Posts Tagged ‘US Democrats’

The ‘Self-Made’ Myth and Our Hallucinating Rich

In real life, working hard only takes you so far. Those who go all the way — to grand fortune — typically get a substantial head start. So documents an entertaining, baseball-themed new analysis of the Forbes 400.

Let’s cut Mitt Romney some slack. Not every off-the-cuff comment the GOP White House hopeful made at that now infamous, secretly taped $50,000-a-plate fundraiser last May in Boca Raton reveals an utterly shocking personal failing. Take, for instance, Mitt’s remark that he has “inherited nothing.”

A variety of commentators have jumped on Romney for that line. They’ve pointed out that Mitt, the son of a wealthy corporate CEO, has enjoyed plenty of privilege, everything from an elite private school education to a rolodex full of rich family friends he could tap to start up his business career.

On top of all that, the young Mitt also enjoyed $1 million worth of stock his father threw his way to tide him over until big paydays started arriving.

Not quite “nothing.” But no reason to pick on Mitt either. Most really deep pockets, not just Mitt, consider themselves entirely “self-made.” The best evidence of this predilection to claim “self-made” status? The annual September release of the Forbes magazine list of America’s 400 richest.

Each and every year Forbes celebrates the billionaires who populate this list as paragons of entrepreneurial get-up-and-go. The latest top 400, Forbes pronounced last week, “instills confidence that the American dream is still very much alive.”

Of America’s current 400 richest, gushes Forbes, 70 percent “made their fortunes entirely from scratch.”

Forbes made the same observation last year, too, and most news outlets took that claim at face value. Researchers at United for a Fair Economy, a Boston-based group, did not. UFE analysts stepped back and took the time to investigate the actual backgrounds of last year’s Forbes 400. They released their findings last week, on the same day Forbes released its new 2012 top 400 list.

The basic conclusion from these findings: Forbes is spinning “a misleading tale of what it takes to become wealthy in America.” Most of the Forbes 400 have benefited from a level of privilege unknown to the vast majority of Americans.

In effect, as commentator Jim Hightower has aptly been noting for years, most of our super rich were born on third base and think they hit a triple.

In its just-released new report, United for a Fair Economy extends this baseball analogy to last year’s Forbes 400. UFE defines as “born in the batter’s box” those Forbes 400 rich who hail from poor to middle-class circumstances. Some had nothing growing up. Others had parents who ran small businesses.

About 95 percent of Americans, overall, currently live in these “batter’s box” situations. Just over a third, 35 percent, of the Forbes 400 come from these backgrounds.

Just over 3 percent of the Forbes 400, the United for a Fair Economy researchers found, have left no good paper trail on their actual economic backgrounds. Of the over 60 percent remaining, all grew up in substantial privilege.

Those “born on first base” — in upper-class families, with inheritances up to $1 million — make up 22 percent of the 400. On “second base,” households wealthy enough to run a business big enough to generate inheritances over $1 million, the new UFE study found another 11.5 percent.

On “third base,” with inherited wealth over $50 million, sit 7 percent of America’s 400 richest. Last but not least, the “born on home plate” crowd. These high-rollers, 21.25 percent of the total Forbes list, all inherited enough to “earn” their way into top 400 status.

Last year, a rich American had to be worth at least $1.05 billion to make the Forbes 400. This year’s entry threshold: $1.1 billion, the highest ever.


Forbes
, the United for a Fair Economy researchers sum up, has glamorized the myth of the “self-made man” and minimized “the many other factors that enable wealth,” most notably the tax breaks and other government policies that help the really rich get ever richer.

The narrative of wealth and achievement that Forbes is pushing, the new UFE study adds, “ignores the other side of the coin — namely, that the opportunity to build wealth is not equally or broadly shared in contemporary society.”

And many of those who do have that opportunity — like the mega millionaires in Boca Raton who applauded so warmly when Mitt Romney asserted he had “inherited nothing” — see absolutely no reason to turn that coin over.

Sam Pizzigati edits Too Much, the online Institute for Policy Studiesweekly on excess and inequality. 

