The Buck Stops There, (published 11/17/05)

The White House has just issued a press release celebrating the news of a stronger than expected economy growing at 3.8%. They further stated inflation is no factor if “food and energy prices are not included.”

While this is certainly good news for all Americans who don’t eat, drive, or heat their homes, I still have my doubts. You see, unlike Will Rogers, I know more than what I read in the newspapers.

I know that since Ronald Reagan’s election in 1980, the Republican Party has systematically reduced the government’s ability to monitor and regulate Corporate America. For the past 25 years Republicans have been telling us that the markets and big business can take care of themselves. It seems to me big business has been taking care of itself with little regard for anything else.

I know that in 1980, CEO’s made about 42 times their employee’s average salary. Today that has risen more than twelve fold, compensating CEO’s at a mind-numbing rate of 531 times average employee earnings.

I know that when Katrina hit the Gulf, people of America showed the highest level of compassion with donations, self-sacrifice, and concern. The major oils companies took advantage of the situation by raising prices and gouging the nation.

I know they claim these prices were cost-driven, but recent earnings reports show otherwise. ExxonMobil reported a $9.9 billion profit for the last quarter. This is more than any company in the history of America has ever earned. It is estimated that ExxonMobil will earn more this year than Microsoft, Wal-Mart, Merck, McDonald’s and General Motors combined. Yet, Republicans still support tax breaks and exploration incentives for the big oil companies.

I know the major pharmaceutical companies have inflated U.S. drug prices so aggressively that elderly citizens are forced to shop internationally or on the internet. Big drug companies claim these prices are needed to support future research and development, but the facts don’t support that argument.

I know countries without “pro-profit administrations” keep drug prices in line. This is because they realize big drug companies pay more for direct marketing and advertising than they do for R&D. In the past, pharmaceutical companies believed superior products drove profits, now their profits are driven by slick advertisements. Even with this knowledge Republicans continue to support legislation favoring the drug companies’ stranglehold on our seniors.

I know since 1980, interest rates have dropped precipitously. This has allowed the wealthy to leverage real estate, margin brokerage accounts, and borrow for business expansion. During the same 25 years the interest rate that most affects middle and low income individuals, short term debt like Visa and Master Card, has remained within an astronomical range of 18-22%.

I know this seems both morally and ethically repugnant, and in fact may break predatory lending laws, but the financial services industry is the single largest contributor to the Republican Party. That’s the reason Bush tried so hard to privatize social security. By releasing the funds into individual accounts the potential for fees generated by money managers, stockbrokers, and banks would have been staggering. Conservative estimates suggest hundreds of millions of dollars.

I know many Republicans rail against illegal aliens but do little, once again acting in the best interest of big business. Nothing weakens the United Workers Unions more than a ready source of cheap, illegal labor. Contrary to their rhetoric Republicans maintain a porous border because the resulting labor pool benefits Wal-Mart, UGA, and scores of other companies.

I know for the companies that can’t import enough cheap labor Republicans advocate job exportation. By out sourcing work to the sweatshops and boiler-rooms of third world countries, corporate America taps a work force still shackled with 18th century draconian working conditions, while paying just five cents on the dollar.

I know when the Republican Party started advocating voodoo economics, declaring we could all live in a country where everyone was rich, what they really meant was a country where the rich got richer. To that end they have succeeded.

I know the disparity between the wealthy and the poor in this country is the highest it’s been since before the Great Depression. Five percent of Americans control sixty percent of the wealth. Under our current Republican president the number of Americans below the poverty level has grown every year, it now stands at 36 million.

I know the Republican’s pro business agenda has hurt Americans in many ways, but economic complacency is about to end. With real estate values falling and interest rates on the rise, equity that the middle class has been using for survival will soon disappear. Corporate mismanagement, boardroom greed, and lack of government oversight will result in a number of pension failures. Retirees will be forced to sell their homes, move in with relatives and become burdens to society for the rest of their golden years.

I know when this happens Republicans will sound the alarm, and rally the troops. They will blame the war, they will blame the weather, they will blame the Fed, they will even try to blame Clinton, and his fellow Democrats.

I know where the blame lies … and so do you.