When I first started writing my book about the empirical evidence of offshoring, Offshoring The Corporate Guide Map To 1984, I was of the opinion that a class war did not exist and, of course, was skeptical when the Republicans would make the claim that Democratic attempts to increase the tax rates for the wealthy constituted “class warfare.” It sounded like just more propaganda to get what the wealthy wanted by their representatives in Congress. However, as I began my investigations, it became obvious that there was, in fact, an undeclared class warfare in existence since the 1970s and that the middle and lower classes were losing that war because of their ignorance of its existence and the fact that it was in stealth mode.
The many claims to eliminate “entitlements” by the Republican Party is evidence. Those claims are usually associated with claims that government is overspending and being fiscally irresponsible. As I continued my investigation, I discovered that there were more “entitlements” being provided to the wealthy and Corporate America that were not being addressed by the Republican Party and that the only reason that Corporate and private enterprise interests looked fiscally more responsible and cost effective, was because of the “cast off costs” that were being dumped upon the rest of society. Usually that cost would be picked up by the government and the taxpayer. The reality is that the $50.00 hammer that became famous and representative of government overspending was only anecdotally representative and the same kinds of wasteful spending could be found in the private sector. It was corporate propaganda to bring about smaller and weaker government, a government that cannot tell it what to do. It is part of a conscious effort to weaken government so that is does not require a private enterprise conscience that would reduce profit margins. Corporate interests do not have any ethical or moral requirements, their only obligation is to make money for their benefactors.
Keep in mind when Mr. Romney made his famous 47% statements, he included food, health care, and shelter as “entitlements.” It is also clear that those stabilizing influences such as food stamps, unemployment, Medicaid, Medicare, and Social Security are “entitlements” as well. The definition of “entitlement” is “the belief that one is inherently deserving of privileges or special treatment” and according to Mr. Romney and the Republican Party one shouldn’t have such beliefs. According to the definition and the list of “entitlements” according to Mr. Romney and the Republican Party, there are no rights for being a citizen of the United States, at least none of the above list.
Corporate interests regularly push what would normally be costs of business onto the taxpayer, such as infrastructure spending for development projects, pollution, and toxic site cleanups. These are business and corporate “entitlements.” Such costs have also increased the profit margins and weakened government and the taxpayer for more than the thirty years we are discussing. The profit motive alone can defeat the claims of cost effectiveness and create a non-governmental tax for profit that is not realized or considered. E.g. Healthcare costs (Take a look at the cost of CEO salaries in the health care sector.)
But something has happened in the last 30 years that has created a greater wealth inequality, an ineffective Congress, a failing marketplace, and a country deeply divided. Although there have always been divisions of religious belief or amendment rights, the thirty year changes are more fiscal and environmental in nature.
The Class Warfare was declared and initiated by the Powell Memorandum that was written, in confidence, to the U.S. Chamber of Commerce on August 23, 1971, and came to light when Mr. Powell became a justice on the Supreme Court. Thereafter the corporate world began to follow the advice of the letter in every detail. The letter espoused a scorched earth policy with opposition to every entity or person that opposed company profits in a manner that was without conscience, against anyone or anything that opposed wealth building at any cost. It began a caustic guerilla war against the government, politicians, environmentalists, consumer rights, the media, and even academia, in essence, any one and anything that would conflict with capitalistic profits and cast off costs. Mr. Powell named names to attack and encouraged countering at every chance with corporate funding. This encouraged an aggressive no concession stance and an unwillingness to compromise.
The corporate interests began to lobby, special interests were created, think tanks and corporate based discussion venues were developed. Since the 1970s, there has been an increase in the purchase of newspapers by wealthy and business interests, the creation of Fox News as a business voice, and the purchase of National Geographic Magazine to stop the visual images of man made global warming. The propaganda machine that I call the “Corporate Megaphone” in my book grew in strength and voice. The war to “change the dialogue” also began and grew in strength and determination.
Corporate funding grew from these activities as well as from (never voted on) offshoring. Since it was no longer necessary to pay high wages in the U.S. and earnings were in free fall, the “Corporate Megaphone” obtained a more desperate work force and an ever decreasing cost of doing business. Profits and corporate assets were and are at all time highs without any corresponding hiring increase or return of businesses and jobs to the U.S. That growth in funding was re-funneled into more lobbying and directed to change the political landscape with the funding of political elections, with corporate funding and savings from offshoring and tax breaks assuring well financed corporate representatives for elections.
Corporate interests also became more international in scope and interests. International corporate interests, although international, still had and have names created in the U.S. and many citizens still think they are aligned with the interests of the U.S. whether they are or not. In many cases these interests are not aligned with the interests of the U.S. and allow them to lobby and advertise to introduce their interests in the U.S. and sway opinion and laws. If it is not to the benefit of citizens in the U.S., it is not their concern and should there be a financial calamity, they can now pull up stakes and leave.
The corporate control of this war may also have been taken out of the hands of the wealthy, some of whom do not agree with what is happening. The Supreme Court has created corporate entities with constitutional powers and a lack of ethics or morals and the wealthy may no longer be in control.
The “Corporate Megaphone” and the Powell directives were so successful that it convinced this country that the world economy was more important than the economy of the U.S. and the loss of buyers that will likely destroy a once vibrant economy. Corporate interests now have a President that is supportive of their interests, a majority of representatives in both houses of Congress, the Supreme Court, and a majority of state governors. The number of non-corporate media outlets are continually shrinking and there have been growing attacks on media and academia. The “Corporate Megaphone” has been so successful that they have changed the discussion such that media is commonly thought of as “liberal,” despite corporate propaganda in the form of, or guise of, advertising every 15 minutes on television and despite the constant appearance of capitalism and conservatism pundits as regular guests on television and radio.
The new tax scheme that will become law next year will not address offshoring and will not bring back jobs to the U.S. Some offshoring locations have lower corporate tax rates than that established in the new tax law. It will start a new race to the bottom, and as predicted, the Chinese are already offering a lower corporate tax rate. The wall will not stop the inflow of illegal hires if we continue to invite them and don’t raise the ridiculously low penalty in this country to illegally hire them (the lowest increase is $539.00). They will simply take the water taxi and that will probably be provided by the “illegal companies” doing the hiring. Lastly, the tax scheme also eliminates the estate tax. That was something that will not reduce the deficits, old or new, and will not job create. In an offshoring world, that is a physical impossible. It was a gift to the wealthy and will only help the huge deficits, huge wealth inequality that already exists, and the loss of capital in our system.
Those that are not in the “business class” will be losing big time, and the undeclared war continues. Without a realization that the current conflict is the result of such a war and that it is also the result of the realization of the necessity to fight back, the new order appears baffling. It shouldn’t. There is a class war and there is a necessity to fight back. Without conflict there is no opposition. The divide will get worse, it has to. Like me, you will need to live with it and embrace it.