Cowboy Capitalism Has Failed

Neither candidate has given any indication that they are willing to address both sides equally on taxation issues.  This should give us serious pause for thought.

 Both President Obama and Mr. Romney are working hard at selling the concept that cutting corporate taxes will stimulate jobs - that the private sector, if given a financial stimulus, will be motivated to act in a responsible patriotic manner.  Bear in mind they say nothing more than a blanket corporate tax cut.  Absent from all discussion and debate is which corporations will receive tax cuts; how much they will they be cut; by what means they will be cut; and if those who have effectively skirted taxation will finally be held accountable to pay their fair share in the future.  

 While there has been much talk about the upper one percent of wage earners in American paying their fair share in taxes there has been no such dialogue regarding corporations.  That has been suspiciously absent from any concept of tax increases.

 To be sure there are many smaller corporations paying the full corporate tax rate of 35%.  Many of those may indeed be patriotic and community minded organizations in need of tax relief.  But let’s check out the big boys. 

 Let’s start with the American Jobs Creation Act of 2004.  This act contained more than $13 billion A Year in tax reduction stimulus money.  To date there is no evidence that this bill created even one job in America.  What it has effectively done is motivate GE to spend $18 million in lobbying to ensure this law is not overturned.  Yes, it is true – this nonsense was sold by both congress and President George W. Bush as an American Jobs Creation bill. Talk about unmitigated gall. 

This of course is the same GE who made over $14 billion dollars in 2010 and paid no taxes while receiving a $3.3 Billion tax benefit (presumably deductions) from the federal government.  2010 was the second year in a row that GE recorded billions in profits and paid nothing in taxes.

How many American jobs were created through this political generosity?  GE has cut 1/5 of their American jobs in recent years while boosting jobs overseas.  GE earned $5.1 billion in profits in America and another $9.1 billion made overseas in 2010, all tax free.   This was all done under the watchful eye of Jeffrey R. Immelt, then General Electric's chief executive.  He was then appointed by president Obama to head the President's Council on JOBS and Competitiveness.  Talk about unmitigated gall. 

 GE is not alone.  According to a study conducted and released by the General Accounting Office (GAO) in Washington DC, two-thirds or 66% of U.S. corporations paid no federal income taxes between 1998 and 2005.  The study surveyed tax returns from LARGE corporations defined as those having at least $250 million in assets or $50 million in receipts.  In fact, in a three-year period, 78 corporations had at least one year where they paid no federal income tax at all, while 30 corporations paid not a dime over this entire three-year period.  Those 30 corporations made over $160 billion in profit during that time. 

While the corporate tax rate in America is 35%, the big boys have been able to ignore such a mundane mandate.  Of the 500 companies in the well-known Standard & Poor’s stock index, 115 paid a total corporate tax rate — both federal and otherwise — of less than 20 percent over the last five years, according to an analysis of company reports done by The New York Times and Capital IQ.  Thirty-nine of those companies paid a rate less than 10 percent.  Then there were the 280 Fortune 500 corporations that paid only about half of the 35%.   And those who paid even half the statutory corporate tax rate, paid far more than many of their competitors.  

The New York Times reported on March 24, 2011 that the Corporate share of the American tax burden has fallen from 30% of all federal revenue in the 1950’s  to only 6.6% in 2009.  It also cited that 1.3 million U.S companies and 39,000 foreign companies doing business in the United States paid no income taxes despite having a combined $2.5 trillion in revenue. 

Meanwhile, President Obama has ceased talking about the more than 16 trillion dollars neatly tucked away in whatever vehicles may provide these companies with the best tax shelters, during a time of economic crisis.  

Couple all of this with the fact that the federal government has been deregulating for the last 32 years and we still have 23,000,000 Americans in need of a job or a livable wage.  And both President Obama and Mr. Romney want us to believe tax cuts stimulate jobs???  Where’s the evidence???? 

This cowboy capitalism based upon the socialism of taking from the poor and middle class to enrich the greedy has failed.  Our presidential candidates now need to disassociate themselves from that socialism.  Thus far they have failed to delineate between greedy corporations and deserving corporations.  What we need to see is that their level of commitment to pursuing increased taxation from those callous corporations is every bit as strong as their commitment to reducing the taxes of those who need relief.  Failure to do so will just continue to further paint them as being no different than the self-serving charlatans they seem compelled to protect.

