Wednesday, January 11, 2012

Buffet takes on the GOP

http://swampland.time.com/2012/01/11/warren-buffett-to-mitch-mcconnell-put-up-or-shut-up/
http://finance.yahoo.com/news/buffett-gop-pay-211046623.html

“I’ve worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher with thank-you notes from parents, but rewards those who can detect the mispricing of securities with sums reaching into the billions... We need a tax system that takes very good care of people who just really aren't as well adapted to the market system, and to capitalism, but are nevertheless just as good citizens, and are doing things that are of use in society," [Buffet] said.

EXACTLY! Why the hell does the GOP (and the Dems to a slightly lesser extent) set policies that incentivize risky investing, and give breaks to people who are already the most wealthy and savvy capitalists in our society? Those people can make it on their own, so if you're going to help anyone, why not help the honest, humble folk who still perform vital but underpaid jobs (janitor, nurse, etc.), but don't have the knowledge/time/resources to invest their way to financial security?

The GOP keeps touting the greatness of the American free market meritocracy, a level playing field that rewards valuable contributions and where anyone can make it with hard work. If so, then why do the rich get laws passed so their resources and connections grant them an *unfair* advantage over the rest of us, and they can make vast sums of money without actually contributing anything valuable to society? In fact, they often profit by harming society, then escape punishment and underpay taxes (or steer bloated gov't contracts their way) so there are not enough resources left to help the most needy.

The GOP candidates (especially Romney) mask their wealth-gap-widening agenda with calls for reining in Washington spending and voting out a president who wants to make us like Europe (yeah, wouldn't that be terrible? The top European nations outrank us in most major health and social welfare metrics). Fine, while I may not agree with it, I respect their right to have a vision of minimal gov't. Then cut the "handouts" for everyone, starting with the worst offenders. Conservatives love to bash the Earned Income Tax Credit, welfare, and other programs for the poor, but the truth is that tax evasion and subsidies to rich families/companies are much more costly. Oh those "poor" rich people who pay taxes though the nose, and curse those unemployed deadbeats who live large off the gov't dime. While there are obviously a few anecdotes to support that narrative, we should be looking at aggregate stats. If it's so terrible to be rich in America, then why are they prospering many fold more than the other classes since the 1970's?

It goes back to the Tea Party and Occupy Wall St. discussion we had before. S said that the TP was mad about gov't spending, and OWS was mad that the gov't was spending to help the rich at everyone else's expense. OK, then cut off the rich (we're not even talking about taxing them more, but just stop giving them the extra benefits unavailable to the 99%), and re-evaluate gov't spending at that point. We may then find that we face a much smaller crisis, but if further cuts are still needed, then do it across the board or progressively.

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http://hinterlandgazette.com/2012/01/gop-presidential-frontrunner-mitt-romney-obama-divides-bitter-politics-envy.html
http://www.npr.org/blogs/itsallpolitics/2012/01/10/144938684/rivals-attack-romney-s-record-at-bain-capital

Romney is trying to spin attacks against his record at Bain as "the politics of envy" and resentful of his success. Uh no, you don't hear us bashing Buffet or Jobs or other people richer and "more successful" than Romney, because the public mostly believes that those people earned their keep. Well, I guess it's hard to justify one human being "worth" a billion dollars, but those chaps at least got rich more honestly than dictators or unscrupulous bankers.

Romney on the other hand profited from causing misery and debt for some of his clients (40% of Bain's top 10 contracts went bankrupt, yet they still got paid handsomely). So actually his critics resent his lack of business ethics and legitimate value creation, not his business "success." Like his careless $10,000 bet comment with Perry, this just shows execs like him totally don't get it. Out-of-touch people like that shouldn't be leaders. The US middle class is going through its worst stretch since the Depression (much of it caused by Wall St.), the wealth gap is near record highs, and he's talking about how real Americans should work hard to be rich, not be jealous of the rich? Well maybe "real Americans" don't want to be like you, Mitt.

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