Friday, September 7, 2012

President Barack Obama's remarks as prepared for delivery, Democratic National Convention

Thu Sep 06, 2012 at 07:24 PM PDT

2012 Democratic National Convention Logo.  (PRNewsFoto/2012 Democratic National Convention Committee)
Below are President Obama’s remarks as prepared for delivery Michelle, I love you. The other night, I think the entire country saw just how lucky I am. Malia and Sasha, you make me so proud…but don’t get any ideas, you’re still going to class tomorrow.  And Joe Biden, thank you for being the best Vice President I could ever hope for.
Madam Chairwoman, delegates, I accept your nomination for President of the United States.
The first time I addressed this convention in 2004, I was a younger man; a Senate candidate from Illinois who spoke about hope – not blind optimism or wishful thinking, but hope in the face of difficulty; hope in the face of uncertainty; that dogged faith in the future which has pushed this nation forward, even when the odds are great; even when the road is long.
Eight years later, that hope has been tested – by the cost of war; by one of the worst economic crises in history; and by political gridlock that’s left us wondering whether it’s still possible to tackle the challenges of our time.  
I know that campaigns can seem small, and even silly.  Trivial things become big distractions.  Serious issues become sound bites.  And the truth gets buried under an avalanche of money and advertising.  If you’re sick of hearing me approve this message, believe me – so am I.
But when all is said and done – when you pick up that ballot to vote – you will face the clearest choice of any time in a generation.  Over the next few years, big decisions will be made in Washington, on jobs and the economy; taxes and deficits; energy and education; war and peace – decisions that will have a huge impact on our lives and our children’s lives for decades to come.    
On every issue, the choice you face won’t be just between two candidates or two parties.
It will be a choice between two different paths for America.
A choice between two fundamentally different visions for the future.
Ours is a fight to restore the values that built the largest middle class and the strongest economy the world has ever known; the values my grandfather defended as a soldier in Patton’s Army; the values that drove my grandmother to work on a bomber assembly line while he was gone.  
They knew they were part of something larger – a nation that triumphed over fascism and depression; a nation where the most innovative businesses turned out the world’s best products, and everyone shared in the pride and success – from the corner office to the factory floor.  My grandparents were given the chance to go to college, buy their first home, and fulfill the basic bargain at the heart of America’s story:  the promise that hard work will pay off; that responsibility will be rewarded; that everyone gets a fair shot, and everyone does their fair share, and everyone plays by the same rules – from Main Street to Wall Street to Washington, DC.
I ran for President because I saw that basic bargain slipping away.  I began my career helping people in the shadow of a shuttered steel mill, at a time when too many good jobs were starting to move overseas.  And by 2008, we had seen nearly a decade in which families struggled with costs that kept rising but paychecks that didn’t; racking up more and more debt just to make the mortgage or pay tuition; to put gas in the car or food on the table.  And when the house of cards collapsed in the Great Recession, millions of innocent Americans lost their jobs, their homes, and their life savings – a tragedy from which we are still fighting to recover.  
Now, our friends at the Republican convention were more than happy to talk about everything they think is wrong with America, but they didn’t have much to say about how they’d make it right.  They want your vote, but they don’t want you to know their plan.  And that’s because all they have to offer is the same prescription they’ve had for the last thirty years:
“Have a surplus? Try a tax cut.”
“Deficit too high? Try another.”
“Feel a cold coming on? Take two tax cuts, roll back some regulations, and call us in the morning!”
Now, I’ve cut taxes for those who need it – middle-class families and small businesses.  But I don’t believe that another round of tax breaks for millionaires will bring good jobs to our shores, or pay down our deficit.  I don’t believe that firing teachers or kicking students off financial aid will grow the economy, or help us compete with the scientists and engineers coming out of China.  After all that we’ve been through, I don’t believe that rolling back regulations on Wall Street will help the small businesswoman expand, or the laid-off construction worker keep his home.  We’ve been there, we’ve tried that, and we’re not going back.   We’re moving forward.
I won’t pretend the path I’m offering is quick or easy.  I never have.  You didn’t elect me to tell you what you wanted to hear.  You elected me to tell you the truth.  And the truth is, it will take more than a few years for us to solve challenges that have built up over decades.  It will require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one.  And by the way – those of us who carry on his party’s legacy should remember that not every problem can be remedied with another government program or dictate from Washington.
But know this, America:  Our problems can be solved.  Our challenges can be met.  The path we offer may be harder, but it leads to a better place. And I’m asking you to choose that future.  I’m asking you to rally around a set of goals for your country – goals in manufacturing, energy, education, national security, and the deficit; a real, achievable plan that will lead to new jobs, more opportunity, and rebuild this economy on a stronger foundation.   That’s what we can do in the next four years, and that’s why I’m running for a second term as President of the United States.
We can choose a future where we export more products and outsource fewer jobs.  After a decade that was defined by what we bought and borrowed, we’re getting back to basics, and doing what America has always done best:
We’re making things again.
I’ve met workers in Detroit and Toledo who feared they’d never build another American car.  Today, they can’t build them fast enough, because we reinvented a dying auto industry that’s back on top of the world.  
I’ve worked with business leaders who are bringing jobs back to America – not because our workers make less pay, but because we make better products.  Because we work harder and smarter than anyone else.  
I’ve signed trade agreements that are helping our companies sell more goods to millions of new customers – goods that are stamped with three proud words:  Made in America.
After a decade of decline, this country created over half a million manufacturing jobs in the last two and a half years.  And now you have a choice:  we can give more tax breaks to corporations that ship jobs overseas, or we can start rewarding companies that open new plants and train new workers and create new jobs here, in the United States of America.  We can help big factories and small businesses double their exports, and if we choose this path, we can create a million new manufacturing jobs in the next four years.  You can make that happen.  You can choose that future.
You can choose the path where we control more of our own energy.  After thirty years of inaction, we raised fuel standards so that by the middle of the next decade, cars and trucks will go twice as far on a gallon of gas.   We’ve doubled our use of renewable energy, and thousands of Americans have jobs today building wind turbines and long-lasting batteries.  In the last year alone, we cut oil imports by one million barrels a day – more than any administration in recent history.  And today, the United States of America is less dependent on foreign oil than at any time in nearly two decades.
