Wind of change

[Political Waves]

I'm back in the Pea Patch, just in time for the first snow and other winter wonderland hoo-ha. Post-travel is a period that has me "on hold" while I dig through laundry, put away mounds of stuff I can't get here and am forced to import, and hunt for things that aren't where I left them. Coming up for air, I discovered -- on the other side of white-hot browsing speed on my daughters computer -- that my flailing dial-up is even more pitiful than I remembered. I'll have to come up with options after year-end or my brain will implode in frustration -- not that the news is any more comforting than waiting three minutes for Huffy to load, mind you, or the connection timing-out halfway through!

On the other hand, there was a bit of activity we should look at this week ... at least the bit I was able to get to. I'm reminded, reading Reich, that our president has always told us that, like FDR, he needs the wind of public opinion at his back. So I'm delighted to report that WITH IT, he's the populist we hired a few years ago.

Good reads and information we need -- Reich, along with Moore and Lakoff.

Jude



The Most Important Economic Speech of His Presidency
Robert Reich, his blog
Tuesday, December 6, 2011
http://robertreich.org/post/13852130536

The President’s speech today in Osawatomie, Kansas — where Teddy Roosevelt gave his “New Nationalism” speech in 1910 — is the most important economic speech of his presidency in terms of connecting the dots, laying out the reasons behind our economic and political crises, and asserting a willingness to take on the powerful and the privileged that have gamed the system to their advantage.

Here are the highlights (and, if you’ll pardon me, my annotations):

For most Americans, the basic bargain that made this country great has eroded. Long before the recession hit, hard work stopped paying off for too many people. Fewer and fewer of the folks who contributed to the success of our economy actually benefitted from that success. Those at the very top grew wealthier from their incomes and investments than ever before. But everyone else struggled with costs that were growing and paychecks that weren’t - and too many families found themselves racking up more and more debt just to keep up.

He’s absolutely right – and it’s the first time he or any other president has clearly stated the long-term structural problem that’s been widening the gap between the very top and everyone else for thirty years – the breaking of the basic bargain linking pay to productivity gains.

For many years, credit cards and home equity loans papered over the harsh realities of this new economy. But in 2008, the house of cards collapsed.

Exactly. But the first papering over was when large numbers of women went into paid work, starting the in the late 1970s and 1980s, in order to prop up family incomes that were stagnating or dropping because male wages were under siege – from globalization, technological change, and the decline of unions. Only when this coping mechanism was exhausted, and when housing prices started to climb, did Americans shift to credit cards and home equity loans as a means of papering over the new harsh reality of an economy that was working for a minority at the top but not for most of the middle class.

We all know the story by now: Mortgages sold to people who couldn’t afford them, or sometimes even understand them. Banks and investors allowed to keep packaging the risk and selling it off. Huge bets - and huge bonuses - made with other people’s money on the line. Regulators who were supposed to warn us about the dangers of all this, but looked the other way or didn’t have the authority to look at all.

It was wrong. It combined the breathtaking greed of a few with irresponsibility across the system. And it plunged our economy and the world into a crisis from which we are still fighting to recover. It claimed the jobs, homes, and the basic security of millions - innocent, hard-working Americans who had met their responsibilities, but were still left holding the bag.

Precisely – and it’s about time he used the term “wrong” to describe Wall Street’s antics, and the abject failure of regulators (led by Alan Greenspan and the Fed) to stop what was going on. But these “wrongs” were only the proximate cause of the economic crisis. The underlying cause was, as the President said before, the breaking of the basic bargain linking pay to productivity.

Ever since, there has been a raging debate over the best way to restore growth and prosperity; balance and fairness. Throughout the country, it has sparked protests and political movements - from the Tea Party to the people who have been occupying the streets of New York and other cities. It’s left Washington in a near-constant state of gridlock. And it’s been the topic of heated and sometimes colorful discussion among the men and women who are running for president.

But this isn’t just another political debate. This is the defining issue of our time. This is a make or break moment for the middle class, and all those who are fighting to get into the middle class. At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home, and secure their retirement.

Right again. It is the defining issue of our time. But I wish he wouldn’t lump the Tea Party in with the Occupiers. The former hates government; the latter focuses blame on Wall Street and corporate greed – just where the President did a moment ago.

Now, in the midst of this debate, there are some who seem to be suffering from a kind of collective amnesia. After all that’s happened, after the worst economic crisis since the Great Depression, they want to return to the same practices that got us into this mess. In fact, they want to go back to the same policies that have stacked the deck against middle-class Americans for too many years. Their philosophy is simple: we are better off when everyone is left to fend for themselves and play by their own rules.

