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Congress's Potemkin Populism
It's nice to see that when the public gets sufficiently angry about something, Congress responds. In a rare show of bipartisanship, members are eagerly registering shock and outrage at AIG's bonus payments by coming up with an assortment of ways to reclaim the bonanza, including taxing them away retroactively. Who says democracy is dead?
Meanwhile, Obama's plan to limit itemized deductions for the richest 1.2 percent of taxpayers (including the top 1.9 percent of small business owners) to 28 percent, starting in 2011, is also in trouble on the Hill. Wealthy contributors and friends of congressional leaders involved in setting tax policy have balked. So Congress is telling the White House to look elsewhere for the $320 billion it needs over ten years to finance half of the tab for health care reform. Congressional leaders have also informed the White House that they don't have the votes to pass Obama's proposal for treating the earnings of hedge-fund and private-equity managers as income rather than capital gains.
Angry populism thrives on stories about the rich and privileged who use their influence to get cushy deals for themselves at the expense of the rest of us. AIG's bonuses provide a perfect example. It's too bad the same populist outrage doesn't extend to issues involving far more money, affecting many more people, and entailing far more insidious abuses of power. Congress's potemkin populism over AIG's bonuses disguises business as usual when it comes to the really big stuff.
[I will resume blogging at the start of April. Until then, I'm off on a populist rampage.]
[I will resume blogging at the start of April. Until then, I'm off on a populist rampage.]
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Bulloney:
"It's nice to see that when the public gets sufficiently angry about something, Congress responds"
Congress didn't respond to major voter upset.
Otherwise, agree.
March 21, 2009 2:47 AM | Reply | Permalink
"It's too bad the same populist outrage doesn't extend to issues involving far more money, affecting many more people, and entailing far more insidious abuses of power. Congress's potemkin populism over AIG's bonuses disguises business as usual when it comes to the really big stuff."
I certainly agree Professor Reich. But how can the public extend that populist anger to issues it knows little or nothing about?
I'd say corporate media can be aportioned a large amount of blame here for failing to report or failing to report intelligently on the kinds of issues you highlight that are of far more consequence. If they did, the public's anger would equal or exceed it's anger over the AIG bonuses.
The public's foolishness is not because the public is foolish. It stems from the public being ill-informed by the media owned and operated by and for the predator class, uh, I mean Wall Street and the rich.
March 21, 2009 4:20 AM | Reply | Permalink
True, but our schools also need to do a better job of teaching critical thinking skills so the US public can do a better job of BS detecting.
March 21, 2009 7:42 AM | Reply | Permalink
Corporate media is just that. You know it is a sad commentary on journalism when comedians have to bring the news to the people.
March 21, 2009 7:53 AM | Reply | Permalink
Actually I blame the liberal blogoshere for this as much as MSM, I first learned about this on the TPM front page. We've wasted close to a week on this issue and I'd actually like to learn more about the issues Dr Reich lists. Perhaps you could post more on those issues. And perhaps Josh Marshall could give more headlines to them.
March 21, 2009 9:08 AM | Reply | Permalink
The blogoshpere does not set the news agenda for the nation and it's resources and access are dwarfed by those of the corporate media. Corporate media doesn't really have a problem with all the perfidy going on, on behalf of the predator class. They are only interested in simplistic "gotcha" stories of the bonus variety which they like mostly because it puts the Democrats in a very negative light and helps to distract the public from the issues Reich mentions which are, indeed, far worse.
March 21, 2009 12:43 PM | Reply | Permalink
Populism has been called a political philosophy in which the rich are invariably bad and the system that made them rich is invariably good - so - the public/populist hoopla over the AIG fat cats is no surprise at the same time as the system that made them rich remains firmly in place.
(Got to wonder if there's a political philosophy in which systems that make the rich rich are bad AND the rich are invariably bad.)
March 23, 2009 1:56 PM | Reply | Permalink
Go get 'em, Professor!
March 21, 2009 7:43 AM | Reply | Permalink
Thank you for the clear words. Enjoy your raging!