Now you have a choice – between a strategy that reverses this progress, or one that builds on it.  We’ve opened millions of new acres for oil and gas exploration in the last three years, and we’ll open more.  But unlike my opponent, I will not let oil companies write this country’s energy plan, or endanger our coastlines, or collect another $4 billion in corporate welfare from our taxpayers.  
We’re offering a better path – a future where we keep investing in wind and solar and clean coal; where farmers and scientists harness new biofuels to power our cars and trucks; where construction workers build homes and factories that waste less energy; where we develop a hundred year supply of natural gas that’s right beneath our feet.  If you choose this path, we can cut our oil imports in half by 2020 and support more than 600,000 new jobs in natural gas alone.
And yes, my plan will continue to reduce the carbon pollution that is heating our planet – because climate change is not a hoax.  More droughts and floods and wildfires are not a joke.  They’re a threat to our children’s future.  And in this election, you can do something about it.
You can choose a future where more Americans have the chance to gain the skills they need to compete, no matter how old they are or how much money they have.  Education was the gateway to opportunity for me.  It was the gateway for Michelle.  And now more than ever, it is the gateway to a middle-class life.
For the first time in a generation, nearly every state has answered our call to raise their standards for teaching and learning.  Some of the worst schools in the country have made real gains in math and reading.  Millions of students are paying less for college today because we finally took on a system that wasted billions of taxpayer dollars on banks and lenders.
And now you have a choice – we can gut education, or we can decide that in the United States of America, no child should have her dreams deferred because of a crowded classroom or a crumbling school.  No family should have to set aside a college acceptance letter because they don’t have the money.  No company should have to look for workers in China because they couldn’t find any with the right skills here at home.
Government has a role in this.  But teachers must inspire; principals must lead; parents must instill a thirst for learning, and students, you’ve got to do the work.  And together, I promise you – we can out-educate and out-compete any country on Earth.  Help me recruit 100,000 math and science teachers in the next ten years, and improve early childhood education.  Help give two million workers the chance to learn skills at their community college that will lead directly to a job.  Help us work with colleges and universities to cut in half the growth of tuition costs over the next ten years.  We can meet that goal together.  You can choose that future for America.
In a world of new threats and new challenges, you can choose leadership that has been tested and proven.  Four years ago, I promised to end the war in Iraq.  We did.  I promised to refocus on the terrorists who actually attacked us on 9/11.  We have.  We’ve blunted the Taliban’s momentum in Afghanistan, and in 2014, our longest war will be over.  A new tower rises above the New York skyline, al Qaeda is on the path to defeat, and Osama bin Laden is dead.
Tonight, we pay tribute to the Americans who still serve in harm’s way.  We are forever in debt to a generation whose sacrifice has made this country safer and more respected.  We will never forget you.  And so long as I’m Commander-in-Chief, we will sustain the strongest military the world has ever known.  When you take off the uniform, we will serve you as well as you’ve served us – because no one who fights for this country should have to fight for a job, or a roof over their head, or the care that they need when they come home.
Around the world, we’ve strengthened old alliances and forged new coalitions to stop the spread of nuclear weapons.  We’ve reasserted our power across the Pacific and stood up to China on behalf of our workers.  From Burma to Libya to South Sudan, we have advanced the rights and dignity of all human beings – men and women; Christians and Muslims and Jews.      
But for all the progress we’ve made, challenges remain.  Terrorist plots must be disrupted.  Europe’s crisis must be contained.  Our commitment to Israel’s security must not waver, and neither must our pursuit of peace.  The Iranian government must face a world that stays united against its nuclear ambitions.  The historic change sweeping across the Arab World must be defined not by the iron fist of a dictator or the hate of extremists, but by the hopes and aspirations of ordinary people who are reaching for the same rights that we celebrate today.
So now we face a choice.  My opponent and his running mate are new to foreign policy, but from all that we’ve seen and heard, they want to take us back to an era of blustering and blundering that cost America so dearly.
After all, you don’t call Russia our number one enemy – and not al Qaeda – unless you’re still stuck in a Cold War time warp.  You might not be ready for diplomacy with Beijing if you can’t visit the Olympics without insulting our closest ally.  My opponent said it was “tragic” to end the war in Iraq, and he won’t tell us how he’ll end the war in Afghanistan.  I have, and I will.  And while my opponent would spend more money on military hardware that our Joint Chiefs don’t even want, I’ll use the money we’re no longer spending on war to pay down our debt and put more people back to work – rebuilding roads and bridges; schools and runways.  After two wars that have cost us thousands of lives and over a trillion dollars, it’s time to do some nation-building right here at home.
You can choose a future where we reduce our deficit without wrecking our middle class.  Independent analysis shows that my plan would cut our deficits by $4 trillion.  Last summer, I worked with Republicans in Congress to cut $1 trillion in spending – because those of us who believe government can be a force for good should work harder than anyone to reform it, so that it’s leaner, more efficient, and more responsive to the American people.
I want to reform the tax code so that it’s simple, fair, and asks the wealthiest households to pay higher taxes on incomes over $250,000 – the same rate we had when Bill Clinton was president; the same rate we had when our economy created nearly 23 million new jobs, the biggest surplus in history, and a lot of millionaires to boot.
Now, I’m still eager to reach an agreement based on the principles of my bipartisan debt commission.  No party has a monopoly on wisdom.  No democracy works without compromise.  But when Governor Romney and his allies in Congress tell us we can somehow lower our deficit by spending trillions more on new tax breaks for the wealthy – well, you do the math.  I refuse to go along with that.  And as long as I’m President, I never will.
I refuse to ask middle class families to give up their deductions for owning a home or raising their kids just to pay for another millionaire’s tax cut.  I refuse to ask students to pay more for college; or kick children out of Head Start programs, or eliminate health insurance for millions of Americans who are poor, elderly, or disabled – all so those with the most can pay less.
And I will never turn Medicare into a voucher.  No American should ever have to spend their golden years at the mercy of insurance companies.  They should retire with the care and dignity they have earned.  Yes, we will reform and strengthen Medicare for the long haul, but we’ll do it by reducing the cost of health care – not by asking seniors to pay thousands of dollars more.  And we will keep the promise of Social Security by taking the responsible steps to strengthen it – not by turning it over to Wall Street.  
