STOP Framing "us"

How a select few of "them" are Framing all of "us"

Archive for the tag “Conservative politicians”

“We” make it, “they” take it! Extracting Wealth from American Workers

Productivity in the United States has steadily risen over the past 30 years, and the U.S. continues to be one of the wealthiest nations on earth.  Despite this reality, the vast majority of Americans are not being rewarded for their efforts, and many people are earning less than their parents!  The reason productivity is up is because Americans are working longer and harder than they have in recent memory.  Productivity is thriving, yet worker salaries are dying.

As it turns out, conservative politicians in Washington have vigilantly pursued a set of economic and tax policies over the past 30 years reflecting the theory of trickle-down economics.  Simply put, this theory rests upon the assumption that perpetually lowering taxes on millionaires and billionaires, as well as borrowing money from future generations to give to the wealthiest members of our society will somehow trickle-down to the rest of us.  It’s safe to say that this theory has proven to be a complete and utter failure, and has led to the largest gap in wealth between those at the top (1%) and everyone else (99%) since the great depression.

The consequence of pursuing these policies has resulted in what can clearly be described as ‘wealth extraction’ from our economy.  The privileged class in the top 1% feels entitled to the wealth we all work hard to create, and they have used their power and influence to ensure legislation is passed that permit this to occur.  Evidence for this can be seen in 2010, when this group of wealthy elite claimed nearly all income gain in this country for themselves.  In 2010, the top 1% took in 93% of all income gain in this country.  Essentially, what this means is that America is stuck working harder than ever to create wealth for our nation that the top 1% extracts for their upper class members, while the rest of us struggle to survive on what little remains.

It wasn’t always this way, and more importantly it doesn’t have to be this way moving forward.  During the golden age of capitalism (1945-1975) all Americans in each income group were valued for the contributions they made, and were fairly compensated for their efforts.  Those at the bottom of the economic scale saw their incomes rise just as quickly as those at the top. For the first time in our nations history, millions of families could afford to buy a home, send their kids to college, purchase a new car, and lead relatively comfortable lives.  In short, the middle class was thriving.  During this time period, we all worked together to create wealth for our nation that was adequately shared among us, and fair and progressive tax policies were put in place that prevented the privileged class from extracting wealth from the rest of us.

This all changed when President Ronald Reagan took office.   Instead of embracing what was working for everyone, conservative politicians decided to replace the progressive tax code with tax policies favoring their wealthy elite donors.  As a result, rather than sharing in the wealth America worked together to create, those at the top decided to keep more of the money American workers generated for themselves.  In essence, the implementation of trickle-down economic policies allowed the privileged few to turn America into a we make it, they take it economy.  The wealth extraction underlying the divide between those at the very top and everyone else characterizing the conservative philosophy of we make and they take it has proven to work wonders for those at the top, but not so much for everyone else.

Since the wealth America creates is no longer being shared among us, and workers are no longer valued for their means of production, or paid thriving wages, poverty rates are steadily increasing, the middle class is eroding, more people are dependent upon food stamps and other government assistance to survive, and the most vulnerable populations among us are facing grave consequences each day we continue to adopt these failed and misguided policies.  The behavior of conservative politicians insisting our nation prioritize borrowing money from future generations to give to the super wealthy is not only immoral, but leads to catastrophic consequences for the vast majority of people in order to pave the way for what Vice Presidential hopeful, Paul Ryan calls a path to prosperity for the top 1%.

The Bain Approach: Mitt Romney’s Plan to Profitize America!

During his CEO days at Bain Capital, Mitt Romney engaged in vulture capitalism (not to be confused with venture capitalism). Vulture capitalism, or private equity as it is otherwise known is nothing more than legalized corporate raiding.  The Bain approach is to seek out healthy companies with sizeable pension plans for their employees, and lure them in with false promises of ‘strengthening’ these companies while hiding their true intentions of ripping them apart.  Under the guise of expanding revenues and cutting costs, the Bain approach is sold to investors, management, and employees of companies they prey upon as a means of promoting growth and making them more efficient.

Despite this rosy sounding language that’s sure to resonate with companies that seek to expand their business, the Bain approach of increasing revenues and cutting costs has a more sinister meaning.  The Bain approach only involves increasing revenues for shareholders of Bain Capital, at the expense of shareholders of the companies they seek to devour.  The costs they are cutting come in the form of employee layoffs, reduced benefits, lower wages, and out-right theft of worker funded pension plans.  For a better understanding of how the Bain approach works, Ampad provides all the evidence needed to understand the true intentions of vulture capitalists like Mitt Romney.

While CEO of Bain Capital, Mitt Romney bought American Pad & Paper Co. (Ampad) for $5 million in 1992.  The Bain approach of bleeding this company dry was very successful.   Revenues in the form of dividend checks (ie, un-earned income) were substantially increased for shareholders of Bain Capital, while investors of Ampad lost millions, along with employees who lost their livelihood and life savings.  In fact, Mitt Romney continues to live large off of the un-earned income he stole from people during his Bain days.

When Mitt Romney and other vulture capitalists claim that they are in favor of rebuilding companies by expanding revenues and cutting costs to make them more efficient, this is what they mean.  The costs they are cutting are people’s jobs, wages, and pensions, which make up the expanding revenues (un-earned income) for the super-wealthy shareholders of this vulture capitalist firm.  This siphoning of wealth to a tiny group of super-wealthy people is a result of adopting the Bain approach.  This Bain approach is what has led to the Great depression, the savings and loan crisis, the housing crisis, and the near financial global meltdown and big bank bailouts witnessed recently that amounted to the largest transfer of wealth in the history of the United States.

