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“Magic Word Gaffes”: So What If A Few Facts Get Bent Or Invented Along The Way

Reading a lot of conservative posts last night and this morning (unfortunately, just part of the gig here), I was mystified at the conviction of so many people that the mangled clips of the president’s “you didn’t build that” quote from Roanoke provided a gigantic, “aha” moment in the campaign that would drive Obama from the White House like a whipped Kenyan dog. The money quote that most of them are tossing around comes from the deep thinker Pat Sajak:

It’s as if President Obama climbed into a tank, put on his helmet, talked about how his foray into Cambodia was seared in his memory, looked at his watch, misspelled “potato” and pardoned Richard Nixon all in the same day.

Really? I mean, even if you buy the twisted, mendacious version of the Obama quote that the Romney campaign is retailing, are Americans really so protective of the tender sensibilities of business owners that they are shocked anyone would suggest that each and every one of them built their businesses strictly on their own? (Aside from from roads and bridges and inheritances, how’s about employees as a significant factor in business success?).

But then Dave Weigel explained it to me:

Call it a magic word gaffe—a statement that reveals not what a politician believes, but what you already feared, in your bone marrow, that a politician believes. Democrats still can’t understand why Obama’s speech is supposed to offend anyone. Republicans know that he’s a closet socialist, and that this sentiment only comes out when his energy is flagging….

A normal gaffe is usually discovered by the “mainstream” press, or by a rival campaign, in real time. Think about the Obama campaign hounding John McCain on his “the fundamentals of the economy are sound” as Lehman collapsed. Think about “the private sector is doing fine” becoming proof, for Romney, that Obama saw no problems in the private sector. The magic word gaffe takes more digging, because the media that mostly covers campaigns aren’t primed to hear what partisans hear.

Barack Obama’s presidency has been full of these moments. If you watched Glenn Beck during his Fox News years, you got endless exposure (more than 100 episodes of it, according to Lexis-Nexis) to an Oct. 30, 2008 quote from an Obama rally in Columbia, Mo. “We are five days away from fundamentally transforming the United States of America,” said the candidate.

Bingo. The “magic word gaffe” is sort of the inverse of the “dog whistle” whereby pols use banal language that has a special meaning to ideologues (“constitutional conservative” being one notable example; “respect for life” being another). For our right-wing brothers and sisters, progressive (itself a magic word—maybe even a secret handshake—connoting Marxist convictions) discourse is full of these signifiers. “Equality.” “Fairness.” “Giving something back.” “Shared sacrifice.” Constant vigilance for these magic words is how conservatives have convinced themselves that the blandly pragmatic center-left politician Barack Obama pursuing leftover moderate Republican policies is a villain-figure straight out of Atlas Shrugged or (for the godly) Left Behind, hating success and righteousness.

The problem with this stuff, of course, is that the low-information swing voters who will decide the present election will require an awful lot of education to understand the magic word gaffes. They haven’t marinated their brains with Beckian revisionist history and don’t run around pasting “Breitbart Is Here!” posters on telephone poles. Many of them, in fact, probably don’t own businesses and don’t much think of their own bosses—much less the Mitt Romneys of the world—as heroic figures. So the nastiness aimed at Obama will inevitably get a lot coarser than what we  are hearing today. So what if a few facts get bent or invented along the way? America must be protected!

By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, July 20, 2012

July 22, 2012 Posted by | Election 2012 | , , , , , , , , | Leave a comment

“Setting The Terms”: Foolproof Win-Win Strategy Plan For President Obama

Over the weekend I was mulling both of our crises, the political one (dysfunction, paralysis) and the policy one (looming tax-mageddon, sequestration). Yep, I mull these things on Saturdays. How, I wondered for the 486th time, can Obama get the Republicans to dig their heels out of the mud and get the upper hand politically while also doing some good for the country? Here’s how.

Obama should go to Congress and say: “I offer you the following deal. I will extend all the Bush tax cuts for one year—yes, even for the wealthiest Americans. One year. In exchange, I’d like you to agree to fund the initial, start-up $10 billion for the Kerry-Hutchison infrastructure bank, and the $35 billion I asked of you last September in direct aid for states and localities to rehire laid-off teachers and first responders. Then, after I am reelected, my administration and I will take the first six months of 2013 to write comprehensive tax reform, and Congress will then have six months to pass it, and we’ll have a new tax structure that we’ve both agreed on.

“The business community complains about uncertainty? This is certainty. The Bush rates will stay in place for one more year. We will give corporations our word that the basic corporate rate will be lowered in our package from the current 35 percent. The top marginal rate on the very highest earners will go up—I will continue to insist on that. But not for a year. The rates on middle- and low-income payers will stay the same or go down slightly. We will look at tax expenditures and loopholes and so on and close the ones that aren’t justified. But businesses will now have no reason to doubt what the tax rates will be next January and will have confidence that we’re going to work something out, if you agree to this very reasonable compromise.”

