many of these people dont have a clue of what any of these isms actually mean. Hence the Tea Party signs that read Keep your government hands off my Medicare.”
Teapublicans, especially those in Arizona, have their tea bags in a knot over a botched 2009 sting operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives code-named Fast and Furious.
The operation, which apparently began out of frustration with the courts failure to adequately convict and punish those who provide guns to the Mexican drug cartels, focused on a group of straw buyers who purchased more than 1,500 weapons from Phoenix-area gun dealers. According to records, dozens of AK-47 type weapons would be purchased at once. The buyers would often return a few days later to buy many more weapons from the same stores. Rather than bust the buyers, ATF agents were told by supervisors to let the guns walk in hopes of tracking them to those who were directing the gun buys on behalf of the cartels.
When two of the weapons were later found to have been involved in the death of US Border Patrol agent, Brian Terry, there was understandable outrage.
The Teapublican-controlled Congress seized upon the story in order to embarrass the Obama administration. Congressman Darrell Issa even called for the resignation of Attorney General Eric Holder. Yet it was Teapublican interference and policies which created the environment that led to the operation.
B. Todd Jones, who has now assumed command of the bureau is the fifth “acting director” since 2006. Thanks to Teapublican obstructionism, the 5,000-employee ATF has not had a permanent director since it was spun off from the Treasury Department in 2006. All of the people nominated by the Bush and Obama administrations to regulate the $28 billion firearms industry have been opposed by the gun rights lobby, including veteran ATF agent, Andrew Traver, whose nomination has been stalled in the Senate Judiciary Committee for nearly a year.
Also, Arizonas Teapublican-sponsored gun laws are at the very root of the weapons smuggling problem. The states laws, which were written by the National Rifle Association, permit any citizen who can pass a federal background check to walk into an Arizona gun shop and buy as many weapons as he or she wants. The laws are even more lax when it comes to the states many gun shows where there are no background checks.
Finally, the states laws provide little real punishment for the straw buyers. If theyre caught, they usually face charges of falsely stating that they purchased the guns for themselves, a punishment that hardly fits the crime.
“Teabaggers are patriots. Occupy Wall Street demonstrators are misguided thugs and revolutionaries.”
The Tea Party claimed to be a grassroots movement, but in reality, it was created by Republican strategists, financed by Republican think tanks and billionaires, and promoted and publicized by Fox News Channel, Rush-To-Judgement Limbaugh and the rest of the Republican megaphones.
The Occupy Wall Street movement, on the other hand, receives no money from millionaires and billionaires. It has no think tanks to fund it. And it has no media organizations under its control. The movement was created by a diverse group of young people fed up with the wealthy who control Congress and dictate public policy. And its growing.
So why are the Teapublicans now dismissing them as out-of-control rabble? Why are Teapublicans portraying them as dangerous and disrespectful? And why are Teapublicans saying they ought to get a job? Actually, thats the question at the very heart of the movement. The Occupy Wall Streeters want to get a job, but feel that Teapublican policies dictated by the wealthy prevent them from any chance of success.
Instead of trying to initiate legislation that might create jobs to make the Occupy Wall Streeters go home, Teapublicans would rather spend their time denying tax hikes for millionaires and billionaires. And they are using their media megaphones to portray the movement as dangerous. On his daily radio diatribe, Glenn Beck even said, Theyre coming to kill you!
Hmmm think about it for a moment. Which group brought guns to their rallies and carried signs with overt threats against Congress and the President? Heres a hint: It wasnt the Occupy Wall Street demonstrators.
Despite the fact that our $14 trillion debt was largely created by Teapublican presidents, now that we have a Democratic president, the Teapublican-controlled Congress is dead set on forcing enormous budget cuts at any cost.
Set aside for a moment that their primary agenda is to end regulations for their corporate masters and to starve only those departments that are contrary to their ideology (primarily the EPA and the Dept. of Education). The real concern is what such draconian cuts will do to our economy.
If you want to see a preview of the consequences, you need only to look to Greece.
As you likely know, the Greek government is in danger of default. To cure its ills, Germany along with the other nations that are part of the European Union, agreed to bail out Greece. But only if Greece would enact drastic spending cuts and large tax hikes.
The result? It would seem that the cure is in danger of killing the patient. Indeed, the cuts have put the entire European Union in recession. And the symptoms have spread to the US. Every time the European Union sneezes, our markets react.
The problem is that the new austerity measures have resulted in more Greeks losing their jobs. And without jobs, the Greeks are unable to pay the increased taxes. Many have been forced to pay taxes out of their savings (if they have savings). Many cant pay their taxes at all. That only results in more deficits, more spending cuts, more tax increases, and so on.
Although Greece is the most extreme example of an economy in trouble, its not alone.
Irelands economy is also particularly weak. You may remember that before the global recession, Ireland was called the “Celtic Tiger” having built its reputation by luring foreign corporations (many from the US) through some of the lowest corporate taxes in the world. Indeed, Teapublicans have repeatedly cited Ireland as a model for reforming our own corporate tax structure.
One would hope that our nation could learn from these examples of what not to do. But, since Teapublicans mostly ignore anything beyond our borders (except for oil deposits), Im not hopeful.
Solyndra is an example of the Obama administrations runaway spending.
Yes, the Obama administration provided a federally-backed loan of $535 million to help Solyndra create thin film solar cells. Yes, the company went bankrupt. But before you join the Teapublican-led lynch mob to hold the administration accountable, ask yourself: How much more money has been wasted on government loans and subsidies for oil companies? Have you ever heard Teapublicans complain about wasting taxpayer money on a dry well? Have you ever seen a House panel investigate loans or subsidies to carbon-based fuel companies?
