The Unnanounced Class War

[Argus]

In 1971, Lewis F. Powell, then a corporate lawyer and member of the boards of 11 corporations, wrote a memo to his friend Eugene Sydnor, Jr., the Director of the U.S. Chamber of Commerce. The memorandum was dated August 23, 1971, two months prior to Powell’s nomination by President Nixon to the U.S. Supreme Court.

Though Powell’s memo was not the sole influence, the Chamber and corporate activists took his advice to heart and began building a powerful array of institutions designed to shift public attitudes and beliefs over the course of years and decades. The memo influenced or inspired the creation of the Heritage Foundation, the Manhattan Institute, the Cato Institute, Citizens for a Sound Economy, Accuracy in Academe, and other powerful organizations. Their long-term focus began paying off handsomely in the 1980s, in coordination with the Reagan Administration’s “hands-off business” philosophy

Since 1971 the federal government in the US, and soon after, individual state governments, began to experience a wholesale change in the way corporate American dealt with them. Money flowed in, millions, then tens and hundreds, adn then billions, to purchase their attention and favor. The number of lobbyists in Washington, for example, rose from 150 to over 30,000, all of them with money in hand to influence politicians. That money has inflated the cost of becoming elected, or re-elected to the point where ordinary people now have little, if any chance of attaining office without huge donations from the corporate elites. The more of it there was, the more of it politicians needed. A vicious circle that has only served to increase the power of the elites in America.

What do the elites want and what have they gotten? They wanted lower tax rates on corporations, and the elites who owned and controlled them (81% of stock in the US companies is held by just 10% of the population). They wanted less government intervention in business, less consumer protection, less health and safety concerns, less regulations governing how they operate, especially financially. They wanted to roll back the power of unions and protection for employees. They wanted weaker environmental and pollution controls, and overall, a much weaker, smaller government. And they have achieved all of this. The share of overall wealth in the US has shifted year by year, away from the poor and middle class, and into the hands of the rich, especially the super rich, the 1% of the 1%. The richest 400 people in America now own more wealth than the poorer 50% of America.

But that hasn't satisfied them. They continue to push for lower taxes and massive cuts to spending, notably, spending on things the elites have no interest in: public schools, public health care and pensions, environmental controls. If you look at Paul Ryan's budget plan you see it slashes all manner of support for lower income people and grants huge tax cuts to the elites. Ryan is one of the "Koch boys" in congress, owned by the Koch brothers.

There's been much talk of late of Obama's class warfare type arguments. What most Americans don't seem to realize is that the class war started in 1971, and many of them are already its victims.

The Powell Memo

http://reclaimdemocracy.org/powell_memo_lewis/

Park Avenue

http://www.pbs.org/independentlens/park-avenue/

Heist: Who Stole The American Dream

http://www.realeyz.tv/en/heist.html

[cybercoma]

I fully expect you to be called a communist by the obvious parties for posting this.

[WIP]

I've been hearing about the infamous "Powell Memo" for a couple of years now. A few progressive analysts of government consider the Powell Memo to be the first shot that was fired in the war on the Middle Class, back when the rich were complaining about the great unwashed masses voting against the interests of the wealth class.

And just a quick scan of Lewis Powell's bio reveals him as a stealth candidate for the Supreme Court by Nixon.....but that's not a whole lot different than the more recent stealth candidates for the Business Class like John Roberts or Sam Alito.

[Argus]

I fully expect you to be called a communist by the obvious parties for posting this.

The irony is that for the last two years, at least by income, I'm part of the "1%".

But there's a big difference between the 1% and the top earners. As the PBS show points out, about 400 people are the ones really benefiting from the new tax laws and regulations.

[eyeball]

I fully expect you to be called a communist by the obvious parties for posting this.

I expect someone has either hacked Argus' account or he's fallen on his head or something.

What do the elites want and what have they gotten? They wanted lower tax rates on corporations, and the elites who owned and controlled them (81% of stock in the US companies is held by just 10% of the population).

Okay, just who the hell are you and what have you done with the real Argus?

[eyeball]

The irony is that for the last two years, at least by income, I'm part of the "1%".

But there's a big difference between the 1% and the top earners. As the PBS show points out, about 400 people are the ones really benefiting from the new tax laws and regulations.

Here we go... this sounds more like the Argus.

I suppose if I stretched far enough I could also commiserate with the 396 ordinary Joe's suffering under the dictates of the 4 or so elitists who lord it over them.

[cybercoma]

I expect someone has either hacked Argus' account or he's fallen on his head or something.

