G
Gandalf Grey
Guest
The Dwindling Republican Business Base: It's the Economy, Stupid
By John W. Dean
Created Jan 25 2008 - 11:24am
As the stock market gyrated wildly this week, given the precarious state of
the American economy, the New York Times published a table relating to
anti-recession efforts in times past [1]. In scanning it, I could not help
but notice that among the last eight recessions, all but the first, in 1948,
occurred during Republican presidencies. (The first occurred when
Republicans controlled Congress.)
Here are the recessions and their Republican presidents: August 1957 to
April 1958 (Eisenhower), April 1960 to February 1961 (Eisenhower), December
1969 to November 1970 (Nixon), November 1973 to March 1975 (Nixon and Ford),
July 1981 to November 1982 (Reagan), July 1990 to March 1991 (Reagan), and
March 2001 to November 2001 (Bush II).
As we all have watched the stock market this week, thoughts of past major
crashes have no doubt popped into the minds of many. Republican presidents
oversaw them. Herbert Hoover, of course, was president when the great crash
of 1929 occurred, and Ronald Reagan was president with the most recent
serious crash - Black Monday in 1987.
The Republican Party has long been the favorite of the business world. But
when one steps back to look at the facts objectively - as business leaders
who want to remain in business must do, and now seem to be doing - the
question must be asked: Is a Republican bias actually good business?
Which Political Party Is Better For Business?
Which political party is actually best for business? To pose the question is
easy. However, to answer it objectively and honestly is not possible, for
all business is not the same and the answer depends upon what kind of
business one might be addressing.
For example, hedge fund managers, who have walked away with billions in
untaxed profits under Republican tax policies unavailable to other people,
love the GOP. CEOs with humongous salaries and endless stock options also
love the current Republican attitude of demanding tax breaks for the very
rich. Big businesses with high- powered lobbyists in Washington on their
payrolls to protect their interests find Republicans far friendlier to their
concerns than they do Democrats. These people, of course, are among that
less than one percent of Americans who have profited so gloriously under the
Bush-Cheney economic policies.
Mid-sized and small businesses - which are the overwhelming majority of
businesses in the United States - have, until lately, thought that they were
better off under Republicans, but they are wrong. They are just now
remembering that when recessions come, they are easily wiped out, while big
businesses merely make less money and often take advantage of the downturn.
These people are the upper middle class and middle class of America - the
people that the Republicans are slowly bleeding into non-existence, until
there will be no middle class, only rich and poor.
Fortunately, increasing numbers of all levels of business people are
realizing the economic incompetence of Republicans, and their protection of
the super-rich is, in the long term, bad business for everyone. Accordingly,
growing numbers of voters have come to the conclusion that Republicans are
not good for business. "GOP Is Losing Grip On Core Business Vote," an
above-the-fold headline of the Wall Street Journal [2] screamed last fall.
Some Specific Reasons Businesspeople Are Leaving the GOP
According to a number of business publication, there are several reasons for
the "elephant stampede" - to use the Wall Street Journal's term. Broadly
described, the disenchantment of business leaders with the GOP falls into
several categories, which I have set forth without trying to rank them:
The War In Iraq. Just as many other Americans find the war in Iraq an
unqualified disaster, businesspeople tell reporters that they do not like
the lies Bush and Cheney told, to take us into a war that will likely only
create more terrorists hating America. Like many others, they see this as
dangerous folly. In addition, the war has been a fiscal disaster, with
billions thrown away and no accounting whatsoever. As a retired Westinghouse
manager and lifelong Republican told the Wall Street Journal, "'We've lost
control of spending,' and the administration's execution of the Iraq war has
been 'incompetent.'" Businesspeople have little tolerance for incompetence;
only true ideologues can over look it.
Excessive Deficit Spending. Former chairman of the Federal Reserve Alan
Greenspan is a very high-profile Republican in the business and finance
communities. Greenspan told the Journal, "The Republican Party, which ruled
the House, the Senate and the presidency, I no longer recognize." Similarly,
New York City Mayor and billionaire businessman Michael Bloomberg recently
left the GOP, complaining - as reported by the Journal - that "conservative
politicians in the U.S. [are] guilty of 'lunacy' for running up deficits for
future taxpayers to pay." The GOP's gigantic deficits have also weakened the
dollar, making business for many much more expensive.
Focus On Social Issues. Countless businessmen I know tell me they are
exhausted with the Republicans' focus on abortion, gay marriage, and the
host of social issues the party insists on putting on the front burner.
Business journals have similar reports. This is not surprising, for all
polls show that for most Americans, these are not the centrally important
issues.
