FacebookTwitterGoogle+RedditEmail

Corporations Run the Economy

by RALPH NADER

Here is an open letter that Barack Obama should write to Mitt Romney – pronto!

Dear Mr. Romney:

Not a day goes by without you blaming me for every slumping or stagnant economic indicator. Unemployment, increases in the number of food stamp recipients, government borrowing, and spending, home foreclosures, economic uncertainty for businesses, trade deficits – you name it. Only for droughts and hurricanes have you absolved me from responsibility.

I won’t go into what was inherited from your Republican party’s years in office. Deregulation, non-enforcement, non-disclosure by the financial industry, and subsidies and bailouts were that period’s hallmarks. But if I were to be held responsible for the state of the American economy, there would have to be a “command and control” economy enforced by the White House. You know full well that is not the case for several reasons.

First, our economy is dominated by corporations that make their own investment and hiring decisions. Two-thirds of the tens of millions of low-wage workers are employed by fifty large corporations, such as Walmart and McDonald’s. Thirty million American workers are laboring between the federal minimum wage of $7.25 per hour and what the minimum wage, adjusted for inflation from 1968, should be now – about $10 per hour. These companies are successfully opposing in Congress any increase in the minimum wage to such catch up with 1968. By the way, you favored an inflation-adjusted minimum wage for years. During the Republican primaries earlier this year, you changed your long-standing position and now oppose raising the minimum wage.

Moreover, many companies are sitting on more than $2 trillion in inactive cash reserves. I have no power to get more of that capital invested, other than to appeal to their USA corporate patriotism. I could also use that patriotic appeal to urge them to increase their dividends to shareholders which would pump tens of billions of dollars into our consumer economy to encourage much-needed spending. Some of these successful companies like Google, EMC and others offer no dividends at all to their owners. Those exhortations are just exhortations. CEOs can do what they want.

Second, I am not the Federal Reserve. The Fed has kept interest rates very low which has limited the return on savings. Tens of millions of middle and lower income people could spend those interest payments on the necessities of life. But the Fed is its own ruler, and its catering to the capital investment community don’t seem to be boosting the economy.

Third, there is the Congress and the oppositional unanimity by Republicans to block any economic, job-producing measures due to their priority of using a recessionary economy to help you defeat me in November. Remember Senate Republican leader, Senator Mitch McConnell’s oft-repeated words about that being their number-one priority?

I tried to promote a major public works construction and repair program in Congress. The Republicans in the House blocked it under the aegis of Representatives John Boehner and Eric Cantor. This program would have produced well-paying jobs, with multiplier effects, that could not be exported to China. Our communities have trillions of dollars in deferred maintenance afflicting schools, clinics, public transit systems, highways, bridges, dams, and water and sewage systems. I cannot make this happen without the Republicans in Congress. You and your running mate, Paul Ryan, have not exactly urged them to take up this jobs initiative.

You have declared that “Washington has become an impediment to economic growth.” Why then don’t you be specific, name and support an end to the vast array of corporate subsidies, handouts, bailouts and inflated government contracts, especially from the defense industry? Imagine what your friends on Wall Street and in Houston would think of you after that burst of candor.

See how many jobs disappear with the end of what conservatives call crony capitalism, the end of the huge, historic outpourings of government research and development monies that substantially built and help maintain innovations in the aerospace, biotech, pharmaceutical, computer, telecommunications and containerization industries – to name a few. And if you think taxpayer investment in public works all over the country is an “impediment to economic growth,” say so forthrightly, as you campaign battleground states.

I look forward to our first debate on October 3 in Denver and shall observe your struggle with consistency. While you’re at it, kindly bring your pre-2010 tax returns, so we can learn more about what you mean when you talk about your policy of tax cuts.

In solidarity for America,

Barack Obama, President

Ralph Nader is a consumer advocate, lawyer and author of Only the Super-Rich Can Save Us! He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, published by AK Press. Hopeless is also available in a Kindle edition.