But thats different you say. Theres no certainty in finding oil.
Well, theres no certainty that a new product will succeed, either. Fact is, the Energy Department took a chance on a company that wanted to build state-of-the-art solar cells in the US, instead of China. The Energy Department took a chance that a government-backed loan would result in more US-based jobs, less dependence on foreign oil and lower carbon emissions. Unfortunately, Solyndra failed as the result of increased competition from foreign manufacturers which are heavily subsidized by their governments. And because Congress failed to pass a comprehensive energy bill that includes alternative energy sources.
Oil production is heavily subsidized through tax breaks at virtually every stage of the exploration and extraction process. So, if the US is willing to risk hundreds of billions in exploration for gas and oil with great risk to our environment, why is it a problem for the federal government to risk taxpayer money to develop clean energy alternatives?
Could it be that the solar and wind industries dont have lobbyists which heavily contribute to Teapublican election campaigns?
The wealthiest Americans pay a disproportionate share of federal taxes.
Seriously? Thats the crapola they want us to believe?
To counter President Obamas plan to pay for his Jobs Act by raising taxes on the wealthiest Americans, Teapublicans have gone on the offensive (Yeah, I know, they were already offensive enough) to protect the wealth of their political puppeteers. Through a series of appearances on Sunday morning talk shows, they point to data from the Tax Policy Center showing that the top 1 percent of Americans pays 38 percent of federal income taxes.
Assuming that data is correct, it actually disproves the Teapublicans point. After all, by most estimates, the top 1 percent controls more than 39 percent of the nations financial wealth (excluding their multi-million dollar homes, high-priced cars, etc.). Therefore, the top 1 percent is actually paying less than its share of federal taxes. And, thanks to Teapublicans, the share of income paid in taxes by the 400 richest Americans has fallen by nearly 40 percent, even as their incomes have approximately quadrupled!
Its good to be rich. Especially in Teapublican America.
The federal government paid $16 each for muffins.
Last week, Teapublican megaphone, Fox News Channel, reverberated with charges that the Department of Justice purchased muffins at $16 apiece at law enforcement conferences in Denver, Colorado.
It was a sensational story.
Teapublican bully and buffoon, Bill OReilly used the story to excuse the fact that he and other millionaires pay lower taxes than the middle class. In his interview on The Daily Show, he said he wouldnt mind paying a little more taxes. But only when the federal government gets spending under control and stops wasting his money on things like $16 muffins. The only problem is that, as usual, OReilly is wrong.
According to Hilton Hotels where the law enforcement conferences were held, the $16 charge was actually for a full continental breakfast plus tax. Hardly the extravagant waste of taxpayer money that Fox claimed. And, of course, the alleged transgressions occurred during both the Bush and Obama administrations. (But Teapublicans conveniently ignored that fact.)
And before you make the claim that the cost is still unjustified, consider this. A large part of business and government work consists of meetings, and employees need to eat – even government employees. Additionally, $16 is hardly an outrageous sum for a meal. Have you ever ordered breakfast in a New York, Los Angeles, San Francisco or Washington, DC hotel? Compared to those prices, $16 for breakfast is a steal.
Of course, youre not likely to hear the truth about Muffingate on Fox News Channel. But that should come as no surprise. Fox News Channel seldom tells the truth about anything.
“Cutting Medicaid and Medicare will save money.”
Anyone who would say this is either lying or doesnt understand how the healthcare industry works.
If you kick millions of people off of Medicaid and raise the cost to seniors for Medicare, they will put off going to the doctor as long as they can. Minor ailments then become major ailments. When theyre finally forced to seek help, they have no place to go except the Emergency Room where the costs of treatment can be as much as 100 times that of a doctors office or clinic. Since most hospitals are mandated by law to accept all patients, regardless of their ability to pay, the costs are passed along to patients who have health insurance.
So the Teapublicans who dont want to help pay for someone elses healthcare treatments through an efficient, well-managed government program will actually wind up paying much more through the rise in premiums for their health insurance policies, through increased taxes, or both.
Our nations healthcare costs are already four times the cost of healthcare in other advanced nations. Cutting Medicaid and Medicare will only make things worse.
“Obamacare” (more precisely, Nixoncare, Dolecare or Romneycare, since they proposed the program first) will definitely help. It will offer healthcare insurance to 55 million people who are currently uninsured, and it will institute some cost containment measures to an industry that has seen costs rise at a rate more than ten times the rate of inflation.
But it doesnt go far enough.
According to a hospital CEO whose opinion I respect, this nation needs to return to a form of managed care (Health Maintenance Organizations). Under the system, the healthcare providers would be charged with keeping us healthy. The providers would also be charged with following best practices, which have been shown to produce the best outcomes, and limiting unnecessary or unproven care. (Or, in Teapublican terms, “death panels” with the responsibility to review extreme procedures that are proposed for patients with terminal diseases.)
This is one of the most important steps in solving our healthcare crisis as noted in a 1990s study by the MIT Sloan School of Management. That study showed that, in the US, more than 70 percent of all healthcare expenditures occur in the last six months of a patient’s life. In other words, we tend to ignore our health until something goes drastically wrong. Then we spare no expense to prove that the diagnosis of a fatal condition is essentially correct.
It’s clear that we need an entirely new approach to healthcare and “Obamacare” is an important first step. Repealing the Patient Protection and Affordable Care Act will only make things worse. So will the other Teapublican proposals. We cant throw the poor off of Medicaid, cut Medicare for the elderly, maintain our out-of-control health insurance system and cut the deficit.
The healthcare industry and the economy are like a large, overinflated balloon. If you push one place, it expands somewhere else. To make improvements, you have to change the entire entity at once.