Mitt Romney made himself, along with his privileged wealthy investors huge fortunes at the expense of workers losing their jobs and life savings. This is what Mitt Romney and the rest of the GOP mean when they say capitalism produces winners and losers.  This is also why Frank “The Liar” Luntz alerted a room full of GOP politicians not to use the word capitalism any longer.  The reason for this advice is because many people are starting to figure out that capitalism no longer works as intended.  The Bain approach has taken over and turned capitalism into a Wall Street Casino, where only the house wins! The house, of course, represents the vulture capitalists that are destroying our democracy, and preying upon us to feed their addiction for more wealth and power.

The Bain approach involves racking up enormous debt so a select few privileged shareholders can reap mind-boggling profits.  Why does this sound eerily familiar to the problems facing American today?  The unfortunate reality is that we have been following the Bain approach ever since Ronald Reagan was elected into office.  It’s safe to say that this approach to governing our nation has failed miserably and represents the source of the political and social divide currently taking place on important issues affecting our lives.

This new breed of capitalism is seeping its way into our daily lives by influencing our most valued and precious institutions, including our health care and education system, our social safety net, and the vital public protections that exist to ensure we all have safe food to eat, clean water to drink, and non-polluted air to breathe.

– The Bain approach seeks to profitize our healthcare system by denying care to those in need in order to maximize profits for insurance companies at the expense of our health.

– The Bain approach seeks to profitize our education system by using taxpayer dollars to fund the education of rich kids.

– The Bain approach seeks to profitize the water we drink by reducing our reliance on public sources of drinking water.

– The Bain approach seeks to profitize the food we eat by eliminating safety inspections in order add unsafe chemicals and by-products.

– The Bain approach seeks to profitize our energy policy by eliminating public protections and preventing the development of clean, safe, fuels of the future, while advocating for a continued reliance on dirty, unsafe fuels of the past that will run out and are polluting our lungs and the environment, not to mention jeopardizing our national security.

In essence, Mitt Romney’s Bain approach to governing our nation, if elected president, will seek to profitize America! Romney’s recent claim that 80% of the Bain Capital deals grew their revenues may actually be a true statement.  The part he left out is how this occurred and at whose expense.

The Republican Jobs Act: Nothing more than a repackaging of old bills with the added twist of “Framing” ‘Big Government’ for the actions of the ‘Big Banks’

Almost immediately after taking office President Obama launched an initiative to help jump-start our economy by making it easier for small businesses to gain access to the capital they need in order to start up or expand their businesses and add jobs.

“Small businesses are the heart of the American economy,” said in announcing the measures. “They’re responsible for half of all private-sector jobs, and they created roughly 70 percent of all new jobs in the past decade. . . . But today, too many entrepreneurs can’t access the capital to start, operate or grow their business. Too many dreams are being deferred or denied by a form letter canceling a line of credit.”

The simple, but ugly truth is that the big banks are not lending small businesses the money they need.  This is in spite of sitting on trillions of dollars, some of which was the result of the massive Government funded bailout, or ‘transfer of wealth’ from the average American taxpayer to Wall Street banks, compliments of former President George W. Bush.

As pointed out by staff writers from the Washington Post, Treasury Secretary Timothy Gitner, “admonished the nation’s largest banks for withholding loans to many small businesses, telling the banks that they helped create the current mess and “bear a special responsibility for helping America get out of it” by increasing the flow of credit, especially since they have benefited from massive federal bailouts.

As a result of the big banks failure to help small businesses get access to the capital they need, President Obama stepped in and attempted to jump-start small businesses in this country by providing financial stimulus to the tune of $15 billion dollars in order to encourage the big banks to lend us our own money back! (with interest)

What this means is that the Government must intervene in order to coddle the big banks into lending small business owners money in this country.

This is truly unbelievable!!!

So, what are the Conservatives saying about all this?

Well, naturally, they are using “frames” to argue their point.  Conservative politicians also point out that small businesses are being denied access to the capital they need.  However, they must misinform the public by claiming that Government regulations, red tape and bureaucracy are to blame instead of the real culprit, which is the ‘Big Banks on Wall Street’.

Here are just a couple of illustrations of the “frames” being used by Conservative politicians in relation to the repackaged House bills that form the basis of the Republican Jobs Act.

This is just a snap shot of what it looks like when Republican politicians literally “frame” ‘Big Government’ for the actions being committed by the ‘Big Banks.’

As pointed out in the Washington Post article, “some critics said the government is relying on a broken program that may end up benefiting big banks and lenders more than small businesses. Through the SBA, lenders would see larger profits and take fewer risks than they would through ordinary loan programs. As a result, lenders could steer borrowers into the SBA program even when they qualify for ordinary loans, said Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University. “This is a system that rewards banks,” she said.”

In the end, should we be more upset with the fact that we are all being “framed” to believe that ‘Big Government’ is to blame instead of ‘Big Banks’ for restricting access to capital for small business owners, or the fact that Conservative politicians in Washington are abusing their power by allowing ‘Big Banks’ to take advantage of Government programs such as the SBA to enrich members of the “privileged sector” at the expense of ordinary taxpayers.

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