Argus is a classical conservative that believes in social responsibility. It's consistent with his views.

[bush_cheney2004]

(81% of stock in the US companies is held by just 10% of the population).

This is patently false....not only do more than 50% of the US population own stock (down from a high of 65% earlier in the decade), but institutional ownership of publicly traded stock makes such an assertion impossible. Stock ownership by employees (ESOP), mutual funds, banks, insurance companies, public and private pension plans, hedge funds, foreign investors, etc. means that far more than 19% of stock/equities is/are owned beyond "10%" of the US population.

Edited December 29, 2012 by bush_cheney2004

[Argus]

I expect someone has either hacked Argus' account or he's fallen on his head or something.

Okay, just who the hell are you and what have you done with the real Argus?

There is absolutely nothing new in my position here. If you examine my previously stated opinions on labour conflicts, on the US budget shortfalls you'll find this to be nothing but a continuance of that attitude.

[Argus]

Here we go... this sounds more like the Argus.

I suppose if I stretched far enough I could also commiserate with the 396 ordinary Joe's suffering under the dictates of the 4 or so elitists who lord it over them.

I'm not sure what you're getting at. The "1%" belief of many activists leaves out the fact many people within that bracket are simply professionals like doctors, lawyers, architects, accountants and small businessmen. This is not the group which is running the country and economy into the ground, nor the group which is buying off politicians to get legislation amended in their favour. It's not even the group which is mostly in support of the changes. That group is made up of mostly religious folks, uneducated rural people, and so-called 'lunchbucket' conservatives the likes of "Joe the Plumber".

Edited December 29, 2012 by Argus

[Argus]

This is patently false....not only do more than 50% of the US population own stock (down from a high of 65% earlier in the decade), but institutional ownership of publicly traded stock makes such an assertion impossible. Stock ownership by employees (ESOP), mutual funds, banks, insurance companies, public and private pension plans, hedge funds, foreign investors, etc. means that far more than 19% of stock/equities is/are owned beyond "10%" of the US population.

In terms of types of financial wealth, the top one percent of households have 35% of all privately held stock, 64.4% of financial securities, and 62.4% of business equity. The top ten percent have 81% to 94% of stocks, bonds, trust funds, and business equity, and almost 80% of non-home real estate. Since financial wealth is what counts as far as the control of income-producing assets, we can say that just 10% of the people own the United States of America.

http://www2.ucsc.edu/whorulesamerica/power/wealth.html

[Argus]

Argus is a classical conservative that believes in social responsibility. It's consistent with his views.

More to the point, I believe that a society should be run according to what is in the best interests of the great bulk of its members. I don't believe oligarchies do that, and what is forming in the US is an oligarchy whereby laws and regulations are set up to benefit and enrich the very few at the expensive of the very many.

The average cost of winning a senate seat is now $10 million. Where can a potential senator make that kind of money? Where can a senator make it in order to run for re-election? Most American congressmen/senators have to devote between 25% and 50% of their time in office on fund raising.

[sharkman]

I think what the elitists want is also an economy that hasn't been on life support for 4 years now. This Powell memo sounds something like a conspiracy theory. Just because the business sector evolved in their behavior towards government and an obscure memo exists, is it really an "aha" moment?

Money makes the world go round, it always has.

[Canuckistani]

I think what the elitists want is also an economy that hasn't been on life support for 4 years now.

They have a funny way of showing it. What did they think would happen when the elite (they probably are elitists as well) gutted the middle class by outsourcing and sucked the economy dry with all those shady financial instruments? They may want a well functioning economy, but their greed has all but killed the goose. No more golden eggs for you. Oh, well, I'm sure the American elite will do just as well selling Chinese made stuff to the Chinese. It's not as if the Chinese can do that for themselves.

[kimmy]

I expect someone has either hacked Argus' account or he's fallen on his head or something.

Okay, just who the hell are you and what have you done with the real Argus?

It wasn't very long ago that Argus and I were considered "the right wing" here at MLW, and now we're pinko commie leftists, according to those that now consider themselves "the right".

I don't think I've changed. Some of my positions have evolved, but at the core, I still believe in the same things I always have. I think that "the right" has changed, and the things that I believe in aren't part of what the new "right" believes.

A phrase Argus used a long time ago that stuck with me is "a conservative is somebody who uses 2 nails when 1 might be good enough." By that standard, I don't think today's "conservatives" are very conservative. I think real conservatism is characterized by prudence, cautious management of resources, a preference for policies and traditions that have proven their value, and an aversion to high risk ventures and rash decisions. I don't think any of these characteristics describe today's "right".

