Robert Scheer: The False Debate on the Debt

[marmar]

from truthdig:




The False Debate on the Debt

Posted on Apr 12, 2011
By Robert Scheer


In the ever-so-smug company of the rich and powerful it is a given that there is never to be any expression of remorse or other acknowledgement of the pain they have inflicted on the lesser mortals they so cavalierly plunder. It’s convenient for them that the media and the politicians, which they happen to own, rarely connect the dots between the scams that made the rich so rich and the alarming rise in the federal debt that is crushing this nation.

The result of this purchased public myopia is that we are left with an absurd debate over how deeply to cut teachers’ pensions and seniors’ medical benefits while preserving tax breaks for the superrich and their large corporations. At a time when 10 million American families will have lost their homes by year’s end, when $5.6 trillion in home equity has been wiped out, when most Americans face steep unemployment rates and stagnant wages, a Democratic president is likely to compromise with Republican ideologues who insist that further cuts in taxes for the rich is the way to bring back jobs.

Let’s deal right off with that canard. There is currently no shortage of corporate profits or excessive executive compensation to explain away the failure of the private sector to create jobs. On the contrary, as The New York Times reports, “In the fourth quarter, profits at American businesses were up an astounding 29.2 percent, the fastest growth in more than 60 years. Collectively, American corporations logged profits at an annual rate of $1.678 trillion.” And to add insult to injury, the top executives, who seem unable or unwilling to create jobs or adequately reward their workers, have increased their own compensation by a whopping 12 percent over the previous year, setting the median pay at $9.6 million per year for those in control of the leading 200 companies. The Times adds that “C.E.O. pay is also on the rise again at companies like Capital One and Goldman Sachs, which survived the economic storm with the help of all of those taxpayer-financed bailouts.”

Lost in this faux debate is the reality that our debt now looms so large because the government had to bail out many of those same corporations, quite a few of which, like General Electric and AIG, pay no taxes and have no problem paying truly obscene amounts to their top executives. GE CEO Jeffrey Immelt, whom President Barack Obama named chairman of the Council on Jobs and Competitiveness, is making as much as he did before the recession hit, a recession that his GE Capital division did much to cause with its reckless loans. AIG, saved with a government infusion of $170 billion, has just lavishly rewarded its top executives but has providing no relief for the homeowners ripped off by its phony credit default swaps. .............(more)

The complete piece is at: http://www.truthdig.com/report/item/the_false_debate_on_the_debt_20110412/

[realFedUp]

1. A column without mentioning a Clinton?

One could only hope, but no.
I do give him credit for his truth.

[dkf]

2. The reason you cut corporate taxes isnt so that they will create jobs but so that they will stay

In the US. They have enough incentive to outsource as it is, do we really want to give them more reasons to leave and hire people from all the countries who are educating their populace better than we are?

[shraby]

3. That works so good doesn't it? Don't tell me you've bought

into the propaganda. Because they've done what they've done, and avoid taxes in this country, they've caused an unprecedented drop in our standard of living, education and every other standard we used to have. They need to be penalized for moving their operations out of the ocuntry, not rewarded with tax breaks to try to get them to stay here. They just take the tax break and move anyway.

[dkf]

5. Congress isn't in any hurry to make sure companies who outsource or move are penalized.

If they don't do so and keep corporate rates at a higher level than the rest of the world what do you think will happen. Yes we could stop it but we seem disinclined to do so.

[shraby]

8. "We" aren't disinclined. Congress is and congress isn't "we"

anymore.

[dkf]

11. Yeah that's really the sticking point.

So because they refuse to address trade laws we are stuck with trying to compete based on corporate tax rates.

[fasttense]

4. And where do these corporation sell their crap????

Oh wait they turn around and sell there carp here in the US because the workers who make their crap can't afford to buy the crap.

So all you need do is say "pay your taxes or you can't sell it here." Simple, direct and to the point.

They have absolutely no right to sell here in the US. They are providing us NOTHING we can't provide ourselves.

If Wally World stopped selling their crappy toaster here, I'm sure an American manufacturer could make them.

We don't need these corporation. We managed to kick out the East India Tea Company and had no problems. We could have a vibrant economy if these corporation would vanish from the US today.

[dkf]

6. Ironically the only person who seems to want to address our trade laws is The Donald.

[shraby]

9. Donald Duck? Or maybe Scrooge McDuck.

[dkf]

10. Trump.

[xchrom]

7. recommend