Obama gives some ground, the Republicans give some ground. Nobody gets everything, but everybody gets something. Isn’t that what compromise is? And the “certainty” point is key—it takes away an argument against private-sector investment and job creation that some in the business world have been making, at this moment of record corporate profits.

I’m well aware that liberals may hate this. I’ll get to that. But the politics of this idea seem awfully sound to me. Obama would have the Republicans over a barrel. He will have offered a huge concession on the high-end tax rates, which the media will note. If the Republicans say no, which of course is likely because the infrastructure bank is socialism and no one wants teachers anyway, then it becomes manifestly clear to swing voters that Republicans are the true obstructionists. Voters will get that Obama will have made a major concession here. They’ll see that the GOP fail to respond in kind, and most of them will draw the logical conclusion.

And if the Republicans say yes, then even better: They will have made Obama, at this eleventh hour of his first term, into the bipartisan leader they’ve so successfully prevented him from being. And more important than that, there are the real-world upshots of public investment in infrastructure—a proposal that has the support, by the way, of the left-wing United States Chamber of Commerce—and the rehiring of hundreds of thousands of laid-off workers.

The Republicans will be boxed in. They’ll think up a clever response. They always do. They’ll try to bring in defense spending, perhaps, or insist on two years. They’ll obviously set out immediately on trying to figure out a way to box Obama in and make the Bush rates permanent. They’ll think of nine other things I’m not cynical enough to conjure up. They’ll dismiss it as a gimmick, but I’d wager that Obama can sell the idea that his giving ground on high-income tax rates is serious, not gimmicky. And if Obama stands firm, the lines are simple and clear: “I’m giving up something, and I’m asking you to give up something, for the sake of helping put Americans to work, and of doing the jobs we’re paid to do.”

My idea doesn’t deal directly with budget sequestration, and the huge cuts that are supposed to kick in January 1. Maybe Obama can propose that those be deferred for a while as well. Or maybe he is better off just leaving that to the senators who are allegedly working on it now. It might muddy things up.

Now, liberals. There will be outrage that Obama caved on his one heretofore firm condition on taxes. Under other circumstances, I might be outraged. But these strike me as pretty decent circumstances. Remember, Obama agreed to extend the Bush rates once before, in December 2010, and a fair number of liberals and independent analysts were basically fine with that deal. That time, what did Obama get? His own tax cuts, to the payroll tax, and some unemployment insurance extensions. This time, if the GOP actually agreed, he’d be getting far, far more—Republicans agreeing for the first time in the Obama era to real stimulative spending. Liberals should cheer this outcome—just as they should cheer the idea that, unlike during the December 2010 deal or the debt fiasco of last year, Obama would be looking like the guy who set the terms. He’d look strong, not weak, and he’d be very nicely teed up for reelection.

Which is why the Republicans will say no. Though it’ll be worse for the country, it would be great for Obama politically. Mitt Romney, of course, would dismiss Obama’s offer too, so my ploy would bring the added benefit of making Romney look extreme and unreasonable to centrist voters. Obama could then campaign saying that he tried repeatedly to reason with Republicans and was rebuffed at every turn, even when he offered to lower tax rates for millionaires. Romney and the GOP will campaign saying, “We’ll give you the tax cuts without all this spending.” Obama will then have to make the case that spending—investment—has value. But he has to make that case anyway. In my scenario, he can make it in a context in which he can prove to voters that the other party won’t budge one single inch. He’ll finally look like, to resuscitate a phrase we haven’t heard much of in the last two years, the adult in the room.

 

By: Michael Tomasky, The Daily Beast, June 12, 2012

June 12, 2012 Posted by | Election 2012 | , , , , , , , , | Leave a comment

“Capitalists Without Customers Are Out Of Business”: Raise Taxes On Rich To Reward True Job Creators

It is a tenet of American economic beliefs, and an article of faith for Republicans that is seldom contested by Democrats: If taxes are raised on the rich, job creation will stop.

Trouble is, sometimes the things that we know to be true are dead wrong. For the larger part of human history, for example, people were sure that the sun circles the Earth and that we are at the center of the universe. It doesn’t, and we aren’t. The conventional wisdom that the rich and businesses are our nation’s “job creators” is every bit as false.

I’m a very rich person. As an entrepreneur and venture capitalist, I’ve started or helped get off the ground dozens of companies in industries including manufacturing, retail, medical services, the Internet and software. I founded the Internet media company aQuantive Inc., which was acquired by Microsoft Corp. (MSFT) in 2007 for $6.4 billion. I was also the first non-family investor in Amazon.com Inc. (AMZN)

Even so, I’ve never been a “job creator.” I can start a business based on a great idea, and initially hire dozens or hundreds of people. But if no one can afford to buy what I have to sell, my business will soon fail and all those jobs will evaporate.

