WHAT WE WANT

In deference to my good friend Dorian Dale who originated the Fat Cat Manifesto, and as encouragement to the budding revolutionaries protesting Wall Street, I have taken the liberty of summarizing demands that must be met in order to restore fiscal sanity within the United States. Please feel free to add, tweak, expound, etc.

1. Break Up The Banks. Reinstate Glass-Steagall, an act established in 1933 to protect citizens from the type of corruption that arose in the 1920’s and resulted in the market crash and subsequent Depression.

2. Regulate Swaps and Derivatives. These investments act are allowed to act like unregulated commodities without oversight, regulation or trading limits. The CFTC should govern these activities and provide transparency to ensure these transactions are “on” balance sheet.

3. Close Tax Loopholes. Eliminate the Carried Interest Tax loophole that allows income from financial investing to be treated as capital gains.

4. Limit Speculation. Rampant speculation in the commodities sector has allowed for the introduction of companies with no business interest in commodities to influence the volume and volatility of crucial staples such as energy and food.

5. Eliminate Tax Havens. Penalize companies who utilize off-shore tax havens to house primary business operations and institute sanctions against countries that harbor them.

6. Shred The Pledge. Every lawmaker who signed the Grover Norquist No-Tax Pledge should be required to shred the pledge with the same alacrity with which they signed it.

7. War Tax. Windfall taxes should apply to all war-profiteering companies who received multi-billion dollar contracts for work in Afghanistan and Iraq.

8. Secure Social Security. Phase in a re-enactment over the next ten years of the original Social Security provision that held these funds in trust “Off-Budget” to prevent Social Security funds being used for general budget purposes such as financing war.

 

9/11 x 10

If these words are abrasive, then perhaps you are still asleep, immune to the truth that there are those who have capitalized upon America’s grief by plunging our youth into two unforgivable wars and plundering our coffers with misguided economic policies that fattened the wallets of a pitiful few at the expense of the trusting many.

The “Baby Boomer” generation was coming of age when President John F. Kennedy was gunned down on Nov. 22, 1963. It was the first defining moment of a generation that would bear witness to a series of culture-shifting events over the next decade; events that included the Vietnam War and the assassinations of other iconic figures such as Malcom X, Martin Luther King Jr. and Robert Kennedy. Beginning with that fateful moment in Dallas until the final withdrawal of American troops from Vietnam 10 years later, America would never be the same.

Today, as we reflect upon the decade that transpired since the seminal moment of the new millennium, those of us who belong to the generations that followed the Baby Boomers find ourselves in a state of malaise and slow-moving transformation, unsure of our place in history. The  Sept. 11, 2001 terrorist attacks should have been our awakening. Instead, it is as though we were collectively numbed and placed in suspended animation. Our grief is still palpable but our actions have been muted and confused—our hopeful innocence resting silently beneath the rubble.

This week we will be inundated with remembrances of that horrible day with many waxing poetic about America coming together and paying homage to our unity. This is not one of those essays. For me, 9/11 is when it all fell apart. The sight of it, the smell of it… It’s all right there. The sick feeling in my gut never left—didn’t even dissipate. Tragically, the ensuing decade haunts me now as much as the day itself.

Hopefully, Sept. 12, 2011 we can begin putting the pieces back together again. Recall, however, how tumultuous the healing process can be as the decade that followed the end of the Vietnam War was rife with unrest and discontent; an unfortunate harbinger for the decade ahead.

From JFK’s assassination until the withdrawal from Vietnam, the “Hippies” of the Sixties and Seventies were on the right side of liberty. They were at the forefront of the Civil Rights Movement. They protested the war and railed against greed and corruption. They challenged conventional wisdom and raged against the machine. They had no children, no responsibilities—only outrage and determination. In defining themselves they redefined America and over time naturally found themselves in charge.

And then it happened.

Over the next few decades the revolutionaries came to embody the status quo. The generation that fought racism, unjust wars and corruption began suffering from selective amnesia. After years of excess and living high on the hog, the Baby Boomers now control the world’s purse strings, and they’ll do anything not to let go.

When 9/11 overwhelmed our nation, we looked to them. Instead of offering guidance they led us to war. Twice. They assuaged their own guilt over the mistreatment of soldiers returning from Vietnam by teaching us to revere service during wartime. Yet they were too cowardly to allow photographs of those who returned home in pine boxes. They called those who spoke out against war “unpatriotic” even though it was this freedom that defined their youth. They famously told us to spend, not save, even though the “Greatest Generation” saved enough to support them after World War II. All we had to do was stay vigilant. Say something if we saw something. Shut our mouths and fall in line.

