“The Rise Of The Super Rich”: GOP Congress Really Does Make The Rich Richer
Are you rich and want to get richer? Vote Republican! The stronger the GOP is in Congress, the larger the share of wealth the top 1 percent controls, according to a new study in the October issue of American Sociological Review, which confirms what we figured all along — there’s a direct connection between the rightward shift of Congress and the upward advance of the richest Americans’ net worths.
From 1949 through 2008, the impact of a 1 percentage point increase in the share of seats held by Republicans in the House (a little over five seats) raised the top 1 percent’s income share by about .08 percentage points.
“At first glance, this might seem negligible,” said Thomas Volscho, a sociologist at CUNY-College of Staten Island who co-authored the study. But it’s not. “Given that the estimated national income in 2008 was more than $7.8 trillion, an increase of only 1 percent in Republican seat share would raise the income of the top 1 percent by nearly $6.6 billion. That equates to about $6,600 per family in the top 1 percent.”
The ASR study, “The Rise of the Super-Rich,” looks at the experience of the 1 percent from just after World War II to 2008 and identifies several other factors that have propelled the top tier’s rise. The fact that the uber wealthy have gotten richer much faster than lower-income brackets has been well documented and helped spark the Occupy movement, but this research looks at the role that policy and other variables have played.
Beyond politics, Volscho and Kelly found that the decline of private-sector union membership, and the increasing financializing of the economy — which has heightened the impact of financial-asset bubbles — were also key contributors to income inequality and the rise of the 1 percent. Over the 60 years the paper studied, a 1 percentage point decrease in union membership among private sector workers was linked to a more than 0.4 percentage point increase in the income share of the super-rich.
But the most surprising finding of the study may be the impact a GOP Congress has on income inequality. “Based on our analysis, Democrats appear to favor an economic system that produces more egalitarian outcomes even before any redistribution occurs,” the study concludes. “In essence, the market is not completely beyond the influence of politics and policy, and it is not just in the realm of explicit redistribution that political parties produce divergent distributional outcomes. Political decisions in part ‘make the market.”
Interestingly, the party affiliation of the president did not significantly impact the wealth share of the top 1 percent. Volscho told Salon he was surprised by that finding. Instead, it’s Congress that has the bigger impact. “It was surprising, but not. Because if you look at, in 1995, the Republican takeover over Congress, that’s when you started to see the spike in the top 1 percent,” he said. “They had been doing well since around 1980, but not as well as around 1995. And the stock market boom started in 1995 as well, but we took that into consideration and that had an independent effect.”
The study doesn’t get into specific policies that impact income inequality much, calling for further research on the subject, but it doesn’t take a Ph.D. to make some pretty good guesses. Republicans (with help from Democrats, no doubt) have pushed tax cuts that disproportionately impact the wealthy, opposed redistributive programs, decreased financial regulation, which allowed for the explosion of financial speculation, cut education funding, etc. “There are so many things, appointments, heads of agencies, mundane policies and regulations that filter down from Congress into government agencies that potentially can aid the very rich,” Volscho said.
But a Republican president like Mitt Romney could help in that they would “make that pro-1 percent legislation flow through so much quicker,” Volscho said. Of course, this isn’t too surprising — polls consistently show that Americans think Romney and the GOP would do more to help the wealthy. Now social science shows they’re right!
By: Alex Seitz-Wald, Salon, October 2, 2012
“Bob Woodward Is Still Useless”: The Fetishization Of Compromise And The “Magical President” Theory Of Governance
Remember that long New York Times Magazine “tick-tock” (“tick-tock” is an asshole phrase for “long article about how an important thing happened involving lots of interviews with observers and participants”) about the debt ceiling deal falling apart? And then that Washington Post one? And remember how we all basically know exactly what both sides thought of the other, and how all the accounts of the negotiations collapsing amount to partisan Rorschach tests in which each side thinks the other bears responsibility for the breakdown? Well, Bob Woodward is finally bringing us the definitive (unnecessary, redundant, pointless and late) account of this thing that we have read so many accounts of already. Aaaand it turns out that both sides are to blame for everything, always.
