“Billionaires’ Crybaby Club”: Someone Get These Whiners A Bottle!
Does being super-wealthy make you extra susceptible to self-pity today? That’s the only conclusion we can draw from an epidemic of self-pitying American billionaires decrying their persecution by “despots,” and the “Kristallnacht” of rising concern about income inequality, over just the last few months.
Charles Koch is the latest to fall victim to what funnier folks than me have labeled the WATB syndrome, with a whiny op-ed in the Wall Street Journal. “Collectivists” in government, Koch writes – “those who stand for government control of the means of production and how people live their lives,” i.e. Democrats — “strive to discredit and intimidate opponents.” It gets worse: “They engage in character assassination. (I should know, as the almost daily target of their attacks.)”
I’m worried about Charles Koch. For one thing, with all his billions, he couldn’t find a better ghost writer? His silly op-ed, with its alarmist Marxist clichés and fusty Schopenhauer references, would have been dismissed as an April Fool’s joke if published just one day sooner. It came the same day as the Supreme Court’s McCutcheon decision, which only increased its ridiculousness.
But Koch’s self-pity and persecution complex is downright unhealthy. He clearly suffers from the same malady as Tom Perkins, who delusionally compared rising political concern about income inequality to “Kristallnacht” for the rich. Newspaper-destroying real estate mogul Sam Zell, who cosigned Perkins, is also a victim, complaining the super-rich “are getting pummeled because it’s politically convenient to do so,” when in fact “the 1 percent work harder.”
Self-pity sufferer Ken Langone of Home Depot even warned Pope Francis that Catholic billionaires might stop contributing to the church because of the pope saying the “exclusionary” culture of the rich made some of them “incapable of feeling compassion for the poor.” Langone had earlier joined self-pitying mogul Leon Cooperman to admonish President Obama for “new lows in polarizing rhetoric…aimed at successful people in the business sector.”
Maybe we need a public health campaign to warn billionaires about the dangers of self-pity: stress, anxiety, depression, isolation and illness. The authors of “47 Steps to Stress Management” say that “the effect of self-pity on the body is similar to chronic anxiety.” A widely quoted 2003 study of self-pity in the Journal of Personality found:
…Strong associations of self-pity with neuroticism, particularly with the depression facet. With respect to control beliefs, individuals high in self-pity showed generalized externality beliefs, seeing themselves as controlled by both chance and powerful others…Furthermore, individuals high in self-pity reported emotional loneliness and ambivalent-worrisome attachments.
Deepak Chopra says self-pity is linked to “dependency,” so clearly Paul Ryan ought to consider a crusade to change the “culture” of his billionaire patrons in addition to that of “inner city” men:
The issue is dependency. Self-pity is the opposite of self-esteem. It arises because you feel no one will lift you out of your difficulties. With no one stronger, older, wiser and kinder to help you, there’s a tremendous sense of lack. You cannot find the same strength that these rescuers have—or you imagine them to have—and the ache of not being enough is felt as self-pity or “poor me.”
Of course, this isn’t the Koch brothers first pity-party, or their first descent into making things up about President Obama. Three years ago Charles and David sat down with the Weekly Standard and complained about their “demonization” by Democrats and President Obama, who they then went on to demonize. (A clinical note: Projection is also associated with self-pity.)
Charles accused Obama of believing “Marxist models.” David went further, blaming Obama’s views on his father, “a hard core economic socialist in Kenya,” he said. “He had sort of antibusiness, anti-free enterprise influences affecting him almost all his life. It just shows you what a person with a silver tongue can achieve.”
David also called anti-Koch protesters “very, very extreme, and I think very dangerous….That was pretty shocking, to see what we’re up against, or what the country’s up against: to have an element like this.”
So clearly self-pity is a persistent problem for Charles and his brother. Maybe we need a public health campaign: If your bout of self-pity lasts more than four hours, call your doctor. The authors of “47 Steps to Stress Management” have other advice:
“If you have trouble breaking the self-pity habit, you might want to try an excellent way of getting your mind off of yourself: help others.”
Oh well, that’s probably not the answer.