And since Wall Street was attacked it too became sacrosanct. Only it wasn’t Wall Street that died that day. It was people—people who deserve more than the resurgence of unrestrained capitalism and who are worthy of being remembered for all that liberty truly stands for. Like helping our fellow citizens in their time of need—not vilifying the poor while lining the pockets of the rich; or establishing just and equitable laws that protect every American—not just those who can afford to be protected.

If these words are abrasive, then perhaps you are still asleep, immune to the truth that there are those who have capitalized upon America’s grief by plunging our youth into two unforgivable wars and plundering our coffers with misguided economic policies that fattened the wallets of a pitiful few at the expense of the trusting many. Their triumphant legacy? Our food is unrecognizable, the air is poisonous, and our jobs are overseas. America is fat, polluted and broke. After a solemn decade of reflection upon the chicanery of those who promised to defend our freedom it is time to speak out on behalf of those who are asleep but desirous of truth and those who are awake but unsure of how to speak it.

To be clear, I am not defending the inaction of my generation—the so-called Gen Xers—merely proffering a reasoned explanation of our latent response. When the Baby Boomer generation was jolted from the post-WWII cocoon in 1963, they were young and restless. Their enemies were clear, defined and from within. Racism was overt and ugly. The draft was omnipresent. The Vietnam War was televised, and someone you knew was either there or going. When 9/11 came, our enemies were nebulous and far away. They attacked innocent people and our way of life, instilled fear in our hearts.

Because the enemy wasn’t from within, we had no choice but to heed the call of our leaders who assured us our path was righteous. Only it wasn’t. We began on the right foot by giving chase to our enemy, sealing them off and punishing their leaders. Then, with the wind of public sentiment at their backs, our leaders pulled off an imperialist coup in a blood-for-oil campaign, squandering trillions of dollars and sacrificing thousands of American lives and tens of thousands more Iraqis and Afghanis.

Today, the charlatans in government who call themselves leaders are turning Americans against one another. They have ratcheted up the partisan dialogue to such an extreme many Americans believe that unemployment benefits, infrastructure spending and a health care bill that doesn’t take effect until 2014 are to blame for the failing economy instead of two decade-long wars, historic tax breaks for wealthy Americans and the destruction of oversight in the financial markets. All of this after George W. Bush decided to liquidate the nation’s entire surplus upon taking office.

The same Baby Boomers who fought against this type of irresponsible government have borrowed and refined the playbook in order to protect themselves. Their fear of growing old and losing what they have accumulated, ill-gotten or otherwise, is so acute they are actually trying to tell us that poor people and funding for Sesame Street are the reasons Social Security and Medicare might not exist for us.

So, why have subsequent generations been unable to coalesce as Boomers did when revolution beckoned them? The answer to this is far simpler than the remedy. Those in my generation lost the chance to capture the spirit of revolution by looking the other way for a decade. We bought homes, started families and tried to return to ordinary lives during otherwise extraordinary times. We slept.

Younger generations have substituted Haight-Ashbury with Facebook and protests with Twitter. In their frenetically hyper-connected lives they are ironically disconnected digital beings living a purgatorial existence that knows neither revolution nor responsibility. In fairness, how exactly would one protest genetically modified foods, the derivatives market or the carried interest tax loophole?

America’s youngest citizens have a long and troubled road ahead littered with greed, incompetence and willful ignorance. It is on them to connect beyond the invisible walls of social media and discover the revolutionary spirit that defined the Boomers, but eluded the Xers, and overcome the sordid legacy we jointly bequeath to them. In doing so, they will truly honor the memory of the people who perished on 9/11, rise above those who would do us harm and piece together what remains of our lost decade.

Tea Partisanship

Entitlement programs don’t imply that people have some childish sense of entitlement as some Republicans would have us all believe; the programs are precisely referred to as such because we are entitled to receive them.

Boehner and ObamaPart IV of The Season of Our Disconnect

Perhaps the best, most succinct commentary I heard regarding the acrimonious debt ceiling debate was during a BBC broadcast this past week. When asked what the sentiment was in Europe regarding the countdown to American debt default that Congress narrowly avoided on Aug. 2, the reporter said there was a sense of bewilderment that the United States would voluntarily default on its obligations when so many countries were struggling against doing so involuntarily. Not only did this highlight how silly the entire debacle really was but there’s something about hearing it delivered in a British accent that makes it sound all the more ridiculous.

