Why Mitt Romney Is Unfit to Be President l Obery M. Hendricks, Jr., Ph.D. Author,”The Universe Bends Toward Justice”

 

Obery M. Hendricks, Jr., Ph.D.

Author of The Universe Bends Toward Justice: the Bible, the Church and the Body Politic (Orbis, 2010)

Why Mitt Romney Is Unfit to Be President
Posted: 11/06/2012 10:12 am

Today is Election Day. In just a few hours we should know who will lead our nation for the next four years. So let me get right to the point: Mitt Romney is unfit to be president.

No qualifiers. Simply unfit.

Why? It’s not just because he has proven to be the biggest flip-flopper and the most dishonest major party presidential candidate in our lifetimes — and perhaps even in our parents’ lifetimes. It is something much more dangerous. Mitt Romney is unfit because he is a devout and bloodless financial technocrat and a dyed-in-the-wool economic elitist. That is to say that he embodies in one tortured soul 1) the social myopia and practiced insensitivity to human suffering that is typical of the dedicated corporate financial technocrat, even when he himself has caused the suffering; and 2) he also embodies the social Darwinist condescension of upper-class economic elitists toward those on the lower rungs of the economic ladder. If Romney was simply one or the other (and had not been discredited as a shameless political liar) he might be a viable Oval Office occupant, for we’ve seen varying degrees of these characteristics there before. But Mitt Romney is something different. He embodies both technocratic and economic elitist sensibilities to an Olympian degree. That is a pairing with very dangerous implications for most Americans. Here is why.

Financial technocrats see the world through data. They make their decisions based on the numbers. Social issues are important to them only as they impact the bottom line. In their bloodless analyses there is no room for concern for the effects of their actions on the health and welfare of workers and their communities, for to them workers are merely pawns, faceless ciphers in their game of profit margins and corporate numbers. In fact, the most dedicated financial technocrats are fully blind to the needs and struggles of ordinary people. They don’t see folks who are elderly or sick or disabled or in need of assistance to feed their families. What technocrats see are financial liabilities, “entitlements” that must be paid — and cut out altogether whenever possible.

Mitt Romney is such a financial technocrat. For decades he crunched numbers and analyzed data in pursuit of maximum profitability for himself and his rarified clients and, like the typical technocrat that he is, counted workers as faceless ciphers. According to Romney’s Bain Capital colleagues, he never spoke to non-executive employees in the businesses he bought, sold and sometimes drove into bankruptcy; apparently, he never showed a whit of interest in whether his firm’s actions would benefit workers or devastate them. As Bart Gellman put it in TIME magazine, Romney was “matter of fact about business decisions that closed factories, crushed unions, outsourced services and threw employees of his companies out of work.”

The depth of Mitt’s technocratic mindset is reflected in his callously punitive budget proposal. It ends healthcare for 10 million Americans now covered by Obama’s Affordable Care Act, turns Medicaid into a voucher system that would burden already beleaguered seniors with thousands of dollars in additional out-of-pocket expenses, transforms Medicare into a block grant that would strip healthcare access from up to 28 million currently insured Americans, and removes more than 200,000 children from Head Start and 2 million mothers and children from programs that ensure them access to healthy food. (Conspicuously absent is the gutting of programs and entitlements that benefit America’s richest corporations and individuals.)

Yet Romney the technocrat does not see faces in the suffering his budget proposal would cause. He only sees numbers. That is why he can so easily reduce to an unproductive, faceless mass and a cold, hard number — 47 percent — the many Americans who rely on government aid: sick Americans, U.S. military veterans, elderly Americans, poor American children, proud American parents whose breadwinning has been reduced to unemployment checks. And what do technocrats do with unproductive assets? They discard them. That is what Romney’s policies promise to do: discard the programs and services that struggling Americans need most.