I don’t know what to advise Charles Koch about his unhealthy habits. He certainly has the money to get the best professional help available. But I would urge the Wall Street Journal, the official newspaper of record for the top 1 percent, to stop encouraging the damaging dependency and self-destructive behavior of its readers and patrons, before it’s too late.
By: Joan Walsh, Editor at Large, Salon, April 3, 2014
“The New Billionaire Political Bosses”: Political Power Tends To Rise To Where The Money Is
Charles and David Koch should not be blamed for having more wealth than the bottom 40 percent of Americans put together. Nor should they be condemned for their petrochemical empire. As far as I know, they’ve played by the rules and obeyed the laws.
They’re also entitled to their own right-wing political views. It’s a free country.
But in using their vast wealth to change those rules and laws in order to fit their political views, the Koch brothers are undermining our democracy. That’s a betrayal of the most precious thing Americans share.
The Kochs exemplify a new reality that strikes at the heart of America. The vast wealth that has accumulated at the top of the American economy is not itself the problem. The problem is that political power tends to rise to where the money is. And this combination of great wealth with political power leads to greater and greater accumulations and concentrations of both — tilting the playing field in favor of the Kochs and their ilk, and against the rest of us.
America is not yet an oligarchy, but that’s where the Koch’s and a few other billionaires are taking us.
American democracy used to depend on political parties that more or less represented most of us. Political scientists of the 1950s and 1960s marveled at American “pluralism,” by which they meant the capacities of parties and other membership groups to reflect the preferences of the vast majority of citizens.
Then around a quarter century ago, as income and wealth began concentrating at the top, the Republican and Democratic Parties started to morph into mechanisms for extracting money, mostly from wealthy people.
Finally, after the Supreme Court’s “Citizen’s United” decision in 2010, billionaires began creating their own political mechanisms, separate from the political parties. They started providing big money directly to political candidates of their choice, and creating their own media campaigns to sway public opinion toward their own views.
So far in the 2014 election cycle, “Americans for Prosperity,” the Koch brother’s political front group, has aired more than 17,000 broadcast TV commercials, compared with only 2,100 aired by Republican Party groups.
“Americans for Prosperity” has also been outspending top Democratic super PACs in nearly all of the Senate races Republicans are targeting this year. In seven of the nine races the difference in total spending is at least two-to-one and Democratic super PACs have had virtually no air presence in five of the nine states.
The Kochs have spawned several imitators. Through the end of February, four of the top five contributors to 2014 super-PACs are now giving money to political operations they themselves created, according to the Center for Responsive Politics.
For example, billionaire TD Ameritrade founder Joe Ricketts and his son, Todd, co-owner of the Chicago Cubs, have their own $25 million political operation called “Ending Spending.” The group is now investing heavily in TV ads against Republican Representative Walter Jones in a North Carolina primary (they blame Jones for too often voting with Obama).
Their ad attacking Democratic New Hampshire Senator Jeanne Shaheen for supporting Obama’s health-care law has become a template for similar ads funded by the Koch’s “Americans for Prosperity” in Senate races across the country.
When billionaires supplant political parties, candidates are beholden directly to the billionaires. And if and when those candidates win election, the billionaires will be completely in charge.
At this very moment, Casino magnate Sheldon Adelson (worth an estimated $37.9 billion) is busy interviewing potential Republican candidates whom he might fund, in what’s being called the “Sheldon Primary.”
“Certainly the ‘Sheldon Primary’ is an important primary for any Republican running for president,” says Ari Fleischer, former White House press secretary under President George W. Bush. “It goes without saying that anybody running for the Republican nomination would want to have Sheldon at his side.”
The new billionaire political bosses aren’t limited to Republicans. Democratic-leaning billionaires Tom Steyer, a former hedge-fund manager, and former New York Mayor Michael Bloomberg, have also created their own political groups. But even if the two sides were equal, billionaires squaring off against each other isn’t remotely a democracy.