 

Is “Clown Car” Wave Of Future

Life for today’s Republican faithful is brutal.  Their hearts will not allow them to retreat from the party, yet their heads tell them a deeply embedded right-wing fanaticism and the resulting slate of presidential candidates is an absurdity.   Conservative columnist George Will pleaded for an end to this absurdity; “…that between now and 2016 both parties have to do some serious thought as to whether they can develop some filter to prevent this process, particularly with this mad proliferation of debates, from being hijacked by charlatans, entrepreneurs, entrepreneurial charlatans.  The one who dropped out - Mr. Cain – he used this as a book tour in a fundamentally disrespectful approach to the selection of presidents.”

 

Peggy Noonan, conservative columnist for the Wall Street Journal, recently had a few choice words for the absurdity as well; “…Republicans look more and more like a clown car.”  

 

Nevertheless, there is still hope for the Republican Party.  It resides on two fronts.

 

This is not the first time a political party has been “hijacked.”  After the 1972 overwhelming defeat of George McGovern the Democratic brand was badly tarnished.  It was widely accepted that the Democrats had moved too far to the left.  To regain an image of political balance, Jimmy Carter and Bill Clinton spearheaded the creation of the corporate Democrat.  The Republicans are currently looking for a way to strengthen their image.  They too have chosen to move to the right.  However, moving further right for the GOP can only result in far right-wing fanaticism – the same fanatism that caused Democrats to eventually modify their positions.    

 

What is lost in the Republican message of today, and was lost in the Democratic message in 1972, is that neither the far right or just the Republican faithful, nor the far left or just the Democratic faithful, determines the outcome of a national election.  Those elections are determined by Americans who have not been indoctrinated by either party.  To reestablish credibility, Republicans will have to return to that reality. 

 

Secondly, there are still Republicans that are admirable and worthy of respect.

 

One such Republican has a clear message and vision for America.  While his political doctrine, is badly flawed, his courage to lead and his character in refusing to pander deserves our admiration and respect and thus our attention.  He is a rare breed today; “Some people want it either or – You either believe in something and you’re not in the race, or, you’re in the race and you don’t believe in anything.  I don’t understand why you can’t believe in something and still be in the race.”  He further states; “That is my goal- to make sure that campaigning and political activity represents true beliefs and a true understanding in what we are doing rather than saying superficially how do we win the race?”  This is not just political rhetoric.  Ron Paul truly “walks the talk.” 

A second admirable Republican is Buddy Roemer.  Roemer is a former four term congressman and the former Governor of Louisiana.  He is the only Republican presidential candidate with those political credentials.  He also clearly understands the single biggest threat facing our country today and has the courage to aggressively attack it; “You can’t tackle the jobs program, the budget problem, the tax problem or American rising without tackling the first problem – money in politics.  It is corrupt.  It is institutionally corrupt.  They spend their time getting big checks from big special interest.  It’s the special interest…who write the tax code. You can’t read it, it doesn’t work for America, it hurts jobs.  We give’ em away. They’re being stolen by unfair trade.  And nobody does anything.  You know why?  Corporations have never made more money they are right now.  They wrote the tax code and they really don’t give a damn about the rest of America.”

Roemer has been shutout from all the Republican debates.  In addition, the mainstream media have arbitrarily determined that both Ron Paul and Buddy Roemer are not viable candidates.  This is the same mainstream media and Republican Party that embraced the "entrepreneurial charlatan" with serious character flaws, Herman Cain.  Until the Cains’ of the party are replaced by the Roemers’ and Pauls’ – until their courage and character gain dominate national attention, the Republican brand will continue to suffer diminished credibility and widespread support.   

Republicans can survive, but they will need the help of the electorate.  Should Barack Obama, struggling with racist bias, rarely seen economic woes, and a badly fractured and misguided Democratic Party win reelection; and should the Republicans fail to hold the House and make no gains in the Senate; the stranglehold enjoyed by Grover Norquist and the John Birch Society “Tea Party” should be considerably lessened. The “clown car” will stall if not run out of gas altogether.  

