NO WE WON'T
AND THEY DIDN'T
Although President Obama was able to get a compromise with the GOP leadership, it continues wealth distribution upward and only temporarily helps middle class Americans. It may be the best that can be obtained, but it is hoped that the Democratic Congressional leaders can get A NEW DEAL.
One GOP assertion is the idea that the rich are “job creators”. They are not. Most of the high earners are Wall Street operators, who are getting the best of the GOP deal, are "finance managers" who only incidently (30% of business) invest in companies that are going to manufacture something. They sell short, speculate on currency differentials or gamble with hedge funds. Trading "credit default swaps"; creating & selling "collateral backed securities” and selling securities short; does nothing to grow the economy or to create jobs.(1)
These investments are big stakes gambling. If the investment firms and the "high earners" used their own money, no one could complain - or even care. However, they use bank deposits, 401k money, retirement funds and other “public” money. When these bets fail – the Federal Reserve Bank and the Bush administration protect them. Bush’s TARP (Troubled Asset Recovery Program) did not protect the depositor, or the people with IRAs and 401Ks, or even the stock holders in some companies. However, the money managers continued to receive billion of dollars in bonuses much of it from TARP. (2) It is these millionairs that are the receivers of the big tax cuts.
What can be done? Many have sent me Rabbi Michael Lerner’s recent article in the Washington Post that suggests action. That action perceives leadership failures of President Obama and the need to consider alternatives and seek new leadership. His admittedly sad recognition of the leadership failures of President Obama leads to the thinking of moving on without him. I do not yet agree with him but it is hard not understand his point. The Lerner article may be found at:
http://www.washingtonpost.com/wp-dyn/content/article/2010/12/03/AR2010120304148.html
We need a NEW – NEW DEAL. The GOP continues class warfare on the middle class. I understand the President's dilemma and fear of cutting off benefits for the 2 million unemployed and the reinstatement of taxes on the middle class. However, kicking the can down the road is not, in my opinion, the answer. The 7 or 8 Billion dollar deficit caused by the compromise saddles the middle class wage earners and not the future bonus millionaires.
When to hold them and when to fold them is always a tricky issue. We know that the President has his heart in the right place. He did get some real progressive benefits. However, I am afraid that we are just postponing the inevitable and that is the need to change the continued Corporate, Tea party and GOBP agenda. What happens when there is a need to increase the Debt limit. Will the GOP compromise? I suspect not and then we are arguing about cutting Medicare and Social Security. Should we not be discussing that issue before the compromise not after. President Obama and others have referred to the GOP has holding the unemployed and middle class hostage. The so called compromise does not release the hostages, but gives only a temporary reprive.
Political action is suggested as the partial answer in David Koren’s new book Agenda for a New Economy. It is an answer to consider – and that consideration is needed now. His long and short term goals need examination by all. In the meantime, political action is needed now. To the question of whether political action can overcome overwhelming corporate power – as Jefferson, Washington and Adams overcame the overwhelming Monarchy Power – the answer is YES WE CAN!
We need a long term plan but right now we need to call and encourage our Senators and Congressman Murphy. Urge them to work with Vermont Senator Sanders to get a NEW DEAL.
References:
(1) http://www.msnbc.msn.com/id/40504582/ns/politics-capitol_hill/
(2) The Big Short by Michael Lewis; When Genius failed by Roger Lowenstein, Agenda for a New Economy by David Korten
(3) The New York Times, Global Ed. www.nytimes.com/2010/04/01/business/01hedge.html
Pay czar: ‘Ill advised’ bonuses at 17 bailed-out banks. msnbc.com news services. http://www.msnbc.msn.com/id/38376709/ns/business-us_business/