In his much-talked-about new book, “Capital in the Twenty-First Century,” economist Thomas Piketty explains why the rich have become steadily richer while the share of national income going to wages continues to drop. He shows that when wealth is concentrated in relatively few hands, and the income generated by that wealth grows more rapidly than the overall economy – as has been the case in the United States and many other advanced economies for years – the richest receive almost all the income growth.
Logically, this leads to greater and greater concentrations of income and wealth in the future – dynastic fortunes that are handed down from generation to generation, as they were prior to the twentieth century in much of the world.
The trend was reversed temporarily in the twentieth century by the Great Depression, two terrible wars, the development of the modern welfare state, and strong labor unions. But Piketty is justifiably concerned about the future.
A new gilded age is starting to look a lot like the old one. The only way to stop this is through concerted political action. Yet the only large-scale political action we’re witnessing is that of Charles and David Koch, and their billionaire imitators.
By: Robert Reich, the Robert Reich Blog, March 25, 2014
“America’s Taxation Tradition”: Public Policy Should Seek To Limit Inequality For Political As Well As Economic Reasons
As inequality has become an increasingly prominent issue in American discourse, there has been furious pushback from the right. Some conservatives argue that focusing on inequality is unwise, that taxing high incomes will cripple economic growth. Some argue that it’s unfair, that people should be allowed to keep what they earn. And some argue that it’s un-American — that we’ve always celebrated those who achieve wealth, and that it violates our national tradition to suggest that some people control too large a share of the wealth.
And they’re right. No true American would say this: “The absence of effective State, and, especially, national, restraint upon unfair money-getting has tended to create a small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power,” and follow that statement with a call for “a graduated inheritance tax on big fortunes … increasing rapidly in amount with the size of the estate.”
Who was this left-winger? Theodore Roosevelt, in his famous 1910 New Nationalism speech.
The truth is that, in the early 20th century, many leading Americans warned about the dangers of extreme wealth concentration, and urged that tax policy be used to limit the growth of great fortunes. Here’s another example: In 1919, the great economist Irving Fisher — whose theory of “debt deflation,” by the way, is essential in understanding our current economic troubles — devoted his presidential address to the American Economic Association largely to warning against the effects of “an undemocratic distribution of wealth.” And he spoke favorably of proposals to limit inherited wealth through heavy taxation of estates.
Nor was the notion of limiting the concentration of wealth, especially inherited wealth, just talk. In his landmark book, “Capital in the Twenty-First Century,” the economist Thomas Piketty points out that America, which introduced an income tax in 1913 and an inheritance tax in 1916, led the way in the rise of progressive taxation, that it was “far out in front” of Europe. Mr. Piketty goes so far as to say that “confiscatory taxation of excessive incomes” — that is, taxation whose goal was to reduce income and wealth disparities, rather than to raise money — was an “American invention.”
And this invention had deep historical roots in the Jeffersonian vision of an egalitarian society of small farmers. Back when Teddy Roosevelt gave his speech, many thoughtful Americans realized not just that extreme inequality was making nonsense of that vision, but that America was in danger of turning into a society dominated by hereditary wealth — that the New World was at risk of turning into Old Europe. And they were forthright in arguing that public policy should seek to limit inequality for political as well as economic reasons, that great wealth posed a danger to democracy.
So how did such views not only get pushed out of the mainstream, but come to be considered illegitimate?
Consider how inequality and taxes on top incomes were treated in the 2012 election. Republicans pushed the line that President Obama was hostile to the rich. “If one’s priority is to punish highly successful people, then vote for the Democrats,” said Mitt Romney. Democrats vehemently (and truthfully) denied the charge. Yet Mr. Romney was in effect accusing Mr. Obama of thinking like Teddy Roosevelt. How did that become an unforgivable political sin?
You sometimes hear the argument that concentrated wealth is no longer an important issue, because the big winners in today’s economy are self-made men who owe their position at the top of the ladder to earned income, not inheritance. But that view is a generation out of date. New work by the economists Emmanuel Saez and Gabriel Zucman finds that the share of wealth held at the very top — the richest 0.1 percent of the population — has doubled since the 1980s, and is now as high as it was when Teddy Roosevelt and Irving Fisher issued their warnings.
