“Investment Baining”: Bitter Politics of Envy?
You’re just jealous. At least that’s how Mitt Romney sees it. The millionaire who posed for a picture with the boys at Bain Capital with the long green clinched between their teeth and poking out of their collars and jackets now says that people who question what he did there, and what rich people do now, are just green with envy.
In his New Hampshire victory speech on Tuesday, Romney lambasted his Republican opponents (who have raised real issues about his role at the private equity firm Bain Capital) for following the lead of President Obama, whom he described as a leader who divides us “with the bitter politics of envy.”
The next day on “Today” on NBC, Romney defended the statement, rejecting the notion that there were questions about Wall Street behavior, saying the whole discussion was about class warfare. He even went so far as to suggest that such talk shouldn’t even be openly entertained. When the interviewer asked, “Are there no fair questions about the distribution of wealth without it being seen as envy, though?” Romney responded, “I think it’s fine to talk about those things in quiet rooms and discussions about tax policy and the like.”
In quiet rooms? That’s the problem. Too many have been too quiet for too long. And, on this point, we must applaud the efforts of the Occupy Wall Street movement. It took income inequality and corporate responsibility out of the shadows and into the streets.
A report released on Wednesday by the Pew Research Center found that about two-thirds of Americans now perceive a strong conflict between the rich and poor in this country. That was up 19 percentage points from 2009.
As The New York Times pointed out in regard to the report, “conflict between rich and poor now eclipses racial strain and friction between immigrants and the native-born as the greatest source of tension in American society.”
And this has nothing to do with envy and everything to do with fairness.
Elizabeth Warren, who is now running for the Senate seat that Romney ran for in 1994 and didn’t get, probably rebuts this myth of class warfare best by reframing the discussion in terms of a “social contract” between the rich and the rest of society. At one of her campaign events, she explained:
“There is nobody in this country who got rich on his own. Nobody. You built a factory out there, good for you. But, I want to be clear: you moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory and hire someone to protect against this because of the work the rest of us did. Now look, you built a factory and it turned into something terrific or a great idea. God bless. Keep a big hunk of it. But part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.”
That is the corporate Contract With America: societal symbiosis. We create a society in which smart, hard-working people can be safe and prosper, and they in turn reinvest a fair share of that prosperity back into society for posterity.
Everyone benefits.
But somewhere along the way this got lost. Greed got good. The rich wanted all of the societal benefits and none of the societal responsibilities. They got addicted to seeing profits go up and taxes go down, by any means necessary, no matter the damage to the individual or the collective. Those Maseratis weren’t going to pay for themselves.
And the resulting income inequality helped to stall economic mobility.
As The New York Times reported last week, “many researchers have reached a conclusion that turns conventional wisdom on its head: Americans enjoy less economic mobility than their peers in Canada and much of Western Europe.” The Times report speculated that: “One reason for the mobility gap may be the depth of American poverty, which leaves poor children starting especially far behind. Another may be the unusually large premiums that American employers pay for college degrees. Since children generally follow their parents’ educational trajectory, that premium increases the importance of family background and stymies people with less schooling.”
Indeed, a November report by the Pew Charitable Trusts’ Economic Mobility Project pointed out, “In the United States, there is a stronger link between parental education and children’s economic, educational, and socio-emotional outcomes than in any other country investigated.”
Pew has found that most children raised at the top of the income spectrum stay there and most raised at the bottom stay at the bottom.
An equal opportunity to success is central to this country’s optimistic ethos, but income inequality and corporate greed are making a lie of that most basic American truism. The rich and their handmaidens on the political right have consolidated America’s wealth on the ever-narrowing peak of a steep hill and greased the slope. And they want to cast everyone at the bottom as lazy or jealous, without acknowledging the accident of birth and collusion of policies that helped grant them their perch.
Income inequality is a threat to this country and the middle class that made her great. If Romney wants to be president, he needs to understand that.
As Alan Krueger, the chairman of the White House Council of Economic Advisers, said on Thursday, “I think it is clear that we can’t go back to the type of policies that exacerbated the rise in inequality and threatened economic mobility in the first place if we want an economy that builds the middle class.”
Not envy Mr. Romney. Opportunity.