However, should the “clown car” continue on a smooth unimpeded journey in the far-right lane of American political traffic, Americans will find some very rough road and very formidable potholes to traverse in the future.  But then, what’s a parade or American politics, without clowns????  

”The Unholy Alliance”

In America we have two methods for redress of grievances. The first is through our vote. The second is our courts. It now appears that both are slipping away.

Let’s begin with our vote. 

To strengthen the Democratic brand that was badly tarnished by the embarrassing defeat of George McGovern, President Carter politically positioned himself as a moderate Democrat to escape the perception that Democrats were far left lunatics.  Special interest and large financial institutions then recognized that, for the first time since the great depression, both political parties could now be influenced through vast sums of money.  Thus was born the corporate Democrat. 

During the Carter Administration, deregulation of the airlines and trucking industry took hold.  It also began deregulatory reforms in banking.  Deregulation of banking opened the door to greatly increased profits made possible by investments in riskier assets financed with greater leverage — namely more borrowing.

With Carter’s success, more corporate dollars began flowing into political coffers.  This motivated succeeding Democratic candidates to jump on the deregulation bandwagon.  This eventually led to the single biggest deregulation catastrophe on November 12, 1999.  President Clinton signed the "Gramm–Leach–Bliley Act." This repealed the provision in the "Glass-Steagall Act" of 1933 that forbad the merging of financial corporate interests such as investment banks and insurance companies with commercial banks.  Clinton's single stroke of a pen created, “too big to fail.”  This, along with all the previous deregulation legislation, sent the country into the financial meltdown of 2008.

Even in the face of this economic catastrophe the juggernaut kept right on rolling.  

On January 21, 2010 the United States Supreme Court, in "Citizens United v. Federal Election Commission", ruled that unlimited money could be legally spent on political campaigns.

Meanwhile President Obama offers no hope for change on this front.

President Obama’s largest campaign contributors in 2008 were AIG and the insurance industry.  In his bid for reelection we find Goldman Sachs as his largest contributor thus far.  He is also receiving money from JP Morgan Chase and Company, Citigroup Inc., Morgan Stanley, USB AG and, of course, AIG. 

In addition, the president had two golden opportunities to act.  The first was in crafting the 2010 Dodd–Frank legislation.  President Obama could have insisted previous provisions from Glass-Steagall be resurrected and implemented. Without breaking up the current huge conglomerates that control our financial industries and have huge influence within our government , we are left vulnerable as more of them achieve “too big to fail” status. While language addressing “too big to fail” is incorporated in "Dodd-Frank," there is absolutely nothing in the bill that prevents another 2008 financial meltdown.  

Secondly, Bernie Sanders, Independent Senator from Vermont, has proposed a Constitutional Amendment ("Saving American Democracy Amendment") to repeal the Citizens United ruling by the Supreme Court.  The State of The Union provided President Obama with an excellent opportunity to throw his full support behind the measure; but he chose to remain silent.

Since 1977 there have been three Republican presidents and three corporate Democratic presidents.  They are ALL duplicitous, meanwhile, business as usual continues in Washington DC.    

The Supreme Court - that hot bed of wisdom - is hardly the only court culprit.  It have lots of company.  

In the HBO documentary, “Hot Coffee” we learn that $10 million dollars is routinely spent on various individual state appellate and state Supreme Court judicial elections.  Special interests and large corporate concerns, such as tobacco companies and pharmaceutical companies, are using their money to stack these courts with judges favorable to tort reforms.  This money is funneled through the U. S. Chamber of Commerce.   Karl Rove, former campaign advisor and Deputy Chief of Staff to President George W. Bush, has been so successful in this endeavor that it is now almost impossible to get a fair civil verdict rendered in Texas.  If this abuse is left unchecked, it is estimated that as much as $100 million will soon be spent in getting tort reform judges elected.

As our liberties for redress of grievances continues to be stripped, the only remaining solution to halt the spread of these grotesque, yet legal, activities is activism.  It was activism that gave rise to labor unions; that led to Civil Rights legislation; that propelled an end to the Vietnam War; that forced the truth to surface surrounding Watergate and the despicable conduct within our government.  The “Occupy Wall Street Movement” could be considered an activist movement.  It failed because it was absent leadership and organization without any defined set of goals – no specific programs to end the stranglehold and thus no wide-ranging public support on a mandate for change.  Nevertheless, it remains, that without EFFECTIVE forms of activism to restore our democratic and legal process, we will be left with no means in addressing our grievances.     As Bill Moyers recently quipped; “…waking up to how campaign contributions corrupt our elections (and) to the fact that if speech is money – no money means no speech.”