This is the choice we now face.  This is what the election comes down to.  Over and over, we have been told by our opponents that bigger tax cuts and fewer regulations are the only way; that since government can’t do everything, it should do almost nothing.  If you can’t afford health insurance, hope that you don’t get sick.  If a company releases toxic pollution into the air your children breathe, well, that’s just the price of progress.  If you can’t afford to start a business or go to college, take my opponent’s advice and “borrow money from your parents.”
You know what?  That’s not who we are.  That’s not what this country’s about.  As Americans, we believe we are endowed by our Creator with certain inalienable rights – rights that no man or government can take away.  We insist on personal responsibility and we celebrate individual initiative.  We’re not entitled to success.  We have to earn it.  We honor the strivers, the dreamers, the risk-takers who have always been the driving force behind our free enterprise system – the greatest engine of growth and prosperity the world has ever known.
But we also believe in something called citizenship – a word at the very heart of our founding, at the very essence of our democracy; the idea that this country only works when we accept certain obligations to one another, and to future generations.
We believe that when a CEO pays his autoworkers enough to buy the cars that they build, the whole company does better.
We believe that when a family can no longer be tricked into signing a mortgage they can’t afford, that family is protected, but so is the value of other people’s homes, and so is the entire economy.
We believe that a little girl who’s offered an escape from poverty by a great teacher or a grant for college could become the founder of the next Google, or the scientist who cures cancer, or the President of the United States – and it’s in our power to give her that chance.
We know that churches and charities can often make more of a difference than a poverty program alone.  We don’t want handouts for people who refuse to help themselves, and we don’t want bailouts for banks that break the rules.  We don’t think government can solve all our problems.  But we don’t think that government is the source of all our problems – any more than are welfare recipients, or corporations, or unions, or immigrants, or gays, or any other group we’re told to blame for our troubles.
Because we understand that this democracy is ours.
We, the People, recognize that we have responsibilities as well as rights; that our destinies are bound together; that a freedom which only asks what’s in it for me, a freedom without a commitment to others, a freedom without love or charity or duty or patriotism, is unworthy of our founding ideals, and those who died in their defense.
As citizens, we understand that America is not about what can be done for us.  It’s about what can be done by us, together, through the hard and frustrating but necessary work of self-government.
So you see, the election four years ago wasn’t about me.  It was about you.  My fellow citizens – you were the change.
You’re the reason there’s a little girl with a heart disorder in Phoenix who’ll get the surgery she needs because an insurance company can’t limit her coverage.  You did that.
You’re the reason a young man in Colorado who never thought he’d be able to afford his dream of earning a medical degree is about to get that chance.  You made that possible.
You’re the reason a young immigrant who grew up here and went to school here and pledged allegiance to our flag will no longer be deported from the only country she’s ever called home; why selfless soldiers won’t be kicked out of the military because of who they are or who they love; why thousands of families have finally been able to say to the loved ones who served us so bravely: “Welcome home.”
If you turn away now – if you buy into the cynicism that the change we fought for isn’t possible…well, change will not happen.  If you give up on the idea that your voice can make a difference, then other voices will fill the void: lobbyists and special interests; the people with the $10 million checks who are trying to buy this election and those who are making it harder for you to vote; Washington politicians who want to decide who you can marry, or control health care choices that women should make for themselves.
Only you can make sure that doesn’t happen.  Only you have the power to move us forward.
I recognize that times have changed since I first spoke to this convention.  The times have changed – and so have I.
I’m no longer just a candidate.  I’m the President.  I know what it means to send young Americans into battle, for I have held in my arms the mothers and fathers of those who didn’t return.  I’ve shared the pain of families who’ve lost their homes, and the frustration of workers who’ve lost their jobs.  If the critics are right that I’ve made all my decisions based on polls, then I must not be very good at reading them.  And while I’m proud of what we’ve achieved together, I’m far more mindful of my own failings, knowing exactly what Lincoln meant when he said, “I have been driven to my knees many times by the overwhelming conviction that I had no place else to go.”  
But as I stand here tonight, I have never been more hopeful about America.  Not because I think I have all the answers.  Not because I’m naïve about the magnitude of our challenges.
I’m hopeful because of you.
The young woman I met at a science fair who won national recognition for her biology research while living with her family at a homeless shelter – she gives me hope.
The auto worker who won the lottery after his plant almost closed, but kept coming to work every day, and bought flags for his whole town and one of the cars that he built to surprise his wife – he gives me hope.
The family business in Warroad, Minnesota that didn’t lay off a single one of their four thousand employees during this recession, even when their competitors shut down dozens of plants, even when it meant the owners gave up some perks and pay – because they understood their biggest asset was the community and the workers who helped build that business – they give me hope.
And I think about the young sailor I met at Walter Reed hospital, still recovering from a grenade attack that would cause him to have his leg amputated above the knee.  Six months ago, I would watch him walk into a White House dinner honoring those who served in Iraq, tall and twenty pounds heavier, dashing in his uniform, with a big grin on his face; sturdy on his new leg.  And I remember how a few months after that I would watch him on a bicycle, racing with his fellow wounded warriors on a sparkling spring day, inspiring other heroes who had just begun the hard path he had traveled.
He gives me hope.
I don’t know what party these men and women belong to.  I don’t know if they’ll vote for me.  But I know that their spirit defines us.  They remind me, in the words of Scripture, that ours is a “future filled with hope.”
And if you share that faith with me – if you share that hope with me – I ask you tonight for your vote.
If you reject the notion that this nation’s promise is reserved for the few, your voice must be heard in this election.
If you reject the notion that our government is forever beholden to the highest bidder, you need to stand up in this election.
If you believe that new plants and factories can dot our landscape; that new energy can power our future; that new schools can provide ladders of opportunity to this nation of dreamers; if you believe in a country where everyone gets a fair shot, and everyone does their fair share, and everyone plays by the same rules, then I need you to vote this November.
America, I never said this journey would be easy, and I won’t promise that now.  Yes, our path is harder – but it leads to a better place.  Yes our road is longer – but we travel it together.  We don’t turn back.  We leave no one behind.  We pull each other up.  We draw strength from our victories, and we learn from our mistakes, but we keep our eyes fixed on that distant horizon, knowing that Providence is with us, and that we are surely blessed to be citizens of the greatest nation on Earth.
Thank you, God bless you, and may God bless these United States.