By: Charles Blow, Op-Ed Columnist, The New York Times, January 13, 2012
The Primary Primer: “Why Won’t These People Leave”?
I am feeling totally cheated. The New Hampshire primary is over, and none of the Republicans went away.
This is not how things are supposed to work in America. Every week, one contestant is supposed to be eliminated. That’s the way it is in politics — one day you’re in, the next day you’re out. Why won’t these people leave?
Well, here we are. All six alleged Republican presidential contenders are still with us and getting ready for the next primary in South Carolina, the Palmetto State.
You probably have some serious policy-based questions.
What is a palmetto?
Not really a good question, but it’s a tree. A palmetto bug is a large, flying cockroach, but that is definitely not on the state flag.
South Carolina is also known as “The Iodine State,” but that absolutely never comes up in political commentary.
What will the big issues be in the South Carolina primary?
When five of your six candidates could not be elected president if they were running against Millard Fillmore, I think you can presume there will not be much serious issue discussion.
However, there will undoubtedly be a great deal of talk about the threat of European socialism and whether or not Mitt Romney is a vulture. One of those venture capital vultures that, in the inimitable words of Rick Perry, are “sitting out there on a tree limb, waiting for the company to get sick, and then they sweep in, they eat the carcass, they leave with that, and they leave the skeleton.”
Also, whether Mitt Romney is an Obamacare-passing European socialist.
Has Romney figured out how to explain the nearly identical-to-Obama’s health care law that Massachusetts passed when he was governor?
Yes! This is all about each state finding its own, unique answer to its own special health care issue. Romneycare, Mitt explains, was right for Massachusetts because the state was faced with the choice of requiring everyone to have health insurance or continuing “to allow people without insurance to go to the hospital and get free care, paid for by the government, paid for by the taxpayers.”
This shows you how different the situation in each state is, since it is well known that in other parts of the country, sick and uninsured people do not go to hospitals but instead are encouraged to present themselves to the nearest local nail salon.
What do the Republicans have against Europe?
All the candidates in the Republican primaries seem obsessed with the idea that the United States is in danger of becoming like Europe, which would be the worst thing imaginable. (Rick Santorum: “They have nothing to fight for. They have nothing to live for.”) The Gingrich camp claimed that Mitt Romney was a fan of “European socialism” when he said something nice about the value-added tax.
However, it’s been Mitt that’s been sounding the most Europhobic. He’s been warning that the president “takes his inspiration from the capitals of Europe” and is attempting to turn the country into a “European-style social welfare state.” (Do you think he really means: Takes his orders from the capitals of Europe? Next stop: “Barack Obama, Brussels Puppet.”)
What do you think’s up with Mitt? Perhaps he’s afraid we’ll all start demanding free child care and fresh-baked bread. He did live in France for more than two years as a Mormon missionary and he didn’t make many converts. Also, he had harsh things to say about the toilets.
Why is Newt Gingrich still running for president? Aren’t voters fleeing from him as if he were a rabid palmetto bug?
To understand Newt Gingrich, you have to envision a mixture of “Kill Bill” and “Carrie,” after Sissy Spacek gets hit with the bucket of blood. His only mission in life is getting even with Mitt Romney and the rich minions who paid for all those anti-Newt ads in Iowa. He is exactly like Sweeney Todd mixed with Charles Bronson in “Death Wish.” And maybe a smidge of “Shogun Assassin.”
Now Gingrich has roped in a few rich minions of his own, and you should watch the video they’ve just put out. Romney looks worse than the evil banker in “It’s a Wonderful Life.” It’s full of heart-tugging former factory workers who used to have happy homes and wonderful Christmases until … Mitt Romney Came to Town. By the time it’s over, you will want to gather up the peasants and march on one of Romney’s mansions with flaming torches.
There is nothing Gingrich won’t do to get Mitt. At the end of the video, there’s a clip of Romney speaking French! And now Newt’s Web site has a video that basically asks whether America will elect a president who once drove to Canada with the family dog strapped to the roof of the car. Which is, of course, an excellent question.
By: Gail Collins, Op-Ed Columnist, The New York Times, January 11, 2012
Mitt Romney’s Lies: “It’s Almost As If He Can’t Control Himself”
As his briefly front-running campaign sunk in the polls under relentless punishment from Mitt Romney’s “super PAC” allies in the days before the Iowa caucuses, former House Speaker Newt Gingrich caused a brief stir by matter-of-factly telling a TV interviewer that Romney is a “liar.”
