Skip to main content

Scott Brown, slagging Elizabeth Warren and President Obama for daring to suggest that business owners actually pay taxes to pay for the society that makes their success possible, reiterates the big lie:

America’s entrepreneurs have built great things on their own. If only leftists like Warren and all Occupy protesters weren’t so wrapped up in taxing and regulating them without end or in denigrating their achievements, these men and women would do even greater things and hire even more workers.
There is nothing in this statement that isn't a lie. Taxes? They're at their lowest point in 60 years, especially on the wealthy. Income inequality? At or near record highs. The stock market? Still doing much better than the real economy, with the Dow Jones up near a nosebleed-worthy 13,000--nearly 4,000 points ahead of where it was when President Obama took office. Oh, and the reason we're in this economic slump in the first place? Deregulation was the primary cause. So where are all the jobs?

Scott Brown is peddling full-bore Ayn Rand Objectivism: the business owner as epic hero, struggling to succeed to provide jobs to the ungrateful and parasitic masses. In reality, of course, corporations aren't in the business of creating jobs: they're in the business of making profits for shareholders and investors. If they can do so by hiring fewer workers and paying them less, they'll do it in a heartbeat. The success of small business depends on the infrastructure our taxes pay for, and a healthy consumer base willing and able to purchase products. The biggest threat to small businesses is the predation of big business forcing them out of the market. The biggest destabilizing threats to general prosperity going forward are the financialized casino economy in the short term, and the effects of climate change in the long term.

Republicans like Scott Brown are staking everything on convincing the public of this Galtian Big Lie. It's an incredibly risky gamble. If they lose this argument, the entire edifice of their economic policy crumbles along with it. As Greg Sargent at The Plum Line notes:

This is what this whole thing has been about from the start. It's about selling voters a bill of goods — a narrative about what ails the economy that obscures the fact that Republicans don’t have a plan to fix the short term unemployment crisis. Brown and Mitt Romney want voters to believe that the recovery is being held back by taxes, regulations, and Obama’s and Warren’s disdain for your success. If we just put people in charge who want people to succeed — who would of course promptly cut regulations, government and taxes on the rich — then the recovery will roar forward.

This is a pleasing little tale, but it’s wholly at odds with the consensus view of many mainstream economists, who think the problem lies in weak demand. Economists believe that government spending, in the form of Obama’s stimulus, did bring down the unemployment rate. Economists don’t believe that high end tax cuts will produce the runaway growth necessary to bring in the revenues to pay for them. Economists don’t believe that getting rid of Obamacare will solve the crisis. As Mark Hopkings of Moody’s Analytics has put it: “The central problem is not burdensome regulations. It’s that people can’t sell anything.” Nor do economists believe that cutting government will fix the crisis; in fact, reduced government outlays are partly responsible for slow growth, and economists say that in the short term, more fiscal austerity will slow growth further.

Neither Obama nor Warren demeaned success or individual initiative, but even if they had, the idea that those sentiments are responsible for holding back the recovery is just snake oil. From the start, this whole thing has been about selling people a storyline about the short term economic crisis that covers up the fact that Republican ideas wouldn’t do anything to solve it.

On the one hand, it's an outrage that national Republicans are daring to make such a mendacious and immoral argument. On the other, it's almost exhilarating that they're staking so much on it. So much, in fact, that Democrats who have spent the past half century arguing simply for equality of basic opportunity and access to our flawed meritocracy are now being forced to actually make arguments in favor of the social contract itself.

This is a good thing, and potentially bodes well for the future.

Cross-posted with minor edits from Hullabaloo

Originally posted to thereisnospoon (David Atkins) on Thu Aug 02, 2012 at 04:03 PM PDT.

Also republished by ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  He Is Correct. (7+ / 0-)

    Liberals do indeed believe in taxing and regulating businesses without end. As long as businesses exist we believe they should be taxed and regulated.

    Conservatives demand that the taxing and regulating of business must come to an end.

    Sums up the fight pretty well.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Thu Aug 02, 2012 at 04:11:17 PM PDT

    •  Perhaps more correct to say that we regulate... (0+ / 0-)

      environmental health, workplace safety, honest accounting, employee rights and consumer protection.

      Any business that practices these values voluntarily is barely touched by government regulation.

      ... and we tax incomes, not businesses.

      Have you noticed?
      Politicians who promise LESS government
      only deliver BAD government.

      by jjohnjj on Thu Aug 02, 2012 at 11:54:05 PM PDT

      [ Parent ]

  •  the... (4+ / 0-)

    esteemed Senator from Playgirl has to go.

    and explaining how government works for the business and the people to Scott Brown is going to be harder than actually beating him in the election.

    As a nation, the U.S. consumes the most hot dogs per capita. So you'd be wise to never underestimate our powers of denial.

    by jbou on Thu Aug 02, 2012 at 04:13:10 PM PDT

  •  ::sigh:: (3+ / 0-)
    Recommended by:
    glitterscale, revbludge, kaliope

    Welcome to today's GOP: the frat boyz party, complete with its own cliff-notes for Government: Ayn Rand.

    Words can sometimes, in moments of grace, attain the quality of deeds. --Elie Wiesel

    by a gilas girl on Thu Aug 02, 2012 at 04:23:57 PM PDT

  •  Well, let's assume for a minute that (0+ / 0-)

    conservatives are correct and corporations are holding the economy hostage until they get a free hand to exploit both the workforce and the environment and the natural resource base to the hilt. If that's so, then one might also hypothesize that the 2008 collapse was also engineered and just badly timed because the rate of unearned income still hadn't climbed to pre-Clinton years and they needed another term of profligate redistribution of wealth to increase their dividends. The speculative returns in the market were obviously not sustainable because productive enterprise had been shipped mostly overseas.
    In 2000, it was thought that the declining return on bonds was a consequence of the Federal Reserve cutting interest rates in response to the surpluses tax collections were bringing in. Clinton/Gore were wrong about the deficit and they were wrong in accepting the Republican claim they considered it a problem. The governmental deficits are only of interest to Republicans as a way to bribe the money bags with a substantial tax-free and work-free income. The deficit is a problem when it's not large enough to jack up interest rates to an acceptable level of about 6% to 8% (my guess). That's based on the fact that the interest rate Spain had to pay on its latest bonds was an outrageous 6.5%--an outrage that was obviously insincere.

    The idea that American corporations are refusing to invest and expand because they don't trust the Democrats seems ludicrous on its face.  But, conservatives are, I think, sincere in their belief that nothing happens without the right prompt.  That's because they have no initiative.  The ones that become politicians have all been mentored and prodded by someone (chamber of commerce or country club).  They need leaders; can't function without them. And Republican leadership has all withdrawn to the lounge.

    Willard's forte = "catch 'n' cage". He's not into "catch and release."

    by hannah on Thu Aug 02, 2012 at 04:48:56 PM PDT

  •  Someone tell me... (0+ / 0-)

    what the hell is Democrat Ray Flynn doing campaigning for this guy?

    Has Flynn gone so bats*** Catholic that he's completely lost his roots and mind?

  •  Given a choice between profit (0+ / 0-)

    and gigantic executive compensation, they'll go for the latter every time.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site