The book is out Tuesday. Naturally, the Post was allowed to run a news story detailing some of the book’s juicier bits before the book’s release. Likewise, various other news organizations got their hands on embargoed copies (by going to bookstores and buying them early) and served up their own summaries. And so any interesting nuggets of information in this book will have been endlessly chewed over by the time the thing is officially on sale.
Not that there’s that much nugget material! The New York Times:“The book highlights problems that are well known in Washington, but Mr. Woodward manages to get the president, Mr. Boehner and their inner circles to talk about them.” Quite the journalistic coup!
The Times goes on, in a slightly catty fashion:
Last summer’s bitter budget negotiations have been hashed over in several lengthy news accounts and Mr. Woodward’s is the most exhaustive, although it is not clear how much new information, if any, he has uncovered.
The big “revelation” is that President Obama chews Nicorette and John Boehner drinks merlot. Merlot! That’s a sissy big-city effete liberal drink. Oooh, merlot, I bet that’s real refreshing after you’re done mowing your lawn (and weeping).
More revelations (that have already been reported elsewhere): Pelosi and Reid don’t work well with the president. Eric Cantor constantly undermines Boehner, and they hate each other. Everyone — Democrats and the entire GOP leadership — thinks the Tea Party people are insane. Everyone in Washington is super petty and very easily offended!
The book reflects the surreal Washington consensus surrounding the importance of immediate deficit reduction in as regressive (“tough”) a fashion as possible. All Serious People agree that it is Very Important that we rein in “entitlements” in the midst of a prolonged and disastrous employment crisis and that it is a tragic thing that we missed an opportunity to get some retirement ages raised last year, to Save The Economy. And a major theme, of course, is that Obama didn’t use his magic president powers hard enough.
The problems of a bitterly divided government, one involving dozens of choke-points for any legislative proposal and with one arm being presided over by a guy with absolutely no control over the large apocalyptic death cult wing of his party, are of course all described as failures of President Obama to “lead.” Why couldn’t he “lead” John Boehner to “lead” the fanatics in the House to do something none of them had any interest in doing??? Why couldn’t he “lead” John Boehner to call him back when Boehner was too scared to call him back because he knew he didn’t have the authority or power to promise enough votes to pass anything???
From the Post:
In his final chapter, Woodward faults both Obama and Boehner for their handling of the fiscal crisis, concluding that “neither was able to transcend their fixed partisan convictions and dogmas. Rather than fixing the problem, they postponed it. … When they met resistance from other leaders in their parties, they did not stand their ground.”
He has tougher words for Obama. “It is a fact that President Obama was handed a miserable, faltering economy and faced a recalcitrant Republican opposition,” he writes. “But presidents work their will — or should work their will — on important matters of national business … Obama has not.”
This is rich. The fetishization of compromise for the sake of compromise — merit or lack thereof of “each side’s” position wholly ignored! — plus the Magical President Theory of governance. Presidents should “work their will … on important matters of national business,” according to the guy who co-wrote “All the President’s Men” and “The Final Days.” What a wonderful combination of meaningless and craven that “work their will” construction is. Bob Woodward refuses to acknowledge the limits of a president’s power but also thinks the president has a responsibility to exceed them in the name of accomplishing a policy shift that few Americans (and not even a majority in Congress) actually want.
(The other lesson is that economic hostage-taking will never actually be punished, especially if it’s successful. Screw the economy to win a political battle over tax rates, and Democrats will be attacked for not acquiescing to large enough cuts in programs for the poor! And now here come the hacks like David Feith using the book to pin the defense cuts in the hilarious sequestration deal on the White House.)
The book also apparently features yet another entry in the “Obama fails to talk to CEOs in a way that they find sufficiently deferential” genre. This time it’s the CEO of Verizon, a corporation that is pretty much horrible.