As for Romney’s upper class elitism, it is well attested. New Yorker magazine’s Nicholas Lemann put it this way: “Romney is a product of a series of interconnected, tightly enclosed worlds, with their own rules.” And from a former Romney aide: “[Mitt] is patrician. He just is. He has lived a charmed life … It is a big challenge that he has, connecting to folks who haven’t swum in the same rarified waters that he has.” David Brooks, a moderately conservative columnist at the New York Times, offers a more pointed assessment of Romney’s elitism. Of Mitt’s infamous “47 percent” rant he writes, “[I]t’s what self-satisfied millionaires say to each other.” He concludes that it “suggests that Romney does not know much about the culture of America.” Romney’s much derided attempt to make a $10,000 bet with Texas Gov. Rick Perry during a televised Republican primary election debate before a nation in which millions are struggling to make ends meet shows how little understanding and regard he has for the plight of ordinary Americans.

Romney’s 47 percent rant and his other derisive comments about the less well-off are reflective of real elitist contempt for ordinary Americans, for if those ugly indictments did not represent his true sentiments he could not have uttered them, even in error. Indeed, Romney holds the masses of the American people in such low regard that he has intentionally, repeatedly and shamelessly mislead and lied to them about any number of issues, refusing even to explain the true workings of his controversial — some have said ‘far-fetched’ — economic plans and their true consequences.

Thus the implications of the unfortunate coupling of elitist and technocratic sensibilities in Mitt Romney are as clear as day: from the first a Romney White House would not only have a built-in bias toward the richest Americans; conversely, as a matter of course it would doubly discount the interests of all those outside that fortunate few. Both tendencies are already evident in virtually every policy Romney has proposed. As for poor people, it’s almost as if Mitt sees them as a different species. Listening to his infamous pronouncement that “I’m not concerned about the poor; we have a safety net for them,” one would have thought he was speaking of nuisance pets, not human beings.

That is why Mitt Romney is unfit to be president: because his elitist policies and derisive statements demonstrate that he does not value the interests of all Americans in equal measure. A Romney presidency could well be the worst thing to happen to American workers in many years.

Obery M. Hendricks, Jr., Ph.D. is the author of ‘The Universe Bends Toward Justice: Radical Reflections on the Bible, the Church and the Body Politic’ (Orbis, 2011).

Follow Obery M. Hendricks, Jr., Ph.D. on Twitter: www.twitter.com/@UniverseBends

The Financial Elite’s War Against the US Economy

Published on Monday, December 31, 2012 by Naked Capitalism

The Financial Elite’s War Against the US Economy

Today’s economic warfare is not the kind waged a century ago between labor and its industrial employers. Finance has moved to capture the economy at large, industry and mining, public infrastructure (via privatization) and now even the educational system. (At over $1 trillion, U.S. student loan debt came to exceed credit-card debt in 2012.) The weapon in this financial warfare is no larger military force. The tactic is to load economies (governments, companies and families) with debt, siphon off their income as debt service and then foreclose when debtors lack the means to pay. Indebting government gives creditors a lever to pry away land, public infrastructure and other property in the public domain. Indebting companies enables creditors to seize employee pension savings. And indebting labor means that it no longer is necessary to hire strikebreakers to attack union organizers and strikers.

Workers have become so deeply indebted on their home mortgages, credit cards and other bank debt that they fear to strike or even to complain about working conditions. Losing work means missing payments on their monthly bills, enabling banks to jack up interest rates to levels that used to be deemed usurious. So debt peonage and unemployment loom on top of the wage slavery that was the main focus of class warfare a century ago. And to cap matters, credit-card bank lobbyists have rewritten the bankruptcy laws to curtail debtor rights, and the referees appointed to adjudicate disputes brought by debtors and consumers are subject to veto from the banks and businesses that are mainly responsible for inflicting injury.

The aim of financial warfare is not merely to acquire land, natural resources and key infrastructure rents as in military warfare; it is to centralize creditor control over society. In contrast to the promise of democratic reform nurturing a middle class a century ago, we are witnessing a regression to a world of special privilege in which one must inherit wealth in order to avoid debt and job dependency.