“Why are you saying he’s a liar?” his apparently shocked interlocutor pressed. The notion that Mitt Romney routinely makes statements lacking a factual basis should not come as a surprise to anyone who has followed the campaign. On the left, Paul Krugman has marveled that no other candidate has ever “lied so freely, with so little compunction.” On the right, The American Conservative‘s Daniel Larison wondered about why he lies, concluding that the former Massachusetts governor is “so contemptuous of the people he tells lies to that he never thinks he will be found out.”
With Romney sweeping Iowa and New Hampshire and leading in the polls in South Carolina, this is a good time to catalogue some of Romney’s greatest hits thus far.
“100,000 new jobs.” Romney has repeatedly claimed that during his tenure at Bain Capital, “net-net, we created over 100,000 jobs.” His campaign defends the figure by tallying the current employment totals of some companies Bain aided. That’s a stretch in and of itself, but it’s also not a net figure. It lacks the balancing context of how many jobs were destroyed by Bain. As the Los Angeles Times reported in December, while Bain helped some companies grow, “Romney and his team also maximized returns by firing workers, seeking government subsidies, and flipping companies quickly for large profits. Sometimes Bain investors gained even when companies slid into bankruptcy.”
Indeed, the Wall Street Journal looked closely at Bain’s record under Romney and found that 22 percent “either filed for bankruptcy or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses.” Which is not really terribly surprising: Bain’s raison d’etre is not job creation but wealth creation for its investors. As Washington Post fact checker Glenn Kessler noted in an article Monday calling Romney’s “100,000 jobs” figure “untenable,” Romney and Bain “never could have raised money from investors if the prospectus seeking $1-million investments from the super wealthy had said it would focus on creating jobs.”
As a corollary, when Romney’s record has been criticized, he has dismissed criticisms as an attempt to “put free enterprise on trial.” It’s not an attack on free enterprise. It’s an attack on Romney’s strained attempt to spin his successful record of wealth-creation into one of job-creation. It’s also a recognition that while a net good, the free market has its destructive side—and it’s a fair question to ask, whether voters consider experience in that sort of vulture capitalism as a good qualification for the presidency. Do they want government to be run more like that kind of business?
Obama’s jobs record. By Romney’s own logic (touting jobs created but ignoring jobs lost), his attacks on President Obama’s economic record are nonsensical. He told Time that Obama “has not created any new jobs,” and he told Fox News last week that Obama has “lost” 2 million jobs as president. This is indeed a net figure, but also a misleading one. When Obama took office, the economy was shedding jobs at a rate of nearly 1 million jobs per month, losing roughly 3 million during the first four months of 2009. But presidential policies don’t take effect as soon as the incoming chief takes his oath. Once Obama’s policies started to take effect, the trend turned. The country had added 3.2 million private sector jobs over the course of 22 straight months of private sector growth. By Romney’s definition, the president has created more than 3 million jobs—not enough, but also not none.
In fact the biggest drag on job growth is the 600,000 public sector jobs that have disappeared under the auspices of budget austerity. As my colleague Danielle Kurtzleben reported in September, “government jobs are being shed by the tens of thousands almost every month, hindering an already weak recovery.”
“Entitlement society.” Romney has argued that Obama “is replacing our merit-based, opportunity society with an entitlement society,” where “everyone is handed the same rewards, regardless of education, effort, and willingness to take risk.” As New York‘s Jonathan Chait has observed, “This accusation is approximately as accurate as claiming that the Republican Party wants to pass laws forbidding poor people from making more money.” The idea that President Obama (or any Democrat) advocates for equality of outcomes simply lacks a basis in fact.
It’s an important fabrication, because it marks a turning point in Romney’s attacks on Obama. Previously the president was characterized as ineffectual, but not a socialist. Forced to battle to win the GOP primaries, Romney has adopted the Tea Party’s extremist rhetoric. It won’t play with swing voters, even delivered in his polished drone.
