You are browsing the archive for Corporations.

Dear Mr. Speaker!

4:46 pm in Uncategorized by Donald Goldmacher

This entry was written by HEIST co-director/co-producer Frances Causey.

In opening the 113th Congress last Thursday House Speaker John Boehner declared that debt is imperiling the American Dream. This is the kind of intentionally misleading narrative Republicans, in collusion with corporate America and conservative think tanks, have spent 40 years and billions of dollars developing. Unfortunately, the old adage rings true that if you repeat a lie enough it becomes fact.

First, Speaker Boehner you are a bit confused about debt. And so are you Mr. President. Debt is not stealing the American Dream. Corporate America and its political collusion with Democrats and Republicans are. But lets cut to the political-economic quick America, we have one political party-the corporate party.

Look to any primer on debt provided by progressive economists like Dean Baker who predicted our economic collapse. According to Baker, the housing collapse, brought on by reckless Wall St. financial scams (think sub-prime mortgage and collateralized mortgage backed bonds), sank the world economy –and the steps that government took to counter all of this—created the preponderance of our debt. According to Baker this is indisputable. Many other economists like Robert Kuttner also echo this.

In 2007 the budget deficit was just 1.2 percent of gross domestic product output, a very reasonable amount. According to the Congressional Budget Office, this year’s deficit will measure 7.3% of GDP. So the increase in the public debt since 2007 can be squarely placed at the foot of Wall Street. Financial corporations (Countrywide, etc.) peddled “debt” to those who could least afford it, those who yearned for their slice of the American Dream-owning a home. Even former Treasury Secretary Hank Paulson admitted in a 2009 Vanity Fair article that he and his Wall Street cohorts said housing would continue to go up in value. But Conservatives love to blame the victims as part of their narrative in order to rally their base, which conveniently believes that personal debt caused our current troubles. Nothing could be further from the truth. Just ask Senator Elizabeth Warren who studied this extensively while at Harvard. I think it’s more plausible to blame those at the top of the pyramid who knew exactly what they were doing.

But tell that to Speaker Boehner and the “fix the debt” Corporate CEO’s who apparently were inspired by the guy who got us into this mess in the first place- Alan Greenspan! So instead of fixing the roots of the problem, which is corporate control of politics and the economy, these corporate acolytes want to instead swoop in and fix (in the coming negotiations over extending the debt ceiling) what ain’t broke, which is Social Security and Medicare!

In his speech Speaker Boehner said that if we “free ourselves from our debt“ (read that: reduce the social safety net) our economy will be set free and jobs will come home. Oh the hypocrisy! You know as well as anyone, Mr. Speaker, that most manufacturing jobs are not coming back to America.

Jobs are leaving America because you, at the behest of the corporations, passed laws that made exporting jobs incredibly profitable. Those laws are enabling 70 U.S. based corporations to not pay taxes on over 1.2 TRILLION in profits around the world.

In his remarks, Speaker Boehner cites that debt is “draining free enterprise”. Corporate profits have never been higher, but nor has inequality, a fact you will never hear from the Speaker. Work no longer pays in America. The game is fundamentally rigged and ordinary people who do everything right, who play by rules, still end up with the short end of the stick.

But make no mistake, the corporate party knows there is plenty of prosperity in America-it’s in the hands of the 1%. Investors all over the world are plowing into U.S. Treasury bonds, signaling a federal government nowhere near default. CEO’s know this, politicians know this and Wall Street investors know this but the media doesn’t, or at least doesn’t understand or acknowledge it, and therefore most Americans don’t either. I call it media free of fact.

But the reality Mr. Speaker, one that working Americans feel in their guts everyday, is that since the great collapse- created by corporate domination of our political economy-trillions in housing wealth has been lost, millions of families lost their homes to foreclosure, many millions more are underwater, millions remain out of work and over 46 million Americans live poverty. But you and your colleagues continue to play political games at the public’s expense and pander to the corporate elite who elected you. You can change that, by overseeing a government that represents ALL OF US, not just its profit at any cost corporations.

This entry is also available at Daily Kos.

What Would FDR Do?

2:17 pm in Uncategorized by Donald Goldmacher

Written by HEIST co-director/co-producer Frances Causey.

History has proven time and time again that the United States has prospered the most when capital and labor work hand in hand with each other. When they don’t, you get the likes of Michigan, Wisconsin, Hostess and Wal-Mart. Henry Ford understood that he needed to pay his workers well or who else would buy his automobiles? Pretty logical, huh?

Today, the balance of power between workers and capital has been obliterated with a tiny few elites making off like bandits as we have illustrated in Heist. The 1 percent has captured 93 percent of income growth since the alleged recovery of the economy. (This page asks, how can this truly be a recovery when only 1 percent of the population benefits?)

The tragedy is that our own lawmakers have allowed American corporations and the super rich to makeover government to suit their own whims. Don’t be deceived. American corporations have abandoned America for emerging markets, dispensing with loyalty as easily as they would an unprofitable manufacturing sector. Corporate media consolidation has sold this bill of goods (free market mysticism) to the American people as patriotic.

There is a fascinating yet depressing book entitled At Any Cost: Jack Welch, General Electric, and the Pursuit of Profit that illustrates just what has gone wrong with corporate America. Jack Welch maximized shareholder value by turning one of America’s most enterprising companies, GE, into a mercenary financial monolith that was eventually bailed out to the tune of $140 billion dollars by U.S. taxpayers.

Tens of thousands of GE jobs were (are) being outsourced at the exact moment the American people were bailing the company out! Then in the cruelest irony of all, President Obama appointed GE’s CEO Jeffrey Immelt to run his Presidential Council on Jobs and Competitiveness!

When an American corporation benefits greatly from being American (favorable tax law, use of U.S. infrastructure, protection of U.S. embassies abroad, favorable trade deals et al), it is the duty of our lawmakers who allegedly represent us to hold these companies accountable to America and her workers. We are not naïve as we understand that capital flows to the highest return but everything must have rules. The 1 percent has made their own rules and 99 percent of us are paying the price.

If FDR were president today, my guess is he would not meet in secret with the House speaker to cut a backroom deal that would further hammer the 99 percent by reducing Medicare and Social Security benefits that we have already paid for. Instead, FDR would call it like he saw it — as he did in a 1936 speech while accepting the Democratic Party’s nomination for president. FDR addressed what he saw as a grave threat to the United States from within:

“These economic royalists complain that we seek to overthrow the institutions of America. What they really complain of is that we seek to take away their power.”

The economic royalists of today are the financial and corporate elite that lobbies for their own set of rules. Both U.S. parties are beholden to their outrageous cash flows. We as a united people can’t change things until we have accepted this reality. Under FDR, workers had a seat at the table but who speaks for us now? The Progressives won with FDR and we can do it again if President Obama stands with us. If not now, when? It’s time for President Obama to channel his inner FDR — if he has it in him.

This entry is also available at The Huffington Post and Daily Kos.