The emerging financial oligarchy seeks to shift taxes off banks and their major customers (real estate, natural resources and monopolies) onto labor. Given the need to win voter acquiescence, this aim is best achieved by rolling back everyone’s taxes. The easiest way to do this is to shrink government spending, headed by Social Security, Medicare and Medicaid. Yet these are the programs that enjoy the strongest voter support. This fact has inspired what may be called the Big Lie of our epoch: the pretense that governments can only create money to pay the financial sector, and that the beneficiaries of social programs should be entirely responsible for paying for Social Security, Medicare and Medicaid, not the wealthy. This Big Lie is used to reverse the concept of progressive taxation, turning the tax system into a ploy of the financial sector to levy tribute on the economy at large.

Financial lobbyists quickly discovered that the easiest ploy to shift the cost of social programs onto labor is to conceal new taxes as user fees, using the proceeds to cut taxes for the elite 1%. This fiscal sleight-of-hand was the aim of the 1983 Greenspan Commission. It confused people into thinking that government budgets are like family budgets, concealing the fact that governments can finance their spending by creating their own money. They do not have to borrow, or even to tax (at least, not tax mainly the 99%).

The Greenspan tax shift played on the fact that most people see the need to save for their own retirement. The carefully crafted and well-subsidized deception at work is that Social Security requires a similar pre-funding – by raising wage withholding. The trick is to convince wage earners it is fair to tax them more to pay for government social spending, yet not also to ask the banking sector to pay similar a user fee to pre-save for the next time it itself will need bailouts to cover its losses. Also asymmetrical is the fact that nobody suggests that the government set up a fund to pay for future wars, so that future adventures such as Iraq or Afghanistan will not “run a deficit” to burden the budget. So the first deception is to treat only Social Security and medical care as user fees. The second is to aggravate matters by insisting that such fees be paid long in advance, by pre-saving.

There is no inherent need to single out any particular area of public spending as causing a budget deficit if it is not pre-funded. It is a travesty of progressive tax policy to only oblige workers whose wages are less than (at present) $105,000 to pay this FICA wage withholding, exempting higher earnings, capital gains, rental income and profits. The raison d’être for taxing the 99% for Social Security and Medicare is simply to avoid taxing wealth, by falling on low wage income at a much higher rate than that of the wealthy. This is not how the original U.S. income tax was created at its inception in 1913. During its early years only the wealthiest 1% of the population had to file a return. There were few loopholes, and capital gains were taxed at the same rate as earned income.

By not raising taxes on the wealthy or using the central bank to monetize spending on anything except bailing out the banks and subsidizing the financial sector, the government follows a pro-creditor policy. Tax favoritism for the wealthy deepens the budget deficit, forcing governments to borrow more. Paying interest on this debt diverts revenue from being spent on goods and services. This fiscal austerity shrinks markets, reducing tax revenue to the brink of default.

The government’s seashore insurance program, for instance, recently incurred a $1 trillion liability to rebuild the private beaches and homes that Hurricane Sandy washed out. Why should this insurance subsidy at below-commercial rates for the wealthy minority who live in this scenic high-risk property be treated as normal spending, but not Social Security? Why save in advance by a special wage tax to pay for these programs that benefit the general population, but not levy a similar “user fee” tax to pay for flood insurance for beachfront homes or war? And while we are at it, why not save another $13 trillion in advance to pay for the next bailout of Wall Street when debt deflation causes another crisis to drain the budget?

But on whom should we levy these taxes? To impose user fees for the beachfront reconstruction would require a tax falling mainly on the wealthy owners of such properties. Their dominant role in funding the election campaigns of the Congressmen and Senators who draw up the tax code suggests why they are able to avoid prepaying for the cost of rebuilding their seashore property. Such taxation is only for wage earners on their retirement income, not the 1% on their own vacation and retirement homes.

By not raising taxes on the wealthy or using the central bank to monetize spending on anything except bailing out the banks and subsidizing the financial sector, the government follows a pro-creditor policy. Tax favoritism for the wealthy deepens the budget deficit, forcing governments to borrow more. Paying interest on this debt diverts revenue from being spent on goods and services. This fiscal austerity shrinks markets, reducing tax revenue to the brink of default. This enables bondholders to treat the government in the same way that banks treat a bankrupt family, forcing the debtor to sell off assets – in this case the public domain as if it were the family silver, as Britain’s Prime Minister Harold MacMillan characterized Margaret Thatcher’s privatization sell-offs.

