Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
Keep CounterPunch ad free. Support our annual fund drive today!

Corporations Run the Economy


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! 

More articles by:

2016 Fund Drive
Smart. Fierce. Uncompromised. Support CounterPunch Now!

  • cp-store
  • donate paypal

CounterPunch Magazine


Weekend Edition
October 28, 2016
Friday - Sunday
John Pilger
Inside the Invisible Government; War, Propaganda, Clinton & Trump
Andrew Levine
The Hillary Era is Coming: Worry!
Gary Leupp
Seven World-Historical Achievements of the Iraq Invasion of 2003
Paul Street
Standing Rock Water-Protectors Waterboarded While the Cleveland Indians Romped
Stanley L. Cohen
Israel: 1984 Everlasting
Jeffrey St. Clair
Roaming Charges: Comfortably Dumb
Michael Brenner
American Foreign Policy in the Post-Trump Era
Luciana Bohne
Crossing the Acheron: Back to Vietnam
Robert Hunziker
The Political Era of Climate Refugees
Stephen Cooper
Alabama’s Last Execution was an Atrocity
T.J. Coles
Confronting China: an Interview with John Pilger
Pete Dolack
Work Harder So Speculators Can Get More
Joyce Nelson
Canadians Launch Constitutional Challenge Against CETA
John Laforge
US Uranium Weapons Have Been Used in Syria
Paul Edwards
The Vision Thing ’16
Arshad Khan
Hillary, Trump and Sartre: How Existentialism Disrobes the Major Presidential Candidates
Peter Lee
It’s ON! Between Duterte and America
Chris Zinda
The Bundy Acquittal: Tazing of #oregonstandoff
Norman Pollack
America at the Crossroads: Abrogation of Democracy
Joseph Grosso
Starchitects in the City: Vanity Fair and Gentrification
Patrick Carr
Economic Racial Disparity in North Carolina
David Swanson
Public vs. Media on War
Chris Gilbert
Demo Derby in Venezuela: The Left’s New Freewheeling Politics
Ira Helfand
Nukes and the UN: a Historic Treaty to Ban Nuclear Weapons
Brian Cloughley
The US, NATO and the Pope
Binoy Kampmark
Nobel Confusion: Ramos-Horta, Trump and World Disorder
Stephen Cooper
Alabama’s Last Execution Was an Atrocity
Sam Albert
Kids on Their Own in Calais: the Tip of an Iceberg-Cold World
Binoy Kampmark
Nobel Confusion: Ramos-Horta, Trump and World Disorder
Russell Mokhiber
Lucifer’s Banker: Bradley Birkenfeld on Corporate Crime in America
Ron Jacobs
Death to the Fascist Insect! The SLA and the Cops
Cesar Chelala
Embargo on Cuba is an Embarrassment for the United States
Jack Smith
And the Winner Is….
Ken Knabb
Beyond Voting: the Limits of Electoral Politics
Matt Peppe
An Alternate Narrative on Hillary Clinton and Donald Trump
Uri Avnery
The Israeli Trumpess
James Rothenberg
Water Under the Bridge
Louis Yako
Remembering Rasul Gamzatov: The Poet of the People
Jonathan H. Martin
When Nobody Returns: Palestinians Show They are People, Too
Louis Proyect
The Outsider-Insider: Isaac Babel’s Big Mistake
Simon Jones
The Human Lacunae in Ken Loach’s “I, Daniel Blake”
Martin Billheimer
Now and Then, Ancient Sorceries
Charles R. Larson
Review: Brit Bennett’s “The Mothers”
David Yearsley
Bach on the Election
October 27, 2016
Paul Street
An Identity-Politicized Election and World Series Lakefront Liberals Can Love