He might have been a bit stronger here. The “they” who are suffering collective amnesia include many of the privileged and powerful who have gained enormous wealth by using their political muscle to entrench their privilege and power. In other words, it’s not simply or even mainly amnesia. It’s a clear and concerted strategy.

Well, I’m here to say they are wrong. I’m here to reaffirm my deep conviction that we are greater together than we are on our own. I believe that this country succeeds when everyone gets a fair shot, when everyone does their fair share, and when everyone plays by the same rules. Those aren’t Democratic or Republican values; 1% values or 99% values. They’re American values, and we have to reclaim them.

Amen.
…

In 1910, Teddy Roosevelt came here, to Osawatomie, and laid out his vision for what he called a New Nationalism. “Our country,” he said, “…means nothing unless it means the triumph of a real democracy…of an economic system under which each man shall be guaranteed the opportunity to show the best that there is in him.”

Some background: In 1909, Herbert Croly, a young political philosopher and journalist, argued in his best-selling The Promise of American Life that the large American corporation should be regulated by the nation and directed toward national goals. “The constructive idea behind a policy of the recognition of the semi-monopolistic corporation is, of course, the idea that they can be converted into economic agents…for the national economic interest,” Croly wrote. Teddy Roosevelt’s New Nationalism embraced Croly’s idea.

For this, Roosevelt was called a radical, a socialist, even a communist. But today, we are a richer nation and a stronger democracy because of what he fought for in his last campaign: an eight hour work day and a minimum wage for women; insurance for the unemployed, the elderly, and those with disabilities; political reform and a progressive income tax.

Today, over one hundred years later, our economy has gone through another transformation. Over the last few decades, huge advances in technology have allowed businesses to do more with less, and made it easier for them to set up shop and hire workers anywhere in the world. And many of you know firsthand the painful disruptions this has caused for a lot of Americans.

Factories where people thought they would retire suddenly picked up and went overseas, where the workers were cheaper. Steel mills that needed 1,000 employees are now able to do the same work with 100, so that layoffs were too often permanent, not just a temporary part of the business cycle. These changes didn’t just affect blue-collar workers. If you were a bank teller or a phone operator or a travel agent, you saw many in your profession replaced by ATMs or the internet. Today, even higher-skilled jobs like accountants and middle management can be outsourced to countries like China and India. And if you’re someone whose job can be done cheaper by a computer or someone in another country, you don’t have a lot of leverage with your employer when it comes to asking for better wages and benefits - especially since fewer Americans today are part of a union.

Now, just as there was in Teddy Roosevelt’s time, there’s been a certain crowd in Washington for the last few decades who respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If only we cut more regulations and cut more taxes - especially for the wealthy - our economy will grow stronger. Sure, there will be winners and losers. But if the winners do really well, jobs and prosperity will eventually trickle down to everyone else. And even if prosperity doesn’t trickle down, they argue, that’s the price of liberty.

It’s a simple theory - one that speaks to our rugged individualism and healthy skepticism of too much government. It fits well on a bumper sticker. Here’s the problem: It doesn’t work. It’s never worked. It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible post-war boom of the 50s and 60s. And it didn’t work when we tried it during the last decade.

Obama is advocating Croly’s proposal that large corporations be regulated for the nation’s good. But he’s updating Croly. The next paragraphs are important.

 

Remember that in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history, and what did they get us? The slowest job growth in half a century. Massive deficits that have made it much harder to pay for the investments that built this country and provided the basic security that helped millions of Americans reach and stay in the middle class - things like education and infrastructure; science and technology; Medicare and Social Security.

Remember that in those years, thanks to some of the same folks who are running Congress now, we had weak regulation and little oversight, and what did that get us? Insurance companies that jacked up people’s premiums with impunity, and denied care to the patients who were sick. Mortgage lenders that tricked families into buying homes they couldn’t afford. A financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy.

We simply cannot return to this brand of your-on-your-own economics if we’re serious about rebuilding the middle class in this country. We know that it doesn’t result in a strong economy. It results in an economy that invests too little in its people and its future. It doesn’t result in a prosperity that trickles down. It results in a prosperity that’s enjoyed by fewer and fewer of our citizens.

Look at the statistics. In the last few decades, the average income of the top one percent has gone up by more than 250%, to $1.2 million per year. For the top one hundredth of one percent, the average income is now $27 million per year. The typical CEO who used to earn about 30 times more than his or her workers now earns 110 times more. And yet, over the last decade, the incomes of most Americans have actually fallen by about six percent.