Mitt Romney Claims Troops Weren’t Important Enough to Include in His Convention Speech

“a prairie fire of debt.”: Matt Taibbi's Killer Takedown of Mitt Romney

 According to Rolling Stone's Taibbi, either we wise up to Romney’s game, or we succumb to “a prairie fire of debt.”

 
It’s too bad he’s such a successful journalist, because it looks like Matt Taibbi would have made an incredible banker. He’s latest bet--that people would be willing to read a 8,000-word explanation of the business model of Bain Capital, Mitt Romney’s private equity firm--has paid of epically. As the September cover story of Rolling Stone, the article has already racked up 64,000 likes on facebook and an incensed army of readers who now know the secret to Romney’s “shimmering pearl of perfect political hypocrisy.” 
Sure, Taibbi’s article saddled them with a dictionary-worth of industry acronyms that they’ve now got bouncing around in their brains, but who knows when someone’s going to put a gun to your head and demand to know the difference between a CDO and and an LBO? 
Well, actually, Taibbi says that time is now. According to the article, either we wise up to Romney’s game, or, as Romney himself warned, succumb to “a prairie fire of debt.”
Taibbi’s thesis is simple: Mitt Romney is a manipulative liar who is leveraging our fear of debt to win the election. That much, so far, is nothing new. But wait--here’s the catch. Romney’s private equity firm and, indeed, the entire new piracy economy that he “built” (to borrow the theme of Romney’s platform), is based on creating more and more debt for average Americans. 
As Taibbi writes, “Mitt Romney is one of the greatest and most irresponsible debt creators of all time. In the past few decades, in fact, Romney has piled more debt onto more unsuspecting companies, written more gigantic checks that other people have to cover, than perhaps all but a handful of people on planet Earth.”
To vote for Romney, then, is to vote for debt and the subsequent fire-induced death itself.
To damning to be true, you think? Well, it might be worth delving into how private equity actually works, which constitutes the bulk of Taibbi’s article.
First off, he’s quick to distinguish private equity from the last few generations of rich white folks who got fabulously wealthy off other people’s hard labor and then ran for president. These people, Taibbi says, at least left something in their wake.
“In the old days,” he writes, “making money required sharing the wealth: with assembly-line workers, with middle management, with schools and communities, with investors. Even the Gilded Age robber barons, despite their unapologetic efforts to keep workers from getting any rights at all, built America in spite of themselves, erecting railroads and oil wells and telegraph wires. And from the time the monopolists were reined in with antitrust laws through the days when men like Mitt Romney's dad exited center stage in our economy, the American social contract was pretty consistent: The rich got to stay rich, often filthy rich, but they paid taxes and a living wage and everyone else rose at least a little bit along with them.”
That’s not, however, the Romney business model. Instead, his involves borrowing money to buy a company, then transferring that debt to the newly acquired company, and then asking for some more money from the company before flying off to the Cayman Islands.
As Taibbi writes, “Here's how Romney would go about "liberating" a company: A private equity firm like Bain typically seeks out floundering businesses with good cash flows. It then puts down a relatively small amount of its own money and runs to a big bank like Goldman Sachs or Citigroup for the rest of the financing. (Most leveraged buyouts are financed with 60 to
90 percent borrowed cash.) The takeover firm then uses that borrowed money to buy a controlling stake in the target company, either with or without its consent. ... But here's the catch. When Bain borrows all of that money from the bank, it's the target company that ends up on the hook for all of the debt.”
But what’s in it for Romney, one might ask? Well, as the new company is drowning in debt payments, Bain is luckily lurking around, instructing them how to cut costs--which usually involves restructuring, a fancy-pants word for firing a bunch of people. And in exchange for that golden advice, Bain charges the company a whole bunch of management and consulting fees.
According to Taibbi, this business model is nothing new. “Fans of mob movies will recognize what's known as the "bust-out," in which a gangster takes over a restaurant or sporting goods store and then monetizes his investment by running up giant debts on the company's credit line. (Think Paulie buying all those cases of Cutty Sark in Goodfellas.) When the note comes due, the mobster simply torches the restaurant and collects the insurance money. Reduced to their most basic level, the leveraged buyouts engineered by Romney followed exactly the same business model. ‘It's the bust-out,’ one Wall Street trader says with a laugh. ‘That's all it is.’”
Of course, there’s a whole lot more to the story, like the fact that the geeky private equity people were sort of like a cult (some called them “Bainies”) and that their returns for investors really weren’t all that great--especially not good enough to justify the devastation left in Bain’s wake. Taibbi interviews some devastated toy manufacturers who fell victim to the P.E. machine, digs back into Romney’s history to find some dirty money floating around, and explains how this whole private equity industry is subsidized by the federal government. For those juicy details you’ll have to read the whole article.
But just in case you were worried that, really, Romney is a threat only to the also pro-business Obama machine, think again. 
Taibbi writes, “Obama ran on "change" in 2008, but Mitt Romney represents a far more real and seismic shift in the American landscape. Romney is the frontman and apostle of an economic revolution, in which transactions are manufactured instead of products, wealth is generated without accompanying prosperity, and Cayman Islands partnerships are lovingly erected and nurtured while American communities fall apart.... It's a vision of society that's crazy, vicious and almost unbelievably selfish, yet it's running for president, and it has a chance of winning.” 

Tuesday, September 4, 2012

Government Spends More on Corporate Welfare Subsidies than Social Welfare Programs


Corporate Welfare Piggy BankAbout $59 billion is spent on traditional social welfare programs. $92 billion is spent on corporate subsidies. So, the government spent 50% more on corporate welfare than it did on food stamps and housing assistance in 2006.

Before we look at the details, a heartfelt plea from the Save the CEO’s Charitable Trust:
There’s so much suffering in the world. It can all get pretty overwhelming sometimes. Consider, for a moment the sorrow in the eyes of a CEO who’s just found out that his end-of-year bonus is only going to be a paltry $2.3 million.
“It felt like a slap in the face. Imagine what it would feel like just before Christmas to find out that you’re going to be forced to scrape by on your standard $8.4 million compensation package alone. Imagine what is was like to have to look into my daughter’s face and tell her that I couldn’t afford to both buy her a dollar sign shaped island and hire someone to chew her food from now on, too. To put her in that situation of having to choose… She’s only a child for God’s sake.”
It doesn’t have to be this way. Thanks to federal subsidies from taxpayers like you, CEO’s like G. Allen Andreas of Archer Daniels Midland was able to take home almost $14 million in executive compensation last year. But he’s one of the lucky ones. There are still corporations out there that actually have to provide goods and services to their consumers in order to survive. They need your help.
For just $93 billion a year the federal government is able to provide a better life for these CEO’s and their families. That’s less than the cost of 240 million cups of coffee a day. Won’t you help a needy corporation today?

The Traditional Welfare Queen

When one thinks about government welfare, the first thing that comes to mind is the proverbial welfare queen sitting atop her majestic throne of government cheese issuing a royal decree to her clamoring throngs of illegitimate babies that they may shut the hell up while she tries to watch Judge Judy. However, many politically well-connected corporations are also parasitically draining their share of fiscal blood from your paycheck before you ever see it. It’s called corporate welfare. The intent here is to figure out which presents the greater burden to our federal budget, corporate or social welfare programs.
There are, of course, positive and negative aspects to this spending.The primary negative aspect is that you have to increase taxes to pay for it. Taxing individuals lowers their standard of living.  It reduces people’s ability to afford necessities like medical care, education, and low mileage off-road vehicles.The common usage definition of social welfare includes welfare checks and food stamps. Welfare checks are supplied through a federal program called Temporary Aid for Needy Families. Combined federal and state TANF spending was about $26 billion in 2006. In 2009, the federal government will spend about $25 billion on rental aid for low-income households and about $8 billion on public housing projects. For some perspective, that’s about 3 percent of the total federal budget.

TANF (Temporary Aid to Needy Families)

Another negative aspect relates to the fact that social welfare programs reduce the incentive for recipients to become productive members of society. However, in 1996, Congress passed a bill enacting limited welfare reform, replacing the Aid to Families with Dependent Children (AFDC) program with the new Temporary Aid to Needy Families (TANF) program. One key aspect of this reform required recipients to engage in job searches, on the job training, community service work, or other constructive behaviors as a condition for receiving aid. The bill was signed by a man named Bill Clinton, who is much better known for an act of fellatio which, of course, had far greater societal implications. Regardless, the success of this reform was pretty dramatic. Caseloads were cut nearly in half. Once individuals were required to work or undertake constructive activities as a condition of receiving aid they left welfare rapidly. Another surprising result was a drop in the child poverty rate. Employment of single mothers increased substantially and the child poverty rate fell sharply from 20.8 percent in 1995 to 16.3 percent in 2000.
Child Poverty by Living Arrangements