Immigration Policy. Business Week has reported [3] that as the Republican
presidential candidates have increased their
who-can-talk-the-toughest-on-immigration efforts, they are also losing
support in the business community. Business Week pointed out that "in
industries like agriculture, construction, landscaping, and restaurants,
most employers want comprehensive immigration reform that allows
undocumented workers to join a guest worker program or pursue a path to
citizenship, as well as an effective way for new immigrants to work in the
U.S." With the exception of John McCain, all the GOP presidential candidates
start their day with a hefty dose of xenophobia.
Health Care Policy. Many industries want the federal and state governments
to address the soaring cost of health care. Not only do they need healthy
workers, but health care costs are narrowing profits. Few savvy
businesspeople think well of the Republican health care plans, which make
health care providers and insurance companies richer at the expense of
everyone else.
Environmental Responsibility. American business is the leading polluter in
America, and for years business has rebelled against efforts to regulate the
damage it causes to the environment. Even now the pre-Enlightenment attitude
of certain conservative Republicans toward science has enabled them to
actually believe that global warming is merely a hoax. Yet more
sophisticated businesspeople understand they must clean up their acts. Many
know that short-term gains are leading to long-term and potential
irreversible damage. Accordingly, outside the auto and fossil-fuel-related
industries, businesspeople are increasingly disgusted with the failure of
recent Republican Administrations (Reagan, Bush I and Bush II) to develop a
realistic, responsible and comprehensive environmental policy.
Republicans Have Proven Themselves Bad For a Good Economy
Business, however, is only part of a broader picture for it operates - as do
we all - within the American economy. Thus, there is an more fundamental
question: Which political party is best for the American economy, and why?
That will be the subject of Part II of this look at the future implications
of further Republican rule. Frankly, I was surprised at what I found.
--
NOTICE: This post contains copyrighted material the use of which has not
always been authorized by the copyright owner. I am making such material
available to advance understanding of
political, human rights, democracy, scientific, and social justice issues. I
believe this constitutes a 'fair use' of such copyrighted material as
provided for in section 107 of the US Copyright
Law. In accordance with Title 17 U.S.C. Section 107
"A little patience and we shall see the reign of witches pass over, their
spells dissolve, and the people recovering their true sight, restore their
government to its true principles. It is true that in the meantime we are
suffering deeply in spirit,
and incurring the horrors of a war and long oppressions of enormous public
debt. But if the game runs sometimes against us at home we must have
patience till luck turns, and then we shall have an opportunity of winning
back the principles we have lost, for this is a game where principles are at
stake."
-Thomas Jefferson
By John W. Dean
Created Jan 25 2008 - 11:24am
As the stock market gyrated wildly this week, given the precarious state of
the American economy, the New York Times published a table relating to
anti-recession efforts in times past [1]. In scanning it, I could not help
but notice that among the last eight recessions, all but the first, in 1948,
occurred during Republican presidencies. (The first occurred when
Republicans controlled Congress.)
Here are the recessions and their Republican presidents: August 1957 to
April 1958 (Eisenhower), April 1960 to February 1961 (Eisenhower), December
1969 to November 1970 (Nixon), November 1973 to March 1975 (Nixon and Ford),
July 1981 to November 1982 (Reagan), July 1990 to March 1991 (Reagan), and
March 2001 to November 2001 (Bush II).
As we all have watched the stock market this week, thoughts of past major
crashes have no doubt popped into the minds of many. Republican presidents
oversaw them. Herbert Hoover, of course, was president when the great crash
of 1929 occurred, and Ronald Reagan was president with the most recent
serious crash - Black Monday in 1987.
The Republican Party has long been the favorite of the business world. But
when one steps back to look at the facts objectively - as business leaders
who want to remain in business must do, and now seem to be doing - the
question must be asked: Is a Republican bias actually good business?
Which Political Party Is Better For Business?
Which political party is actually best for business? To pose the question is
easy. However, to answer it objectively and honestly is not possible, for
all business is not the same and the answer depends upon what kind of
business one might be addressing.
For example, hedge fund managers, who have walked away with billions in
untaxed profits under Republican tax policies unavailable to other people,
love the GOP. CEOs with humongous salaries and endless stock options also
love the current Republican attitude of demanding tax breaks for the very
rich. Big businesses with high- powered lobbyists in Washington on their
payrolls to protect their interests find Republicans far friendlier to their
concerns than they do Democrats. These people, of course, are among that
less than one percent of Americans who have profited so gloriously under the
Bush-Cheney economic policies.
Mid-sized and small businesses - which are the overwhelming majority of
businesses in the United States - have, until lately, thought that they were
better off under Republicans, but they are wrong. They are just now
remembering that when recessions come, they are easily wiped out, while big
businesses merely make less money and often take advantage of the downturn.
These people are the upper middle class and middle class of America - the
people that the Republicans are slowly bleeding into non-existence, until
there will be no middle class, only rich and poor.