Defense cuts. In an October speech on national security, Romney promised to “reverse President Obama’s massive defense cuts.” One problem: Pentagon spending has gone up under Obama, from $594 billion in 2008 to $666 billion. The 2011 request was for $739 billion. As Rick Perry would say, “Oops.”
No apologies. Romney has said that Obama “went around the world and apologized for America.” This is part of the conservative, dog-whistle meme that Obama is un-American (and possibly even a foreigner!). While the notion of an international apology tour is a staple of the conservative case against Obama, it is also fictitious. The Washington Post’s fact-checker concluded that “the claim that Obama repeatedly has apologized for the United States is not borne out by the facts, especially if his full quotes are viewed in context.” Don’t hold your breath waiting for an apology from Romney on this one.
“Mitt.” It’s a small one, but might be my favorite. During a debate in November, when moderator Wolf Blitzer introduced himself by saying that “Wolf” is really his first name, Romney greeted the audience by saying, “I’m Mitt Romney, and yes, Wolf, that’s also my first name.” In fact, Willard is his first name. It’s a lie notable for being so mundane: Why would someone fudge their name? It’s almost as if he can’t control himself.
Robert Schlesinger, U. S. News and World Report, January 12, 2012
“It’s All About Bucks,The Rest is Conversation”: Mitt Romney And ‘Envy’ Versus ‘Greed’
The 2012 presidential race is shaping up as a battle not just between candidates, but over which of the Seven Deadly Sins is most offensive to voters.
On the one side, we have envy, which GOP front-runner former Gov. Mitt Romney identified as a distasteful by-product of income inequality—or, Republicans argue, the “class warfare” provoked by Democrats. The United States “already has a leader who divides us by the bitter politics of envy,” Romney said after winning the New Hampshire primary. The line was obviously meant to undermine Obama’s 2008 pledge to bring people together, as well as to cast restless middle-class and poor people as possessing un-mannerly envy.
On the other side, however, we have greed, and that is a Deadly Sin that may haunt the eventual Republican nominee. The Occupy Wall Street movement may be dismissed (unfairly) by some as a bunch of Starbucks-sucking, whiny kids who won’t look for jobs, but it is undeniably true that a broad swath of Americans is getting more than a little resentful at the fact that the very wealthy have come through the recession quite profitably, while the low-and-middle income workers are still struggling. Many of those who managed to keep their jobs are working at lower pay and reduced benefits, further aggravating the situation.
According to a recent Pew Research Center poll, about two-thirds of the public now believes there are strong conflicts between the rich and poor. The percentage has grown by 19 points since 2009, suggesting that voters are growing far more aware of the economic division as the election approaches. The Pew report notes, even more notably:
…in the public’s evaluations of divisions within American society, conflicts between rich and poor now rank ahead of three other potential sources of group tension — between immigrants and the native born; between blacks and whites; and between young and old. Back in 2009, more survey respondents said there were strong conflicts between immigrants and the native born than said the same about the rich and the poor.
How much political capital can a candidate gain by dismissing the unemployed malcontents as immorally envious? It’s a risk, especially this year.
We all feel envious sometimes, and most of us are not proud of it (which is a good thing, since pride is another one of the Seven Deadly Sins). But that sort of envy comes from feeling ungraciously jealous when a friend gets a promotion or a new car or a charming boyfriend. Feeling resentful of Wall Street investors and bankers who made terrible economic decisions that affected the entire national economy—then continued to be extremely well compensated despite the failures—is not jealousy. It’s a reaction to what many Americans see as a basic question of fairness.
Americans are aspirational; this is why even those who will never in their lives amass $1 million still oppose the estate tax. And there is a strong sense in this country, among liberals and conservatives alike, that enterprise and creativity should be rewarded, financially and otherwise. What gets missed in the silly verbal jousting, in which President Obama has been declared a “socialist” and enemy of free enterprise, is that Wall Street itself wasn’t willing to submit to the uncertainty of capitalism. They wanted to privatize the profits. But they wanted to socialize the risk. And it was 401K holders and middle-class workers who bore the brunt of that bad risk.
There was a time when Americans could chuckle good-naturedly at the line in the movie Wall Street that “Greed is good,” and even agree with it, somewhat. But that was when envy was about who had the bigger car. The enviers now are the ones who have no health insurance and are losing their houses to foreclosure. And they vote.