The Corporate Welfare Queen

Now, let’s consider the other kind of welfare.
Definition: corporate welfare
n. Financial aid, such as a subsidy, provided by a government to corporations or other businesses.
The Cato Institute estimated that, in 2002, $93 billion were devoted to corporate welfare. This is about 5 percent of the federal budget.To clarify what is and isn’t corporate welfare, a “no-bid” Iraq contract for the prestigious Halliburton, would not be considered corporate welfare because the government technically directly receives some good or service in exchange for this expenditure. Based on the Pentagon’s Defense Contract Audit Agency (DCAA) findings of $1.4 billion of overcharging and fraud, I suppose the primary service they provide could be considered to be repeatedly violating the American taxpayer.On the other hand, the $15 billion in subsidies contained in the Energy Policy Act of 2005, to the oil, gas, and coal industries, would be considered corporate welfare because no goods or services are directly returned to the government in exchange for these expenditures.
Energy Subsidies Infographic
Tax breaks targeted to benefit specific corporations could also be considered a form of welfare. Tax loopholes force other businesses and individual taxpayers without the same political clout to pick up the slack and sacrifice a greater share of their hard-earned money to decrease the financial burden on these corporations. However, to simplify matters, we’ve only included financial handouts to companies in our working definition of corporate welfare.
Whenever corporate welfare is presented to voters, it always sounds like a pretty reasonable, well-intended idea. Politicians say that they’re stimulating the economy or helping struggling industries or creating jobs or funding important research. But when you steal money from the paychecks of working people, you hurt the economy by reducing their ability to buy the things they want or need. This decrease in demand damages other industries and puts people out of work.
Most of the pigs at the government trough are among the biggest companies in America, including the Big 3 automakers, Boeing, Archer Daniels Midland, and now-bankrupt Enron.

Farm Subsidies

However, the largest fraction of corporate welfare spending, about 40%, went through the Department of Agriculture, most of it in the form of farm subsidies. (Edwards, Corporate Welfare, 2003) Well, that sounds OK. Someone’s got to help struggling family farms stay afloat, right? But in reality, farm subsidies actually tilt the cotton field in favor of the largest industrial farming operations. When it comes to deciding how to dole out the money, the agricultural subsidy system utilizes a process that is essentially the opposite of that used in the social welfare system’s welfare system. In the corporate welfare system, the more money and assets you have, the more government assistance you get. Conversely, social welfare programs are set up so that the more money and assets you have, the less government assistance you get. The result is that the absolute largest 7% of corporate farming operations receive 45% of all subsidies. (Edwards, Downsizing the Federal Government, 2004) So instead of protecting family farms, these subsidies actually enhance the ability of large industrial operations to shut them out of the market.
Farm Subsidies

Wal-Mart.  Always high subsidies.  Always.

The same is true in all other industries, too. The government gives tons of favors to the largest corporations, increasing the significant advantage they already have over smaller competing businesses. If, in the court of public opinion, Wal-Mart has been tried and convicted for the murder of main street, mom-and-pop America, then the government could easily be found guilty as a willing accomplice. Wal-Mart receives hundreds of millions of dollars of subsidization by local governments throughout the country. These subsidies take the form of bribes by local politicians trying to convince Wal-Mart to come to their town with the dream of significant job creation. Of course, from that follows a larger tax base. For example, a distribution center in Macclenny, Florida received $9 million in government subsidies in the form of free land, government-funded recruitment and training of employees, targeted tax breaks, and housing subsidies for employees allowing them to be paid significantly lower wages. A study by Good Jobs First found that 244 Wal-Marts around the country had received over $1 billion in government favors.

The Big Picture

So now let’s look at the big picture. The final totals are $59 billion, 3 percent of the total federal budget, for regular welfare and $92 billion, 5 percent of the total federal budget, for corporations. So, the government spends roughly 50% more on corporate welfare than it does on these particular public assistance programs.
Should we spend less on corporate welfare and/or social welfare programs? Or should we spend even more? It’s up to you. A bunch of people died horrible deaths to make sure this country remained a democracy, so if you feel strongly about this issue you owe it to them to call or write your congressman and senators and give them a piece of your mind.

Dear wonderful citizen reading this sentence,

HELP ME!
I am extremely appreciative of any corrections or additional info that I left out.  Please include hyperlinked SOURCES.
VOTE!
I encourage everyone to use the voting system to vote up comments containing facts with sources.
I also encourage everyone to vote down ad hominem attacks directed at anyone.  We all share the same goal of minimizing the amount of suffering in the world.  Name-calling is completely unproductive.
Finding truth is the first step to solving any and all of the world’s problems. We all need to work together to find the truth about every issue.  Allowing disagreement about solutions lead to poisonous and paralyzing animosity before we’ve even arrived at the basic truths of the issues is a recipe for a dead world.
THE FUTURE…
I want to update this post with more recent numbers and more expansive definitions of both corporate and social welfare. Unfortunately, I’m crazy busy right now. I manage a chemistry lab full time and I’m building a Quantified Self data integration web application.  Plus, I have a damn family, too.
My ultimate solution to this problem is wiki-izing ThinkByNumbers.org so that good citizens such as yourselves can correct any unfortunate omissions.  I hope to have that feature functional in the coming months.
Love,
Mike P. Sinn
9.3.2012

Some More Sources:

2013 Budget: http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/budget.pdf
Source: Office of Management and Budget, Budget of the United States Government (Washington: Government Publishing Office), various years; and data from the American Association for the Advancement of Science R&D Budget and Policy Program, various years.
Source: U.S. Department of Agriculture, Economic Research Service, http://www.ers.usda.gov/data.
Source:  Export-Import Bank, 2006 Annual Report (Washington: Export-Import Bank, 2007).
Source Data from Chris Edwards at Cato:
Corporate Welfare by Agency
Corporate Welfare by Agency 2
Corporate Welfare by Company

Saturday, September 1, 2012

“For the first time in my life,I will be voting against a Republican candidate for president.”


A life-long Republican, I voted for John McCain, and supported Mitt Romney as the most realistic candidate in the primaries. However, as both a Republican and more importantly an American, I did not share Rush Limbaugh’s view expressed in January 2009: “I disagree fervently with the people on our side of the aisle who have caved and who say, ‘Well, I hope he succeeds’… I hope he fails.” Nor do I agree with Senate Minority Leader Mitch McConnell who in October of 2010, was asked what “the job” of Republicans in Congress was. McConnell answered, “The single most important thing we want to achieve is for President Obama to be a one-term president.” We were in the middle of the greatest economic crisis since the 1930′s and my party has as its main goal trying to make sure the president fails — even if the country fails right along with him. What has happened to my Republican party, this is not a sporting event, we all either win or lose together.
In the past, Republicans were pragmatic, not ideological; they would ask “does it work”, not “does it fit into my theory.”