We don’t know how much of that wealth is inherited. But it’s interesting to look at the Forbes list of the wealthiest Americans. By my rough count, about a third of the top 50 inherited large fortunes. Another third are 65 or older, so they will probably be leaving large fortunes to their heirs. We aren’t yet a society with a hereditary aristocracy of wealth, but, if nothing changes, we’ll become that kind of society over the next couple of decades.
In short, the demonization of anyone who talks about the dangers of concentrated wealth is based on a misreading of both the past and the present. Such talk isn’t un-American; it’s very much in the American tradition. And it’s not at all irrelevant to the modern world. So who will be this generation’s Teddy Roosevelt?
By: Paul Krugman, Op-Ed Columnist, The New York Times, March 27, 2014
“Wealth Over Work”: We’re On The Way Back To “Patrimonial Capitalism”, Where Birth Matters More Than Effort And Talent
It seems safe to say that “Capital in the Twenty-First Century,” the magnum opus of the French economist Thomas Piketty, will be the most important economics book of the year — and maybe of the decade. Mr. Piketty, arguably the world’s leading expert on income and wealth inequality, does more than document the growing concentration of income in the hands of a small economic elite. He also makes a powerful case that we’re on the way back to “patrimonial capitalism,” in which the commanding heights of the economy are dominated not just by wealth, but also by inherited wealth, in which birth matters more than effort and talent.
To be sure, Mr. Piketty concedes that we aren’t there yet. So far, the rise of America’s 1 percent has mainly been driven by executive salaries and bonuses rather than income from investments, let alone inherited wealth. But six of the 10 wealthiest Americans are already heirs rather than self-made entrepreneurs, and the children of today’s economic elite start from a position of immense privilege. As Mr. Piketty notes, “the risk of a drift toward oligarchy is real and gives little reason for optimism.”
Indeed. And if you want to feel even less optimistic, consider what many U.S. politicians are up to. America’s nascent oligarchy may not yet be fully formed — but one of our two main political parties already seems committed to defending the oligarchy’s interests.
Despite the frantic efforts of some Republicans to pretend otherwise, most people realize that today’s G.O.P. favors the interests of the rich over those of ordinary families. I suspect, however, that fewer people realize the extent to which the party favors returns on wealth over wages and salaries. And the dominance of income from capital, which can be inherited, over wages — the dominance of wealth over work — is what patrimonial capitalism is all about.
To see what I’m talking about, start with actual policies and policy proposals. It’s generally understood that George W. Bush did all he could to cut taxes on the very affluent, that the middle-class cuts he included were essentially political loss leaders. It’s less well understood that the biggest breaks went not to people paid high salaries but to coupon-clippers and heirs to large estates. True, the top tax bracket on earned income fell from 39.6 to 35 percent. But the top rate on dividends fell from 39.6 percent (because they were taxed as ordinary income) to 15 percent — and the estate tax was completely eliminated.
Some of these cuts were reversed under President Obama, but the point is that the great tax-cut push of the Bush years was mainly about reducing taxes on unearned income. And when Republicans retook one house of Congress, they promptly came up with a plan — Representative Paul Ryan’s “road map” — calling for the elimination of taxes on interest, dividends, capital gains and estates. Under this plan, someone living solely off inherited wealth would have owed no federal taxes at all.
This tilt of policy toward the interests of wealth has been mirrored by a tilt in rhetoric; Republicans often seem so intent on exalting “job creators” that they forget to mention American workers. In 2012 Representative Eric Cantor, the House majority leader, famously commemorated Labor Day with a Twitter post honoring business owners. More recently, Mr. Cantor reportedly reminded colleagues at a G.O.P. retreat that most Americans work for other people, which is at least one reason attempts to make a big issue out of Mr. Obama’s supposed denigration of businesspeople fell flat. (Another reason was that Mr. Obama did no such thing.)
In fact, not only don’t most Americans own businesses, but business income, and income from capital in general, is increasingly concentrated in the hands of a few people. In 1979 the top 1 percent of households accounted for 17 percent of business income; by 2007 the same group was getting 43 percent of business income, and 75 percent of capital gains. Yet this small elite gets all of the G.O.P.’s love, and most of its policy attention.