From the Post:
In the same vein, Woodward portrays Obama’s attempts to woo business leaders as ham-handed and governed by stereotype. At a White House dinner with a select group of business executives in early 2010, Obama gets off on the wrong foot by saying, “I know you guys are Republicans.” Ivan Seidenberg, the chief executive of Verizon, who “considers himself a progressive independent,” retorted, “How do you know that?”
“Who considers himself a progressive independent.” Oh, sorry, I guess it was very rude to assume the rich, union-busting telecom CEO is a Republican and not a made-up vague other thing. IT GETS WORSE:
Nonetheless, Seidenberg was later pleased to receive an invitation to the president’s 2010 Super Bowl party. But he changed his mind after Obama did little more than say hello, spending about 15 seconds with him. “Seidenberg felt he had been used as window dressing,” Woodward writes. “He complained to Valerie Jarrett, a close Obama aide … Her response: Hey, you’re in the room with him. You should be happy.”
Thank god Bob Woodward is around to make sure the American people know the truth about whether or not the CEO of Verizon had fun at the White House Super Bowl party.
Anyway thank god this horrible deal collapsed. Good work squabbling and fighting, vile partisans!
Hey, remember when Bob Woodward said a Biden/Hillary VP switch was “on the table” and then it turned out that his source was apparently Mark Penn, who has nothing to do with this administration because he is a reviled grifter? Because no one will bring that up when Woodward makes the rounds to promote this new book.
By: Alex Pareene, Salon, September 10, 2012
“He Who Has No Name”: At News Conference, Republicans Made No Reference To Party Standard-Bearer Mitt Romney
Republican leaders had all kinds of things to talk about in their first day back on Capitol Hill from their month-long recess.
They spoke about jobs and the economy, about military spending and automatic budget cuts, about the national debt and the need for energy legislation.
But there was one thing House Republican leaders did not mention in their statements to the cameras after Tuesday morning’s caucus: Mitt Romney.
They uttered 1,350 words in their opening remarks at the news conference but made no reference to the party standard-bearer who would be at the top of their ticket in just 56 days.
NBC’s Luke Russert tried to help the lawmakers address this omission. “Governor Romney said that it was a bad decision for Republicans to agree to the bipartisan debt deal,” he pointed out. “What’s your response to him?”
House Speaker John Boehner, who negotiated the deal, looked unwell.
“I don’t think there’s anybody that worked harder than Eric and I to try to work with the president to come to an agreement,” he said, with Majority Leader Eric Cantor standing just behind him. Boehner tried to pin the agreement’s automatic cuts in defense spending on President Obama, but he ultimately defended the package: “Somehow, we have to deal with our spending problem.”
That Romney would go on “Meet the Press” and say that last year’s bipartisan spending deal was a “mistake”— never mind thatRomney had applauded Boehner for negotiating the deal at the time — made clear that the GOP nominee does not wish to run on the record of congressional Republicans.
That House Republicans would not so much as breathe Romney’s name makes clear the sentiment is mutual.
The seven leaders at the microphone didn’t mention Romney even when asked about him — as though he is some sort of political Voldemort. Instead, they kept contrasting House Republicans’ record on jobs bills with those of Senate Democrats and the White House while leaving Romney out of it.
For good measure, the Republican lawmakers also praised a bill that would remove trade restrictions on Russia, a country Romney has called “our number one geopolitical foe”; Romney opposes the trade measure unless Russia is also punished over human rights.
The estrangement seen in the past few days is part of a broader dynamic in which the Republican Party seems to be readying itself to cut and run from its nominee. At the convention in Tampa, a gaggle of younger Republicans — Chris Christie, Scott Walker, Nikki Haley, Rand Paul — delivered speeches light on mentions of Romney and heavy on self-promotion. Overall, Romney was mentioned far less at his convention than Obama was at the Democratic convention.
This tepidity furthers the impression that Romney is a placeholder for the next generation of Republicans, tempered by partisan squabbles and disciplined by conservative activists, and unwilling to negotiate or compromise. Romney himself, though a businessman by temperament, had to affect the younger Republicans’ mannerisms to win the nomination. He further ingratiated himself with the young conservatives by tapping as his running mate Rep. Paul Ryan — one of a trio of self-styled “young guns” in the House, with Cantor and Majority Whip Kevin McCarthy.