The Republican Party, of which I have been affiliated with since coming of voting age, has never behaved so badly. This is a party that touts itself as pro-business and anti-tax, with every member running amok trying to out-Ronald Reagan one another. Yet anyone who runs a business will tell you that cutting costs can only achieve so much and that, at some point, revenue has to increase proportionate to the growth of expenses. Theoretically that means these pro-business Republicans should recognize the need to increase revenue, i.e., taxes, and any increase in revenue should be ascribed to expenditures with no direct, offsetting revenue line.

Since the greatest single unfunded liability in America is defense and military spending, which accounts for 25 percent of the budget, this area seems like the most logical place to cut expenses. Instead, the Republican Party has waged an all-out assault on entitlement programs such as Social Security and Medicare, which Americans have fully supported for decades. They demonize these programs, sullying them as “entitlements,” and deriding them as welfare-like benefits for ungrateful, undeserving idlers living off the government teat.

Entitlement programs don’t imply that people have some childish sense of entitlement as some Republicans would have us all believe; the programs are precisely referred to as such because we are entitled to receive them. Why? Because we have already paid for them. Check out your pay stub – it’s called FICA. Republicans are trying to terrify Americans with the misleading threats of disappearing future Social Security payments and dwindling Medicare coverage because they’re trying to obfuscate the fact that the wars in Iraq and Afghanistan will have cost the nation nearly $3 trillion between the direct cost of the engagements and subsequent social costs such as veteran care. There’s no pre-tax line item or fee for “Wars We Didn’t Ask For” on your paycheck. We have been giving the government the funding necessary to keep these programs alive for generations and they keep blowing money on conflicts we never wanted. Giving the American government Social Security and Medicare funding is like lending cash to your meth-addict uncle who promises he’s on the wagon and just needs a few bucks to get back on his feet. He’ll disappoint you every time.

And then there’s Reagan. True-blue Republicans who like to evoke imagery of the Gipper could use a refresher course and a reminder that when President Reagan cut taxes in the beginning of his administration, the jobless rate jumped above 10 percent (higher than under Obama) and the federal deficit grew to a then-unprecedented level. Desperate to get things under control he raised taxes seven times during his administration and increased federal spending so much that he left office with a tremendous deficit despite myriad tax hikes. Moreover, total tax revenue as a percentage of GDP was more under Reagan after his initial tax cuts than they are today and we just fought two, decade-long wars. Middle-class Republicans should also recall how Reagan nearly doubled the Social Security withdrawal (your money for “safe keeping” remember) but capped it at a certain income level. Or as Matt Taibbi writes in his recent book Griftopia: “That means that a married couple earning $100,000 total will pay roughly the same amount of Social Security taxes that Lloyd Blankfein or Bill Gates will.” This was nothing short of a heist on the middle-class in America, the memory of which is something today’s Republican leaders have entirely backwards.

Throughout the tenure of the Obama administration, Republicans, who are working to please Tea Party activists−the lowest common ideological denominator in the GOP−have continued to distort Reagan’s legacy and persist in blowing up America’s revenue line while adding unfunded liabilities on the expense line. Now they’re smashing our piggy banks to pay for their transgressions while continuing to extend the most favorable corporate tax environment in the history of the country.

Dig this. According to the Congressional Budget Office, corporate income tax accounts for only 1.3 percent of GDP (compared to individual income taxes, which are 6.2 percent of GDP). The last time it was this low was in 1983 when corporate tax was only 1.1 percent of GDP and the federal deficit was so big Reagan increased taxes every year thereafter. According to the Brookings Institute, the last time corporate income tax receipts were so low was in 1940. In the 1950’s, the golden era that Republicans really love to imagine reliving, the average was 4.76 percent of GDP. That’s quadruple what it is today. Shrinking corporate tax receipts is just one of a host of lopsided tax issues that favor corporations and wealthy Americans and force the government to borrow eye-popping sums of money.

The Democratic Party under the feckless and waffling leadership of Barack Obama has likewise capitulated to the right wing lunatic fringe. Because Democrats aren’t putting up a fight and caving to every unreasonable demand made by House Speaker John Boehner and Senate Minority Leader Mitch McConnell, the Tea Party’s whipping boys, a corrosive new partisanship has emerged in America. Ignorant, ill-informed zealots running a government against the people have officially hijacked Abraham Lincoln’s government of the people, by the people and for the people.