Ronald Reagan is known for his tax cuts, but he also pragmatically raised taxes 11 times to address the growing budget deficit, and had a good relationship with Democratic Speaker of the House Tip O’Neill. Since Reagan was pragmatic, not ideological, he compromised and worked with congress and accomplished what needed to be done to help the economy. Pragmatic non-ideological republican presidents never had a problem expanding the national government to solve national problems. Republican President Nixon created the Environmental Protection Agency (EPA) and Republican President Theodore Roosevelt created the Food and Drug Administration (FDA). Republican President Ford created the first federal regulatory program in education, with a program for special needs children. Republican President George Bush Sr. signed the Americans with Disabilities Act of 1990, and raised taxes to fight the deficit. 

Republican President Eisenhower warned: “we must guard against the acquisition of unwarranted influence, by the military–industrial complex” and was responsible for one of the largest Infrastructure projects in American history (Interstate Highway System). President Eisenhower also sent federal troops to Little Rock Arkansas so that discrimination against black school children would be ended. These men were not Left-wing radical hippies, but the “Tea Party movement” and their supporters in Congress would call them SocialistWhile I question many of President Obama’s policies, I can not be sure Mitt’s policies regarding the economy would have been any better. Mitt’s business experience and wealth come from Wall Street, not Main Street, and I doubt he would have broken up the banks “too big to fail.” As he said “The TARP (bank bailout) program was designed to keep the financial system going,” and as a CEO of a private equity firm, he was a part of this financial system. If anything, given his background and avowed dislike of government regulation, I believe Mitt would have been even more hands off overseeing Wall Street and the banks “too big to fail.” I know this non-involvement would NOT help a small business on Main Street. The firms which benefited from TARP, acted completely irresponsibly and contrary to the intent of the program by giving their executives huge bonuses, while restricting credit to small businesses. The problem with TARP, a program devised under President Bush, was too little regulation not too much.

I am very disappointed in the pace of the economic recovery, yet I also know this was not an ordinary business cycle recession. It was initiated by an institutional Bank Panic in 2008, akin to the 1929 Wall Street Crash, in which some of the largest and most prestigious banks and financial corporations were threatened with failure and bankruptcy (ie Lehman Brothers, Merrill Lynch, AIG, etc). By the end of 2008 the lost of potential purchasing power (decline in value of homes, stocks, IRA’s etc) in the United States alone, exceeded 14.5 TRILLION DOLLARS. Thanks to an old regulation left over from the 1930′s, the FDIC, the anxiety and fear did not spread to small depositors at local banks, so there was no run on these small local banks. If not for the FDIC the economic crisis we faced would have been much worse, proving not all regulation is bad. However, since these small local banks also had their assets affected by the crisis, and the large banks were not extending credit to them, they could not make loans. The flow of small business credit dried up. The prevailing fear was that this panic would feed on itself, so that the economy would continue to spiral down. Talk of a second Great Depression, with its unemployment rate of more then 25% became widespread.

It was once said, “As GM goes, so goes the nation.” As people lost purchasing power, the demand for new cars dried up as people stopped buying them. This caused the car companies, including GM, to become threatened with bankruptcy. If the car companies went bankrupt, more then 100,000 additional workers would be unemployed. It was feared this would only be the tip of the iceberg as people wondered what would be the ripple effect on car part manufacturers, and what would be the effect on consumer confidence? Obama deviated from TRAP’s stated purpose when he, without congressional authorization, used TARP to bail out GM and Chrysler thereby saving them from bankruptcy. Mitt would have not done this, as he stated: “Let Detroit Go Bankrupt.” However, who would bid for these companies at this time of economic uncertainty, even Mitt’s former company, Bain Capital, had reduced their acquisitions. I fear that China, for symbolic, political, and economic reasons might have bid to take over GM in a bankruptcy proceeding. This may seem farfetched until you realize GM sold more cars in China last year, then it sold in the United States. While I strongly oppose Obama’s actions in theory, in practicality there may have been no other choice. Obama was pragmatic, he made a decision that solved the problem.

The TARP and actions by the Federal Reserve System (FED) provided approximately 3 trillion dollars for the financial system which stabilized it. Thus the financial system’s private debt became public debt, and was added to the federal deficit. As opposed to this as I might be on a theoretical basis, I know as Mitt said “The TARP (bank bailout) program was designed to keep the financial system going.” However, the Obama “Stimulus Program” which also included tax cuts, was completely inadequate. How can you expect to fill a 14.5 TRILLION DOLLAR HOLE caused by lost potential purchasing power with a program of less then one trillion dollars? The Stimulus should have been twice the size that it was. Between the TARP, the stimulus program, and the temporary cuts in the payroll tax, enough money was pumped into the economy to stabilize it and end the downward spiral into a depression. However these programs were not enough to “jump start” the economy, so that it would grow fast enough to reduce unemployment significantly. Yet, before I can condemn Obama I must ask, what role did my party play in preventing the “Stimulus Program” from being adequate enough to solve the economic problem.
We were told the stimulus program could not be larger because of the federal budget deficit, and like any family, when you are too far into debt you must tighten your belt and cut back on expenditures. I believe in fiscal responsibility, but I see one problem with this line of reasoning; when you have an emergency that threatens your life, you spend whatever you have to in order to recover. Once the recovery occurs, you then tighten your belt in order to get out of debt. The economic crisis of 2008 was such an emergency for the American economy. The last time we had a equivalent emergency (Great Depression/World War 2) debt as a share of the economy peaked at 112.7% of gross domestic product (GDP) in 1945. In the present emergency (Great Recession/War on Terror) debt as a share of the economy will reach roughly 77% of gross domestic product this year according to the independent and nonpartisan Congressional Budget Office.

We should not be worrying about the annual deficit. If a tax is money being removed from the economy, then government spending is money being added to the economy, and the deficit is the measure of degree the economy is being stimulated by the government. The problem with deficits, it is said, is that interest rates on government bonds will go up, yet the interest rate paid by government bonds now are the lowest they have ever been. Now it is time to rebuild America’s infrastructure, as we rebuilt Europe after World War 2 with the Marshall Plan; to fix our infrastructure, from dilapidated levees to collapsing bridges and leaking dams, the American Society of Civil Engineers (ASCE) has estimated that the country needs to spend $1.6 trillion. This construction will help the economy and the cost, based on the interest rate, will never be lower. Neither Mitt Romney nor President Obama have proposed a stimulus program of this size, both are trapped by an ideology that says deficits are bad, no matter what is the underlying circumstances.

While Mitt Romney and Barack Obama did not disagree over the need or size of the stimulus program, they do disagree on what type of stimulus would be most effective. Mitt believed taxes should be lowered for job creators who are people with high incomes, aka “the investor class” or “the rich.” In theory, this money would be invested to build new business enterprises which would create jobs, thereby creating demand for good and services. However, there is no way to guarantee this money would not be sent to “tax haven offshore banks” or be invested in foreign countries for a higher return, or even hidden away with gold. These will not circulate this money into the American economy and help it grow to produce jobs. Obama believed the money should be spent on people who will purchase goods and services with any extra money they have, aka “the American consumer” or “the middle class.” He lowered taxes for low and middle income workers and increased spending directly by the government to create infrastructure like roads and schools, prevent layoffs in local communities, and support unemployed consumers who are able to buy products, thereby creating demand for good and services and creating jobs.