In the House GOP caucus meeting Tuesday, Boehner told his members privately that the choice of Ryan “validated all the work House Republicans have done over the past 19 months.” Boehner is correct about that. The Ryan choice was a bow to where the power is in the party, where it’s going and who its future leaders are. If Romney wins, congressional conservatives would drive his agenda from Capitol Hill. If Romney loses, congressional conservatives would immediately inherit the party in preparation for 2014 and 2016.
Either way, it promises to be a cacophony. At the news conference that followed the caucus gathering, a campaign-style backdrop proclaimed “Focused on American Jobs” and repeated the phrase “American Jobs” 30 times. But it was also Sept. 11, and Rep. Cathy McMorris Rodgers (Wash.) argued that the hijackers “didn’t attack us as a Republican or a Democrat; they attacked us as Americans, and we would do well to remember that.”
The leaders had difficulty sticking to either theme in their zeal to campaign against the president: “There’s a lack of leadership in this administration. . . . Can’t find a job in the Obama economy. . . . The president has done nothing.” Boehner said he was “not confident at all” about avoiding downgrades of U.S. debt, accusing Obama of being “absent without leave.”
Actually, Obama has been present; Republicans just find his presence objectionable. The notable absence from congressional Republicans’ calculations is Romney.
By: Dana Milbank, Opinion Writer, The Washington Post, September 11, 2012
“Benjamin Franklin Would Gag Today”: If Congress Can’t Fix The Postal Service, It Can’t Fix Anything
Most Americans know that the U.S. Postal Service is a mess. What they also ought to know is that Congress is largely responsible for this once-competent institution’s bad rap.
This is the same Congress that is going to have to bring Medicare back from the brink of insolvency, find a way to fund Social Security as it becomes top-heavy with retired baby boomers, and pay down trillions in federal debt without short-circuiting the whole economy. Compared with all that, fixing the Postal Service is easy. Yet Congress dithers, cultivates decline and allows festering problems to become worse.
The Postal Service has been making headlines again because it just defaulted on a $5.5 billion payment due to the U.S. Treasury to fund healthcare costs for future retirees. Another such default is likely at the end of September. The details are technical and boring, and for now, the mail will still show up in the mailbox. So the members of Congress perpetrating the default—mostly House Republicans—act like it’s no big deal.
But it is a big deal because the recalcitrance of political leaders shows an alarming willingness to dismantle the basic machinery of the economy. The Postal Service isn’t some dispensable outpost doing research on cow pies or freshmen mating habits. It’s an elemental part of the government that has been around since before the Constitution. Benjamin Franklin, the seminal American, was the first Postmaster General. He’d gag at today’s handling of the Postal Service.
Here’s the basic background: In 1971, Congress reorganized the USPS as an independent agency that’s supposed to pay for its operations through stamp sales and other forms of revenue, like a normal company. But the catch is that Congress still holds sway over strategic decisions, and most Postal Service employees are treated as members of the federal workforce. So at best, the Postal Service is a hybrid organization that’s as vulnerable as ever to political meddling.
That’s what is holding up reform plans now. The Postal Service itself has detailed a plan to eliminate Saturday delivery, consolidate processing centers, close underperforming post offices and make other cuts to adapt to a technology-driven economy that is obviously less dependent on physical mail delivery than in the past. Hundreds of regular companies have changed their business models and made similar adjustments to survive. Those that didn’t—Eastman Kodak, Borders, Lehman Brothers—paid a brutal price.
The Senate has even passed a bill that would fix some of the Postal Service’s problems and buy time to sort out others. That brings us to the House, where sensible legislation goes to die. There is a House bill meant to fix the Postal Service, but House leaders won’t bring it up for a vote. Nor will they vote on the Senate bill. House leaders like Speaker John Boehner and Majority Leader Eric Cantor won’t say why, exactly.