US 2012 – The Ryan Choice

by Robert Reich

Paul Ryan is the reverse of Sarah Palin. She was all right-wing flash without much substance. He’s all right-wing substance without much flash.

Ryan is not a firebrand. He’s not smarmy. He doesn’t ooze contempt for opponents or ridicule those who disagree with him. In style and tone, he doesn’t even sound like an ideologue – until you listen to what he has to say.

It’s here — in Ryan’s views and policy judgments — we find the true ideologue. More than any other politician today, Paul Ryan exemplifies the social Darwinism at the core of today’s Republican Party: Reward the rich, penalize the poor, let everyone else fend for themselves. Dog eat dog.

Ryan’s views are crystallized in the budget he produced for House Republicans last March as chairman of the House Budget committee. That budget would cut $3.3 trillion from low-income programs over the next decade. The biggest cuts would be in Medicaid, which provides healthcare for the nation’s poor – forcing states to drop coverage for an estimated 14 million to 28 million low-income people, according to the non-partisan Center for Budget and Policy Priorities.

Ryan’s budget would also reduce food stamps for poor families by 17 percent ($135 billion) over the decade, leading to a significant increase in hunger – particularly among children. It would also reduce housing assistance, job training, and Pell grants for college tuition.

In all, 62 percent of the budget cuts proposed by Ryan would come from low-income programs.

The Ryan plan would also turn Medicare into vouchers whose value won’t possibly keep up with rising health-care costs – thereby shifting those costs on to seniors.

At the same time, Ryan would provide a substantial tax cut to the very rich – who are already taking home an almost unprecedented share of the nation’s total income. Today’s 400 richest Americans have more wealth than the bottom 150 million of us put together.

Ryan’s views are pure social Darwinism. As William Graham Sumner, the progenitor of social Darwinism in America, put it in the 1880s: “Civilization has a simple choice.” It’s either “liberty, inequality, survival of the fittest” or “not-liberty, equality, survival of the unfittest. The former carries society forward and favors all its best members; the latter carries society downwards and favors all its worst members.”

Is this Mitt Romney’s view as well?

Some believe Romney chose Ryan solely in order to drum up enthusiasm on the right. Since most Americans have already made up their minds about whom they’ll vote for, and the polls show Americans highly polarized – with an almost equal number supporting Romney as Obama — the winner will be determined by how many on either side take the trouble to vote. So in picking Ryan, Romney is motivating his rightwing base to get to the polls, and pull everyone else they can along with them.

But there’s reason to believe Romney also agrees with Ryan’s social Darwinism. Romney accuses President Obama of creating an “entitlement society” and thinks government shouldn’t help distressed homeowners but instead let the market “hit the bottom.” And although Romney has carefully avoided specifics in his own economic plan, he has said he’s “very supportive” of Ryan’s budget plan. “It’s a bold and exciting effort, an excellent piece of work, very much needed … very consistent with what I put out earlier.”

Romney hasn’t put out much but the budget he’s proposed would, according to the Center on Budget and Policy Priorities, throw ten million low-income people off the benefits rolls for food stamps or cut benefits by thousands of dollars a year, or both.

At the same time, Romney wants to permanently extend the Bush tax cuts to the wealthy, reduce corporate income taxes, and eliminate the estate tax. These tax reductions would increase the incomes of people earning more than $1 million a year by an average of $295,874 annually, according to the non-partisan Tax Policy Center.

Oh, did I say that Romney and Ryan also want to repeal President Obama’s healthcare law, thereby leaving fifty million Americans without health insurance?

Social Darwinism offered a moral justification for the wild inequities and social cruelties of the late nineteenth century. It allowed John D. Rockefeller, for example, to claim the fortune he accumulated through his giant Standard Oil Trust was “merely a survival of the fittest… the working out of a law of nature and of God.”

The social Darwinism of that era also undermined all efforts to build a more broadly based prosperity and rescue our democracy from the tight grip of a very few at the top. It was used by the privileged and powerful to convince everyone else that government shouldn’t do much of anything.