“Breathtaking Dishonesty”: Romney Revives The Big Republican Lie
As Mitt Romney and the GOP’s merry band of private-equity foes take their delicious war over “good” vs. “bad” capitalism to South Carolina, don’t expect Romney’s triumphalist New Hampshire victory speech to shut his rivals down. With the slugfest heading south, the real shocker is that Romney’s chipper “I like being able to fire people” line — which will now become permanent background noise in our world, like the hum of the air conditioning — is actually much worse in context than it was when taken out.
Aficionados of this Romney gaffe know by now that Romney was referring to being able to “fire” health insurance companies that aren’t providing adequate care and coverage. But the terrible fraud in his explanation hasn’t gotten the attention it deserves.
“I don’t want to live in a world where we have Obamacare telling us which insurance we have to have, which doctor we can have, which hospital we go to,” Romney said in a rare news conference Monday afternoon to clarify his remarks. “I believe in the setting as I described this morning, where people are able to choose their own doctor, choose their own insurance company. If they don’t like their insurance company or their provider, they can get rid of it.”
On Tuesday he added: “I was talking about, as you know, insurance companies. We’d all like to get rid of our insurance companies — don’t want Obama to tell us we can’t.”
Romney’s dishonesty here is breathtaking. I used to think Republicans had taken chutzpah to unsurpassable new heights when they refused on principle to lift the debt ceiling last summer – despite having passed the Paul Ryan budget, which added more than $5 trillion in debt over the next decade.
But Romney may have topped that. He’s saying that President Obama’s Affordable Care Act — which offers people precisely the choice among competing private insurers that Romney’s own health-care reform did in Massachusetts — is instead some cartoon version of socialized medicine.
It’s a blatant falsehood. The Big Republican Lie.
Now, if Rick Perry had said this, you might say that the man just doesn’t know whereof he speaks. When Rush Limbaugh makes such bogus claims, you put it down to the ravings of an entertainer and propagandist. But Romney is a smart man. He’s also supposed to be a serious man, not a huckster. He knows better. Yet he’s made these outrageous false claims repeatedly. So this is a conscious, premeditated Big Lie.
What should we make of all this?
Let’s review. A candidate makes an obviously insensitive, unattractive remark that makes him sound like a callous, coldhearted boss, but the remark has been taken out of context. That “fire” sound bite will nonetheless become a staple of rivals’ ads and part of the Democratic onslaught if Romney is the nominee. (Look for it to be paired with Mike Huckabee’s perfect quip from 2008 that Romney “looks like the guy who fired you.”)
A fairminded citizen might feel a pang of sympathy for a politician who has to watch every word, lest it be taken out of context and turned against him. That’s why we get such robotic candidates and officials, after all.
But such sympathy dries up when it turns out that Romney’s actual meaning involves the Big Republican Lie on health care. When, in fact, Obama’s law offers exactly the same choices, via exactly the same kind of insurance exchanges, that Romney brought to Massachusetts.
Here’s another wrinkle. Romney’s passage of that health-care law – the one he’s mischaracterizing when he’s not busy running away from it – was a landmark achievement. He was the only governor who passed a bipartisan universal health-care bill. Facts are facts.
So what are we supposed to think of this man?
Here’s what we know. Romney will very casually tell the Big Lie if he thinks it will help him win. He’ll also work to enact universal health coverage if he thinks it’s a sensible path for his constituents and serves his own political ambitions once in office. Does this make him shameless and untrustworthy? A problem-solver? Both? Is belief in his own claim on power the only core conviction we can count on from Mitt Romney? Is any other presidential contender — or president — any different?
Just some questions to mull as you microwave the popcorn and settle down to watch the 30-minute video on Romney’s time at Bain in the days ahead. In the meantime, if the dictionary defines “misfire” as “to fail to ignite when expected,” and “spitfire” means “a quick tempered or highly emotional person,” I’m betting that by the time South Carolina votes, we’ll be looking at a “Mittfire” — a candidate whose loose talk on firing means he hasn’t wrapped things up when he’d hoped and who’s hopping mad about it. There’s a twist or turn left in the Grand Old Party yet.
By: Matt Miller, Opinion Writer, The Washington Post, January 11, 2012
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