Most likely, there’s not enough support in the House to pass any bill, so holding a vote would be an embarrassing setback for the GOP leadership. Opposition to reform seems to come from some usual suspects, such as rural lawmakers who don’t want postal facilities in their districts closed. Others (including Republicans) object to provisions that would allow the Postal Service more freedom to lay off unionized postal workers. Then there are Tea Party types who would prefer to privatize the agency, or who seemingly want to starve it of cash, so that … well, it’s not clear what purpose that would serve. What makes this standoff infuriating is that there are plenty of proposed solutions, including studies by at least three well-known consulting firms that execute corporate turnarounds for a living. There’s no need for further analysis, there’s only a need to make a decision and do something.
But the problem can be put off for a little longer, even if that makes the ultimate solution more expensive and encourages big mailers like Amazon and other retailers to look for other delivery choices. So Congress does less than the bare minimum and the Postal Service drifts toward ruination. Maybe the House will get to it in the fall, after their customary six-week August vacation. Maybe next spring. Maybe never, in order to show those impudent postal employees and their arrogant customers who’s really in charge around here.
Meanwhile, at the end of this year, Congress needs to come up with a deft way to forestall billions in tax hikes and spending cuts that will induce another recession if allowed to fully go into effect. By early next year, it will have to come up with a way to extend the government’s borrowing limit while also weaning Washington off its desperate borrowing habit. Then come some huge decisions about how to reform Medicare, Medicaid, Social Security and the long-term defense budget. If the handling of the Postal Service is any indication, we all ought to be terrified.
By: Rick Newman, U. S. News and World Report, August 1, 2012
“Radical And Anti-Thought”: Remember The Party Of Personal Responsibility?
The House Republicans are going to vote today to repeal the ACA, and the message they’re going to be sending to people who have cancer or diabetes or any number of other diseases but don’t have insurance is simple, and forgive my bluntness in this non-family newspaper where such language, I’m given to understand, is occasionally permisslbe. The message is: Fuck off.
Matt Miller put the matter powerfully in his Post column yesterday:
Here’s what you should do, Mr. President. In the debates this fall, pull out a small laminated card you’ve had made as a prop for this purpose. Then remind Mitt Romney that the ranks of the uninsured today are equal to the combined populations of Oklahoma, Connecticut, Iowa, Mississippi, Kansas, Kentucky, Arkansas, Utah, Oregon, Nevada, New Mexico, West Virginia, Nebraska, Idaho, Maine, New Hampshire, Hawaii, Rhode Island, Montana, Delaware, North Dakota, South Dakota, Alaska, Vermont and Wyoming.
Read that list slowly, Mr. President. Then ask your opponent: Would America turn its back on the citizens of these 25 states if everyone there lacked basic health coverage? That’s what we’ve been doing for decades. You knew it was right to act when you were governor of Massachusetts, Mitt. How can you pretend we don’t need to solve this for the nation? And how can you object with a straight face when your own pioneering plan was my model?
Can I get an amen to that? And then he might add something like, “As you said many times yourself, Governor, the point of requiring people to buy insurance is to instill a sense of personal responsibility. No free riders. No trips to the emergency room that the rest of us pay for. Why did you believe in personal responsibility then but are against it now?”
I swear, as I noted yesterday, this is starting to smell to me like an issue the Democrats can win votes on this fall. Believe me, if I thought the opposite, I’d say so. I did think the opposite just a few weeks ago. What changed?
John Roberts, basically. Politically, his signing on to the decision lends a bulletproofness to the Democratic position, changes the whole mentality of the debate. If it had been Kennedy with the liberals, meh. But Roberts’ stamp of approval on the plan allows the Democrats some room to play offense. And that offense is built around one simple claim: Republicans would deny coverage to sick people and let them die.
Sprinkling a little personal responsibility sugar on top can’t hurt. Use their blind extremism against them. Here is a position that was once theirs, that they came up with and that they’ve now abandoned, just because Obama took it up. It’s a great marker of how radical and anti-thought they’ve become, that they’re now willing to let people suffer and die in the hopes that they can defeat a political adversary.
By: Michael Tomasky, The Daily Beast, July 11, 2012
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