Extremism is the Enemy – Not God

On a recent edition of MSNBC’s “Hardball,” Chris Matthews asked Republican strategist Ron Christie; “How are you standing on evolution these days?”... “Do you believe in it?”  Christie responded by saying: “I believe God is our creator.”   Matthews visibly upset tried to humiliate Christie before moving on. 

Five minutes later and without provocation, Matthews blurted out: “… I thought you (Christie) were a moderate Republican.  No Seriously, I’m amazed that you don’t believe in evolution and mankind’s effect on climate change.  I thought those were established scientific facts.”  From this point forward any attempt by Christie to respond to any question was met with shout downs, and incessant interruptions.   This rudeness, disrespect and intolerance were insufferable. 

In recent years there has been a concerted effort by many anti-god extremists to remove all mention of God from our culture and society and political discourse.  This movement in large part has been inspired by an intense distaste for the emergence of extreme, fanatical religious precepts influencing Republican Party doctrine. 

We now see these ant-God zealots behaving in exactly the same manner. The only difference between them is that the anti-God movement it is not being done in the name of a political ideology or political party but in the name of science.  

Scientific evidence is constantly being challenged by scientists.  They are the first to concede that it is ever changing thus needs constant scrutiny.  It aids in our understanding and in many cases – but not all - has proven to be generally accurate.   Therefore, the study and debates surrounding both evolution and manmade global warming should continue as they may yet reveal evidence that either supports or contradicts what is currently on record as being accurate. 

The bigger question and concern here is the anger and resentment expressed over a belief that is harmless.  Mr. Matthews acted as if Mr. Christie had given a strong endorsement to the Ku Klux Klan or the Third Reich.  Who or what does a belief in God as one’s creator hurt?   What most importantly should demand our consideration is the obvious refusal or ignorance as to the contributions people who hold to such a belief have provided to mankind. 

Could Mr. Matthews have forgotten or did he choose to ignore the Declaration of Independence? 

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.” 

Mr. Matthews frequently evokes Dr. Martin Luther King Junior.  Clearly Dr. King was one of the greatest men to ever walk among us.  Curiosity begs the question as to whether Mr. Matthews has also forgotten that Dr. King was a reverend - a Baptist preacher who clearly believed in divine creation.

Mr. Matthews also takes every opportunity to enrich himself through the use of President Kennedy.  Could it be possibly that President John Kennedy’s attending Mass every Sunday to give thanks, praise and adoration to a God he obviously believed was his Creator has escaped Mr. Mathews? 

And then there is Mother Teresa of Calcutta. 

We need to be mindful that the compassionate and humane philosophies that acted as the very foundation and fabric of what once made America the greatest country on earth is indeed embedded in Judeo-Christian teachings and beliefs. 

The same rights under the precious precepts of our First Amendment are granted and protected for both Mr. Christie and Mr. Mathews even if one chooses to reject science and the other chooses to reject the founding fathers, Reverend King, President Kennedy and Mother Teresa. Regardless of our belief, we must remain committed to die for those rights even if the beliefs are held by radical extremists.  What isn’t a right and needs to be distained are strong armed tactics to belittle those who believe or think differently than we do.   That in essence is spitting on the first Amendment. 

Ron Christie is to be admired for maintaining his composure and courage of conviction while under assault in a very public medium.  Mr. Mathews owes Mr. Christie an apology.  He also owes an apology to every decent, respectable, mainstream Christian.  