March 21, 2009 7:50 AM | Reply | Permalink
Who'd have thought that 1.2 percent of the population, covered by the wide range of reporters and meme drivers from Rick Santelli to Chris Matthews to Charlie Gibson, could garner such attention?
Shorter Galtists: "My planned tax cut just ran out, and it's everybody's problem!"
March 21, 2009 8:46 AM | Reply | Permalink
For those who "know" who Rick Santelli is and what his philosophy is, try Frank Ahren's "Wildly Popular Five Questions" interview. 11/13/2008
Quote: Go into T-bills and even though the yields are very low, you don't want to be in anything risky. . . . Go into safe government paper, don't look to make a yield that’s very good. Just try to protect your principal. When times change, make subtle adjustments. Rick Santelli
March 21, 2009 11:17 AM | Reply | Permalink
The trick is to keep the public engaged - which is exactly what President Obama is doing...
March 21, 2009 4:06 PM | Reply | Permalink
What would happen if an angry populace demanded that Congress could only have health insurance that is open to all Americans and at the same cost? And that Congress had one year to make it happen. And at the end of this year Congress could only have this insurance by law.
Somehow, I think they would get it done. Don't you?
People. Congress is not going to give us health insurance unless we make them. Obama doesn't have the power to make this happen, or even the full intention he promised us.
When do we stop taking this?
March 22, 2009 12:01 AM | Reply | Permalink
"It's too bad the same populist outrage doesn't extend to issues involving far more money, affecting many more people, and entailing far more insidious abuses of power."
I don't know. Zeroing in on these bonuses may be apt when you consider that the very purpose of all this exotic finance is to cover up its essentially fraudulent nature *in order to* deliver these kinds of payouts to certain select employees. The destruction of US businesses (and now the larger economy) for the benefit of a few, looting corporations where other people try to work, is not a little, tiny matter. I simply don't agree that the kleptocratic pattern doesn't affect a lot of people.
So, it seems incumbent on people who are far too belatedly figuring this little game out to keep holding Congress and the Administration's feet to the fire, to shift them in a more majority friendly direction.
Liberals would like to think "government good," but this government is very, very bad. If government welfare checks to failed executives is what galvanizes democratic outrage about just how bad it is--if it forces them to recognize that a criminal gang is running the country-- then so be it.
March 22, 2009 7:43 AM | Reply | Permalink
like a magicians slight of hand this outrage is intended to mask the real trick, the AIG bailout.
and since its the wrong move and a waste of money some people are outraged.
the real question is what is going to happen in 6 months when the economy is twice as bad as it is now?
while the rest of the world takes to the streets in protest this government is saying we cant offend our rich pals so dont think your programs will pass obama.
and its not only their fault.
obama has shown he has no intentions of ending americas waring.
the military budget should be cut in half and then half again the next 8 years.
that is the only way to get a real handle on change in this country..
once obama losses the people as he surly will because of the economy there is no telling how angry the people will get.
maybe thats why obama keeps blackwater on the payroll and the interment camps are ready to be filled.
March 22, 2009 8:15 PM | Reply | Permalink
As AIG executives are singled out for national outrage, where is the congressional finger pointing and outrage at its own banking and finance leadership?
The 23-member Senate Committee on Banking, Housing, and Urban Affairs, and the 77-member House Committee on Financial Services, are charged with oversight of the nation’s financial system. These committees have failed in a big way. Their leadership and all their members should be replaced, preferably by those who haven't received campaign contributions from institutions like AIG and Fannie Mae.
March 23, 2009 6:04 PM | Reply | Permalink
Congress is afraid--like many in the Admin--to do the obvious. Place the obviously bankrupt money center banks into bankruptcy reorganization under new management.
This isn't a mere liquidity crisis where throwing money at these scoundrels will clear things up. This is systemic and requires a fighting FDR approach--not a bottomless bailout a la Bush.
March 23, 2009 10:12 PM | Reply | Permalink