Why is this happening? Well, bear in mind that both Koch brothers are numbered among the 10 wealthiest Americans, and so are four Walmart heirs. Great wealth buys great political influence — and not just through campaign contributions. Many conservatives live inside an intellectual bubble of think tanks and captive media that is ultimately financed by a handful of megadonors. Not surprisingly, those inside the bubble tend to assume, instinctively, that what is good for oligarchs is good for America.
As I’ve already suggested, the results can sometimes seem comical. The important point to remember, however, is that the people inside the bubble have a lot of power, which they wield on behalf of their patrons. And the drift toward oligarchy continues.
By: Paul Krugman, Op-Ed Columnist, The New York Times, March 24, 2014
“If You Go Back To 1933”: Another Billionaire With A Victim’s Complex And An Unhealthy Nazi Fixation
Ben White and Maggie Haberman report this morning that the political winds seem to have shifted lately in the One Percenters’ direction. Whereas a few months ago, economic populism looked like it’d give Democrats a boost in 2014, and polls showed strong public support for addressing economic inequality, Wall Street and its allies are feeling more confident.
In two-dozen interviews, the denizens of Wall Street and wealthy precincts around the nation said they are still plenty worried about the shift in tone toward top earners and the popularity of class-based appeals…. But wealthy Republicans – who were having a collective meltdown just two months ago – also say they see signs that the political zeitgeist may be shifting back their way and hope the trend continues.
“I hope it’s not working,” Ken Langone, the billionaire co-founder of Home Depot and major GOP donor, said of populist political appeals. “Because if you go back to 1933, with different words, this is what Hitler was saying in Germany. You don’t survive as a society if you encourage and thrive on envy or jealousy.”
Oh for crying out loud. Do we really have to deal with another billionaire with a victim’s complex who sees a parallel between economic populism and Nazis?
Apparently so.
If this sounds familiar, it was just two months ago that venture capitalist Tom Perkins caused a stir in a Wall Street Journal letter, arguing that the “progressive war on the American one percent” is comparable to Nazi genocide. “Kristallnacht was unthinkable in 1930,” he wrote, “is its descendent ‘progressive’ radicalism unthinkable now?”
He later said he regretted the Kristallnacht reference, but nevertheless believed his point had merit.
Despite the controversy surrounding Perkins’ bizarre concerns, Home Depot’s Ken Langone apparently decided to embrace the exact same message.
This shouldn’t be necessary, but as a rule, Nazi comparisons in domestic political debates are a bad idea. But they’re an especially egregious mistake when they’re rooted in a ridiculous fantasy.
Whether Langone understands this or not, the scope of contemporary economic populism is often quite narrow. In a political context, it tends to focus on stagnant wages, regressive tax policies, and safeguards against the worst of Wall Street excesses. As a policy matter, we’re generally talking about a higher minimum wage, extended unemployment benefits, food stamps, access to affordable medical care, and lately, expanded access to overtime compensation.
Billionaires may have substantive disagreements with these concerns and their proposed remedies, but to see them as somehow similar to Nazi genocide is more than a little twisted.
The more annoying phenomenon isn’t an American mainstream that believes the wealthy can afford to pay a little more in taxes, but rather, coddled billionaires benefiting from a modern-day Gilded Age feeling sorry for themselves.
As we talked about in January, it’s comparable in a way to a curious strain of political correctness. The more progressive talk about the concentration of wealth at the very top, tax rates, poverty, and stagnant wages, the more some of the very wealthy tell each other, “Oh my God, they may be coming to get us.”
If liberals would only stop talking about economic justice, maybe the richest among us wouldn’t have their feelings hurt.
Or maybe billionaires should just let go of this fantasy, stop seeing themselves as victims, and abandon the disgusting notion that American liberals have something in common with Hitler because they’re concerned with the consequences of growing economic inequality.
By: Steve Benen, The Maddow Blog, March 18, 2014
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