Celebrating Early Rock

“Rock ‘N’ Roll will stand, man!”  ~ Wolfman Jack ~     

 January 23 – Million $ Ballroom-Milwaukee, WI
January 24 – Eagles Ballroom-Kenosha, WI
January 25 – Kato Ballroom-Mankato, MN
January 26 – Fourniers-Eau Claire, WI
January 27 – Fiesta Ballroom-Montevideo, MN
January 28 – Prom Ballroom-St. Paul, MN
January 29 – Capitol Theater-Davenport, IA
January 30 – Laramar Ballroom-Ft. Dodge, IA
January 31 –  The Armory-Duluth, MN
February 1 –  Riverside Ballroom-Green Bay,WI
February 2 –  Surf Ballroom-Clear Lake, IA

"We did a show one time in Florida.  The PTA or YMCA or somebody thought I was – Somethin’ else.  So they came out and filmed the show.  The only thing I could move all night long was my little finger."   ~ Elvis ~

              

A plane crashed on February 3, 1959 in a desolate farm field on the outskirts of Mason City, Iowa.  The crash killed “Rock ‘N’ Rollers” Buddy Holly, Richie Valens and J.P. “The Big Bopper” Richardson. Every February since 1979, the tragic day has been memorialized in a musical celebration at the Surf Ballroom in Clear Lake, Iowa.

For 34 years this unique phenomenon has drawn worldwide early rock fans to this small Iowa town in the dead of winter.  Reliving “The Winter Dance Party” tour provides a wonderfully rare opportunity.  It recaptures a special era by celebrating and enjoying the music that so defined that era.  But it is more than that.  For this yearly celebration also serves to remind us of the historical and cultural significance of early rock. 

It began on July 11, 1951 at WJW in Cleveland Ohio.  Alan Freed aired the first musical program strictly devoted to rhythm and blues (R & B).   Freed later coined the moniker “Rock ‘N’ Roll.” 

Freed, along with the determination and commitment of Sam Phillips, the founder of Sun Records, in Memphis, Tennessee and the incredible, mesmerizing talent of Elvis Presley, brought “Rock ‘N’ Roll” to fruition.  

By 1956, Elvis, Chuck Berry, Fats Domino and Little Richard started a movement that could not be halted.  Their creativity and vitality gave rise to a second wave of “Rock N’ Rollers;” Carl Perkins, the Everly Brothers, Jerry Lee Lewis, Dion and the Belmonts, Richie Valens, J.P. “The Big Bopper” Richardson and Buddy Holly.   

But there would be a price to pay for all that creativity and vitality. 

From its inception early rock was targeted for destruction.  Racial hatred ran rampant in America in the 1950’s.  The racists along with many mainstream Americas were horrified that this previously banned black music had successfully found its way into mainstream America.  J. Edgar Hoover, the director of the FBI, stated publicly that next to Communism early rock was the single biggest threat to America.  They were determined to club it to death.  1959 had become the pivotal year for their assault. 

Elvis was tucked neatly away in Germany serving Uncle Sam.  Little Richard had dedicated his life to the Lord and was absent from the music scene.  Chuck Berry’s credibility took serious hits when he was tagged with a jail bird image; Jerry Lee Lewis married his 13 year old cousin; Carl Perkins was recovering from an auto accident and a plane carrying Richie Valens, “The Big Bopper” and Buddy Holly crashed killing them all. 

In addition, by 1959 an onslaught of demolition charges designed to disgrace the music and everyone involved with it had been strategically placed.   All that was needed was a push on the plunger of the detonator.  That came in the form of a racially motivated payola scandal spearheaded by the federal government.

Payola, up to this point, was like jay walking.  It was prevalent but of no real concern.  As Mel Karmazin, the former head of Infinity Broadcasting and CBS noted, “every radio comes equipped with an on/off switch.”  Nobody in their right mind was going to play a lame record just because they were paid.

Nevertheless, Alan Freed was arrested, pleaded guilty, was blacklisted from broadcasting and died broke in 1965.  In Chicago Phil Lind received death threats and needed police protection.  Les Paul and Bobby Darin had to defend themselves against baseless charges.  Dick Clark barely avoided prosecution by demonstrating that every song he played was based on popularity while divesting himself of interests in various record companies.  Many other disc jockeys were fired while others quit before the long arm of racism could reach them.

Gradually and thoroughly the passion and raw sound, the hard edges, the strong regional accents that defined early rock were clubbed into submission.  By the early sixties the music had died.

Don McLean’s 1972 hit recording “American Pie” laments not just the loss of the rock stars, but the loss of the music.  McLean longs for the happiness and security of those sweet, humble days of our youth.  It is a simple melancholy, a lament, that the “music wouldn't play” anymore.