The old right believes in the rule of law. The new right believes in unquestioning obeisance to authority. There's a huge difference, and I don't think the "new right" types quite grasp what it is.

-k

[bush_cheney2004]

Oh, well, I'm sure the American elite will do just as well selling Chinese made stuff to the Chinese. It's not as if the Chinese can do that for themselves.

But the American "elite" (and not so elite) are doing just that....from Apple iStuff to Boeing airliners China and many other nations have a growing middle class. But this started with tariff dodges and free trade agreements that sent U.S. jobs to Canada and Mexico, and now the Canadians are complaining when the jobs come back to the U.S.

Name one Canadian based car manufacturer.

Edited December 29, 2012 by bush_cheney2004

[bush_cheney2004]

I don't think I've changed. Some of my positions have evolved,

That's exactly what President Obama said about his convenient political shift on same gender marriage.

[kimmy]

That's exactly what President Obama said about his convenient political shift on same gender marriage.

Maybe his position evolved, or maybe he took a position that he thought was politically convenient. Whatever. What's your point? I'm not running for office, and when my views change over time it's not to win votes. And when I say evolved, I don't mean a random flip-flop, I mean that (for example) over the past 5 years or so my belief in the rule of law has been tempered by an increasing realization that our RCMP officers and other law enforcement officials are not very trustworthy.

-k

[sharkman]

They have a funny way of showing it. What did they think would happen when the elite (they probably are elitists as well) gutted the middle class by outsourcing and sucked the economy dry with all those shady financial instruments? They may want a well functioning economy, but their greed has all but killed the goose.

The elitists did that? And they did it on purpose? They are clever enough to manipulate the biggest economy the world had ever seen, and use the politicians as playthings, but couldn't see the economy's woes coming? I just do not concur. There is no massive conspiracy here.

[bush_cheney2004]

Maybe his position evolved, or maybe he took a position that he thought was politically convenient. Whatever. What's your point?

No worries...I'm just having a little fun with current events ! My core belief system does not "evolve" based on "increasing realization", because if it did, it means I was clueless from the very beginning.

[sharkman]

...and when my views change over time it's not to win votes. And when I say evolved, I don't mean a random flip-flop, I mean that (for example) over the past 5 years or so my belief in the rule of law has been tempered by an increasing realization that our RCMP officers and other law enforcement officials are not very trustworthy.

-k

My views have changed somewhat as well. Concerning the justice system, I used to have blind faith in it. I now would cringe greatly at having my future or fate decided in the courts. Cops, I see them as dudes just trying to get by in a very stressful and thankless job. I wouldn't want to put myself in a position of depending on them for anything, however, and being the law abiding person that I am, so far I haven't needed to.

[cybercoma]

This is patently false....not only do more than 50% of the US population own stock (down from a high of 65% earlier in the decade), but institutional ownership of publicly traded stock makes such an assertion impossible. Stock ownership by employees (ESOP), mutual funds, banks, insurance companies, public and private pension plans, hedge funds, foreign investors, etc. means that far more than 19% of stock/equities is/are owned beyond "10%" of the US population.

Your argument doesn't contradict his. You're just saying you believe more stock is owned by 90% of the population. While they may hold stock, the top 10% hold far, far greater amounts according to Argus's argument. If you want to prove otherwise, show show numbers that support your claim.

[kimmy]

No worries...I'm just having a little fun with current events ! My core belief system does not "evolve" based on "increasing realization", because if it did, it means I was clueless from the very beginning.

None of us have all the information from the very beginning. My core belief in the rule of law remains; my trust in the authorities to uphold the law has changed. And my view of "law and order" issues over the past several years has evolved as a result.

-k

[cybercoma]

I think what the elitists want is also an economy that hasn't been on life support for 4 years now. This Powell memo sounds something like a conspiracy theory. Just because the business sector evolved in their behavior towards government and an obscure memo exists, is it really an "aha" moment?

Money makes the world go round, it always has.

Who's to blame for nearly killing the economy? It's not the people that have next to no influence on it. It's the bankers and investors that are holding the reigns.

[sharkman]

No worries...I'm just having a little fun with current events ! My core belief system does not "evolve" based on "increasing realization", because if it did, it means I was clueless from the very beginning.

I wager a young BC was idealistic at times, no? It might have been long ago, but surely you had some beliefs amended through experience? Although I suppose that might not be core beliefs.