Paul Krugman: All the G.O.P.’s (Gordon) Gekkos

[babylonsister]

http://www.nytimes.com/2011/12/09/opinion/krugman-all-the-gops-gekkos.html?_r=1

All the G.O.P.’s Gekkos
By PAUL KRUGMAN
Published: December 8, 2011

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I am not, of course, the first person to notice the similarity between Mitt Romney’s business career and the fictional exploits of Oliver Stone’s antihero. In fact, the labor-backed group Americans United for Change is using “Romney-Gekko” as the basis for an ad campaign. But there’s an issue here that runs deeper than potshots against Mr. Romney.

For the current orthodoxy among Republicans is that we mustn’t even criticize the wealthy, let alone demand that they pay higher taxes, because they’re “job creators.” Yet the fact is that quite a few of today’s wealthy got that way by destroying jobs rather than creating them. And Mr. Romney’s business history offers a very good illustration of that fact.

The Los Angeles Times recently surveyed the record of Bain Capital, the private equity firm that Mr. Romney ran from 1984 to 1999. As the report notes, Mr. Romney made a lot of money over those years, both for himself and for his investors. But he did so in ways that often hurt ordinary workers.

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So what do we learn from this story? Not that Mitt Romney the businessman was a villain. Contrary to conservative claims, liberals aren’t out to demonize or punish the rich. But they do object to the attempts of the right to do the opposite, to canonize the wealthy and exempt them from the sacrifices everyone else is expected to make because of the wonderful things they supposedly do for the rest of us.

The truth is that what’s good for the 1 percent, or even better the 0.1 percent, isn’t necessarily good for the rest of America — and Mr. Romney’s career illustrates that point perfectly. There’s no need, and no reason, to hate Mr. Romney and others like him. We do, however, need to get such people paying more in taxes — and we shouldn’t let myths about “job creators” get in the way.

[Cigar11]

1. Quote: Gordon Gekko

The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it. You've got that killer instinct. Stick around pal, I've still got a lot to teach you.

[ProSense]

2. Romney basically agrees with Krugman

Romney doesn't have a clue when it comes to the larger economy and job creation.

Steve Benen A ‘limited understanding of the economy’

This exchange, from Mitt Romney’s chat with the editorial board of the Washington Examiner, seems like the sort of thing that might come back to haunt the former governor.

TIM CARNEY: The European Union might be on the verge of an economic meltdown and the U.S. is already getting involved at least indirectly. They opened the Fed window. The IMF, which we heavily fund, is sending money their way. Do you support this Fed and these IMF measures and, if this were still going on when you were inaugurated, what steps — what US aid — would you be willing to provide to Europe?

ROMNEY: Not much, because Europe is capable of solving Europe’s problems. I actually think that — I mean, I’m not an economist by training, but what limited understanding of the economy I have suggests it’s very difficult to cobble together Greece, Ireland, Italy and Germany with the same monetary policy and highly disparate fiscal policies. I don’t know how they hold it together. (emphasis added)

In fairness, I didn’t hear the audio* or see the video of the comments. It’s possible this was said in jest (though elsewhere, the transcript points to laughter, and this is not one of those instances).

Or perhaps he was serious. The larger point is, if Romney is already trying to downplay his familiarity with economic policy, in a campaign in which he points to alleged economic expertise as his main qualification for national office, it’s a quote he might regret making.

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The Republicans entire game plan has been to conflate being wealthy with job creation when in reality, most of the wealth at the top was accumulated through greed.