That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.

Theory of Evolution

When businesspeople take credit for creating jobs, it is like squirrels taking credit for creating evolution. In fact, it’s the other way around.

It is unquestionably true that without entrepreneurs and investors, you can’t have a dynamic and growing capitalist economy. But it’s equally true that without consumers, you can’t have entrepreneurs and investors. And the more we have happy customers with lots of disposable income, the better our businesses will do.

That’s why our current policies are so upside down. When the American middle class defends a tax system in which the lion’s share of benefits accrues to the richest, all in the name of job creation, all that happens is that the rich get richer.

And that’s what has been happening in the U.S. for the last 30 years.

Since 1980, the share of the nation’s income for fat cats like me in the top 0.1 percent has increased a shocking 400 percent, while the share for the bottom 50 percent of Americans has declined 33 percent. At the same time, effective tax rates on the superwealthy fell to 16.6 percent in 2007, from 42 percent at the peak of U.S. productivity in the early 1960s, and about 30 percent during the expansion of the 1990s. In my case, that means that this year, I paid an 11 percent rate on an eight-figure income.

One reason this policy is so wrong-headed is that there can never be enough superrich Americans to power a great economy. The annual earnings of people like me are hundreds, if not thousands, of times greater than those of the average American, but we don’t buy hundreds or thousands of times more stuff. My family owns three cars, not 3,000. I buy a few pairs of pants and a few shirts a year, just like most American men. Like everyone else, I go out to eat with friends and family only occasionally.

It’s true that we do spend a lot more than the average family. Yet the one truly expensive line item in our budget is our airplane (which, by the way, was manufactured in France byDassault Aviation SA (AM)), and those annual costs are mostly for fuel (from the Middle East). It’s just crazy to believe that any of this is more beneficial to our economy than hiring more teachers or police officers or investing in our infrastructure.

More Shoppers Needed

I can’t buy enough of anything to make up for the fact that millions of unemployed and underemployed Americans can’t buy any new clothes or enjoy any meals out. Or to make up for the decreasing consumption of the tens of millions of middle-class families that are barely squeaking by, buried by spiraling costs and trapped by stagnant or declining wages.

If the average American family still got the same share of income they earned in 1980, they would have an astounding $13,000 more in their pockets a year. It’s worth pausing to consider what our economy would be like today if middle-class consumers had that additional income to spend.

It is mathematically impossible to invest enough in our economy and our country to sustain the middle class (our customers) without taxing the top 1 percent at reasonable levels again. Shifting the burden from the 99 percent to the 1 percent is the surest and best way to get our consumer-based economy rolling again.

Significant tax increases on the about $1.5 trillion in collective income of those of us in the top 1 percent could create hundreds of billions of dollars to invest in our economy, rather than letting it pile up in a few bank accounts like a huge clot in our nation’s economic circulatory system.

Consider, for example, that a puny 3 percent surtax on incomes above $1 million would be enough to maintain and expand the current payroll tax cut beyond December, preventing a $1,000 increase on the average worker’s taxes at the worst possible time for the economy. With a few more pennies on the dollar, we could invest in rebuilding schools and infrastructure. And even if we imposed a millionaires’ surtax and rolled back the Bush-era tax cuts for those at the top, the taxes on the richest Americans would still be historically low, and their incomes would still be astronomically high.

We’ve had it backward for the last 30 years. Rich businesspeople like me don’t create jobs. Middle-class consumers do, and when they thrive, U.S. businesses grow and profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

So let’s give a break to the true job creators. Let’s tax the rich like we once did and use that money to spur growth by putting purchasing power back in the hands of the middle class. And let’s remember that capitalists without customers are out of business.

 

By: Nick Hanauer, Bloomberg, November 30, 2011

December 3, 2011 Posted by | Economy, Wealthy | , , , , , | 1 Comment

On Maine Labor History Mural, US Department of Labor: “Put It Up Or Pay Up”

If Maine Gov. Paul LePage doesn’t wish to display a mural depicting the state’s labor history, then the U.S. Department of Labor wants back the federal money used to create it.

The department said Monday that LePage violated the terms of a federal grant that paid for most of the mural’s $60,000 cost when he removed the artwork from state offices last month.

The request for reimbursement came in a letter to state labor officials from Gay Gilbert, administrator of the U.S. Labor Department’s office of unemployment insurance. The letter was obtained by The Associated Press.

Gilbert’s letter is the latest twist in a growing national dispute over LePage’s decision to remove the 36-foot mural from the state Labor Department headquarters. LePage said it was biased towards organized labor at the expense of his pro-business agenda.

The removal has prompted a federal lawsuit against LePage and two others.