The very first time the President has emphasized this grotesque trend. Now listen for how he connects this with the deterioration of our economy and democracy:

 

This kind of inequality - a level we haven’t seen since the Great Depression - hurts us all. When middle-class families can no longer afford to buy the goods and services that businesses are selling, it drags down the entire economy, from top to bottom. America was built on the idea of broad-based prosperity - that’s why a CEO like Henry Ford made it his mission to pay his workers enough so that they could buy the cars they made. It’s also why a recent study showed that countries with less inequality tend to have stronger and steadier economic growth over the long run.

Inequality also distorts our democracy. It gives an outsized voice to the few who can afford high-priced lobbyists and unlimited campaign contributions, and runs the risk of selling out our democracy to the highest bidder. And it leaves everyone else rightly suspicious that the system in Washington is rigged against them - that our elected representatives aren’t looking out for the interests of most Americans.

More fundamentally, this kind of gaping inequality gives lie to the promise at the very heart of America: that this is the place where you can make it if you try. We tell people that in this country, even if you’re born with nothing, hard work can get you into the middle class; and that your children will have the chance to do even better than you. That’s why immigrants from around the world flocked to our shores.

And what it’s done to equal opportunity, and how it’s eroded upward mobility:

And yet, over the last few decades, the rungs on the ladder of opportunity have grown farther and farther apart, and the middle class has shrunk. A few years after World War II, a child who was born into poverty had a slightly better than 50-50 chance of becoming middle class as an adult. By 1980, that chance fell to around 40%. And if the trend of rising inequality over the last few decades continues, it’s estimated that a child born today will only have a 1 in 3 chance of making it to the middle class.

It’s heartbreaking enough that there are millions of working families in this country who are now forced to take their children to food banks for a decent meal. But the idea that those children might not have a chance to climb out of that situation and back into the middle class, no matter how hard they work? That’s inexcusable. It’s wrong. It flies in the face of everything we stand for.

What should we do about this? Not turn to protectionism or become neo-Luddites. Nor turn to some version of government planning.

Fortunately, that’s not a future we have to accept. Because there’s another view about how we build a strong middle class in this country - a view that’s truer to our history; a vision that’s been embraced by people of both parties for more than two hundred years.

It’s not a view that we should somehow turn back technology or put up walls around America. It’s not a view that says we should punish profit or success or pretend that government knows how to fix all society’s problems. It’s a view that says in America, we are greater together - when everyone engages in fair play, everyone gets a fair shot, everyone does their fair share.

So what does that mean for restoring middle-class security in today’s economy?

It starts by making sure that everyone in America gets a fair shot at success. The truth is, we’ll never be able to compete with other countries when it comes to who’s best at letting their businesses pay the lowest wages or pollute as much as they want. That’s a race to the bottom that we can’t win - and shouldn’t want to win. Those countries don’t have a strong middle-class. They don’t have our standard of living.

In 1910, Teddy Roosevelt came here, to Osawatomie, and laid out his vision for what he called a New Nationalism. …

The fact is, this crisis has left a deficit of trust between Main Street and Wall Street. And major banks that were rescued by the taxpayers have an obligation to go the extra mile in helping to close that deficit. At minimum, they should be remedying past mortgage abuses that led to the financial crisis, and working to keep responsible homeowners in their home. We’re going to keep pushing them to provide more time for unemployed homeowners to look for work without having to worry about immediately losing their house.

I wish the Obama administration had made this a condition for the banks receiving bailouts.

But there’s far more to the speech. Read it in full. It lays out the basis for what could be the platform Obama will run on in 2012 — increasing taxes on the rich, investing in the rest us, requiring corporations and Wall Street banks that reap benefits from being in America create good jobs for Americans, and protecting our democracy from being corrupted by money — a new New Nationalism.

Here, finally, is the Barack Obama many of us thought we had elected in 2008. Since then we’ve had a president who has only reluctantly stood up to the moneyed interests Teddy Roosevelt and his cousin Franklin stood up to.

Hopefully Obama will carry this message through 2012, and gain a mandate to use his second term to take on the growing inequities and game-rigging practices that have been undermining the American economy and American democracy for years. ++


Obama's Historic Speech: Another Politician Pushed Into Populism by the OWS Climate?
Alternet -- VIDEO included
12/07/11
http://www.alternet.org/newsandviews/article/744192/obama%27s_historic_speech%3A_another_politician_pushed_into_populism_by_the_ows_climate/

 

The Winter of Our Occupation
Michael Moore, HuffPo

12/07/11

www.huffingtonpost.com/michael-moore/occupy-winter_b_1133128.html

 

And now it is winter. Wall Street rejoices, hoping that the change of seasons will mean a change in our spirit, our commitment to stop them.