While the vitality and creativity of early rock were short-lived, its impact has endured.  Early rock continues to inspire musicians and composers while leaving an indelible mark on our culture and society.  For early rock’s true legacy extends way beyond the music.  It is a legacy of commitment fueled by courage and character that aided in a cultural awakening – an awakening that provided greater access for blacks into mainstream American society. 

Clear Lake, in its truest essence, represents this legacy…a legacy that should be forever celebrated and for which we should be eternally grateful.

                    Hosted a call-in and request oldies radio show.

                         During those years this was, by far and 

                               away, the most requested song.

American Pie Saga Told Through Pictures from the Era
https://www.youtube.com/watch?v=VhX3b1h7GQw&feature=youtube 

“Refrigerator Poor”

There are those among us who believe that poverty in America is basically nonexistent.   Their argument is that those in need do not meet the true threshold of poverty because they have access to a refrigerator.  Their concept is simple. No community support for sustenance should be granted if the needy possess any convenience or comfort.  They are quick to point out that programs to help the “refrigerator poor” do more harm than good because they stifle initiative by encouraging further dependence.  They also argue that those in need would find a way to survive without government programs, although they cannot provide specific information as to how this would be accomplished.  They argue that this increased level of pain and suffering would lead to stronger more independent individuals and a stronger America.

Their collective wisdom always comes equipped with the support of world and historical references.  They point out that real poverty exists in Haiti and Africa.  This narrow focus is designed to support their contention that there is no real cause for concern in America.  They always return to the assertion that someone, somewhere, is always more needy, i.e.; nineteenth century England would make the starvation in Africa look like a horn of plenty.  As a result the definition of poverty is continuously modified to correspond with their preconceived notions rather than dealing with the realties.  It therefore becomes impossible to clearly establish an accurate definition applicable to the American experience.   Without this definition an intelligent discussion becomes futile.   

So how do we establish poverty in America?  

Michael Harrington’s 1962 definition of poverty is yet the most apropos for America.  In his milestone book “The Other America,” he defines it as; “That dream (the American dream) has never been just about income, of course, but about self-determination.”  As Harrington observed; “poverty is more than lacking minimum standards of health care, housing, food and education. “Poverty,” he wrote, “should be defined psychologically in terms of those whose place in the society is such that they are internal exiles who, almost inevitably, develop attitudes of defeat and pessimism and who are therefore excluded from taking advantage of new opportunities.”    

At the heart of Harrington’s work is the realization that the American poor suffer through greater levels of despair than experienced elsewhere in the world.  Their frustration is compounded because of their American experience.  The American fabric encourages dreams and ingrains a sense of pride for excellence in achievement and standards of living.  This leads to increased humiliation through their loss of dignity and respect.  Meanwhile, their frustration is dramatically exacerbated as they struggle to reconcile their loss of liberty in the richest country in the world – the one that guarantees and most cherishes freedom.  

Amartya Sen, who was awarded the 1998 Nobel Prize in Economic Sciences, argued that economists should think of poverty as that which deprives people of the opportunity to develop and use their capabilities – a further validation of Harrington’s thesis some 36 years later.

The “Refrigerator Poor” scholars refuse to accept that American standards of living and the deprivation of the American Dream have any validity in solving the poverty problem in America.   They are perfectly comfortable not only dismissing Harrington and Sen, but in dismissing the fact that these were the very same concerns that propelled the labor movement.  That movement was never about starvation but quality of life and standard of living.

 

There is no rational that can effectively dispute the fact that an affluent middle class was the most significant factor in making America the greatest country the world had ever known.  As the poverty levels defined by Harrington continue to escalate and the middle class continues its erosion into the working poor, a strong viable America will evaporate.  Poverty by American standards has nothing to do with Haiti, Africa or South America.  The American experience, by its very nature, has always demanded a far more humane and committed approach to standards of living.  

Any definition void of despair and the decaying expectations for achieving the American Dream will only proliferate the ugliness.  Any intelligent solution to the crippling malaise of poverty – any effort to resuscitate the American dream for the nation’s poor - will never be accomplished in any discussion that includes refrigerators.