Not until the twentieth century did America reject social Darwinism. We created a large middle class that became the engine of our economy and our democracy. We built safety nets to catch Americans who fell downward, often through no fault of their own.

We designed regulations to protect against the inevitable excesses of free-market greed. We taxed the rich and invested in public goods – public schools, public universities, public transportation, public parks, public health – that made us all better off.

In short, we rejected the notion that each of us is on our own in a competitive contest for survival.

But choosing Ryan, Romney has raised for the nation the starkest of choices: Do we want to return to that earlier time, or are we willing and able to move forward — toward a democracy and an economy that works for us all?

This column first appeared on Robert Reich’s Blog.

Robert Reich is Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as Secretary of Labor under President Bill Clinton. His new book ‘AFTERSHOCK: The Next Economy and America’s Future’, was published in September 2010 by Alfred Knopf.

Political Corruption in New York: Low Comedy and High Cost

by Dan Collins

It’s possible, what with the rush of the holiday season, that you have neglected to pay close attention to the city’s latest political corruption trials. I must admit my own attention was wandering until this week, when a Brooklyn Assemblyman was indicted for attempting to solicit bribes so he could pay lawyers to defend from charges of taking bribes in a previous corruption trial.

The star of that saga is William Boyland Jr., who exemplifies all the reasons the words “state legislature” make New Yorkers want to beat their heads against the nearest flat surface.

He has a completely safe seat, which he inherited from his father, William Boyland Sr., who inherited it from his brother. Junior has had a totally undistinguished career in Albany, starring only in the narrow but competitive area of filling out expense forms. But back home he’s apparently been very active in a business loosely described as consulting.

In Albany, consulting is generally a euphemism for being paid to get somebody state money.

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One Year to Go: President Barack Obama’s Uphill Battle for Reelection in 2012

by  Bill Galston

Despite recent signs of a modest upturn in President Barack Obama’s political fortunes, the 2012 election is likely to be close and hard-fought. More than in any contest since 1992, the economy will be the overwhelming focus. But fundamental clashes about the role of government will also be in play against a backdrop of record low public confidence in our governing institutions. And contests involving incumbents tend to be referenda on their records more than choices between candidates. If the election pitting Obama against the strongest potential Republican nominee, former Massachusetts Governor Mitt Romney, were held tomorrow, the president would probably lose.

But a year is a very long time in American politics, and three factors could change the odds in Obama’s favor.  Economic growth could exceed expectations, and the unemployment rate—long stuck at 9 percent—could come down fast enough to restore a modicum of Americans’ shattered hopes for the future.  The Republicans could commit creedal suicide by nominating a presidential candidate outside the mainstream or unqualified for the office.  And the Obama campaign could make a wise decision to focus first and foremost on the states—principally in the Midwest—that have decided presidential elections in the past half century and are poised to do so again next year.  If the president tries to rerun his 2008 campaign under very different circumstances, he could end up turning potential victory into defeat.

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Wisconsin’s recall election: Voters react to anti-union Republicans

by Dr Scott Denton

For Republicans, Wisconsin is steeped with tradition. A little white school house in Ripon, Wisconsin, is the equivalent of the Australian Labor Party’s ghost gumtree in Barcaldine, Queensland: they are both foundational images of the Party’s past. It was in Ripon where the Republican Party was founded in 1854. While notionally over time a ‘red’ state, Obama won there in 2008 with 56 per cent of the vote and Bush only just lost there in 2004 (only by 11 000 out of almost three million voters). In November 2010 voters elected Republican Scott Walker as Governor of Wisconsin.

In July and August, voters in Wisconsin again went to the polls in recall elections that will determine the fate of Walker and his fellow Republican Senators. Walker has been a controversial figure in Wisconsin politics since he was elected and this recall election, pushed by the Democrats, aimed to see them defeated in the state senate. Prior to the recall election, the Senate was held by the Republicans by a margin of 19 to 14. With six Republican Senators facing recall elections, Democrats hope to regain control of the chamber by winning three Senate districts.

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Progressing the Social Democratic Agenda