They couldn't be more wrong. Have they not heard of Washington and the troops at Valley Forge? The Great Flint Sit-Down Strike in the winter of 1936-37? The Michigan Wolverines crushing Ohio State in the 1950 Blizzard Bowl? When it comes to winter, it is the time historically when the people persevere and the forces of evil make their retreat!

We are not even 12 weeks old, yet Occupy Wall Street has grown so fast, so big, none of us can keep up with the hundreds of towns who have joined the movement, or the thousands of actions -- some of them just simple ones in neighborhoods, schools and organizations -- that have happened. The national conversation has been irreversibly changed. Now everyone is talking about how the 1% are getting away with all the money while the 99% struggle to make ends meet. People are no longer paralyzed by despair or apathy. Most know that now is the time to reclaim our country from the bankers, the lobbyists -- and their gofers: the members of the United States Congress and the 50 state legislatures.

And they're crazy if they think that a little climate chaos (otherwise known as winter in the 21st century) that they've helped to bring about is going to stop us.

I would like to propose to my Occupying sisters and brothers that there are many ways to keep Occupy Wall Street going through the winter months. There is perhaps no better time to move the movement indoors for a few months -- and watch it grow even bigger! (For those who have the stamina to maintain the outdoor occupations, by all means, keep it up -- and the rest of us will do our best to help you and keep you warm!)

The winter gives us an amazing opportunity to expand our actions against the captains of capitalism who have occupied our homes with their fraudulent mortgage system which has tossed millions of families out onto the curb; a cruel health care system that has told 50 million Americans "if you can't afford a doctor, go F yourself"; a student loan system that sends 22-year-olds into an immediate "debtors' prison" of working lousy jobs for which they didn't go to school but now have to take because they're in hock for tens of thousands of dollars for the next two decades; and a jobs market that keeps 25 million Americans un- or under-employed -- and much of the rest of the workers forced to accept wage cuts, health care reductions and zero job security.

But we in the Occupy Movement reject this version of the "American Dream." Instead, I suggest we shift our focus for this winter to the following actions:

OCCUPY THE WINTER

A proposal to the General Assembly of Occupy Wall Street from Michael Moore

1. Occupy Our Homes. Sorry, banks, a roof over one's head is a human right, and you will no longer occupy our homes through foreclosure and eviction because well, you see, they are our homes, not yours. You may hold the mortgage; you don't hold the right to throw us or our neighbors out into the cold. With almost one in three home mortgages currently in foreclosure, nearing foreclosure or "underwater," the Occupy Movement must form local "Occupy Strike Forces" to create human shields when the banks come to throw people out of their homes. If the foreclosure has already happened, then we must help families move back into their foreclosed homes -- literally (see this clip from my last film to watch how a home re-occupation is accomplished). Beginning today, Take Back the Land, plus many other citizens' organizations nationwide, are kicking off Occupy Our Homes. Numerous actions throughout the day today have already resulted in many families physically taking back their homes.

This will continue every day until the banks are forced to stop their fraudulent practices, until homeowners are allowed to change their mortgage so that it reflects the true value of their homes, and until those who can no longer afford a mortgage are allowed to stay in their homes and pay rent. I beseech the news media to cover these actions -- they are happening everywhere. Evictions, though rarely covered (you need a Kardashian in your home as you're being evicted to qualify for news coverage) are not a new story (see this scene I filmed in 1988). Also, please remember the words of Congresswoman Marcy Kaptur of Toledo (in 'Capitalism: A Love Story'): Do not leave your homes if the bank forecloses on you! Let them take you to court and then YOU ask the judge to make them produce a copy of your mortgage. They can't. It was chopped up a hundred different ways, bundled with a hundred other mortgages, and sold off to the Chinese. If they can't produce the mortgage, they can't evict you.

2. Occupy Your College. In nearly every other democracy on the planet, students go to college for free or almost free. Why do those countries do that? Because they know that for their society to advance, they must have an educated population. Without that, productivity, innovation and an informed electorate is stunted and everyone suffers as a result. Here's how we do it in the U.S.A.: make education one of our lowest priorities, graduate students who know little about the world or their own government or the economy, and then force them into crushing debt before they even have their first job. That way has really worked well for us, hasn't it? It's made us the world leader in … in … well, ok, we're like 27th or 34th in everything now (except war). This has to end. Students should spend this winter doing what they are already doing on dozens of campuses -- holding sit-ins, occupying the student loan office, nonviolently disrupting the university regents meetings, and pitching their tents on the administration's lawn. Young people -- we, the '60s generation, promised to create a better world for you. We got halfway there -- now you have to complete the job. Do not stop until these wars are ended, the Pentagon budget is cut in half, and the rich are forced to pay their taxes. And demand that that money go to your education. We'll be there with you on all of this! And when we get this fixed and you graduate, instead of being $40,000 in debt, go see the friggin' world, or tinker around in your garage a la the two Steves, or start a band. Enjoy life, discover, explore, experiment, find your way. Anything but the assistant manager at Taco Bell.