Obama would quote the famous American investor Warren Buffett who said “the only reason why I’m going to hire is if there’s more demand.” Mitt’s approach was “investor” or “supply side” driven; Obama’s approach was “consumer” or “demand side” driven.

I can use myself as an example since I am considered a successful businessman. I have never made a business decision based on taxes. They never deterred me from expanding my business when I saw an opportunity to meet a demand by consumers. Taxes never took 100% of any additional income I made by expanding my business. They were just a cost of doing business like any other necessary cost. They paid for services my business and I, as an individual, needed, such as policemen, firemen, and road maintenance. On the other hand, while I always appreciate lower taxes, they would not effect how I ran my business. If my taxes were lowered, but there was no additional demand by consumers, I would not expand my business. However, I would take a nice European vacation and see Paris or Rome, or buy a Mercedes-Benz rather then a Ford, or perhaps buy a second home on a Caribbean island and open up a bank account there. Like any successful businessman, I am not ideological, I am pragmatic; I just wish government behaved the same way.

Mitt Romney has said “entitlement programs” such as Social Security should be cut back or made voluntary. This is necessary since these programs make up most of the budget of the United States and the deficit cannot be dealt with unless we change these programs. Making Social Security voluntary for young workers raises several questions. Should it be replaced with the equivalent to an “Individual Retirement Account” of some type? This idea would be the death of Social Security as we now know it. Would this IRA be the equal to Social Security, in any case of disability of a young worker? Will there be some type of guarantee against “market risk” for this replacement IRA? How would this change effect low pay workers who might not be able to contribute much money to an IRA type of account? Social Security is a guaranteed life-time benefit, what happens if a person outlives their IRA account? President Obama has said Social Security should be maintained, but reformed. Among the suggestions that have been put forward by study groups are: the retirement age being extended, perhaps to age 72, the cost of living adjustment should be reduced or eliminated, or the benefits paid could be reduced. For many Americans, Social Security is the biggest part of their post-retirement income, it is the safety net we all use, so the effect of any changes to the program could have a huge impact on people’s lives.

The Social Security and Medicare programs are called “entitlement programs” because people pay a special tax in order to be “entitled” to them. In the case of “Social Security” it is the “FICA Payroll Tax.” This tax can be thought of as being the equivalent to an insurance premium. Under the present “FICA Payroll Tax” system, the person who earns $110,000 pays the same exact amount in taxes as the person who earns $1,100,000, or $10,000,000. Mitt Romney had an income of $21.6 million in 2010; instead of a FICA tax of $1,404,000 without the cap, he paid $7,150. President Obama had an income of $1.72 million in 2010; instead of a FICA tax of $112,327 without the cap, he paid $7,150. The actual FICA tax rate for the ditch-digger, garbageman, or teacher is 10 or 100 or 1000 times that for a CEO, corporate financier, or government official. Rather then making it voluntary or reducing benefits or delaying the retirement age, shouldn’t we be talking about ending the $110,000 cap on incomes that are taxed, while capping the present maximum benefit, and maintaining the cost of living adjustment? Adopting this program would mean the system would be fairer since the tax would then become a defined flat tax for all Americans rather then the present regressive tax. The Social Security trust fund should be put in a “locked box” which is not used as part of the General Federal Government Budget. The new taxes collected would help reduce the budget deficit by relieving the problem with the Social Security trust fund in the future. Perhaps if the increase in revenue was great enough, the FICA tax rate could be reduced for everyone. However, neither Mitt nor Obama has suggested this type of solution.

Uninsured medical costs was the biggest reason people filed for bankruptcy. In response to the problem of millions of Americans having no health insurance and being unable to pay for medical care if they got sick; President Obama proposed and passed the “Patient Protection and Affordable Care Act of 2009″ (Obamacare). However, this was not a single payer system, based on Medicare, but rather it was based on a plan supported and signed by Mitt Romney in 2006 when he was Governor of Massachusetts. Both programs had individual mandates to require people without health insurance to purchase it from private companies, in many cases with financial assistance from the government. This makes no sense to me, why not expand Medicare to cover everyone. Why force people to buy insurance from the hodgepodge of insurance companies, each with their own administrative costs and policies, trying to maximize profits? The cost of this bureaucracy means that medical care in the United States costs almost twice that of any other country with a single payer system. Why not have the insurance companies offer a Medic-gap type and gold plated wrap-around policies? The government provides a safety-net floor which people can voluntarily build on.

Expanding Medicare to include all Americans would also be a benefit to Medicare; it will financially stabilize what is now the high-risk pool of the health insurance industry. A substantial majority of Medicare enrollees – roughly 87% have at least one chronic condition, and nearly half have three or more. The people covered by Medicare include 1) people age 65 and older, who are the most likely to have Heart Attacks, Strokes, Cancer, and other diseases related to age; 2) people who have permanent disabilities and receive Social Security Disability Insurance; 3) people with end-stage kidney disease which requires maintenance dialysis or a kidney transplant; 4) people with ALS (Lou Gehrig’s disease) which is a slow wasting away of the body. The common thread between both disease specific groups is, they are expensive to treat and there is no cure. By expanding Medicare to include everyone, you would be adding 10′s of millions of people under 65, the vast majority of whom are healthy and seldom require medical care. These people would have the security of knowing if they did get seriously ill, they would be treated without the rigmarole of complex rules and regulations regarding pre-existing conditions, pre-authorization, and Coordination of benefits. Medicare would benefit from the inflow of low-risk money which otherwise would go to pay premiums to private for-profit insurance companies. Medicare spreads the financial risk associated with illness across society to protect everyone, and thus has a somewhat different social role from private insurers, which must manage their risk portfolio to guarantee their own solvency. Medicare is a pragmatic program that works and is supported by a vast majority of Americans; however ideologues would call it socialism.

To those who question whether I am a Republican, let me remind them, there was once a time when we were a “big tent” party. I believe in “State Rights” in regards to the “social issues.” These “social issues” – abortion, same-sex marriage, medical use of marijuana – are issues of differing cultures and should be addressed on the local state level. No one likes a foreign culture jammed down their throat, that is why these issues are so divisive. Socially I am conservative, economically I am pragmatic. However, since I am not a woman, homosexual, sick, or very religious; the social issues are not nearly as important as the economic issues. I believe in smaller government only to the extent we had smaller corporations, since in many ways corporations have more control over our lives then the government does. Government power is the only counterbalance to corporate power, and at least we have some input into what the government does by our vote. We no longer live in a capitalist society, we live in a corporatist society. Therefore, I was spooked when Mitt Romney said “Corporations are people” and implied they should be given the same constitutional rights as citizens.