Ralph Nader is a consumer advocate, lawyer and author of Only the Super-Rich Can Save Us! 

February 10, 2016
Eoin Higgins
Clinton and the Democratic Establishment: the Ties That Bind
Fred Nagel
The Role of Legitimacy in Social Change
Mike Whitney
Putin’s Aleppo Gamble Pays Off
Chris Martenson
The Return of Crisis: Everywhere Banks are in Deep Trouble
Ramzy Baroud
Next Onslaught in Gaza: Why the Status Quo Is a Precursor for War
Jeffrey St. Clair
Why Bernie Still Won’t Win
Sheldon Richman
End, Don’t Extend, Draft Registration
Benjamin Willis
Obama in Havana
Jack Smith
Obama Intensifies Wars and Threats of War
Rob Hager
How Hillary Clinton Co-opted the Term “Progressive”
Mark Boothroyd
Syria: Peace Talks Collapse, Aleppo Encircled, Disaster Looms
Lawrence Ware
If You Hate Cam Newton, It’s Probably Because He’s Black
Jesse Jackson
Starving Government Creates Disasters Like Flint
Bill Laurance
A Last Chance for the World’s Forests?
Gary Corseri
ABC’s of the US Empire
Frances Madeson
The Pain of the Earth: an Interview With Duane “Chili” Yazzie
Binoy Kampmark
The New Hampshire Distortion: The Primaries Begin
Andrew Raposa
Portugal: Europe’s Weak Link?
Wahid Azal
Dugin’s Occult Fascism and the Hijacking of Left Anti-Imperialism and Muslim Anti-Salafism
February 09, 2016
Andrew Levine
Hillary Says the Darndest Things
Paul Street
Kill King Capital
Ben Burgis
Lesser Evil Voting and Hillary Clinton’s War on the Poor
Paul Craig Roberts
Are the Payroll Jobs Reports Merely Propaganda Statements?
Fran Quigley
How Corporations Killed Medicine
Ted Rall
How Bernie Can Pay for His Agenda: Slash the Military
Neve Gordon
Israeli Labor Party Adopts the Apartheid Mantra
Kristin Kolb
The “Great” Bear Rainforest Agreement? A Love Affair, Deferred
Joseph Natoli
Politics and Techno-Consciousness
Hrishikesh Joshi
Selective Attention to Diversity: the Case of Cruz and Rubio
Stavros Mavroudeas
Why Syriza is Sinking in Greece
David Macaray
Attention Peyton Manning: Leave Football and Concentrate on Pizza
Arvin Paranjpe
Opening Your Heart
Kathleen Wallace
Boys, Hell, and the Politics of Vagina Voting
Brian Foley
Interview With a Bernie Broad: We Need to Start Focusing on Positions and Stop Relying on Sexism
February 08, 2016
Paul Craig Roberts – Michael Hudson
Privatization: the Atlanticist Tactic to Attack Russia
Mumia Abu-Jamal
Water War Against the Poor: Flint and the Crimes of Capital
John V. Walsh
Did Hillary’s Machine Rig Iowa? The Highly Improbable Iowa Coin Tosses
Vincent Emanuele
The Curse and Failure of Identity Politics
Eliza A. Webb
Hillary Clinton’s Populist Charade
Uri Avnery
Optimism of the Will
Roy Eidelson Trudy Bond, Stephen Soldz, Steven Reisner, Jean Maria Arrigo, Brad Olson, and Bryant Welch
Preserve Do-No-Harm for Military Psychologists: Coalition Responds to Department of Defense Letter to the APA
Patrick Cockburn
Oil Prices and ISIS Ruin Kurdish Dreams of Riches
Binoy Kampmark
Julian Assange, the UN and Meanings of Arbitrary Detention
Shamus Cooke
The Labor Movement’s Pearl Harbor Moment
W. T. Whitney
Cuba, War and Ana Belen Montes
FacebookTwitterGoogle+RedditEmail