The mural, in place since 2008, depicts scenes that include a paper mill strike in the town of Jay, a strike at a shoe plant in Lewiston, women shipbuilders at Bath Iron Works and former U.S. Labor Secretary Frances Perkins, a native of Maine.

Adam Fisher, a spokesman for the Maine Department of Labor, said he did not have any immediate comment on the letter.

LePage’s removal of the mural attracted attention at a time when lawmakers in Wisconsin and other states are considering measures to restrict collective bargaining by public workers. Labor advocates, artists and others say the mural depicts an important part of Maine history and belongs at the state’s Department of Labor office.

LePage spokeswoman Adrienne Bennett said last week that the mural is in storage and awaits transfer to “a suitable venue for public display.” She did not immediately respond to a request for comment on the demand for repayment of federal funds.

The mural was created in large part with a federal grant that provided 63 percent of the cost of art work. Gilbert’s letter said the state must return 63 percent of the current fair market value of the mural, which could now be higher than the $60,000 it cost to create it.

“Alternatively, the state could again display the mural in its headquarters or in another state employment security building,” the letter said.

U.S. Labor Secretary Hilda Solis has not commented publicly on the mural dispute. Her spokesman, Carl Fillicio, said she “has monitored the situation and asked staff to look into it.”

LePage’s decision to remove the mural was prompted by an anonymous letter to the governor’s office — signed by “A Secret Admirer” — that said the mural was propaganda in line with “communist North Korea where they use these murals to brainwash the masses.”

By: Associated Press, Bangor Daily News, April 4, 2011

April 4, 2011 Posted by | Class Warfare, Collective Bargaining, Conservatives, GOP, Gov Paul LePage, Ideology, Labor, Maine, Politics, Republicans, Union Busting, Unions, Wisconsin | , , , , , | Leave a comment

Wisconsin Gov. Scott Walker Shows Why Ideologues Can’t Govern

Ideologues make lousy politicians, even worse office holders. The ideological straight jacket does just what you would expect–it constricts movement. Everything is nice and neat and tight but not conducive to serious efforts to move forward. Politicians such as Scott Walker, who put themselves in ideological straight jackets, either live to regret it or are thrown out on their ear, or both.

Intellectuals sometimes make good ideologues, cultural commentators make very thought provoking arguments, philosophers have the luxury of being way out on the edge at times, but those who go into office find that they are rejected very quickly by the public when all they have is their ideology.

Scott Walker is the latest example of an ideologue–combined with a self righteous, bullying approach, not backed up by intellectual rigor.

My guess is that the events of the last month will not only harm him politically in the short run but will result in a serious problem for those who follow in his footsteps.

First and foremost, his approach to governing won’t work. Cutting taxes for ideological reasons, rather than pragmatic ones, prohibiting local governments from paying for education with their own decisions on local taxes, cutting services to the bone, breaking collective bargaining with unions, making them a scapegoat, just won’t wash.

Look at the governors who are putting forth a balanced, reasonable approach to focusing on the dual realities of too much spending and too little revenue. They are not engaging in a hard and fast ideological battle. They are pragmatic. They do not focus only on slash and burn cuts but, rather, are flexible enough to include tax and fee increases.

What was Walker thinking, cutting taxes by $117.2 million as his first act when his state faced a deficit of $137 million? I guess I get the million dollars he included to encourage businesses to move to Wisconsin but I sure as heck don’t understand a $49 million tax cut for health savings accounts. The rich will take advantage of that boondoggle and it won’t create jobs.

That was ideology, not pragmatism.

Look at Gov. Jerry Brown in California, or Mark Dayton in Minnesota, or John Kitzhaber of Oregon, John Lynch of New Hampshire, Pat Quinn in Illinois, or Andrew Cuomo in New York. These are governors, many of whom have a lot tougher problem than Wisconsin, who are struggling and succeeding, not resorting to hard ideology, not refusing to look at the revenue side of the equation.

If members of Congress take lessons from the states, they should learn a whopper from Wisconsin. Don’t follow in Walker’s footsteps, look to the governors listed above.

In fact, they can even look to Ronald Reagan who as governor way back in 1967 raised taxes by $1 billion in California as well as cut the budget. As president, he raised taxes in every year but one, when it was necessary. He learned very quickly about “never saying never.” He didn’t put himself in the ideological straight jacket that many now fantasize about. I am not a Reagan fan, but I do recognize he was pragmatic.

Walker is in way over his head. Sadly, he has been a train wreck for his state. Let’s not let his style and approach be a train wreck for the nation.

By: Peter Fenn, U.S. News and World Report, March 11, 2011

March 12, 2011 Posted by | Budget, Class Warfare, Deficits, Economy, Governors, Ideologues, Jobs, Middle Class, Politics, States, Unions | , , , , , , , , , , , | Leave a comment