Those who advocate a new age of austerity, like the Romney/Ryan budget, will cite Greece with an unemployment rate of 22.6% and say Greece is a nation we are sure to follow if we do not tighten our belt and reduce government services. They also cite Spain’s 24.3%, Portugal’s 15.2% and Italy’s 10.2% unemployment rate. However, what they do not say is that in each of these countries tax avoidance seems to be a national sport. As a Republican I can not support Mitt Romney because everything, from his refusal to reveal his taxes to offshore bank accounts in tax havens with strong bank secrecy laws, seem to indicate he is a tax avoider. I do not agree when Mitt Romney says that if he paid more taxes than were required, he wouldn’t be qualified to be president. I think that if he paid a few more dollars in taxes then he had to, as I have done, it would be admirable. Mitt is a part of the problem, not the solution.

These countries have also had austerity budgets for a number of years, even as their economic problems have only gotten worse. Many economists now feel that, in fact, the austerity programs are the main cause of the economic problems.
On the other hand, economies in many countries are doing quite well, such as: Germany which has un-employment rate of 5.4%, Austria 4.3%, Norway 3.0%, Netherlands 4.2%, Switzerland 2.9%, Japan 4.1%, Australia 4.9% and so on. So what do they have in common, and what are they doing differently when compared to the United States?
1- They have Universal socialized health care, and while all their people have health care they spend a small fraction of what United States businesses and Government spend on health care.
2- They have Universal Education, which means you can get an education up to your PhD pretty much for free. This means their people are trained for the jobs of the future.
3- They have much higher taxes than in United States on someone making more than 250 thousand dollars, for example in Germany 45%.
4- They have more generous unemployment benefits than in the United States. This stabilizes demand when people are laid-off from their jobs.
5- They have a more unionized workforce than in the United States. The unions provide hands-on apprentice programs for training new workers in manufacturing industries.
6- They do not spend Trillions of dollars on a gargantuan military, and unnecessary wars, which drains their budgets and keeps needed infrastructure from being repaired and built.


Mitt’s father established the precedent of presidential candidates releasing their Tax returns in 1968. He released 12 years of them, saying “One year could be a fluke, perhaps done for show, and what mattered in personal finance was how a man conducted himself over the long haul.” When Mitt’s campaign was asked to release more then two years of returns, it responded “We’ve given all you people need to know” and has refused to give out additional information, even as many Republicans requested. People, including myself, are starting to ask “What is Mitt trying to hide?”

As Newt Gingrich put it, “I don’t know of any American president who has had a Swiss bank account.” But Mitt Romney also has accounts in the tax havens of Luxembourg, Bermuda, and the Cayman Islands. The Cayman Islands have a bank secrecy law so strong that a person can be jailed for up to four years, just for asking about account information. Mitt’s desire for secrecy is so great that one time he neglected to include a Swiss bank account on required financial disclosure forms. Perhaps, it was because the Swiss account constituted a bet against the U.S. dollar, something no presidential candidate would want to reveal. When asked about it, Romney’s campaign spokeswoman, Andrea Saul, said that the candidate’s failure to include his Swiss account in the financial disclosures were merely a “trivial inadvertent issue.” From 1984 to 1999, taxpayers were allowed to put just $2,000 per year into a tax-free I.R.A., and $30,000 annually into a different kind of plan he may have used. Given these annual contribution ceilings, how can his I.R.A. possibly contain up to $102 million, as his financial disclosures now suggest? I am not claiming Mitt engaged in money-laundering or any other illegal activity, I agree with Mitt that he may have never broken the law. If there is a problem, it may very well be in the laws, not in his behavior. As Mitt said “I pay all the taxes that are legally required, not a dollar more.” However as Lee Sheppard, a contributing editor at the trade publication “Tax Notes” said, “When you are running for president, you might want to err on the side of overpaying your taxes, and not chase every tax gimmick that comes down the pike.” Has Mitt Romney acted as a model for all of us, the way a president should?

Why is Bain important? We must not forget a major contributing cause of the Financial Crisis of 2008 was the filing of false or misleading documents with the SEC. This is no small matter; since 2009 the SEC has collected fines of over 3 Billion dollars for this violation from financial institutions such as, among others: Bank of America, Goldman Sachs, Citigroup, Merrill Lynch, Credit Suisse, J.P. Morgan, and UBS. Even if Mitt Romney actually left all operational control of Bain Capital in 1999, he sanctioned and acquiesced to the filing of false and misleading documents with the SEC until 2002. While this violation may not rise to the level of these other institutions, it does indicate a certain attitude towards these filings: The complete and truthful disclosure of all facts is not important. This was an attitude all too prevalent in the financial community prior to 2009, and all of us paid the price.

Is full disclosure to the SEC one of the regulations Mitt would do away with? What about other regulations overseeing the financial community; Wall Street and the banks too big to fail? If you put a fox in charge of the chicken coop, you have a problem for the chickens. Will Mitt’s election be the equivalent of that for the small investor? As a small investor, and businessman, I can not take that chance; I have been burnt once by a government that did not believe in regulation, and was asleep at the wheel. The sad thing is that Bain was first brought up by a candidate who wanted to colonize the moon, and the false filing was never mentioned. If this was discovered earlier, I would not have supported Mitt in the primaries and Republicans may have had a different candidate. Perjury is perjury. It was ethically and morally equal to saying “I never had sex with that woman” only worse since it was related to a public institution, not sex; and there could be no equivocation since the two official documents Mitt signed exactly contradict each other 100%. He can not flip-flop between these two documents.

Mitt has said “I would like to have campaign spending limits”, however his most recent position is “the American people (and corporations) should be free to advocate for their candidates and their positions without burdensome limitations.” The necessity of spending limits became apparent during the Republican primaries. The ability of one candidate to outspend his rivals by 5, 6, 7, 10 times distorts the electoral system. Good men could be destroyed by a barrage of false negative ads, and lack the ability to fight back. It is no longer a level playing field where the best man emerges victorious. Do we want a system where it is possible to indirectly buy elective office?
These are the reasons that for the first time in my life, I will be voting against a Republican candidate for president. Note from the Author

Tony Skaggs

I was an office holder for three years in my college republicans. At the same time I was a member of “Young Americans for Freedom” (YAF) which was a Conservative political group. I was twice a delegate to the state college republican convention in Ohio, and once a delegate to the national yaf convention. I supported the viet nam war and volunteered for the draft before I graduated. However, instead of being sent to viet nam, I was sent to us army HQ in Europe, where I was document control. While the documents were eyes only, there was no way I was not going to take a peek at classified documents. This was what first started to open my eyes. I took a European out and backpacked around Europe for a year. By this time my political beliefs had moderated a great deal. I finished my education at a well known liberal east coast university. To make a long story short, I got involved with the micro-computer revolution early on, became a partner in a small software firm, which was bought out by a giant company. I saw close up how stupid large companies can be with their internal politics. I said good-bye to the corporate world and retired before age 50 to my tropical island paradise. I maintain my legal residence with my apartment in the states, but I spend a great deal of time here. I never changed my party registration because I am a social conservative, but an economic pragmatist. By the way, when I was young, I was a very good politician, I ran 18 campaigns on the local level and never lost