3. Occupy Your Job. Let's spend the winter organizing workplaces into unions. OR, if you already have a union, demand that your leaders get off their ass and get aggressive like our grandparents did. For chrissakes, surely you know we would not have a middle class if it weren't for the strikes of the 1930s-1950s?! In three weeks we will celebrate the 75th anniversary of the workers in my hometown of Flint, Michigan taking over and occupying the General Motors factories for 44 days in the dead of winter. Their actions ignited a labor movement that lifted tens of millions out of poverty and into the middle class. It's time to do it again. (According to the Census Bureau and the New York Times, 100 million Americans either live in or near poverty. Disgraceful. Greed has destroyed the core fabric of our communities. Enough!) Here are two good unions to get your fellow workers to sign up and join: UE and SEIU. The CWA are also good. Here's how to get a quick primer in organizing your place of employment (don't forget to be careful while you do this!). If your company is threatening to close down and move the jobs elsewhere, then it's time to occupy the workplace (again, you can get a lesson in how to successfully occupy your factory from my movie).

4. Occupy Your Bank. This is an easy one. Just leave them. Move your checking and your credit card to a nonprofit credit union. It's safe and the decisions made there aren't based on greed. And if a bank tries to evict your neighbor, Occupy the local branch with 20 other people and call the press. Post it on the internet.

5. Occupy the Insurance Man. It's time to not only stand up for the 50 million without health insurance but to also issue a single, simple demand: The elimination of for-profit, privately-controlled health insurance companies. It is nothing short of barbaric to allow businesses to make a profit off people when they get sick. We don't allow anyone to make a profit when we need the fire department or the police. Until recently we would never allow a company to make a profit by operating in a public school. The same should be true for when you need to see a doctor or stay in the hospital. So I say it's long overdue for us to go and Occupy Humana, United Health, Cigna and even the supposed "nonprofit" Blue Crosses. An action on their lawns, in their lobbies, or at the for-profit hospitals -- this is what is needed.

So -- there are my ideas for the five places we can Occupy this winter. Help the foreclosed-upon to Occupy their homes. Occupy your college campus, especially the student loan office and the regents meetings. Occupy your job by getting everyone to sign a union card -- or by refusing to let the CEO ship your job overseas. Occupy your Chase or Citi or Bank of America branch by closing your account and moving it to a credit union. And Occupy the insurance company offices, the pharmaceutical companies' headquarters and the for-profit hospitals until the White House and Congress pass the true single-payer universal health care bill they failed to pass in 2010.

My friends, the rich are running scared right now. You need no further proof of this than to read this story from last week. The Republicans' top strategist met privately with them and told them that they had better change their tune or they were going to be crushed by the Occupy Wall Street movement. They didn't have to change their greedy actions, he assured them -- just the way they talk and PR the situation. He told them never to use the word "capitalism" -- it has now been made a dirty word by the Occupy movement, he said. Only say "economic freedom" from now on, he cautioned. And don't criticize the movement -- because the majority of Americans either agree with it or are feeling the same way. Just tell the Occupiers and the distressed Americans: "I get it." Seriously.

Yes, in just 12 short weeks we have killed their most sacred word -- Capitalism -- and we have them on the run, on the defensive. They should be. Millions are coming after them and our only goal is to remove them from power and replace them with a fair system that is controlled by the 99%. The 1% have been able to get both political parties to do their bidding. Why should only 1% of the population get to have two parties -- and the rest of us have none? That, too, is going to change. In my next post, I will suggest what we can do to Occupy the Electoral Process. But first we must start with those who pull the strings of the puppets in the Congress. That's why it's called Occupy Wall Street. Always better to deal with man in charge, don't you think?

Let's Occupy the Winter! An #OWS Winter will certainly lead to a very hopeful American Spring. ++


Words That Don't Work
George Lakoff, HuffPo
12/ 7/11
http://www.huffingtonpost.com/george-lakoff/occupy-rhetoric_b_1133114.html

“I’m asking you to believe. Not just in my ability to bring about real change in Washington … I’m asking you to believe in yours.”

~ Barack Obama

 

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