In an Orwellian doublethink twist this privatization is done in the name of free markets, despite being imposed by global financial institutions whose administrators are not democratically elected. The International Monetary Fund (IMF), European Central Bank (ECB) and EU bureaucracy treat governments like banks treat homeowners unable to pay their mortgage: by foreclosing. Greece, for example, has been told to start selling off prime tourist sites, ports, islands, offshore gas rights, water and sewer systems, roads and other property.

Sovereign governments are, in principle, free of such pressure. That is what makes them sovereign. They are not obliged to settle public debts and budget deficits by asset selloffs. They do not need to borrow more domestic currency; they can create it. This self-financing keeps the national patrimony in public hands rather than turning assets over to private buyers, or having to borrow from banks and bondholders.

© 2012 Naked Capitalism
Michael Hudson

 

 

Michael Hudson is a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College. His latest book is “The Bubble and Beyond.”

Political Football Over Disaster Relief: Another Argument for Public Banking

Political Football Over Disaster Relief: Another Argument for Public Banking

By Ellen Brown, Web of Debt

This piece originally appeared atWeb of Debt.

Posted on Jan 4, 2013

The National Guard (CC BY 2.0)
New Jersey National Guard troops assist displaced residents in Hoboken in late October.

 

In a shameless display of putting politics before human needs, Congress began 2013 still scrappingover a $60 billion Hurricane Sandy relief bill fully nine weeks after the disaster hit. And if the Katrina experience is any indication, the bill may not bring adequate relief to struggling and displaced homeowners even when it is finally passed.

The damage wrought by Sandy to New York and New Jersey coastal areas wassimilar in scale to that to New Orleans from Hurricane Katrina in 2005. Just two weeks after Katrina hit, Congress approved $62.3 billion in emergency appropriations, along with numerous subsequent emergency funding requests to cover the damages, which topped $100 billion. Yet as noted on the Occupy Sandy Facebook page, federal relief funds post-Katrina were gutted in favor of “privatizing and outsourcing relief, making room for predatory lenders, disaster capitalists, and gentrification developers.”

According to a report by Strike Debt, the vast majority of FEMA’s resources and efforts are spent on public assistance programs that provide infrastructure restoration. Individual victims of disaster are for the most part just offered personal loans – loans that have many features of predatory subprime lending.
Disaster victims are now being expected to shoulder relief expenses that used to be shared publicly. Most people believe they are covered by their insurance policies or by the Federal Emergency Management Agency (FEMA), but many disaster victims have found that their insurance policies include obscure provisions that exclude coverage, and the only aid that FEMA gives to individuals is the opportunity to take on more debt.

It is a failing of our austerity-strapped federal disaster relief system that it can offer little real help to individuals; and it is a failing of our private, for-profit insurance system that the legal duty of management is to extort as much money as possible from customers while returning as little as possible to them, in order to maximize shareholder profits.

 

Most Sandy Victims Are Left Stranded

The report by Strike Debt was based on observations made at a community meeting in Midland Beach, Staten Island, on November 18, 2012, as well as on interviews with FEMA and Small Business Association (SBA) representatives, volunteer workers, local business owners, and residents throughout New York City. According to the report, there are three main sources of financial support being offered to Sandy victims: insurance, grants, and loans. Federal support is available only once private insurance has been exhausted.

 MORE  1   2   3   NEXT PAGE >>>

 

Ellen Brown is an attorney and president of the Public Banking Institute.  In Web of Debt, her latest of eleven books, she shows how a private banking oligarchy has usurped the power to create money from the people themselves, and how we the people can get it back. Her websites are http://WebofDebt.com,http://EllenBrown.com, and http://PublicBankingInstitute.org.

She is an OUR COMMON GROUND Voice of 2012.

5-26-12 Ellen Brown