Fortunately, increasing numbers of all levels of business people are
realizing the economic incompetence of Republicans, and their protection of
the super-rich is, in the long term, bad business for everyone. Accordingly,
growing numbers of voters have come to the conclusion that Republicans are
not good for business. "GOP Is Losing Grip On Core Business Vote," an
above-the-fold headline of the Wall Street Journal [2] screamed last fall.
Some Specific Reasons Businesspeople Are Leaving the GOP
According to a number of business publication, there are several reasons for
the "elephant stampede" - to use the Wall Street Journal's term. Broadly
described, the disenchantment of business leaders with the GOP falls into
several categories, which I have set forth without trying to rank them:
The War In Iraq. Just as many other Americans find the war in Iraq an
unqualified disaster, businesspeople tell reporters that they do not like
the lies Bush and Cheney told, to take us into a war that will likely only
create more terrorists hating America. Like many others, they see this as
dangerous folly. In addition, the war has been a fiscal disaster, with
billions thrown away and no accounting whatsoever. As a retired Westinghouse
manager and lifelong Republican told the Wall Street Journal, "'We've lost
control of spending,' and the administration's execution of the Iraq war has
been 'incompetent.'" Businesspeople have little tolerance for incompetence;
only true ideologues can over look it.
Excessive Deficit Spending. Former chairman of the Federal Reserve Alan
Greenspan is a very high-profile Republican in the business and finance
communities. Greenspan told the Journal, "The Republican Party, which ruled
the House, the Senate and the presidency, I no longer recognize." Similarly,
New York City Mayor and billionaire businessman Michael Bloomberg recently
left the GOP, complaining - as reported by the Journal - that "conservative
politicians in the U.S. [are] guilty of 'lunacy' for running up deficits for
future taxpayers to pay." The GOP's gigantic deficits have also weakened the
dollar, making business for many much more expensive.
Focus On Social Issues. Countless businessmen I know tell me they are
exhausted with the Republicans' focus on abortion, gay marriage, and the
host of social issues the party insists on putting on the front burner.
Business journals have similar reports. This is not surprising, for all
polls show that for most Americans, these are not the centrally important
issues.
Immigration Policy. Business Week has reported [3] that as the Republican
presidential candidates have increased their
who-can-talk-the-toughest-on-immigration efforts, they are also losing
support in the business community. Business Week pointed out that "in
industries like agriculture, construction, landscaping, and restaurants,
most employers want comprehensive immigration reform that allows
undocumented workers to join a guest worker program or pursue a path to
citizenship, as well as an effective way for new immigrants to work in the
U.S." With the exception of John McCain, all the GOP presidential candidates
start their day with a hefty dose of xenophobia.
Health Care Policy. Many industries want the federal and state governments
to address the soaring cost of health care. Not only do they need healthy
workers, but health care costs are narrowing profits. Few savvy
businesspeople think well of the Republican health care plans, which make
health care providers and insurance companies richer at the expense of
everyone else.
Environmental Responsibility. American business is the leading polluter in
America, and for years business has rebelled against efforts to regulate the
damage it causes to the environment. Even now the pre-Enlightenment attitude
of certain conservative Republicans toward science has enabled them to
actually believe that global warming is merely a hoax. Yet more
sophisticated businesspeople understand they must clean up their acts. Many
know that short-term gains are leading to long-term and potential
irreversible damage. Accordingly, outside the auto and fossil-fuel-related
industries, businesspeople are increasingly disgusted with the failure of
recent Republican Administrations (Reagan, Bush I and Bush II) to develop a
realistic, responsible and comprehensive environmental policy.
Republicans Have Proven Themselves Bad For a Good Economy
Business, however, is only part of a broader picture for it operates - as do
we all - within the American economy. Thus, there is an more fundamental
question: Which political party is best for the American economy, and why?
That will be the subject of Part II of this look at the future implications
of further Republican rule. Frankly, I was surprised at what I found.
--
NOTICE: This post contains copyrighted material the use of which has not
always been authorized by the copyright owner. I am making such material
available to advance understanding of
political, human rights, democracy, scientific, and social justice issues. I
believe this constitutes a 'fair use' of such copyrighted material as
provided for in section 107 of the US Copyright
Law. In accordance with Title 17 U.S.C. Section 107
"A little patience and we shall see the reign of witches pass over, their
spells dissolve, and the people recovering their true sight, restore their
government to its true principles. It is true that in the meantime we are
suffering deeply in spirit,
and incurring the horrors of a war and long oppressions of enormous public
debt. But if the game runs sometimes against us at home we must have
patience till luck turns, and then we shall have an opportunity of winning
back the principles we have lost, for this is a game where principles are at
stake."
-Thomas Jefferson