Louis Proyect: The Unrepentant Marxist

July 30, 2013

Obama doublespeak on the economy

Filed under: economics,financial crisis,Obama,workers — louisproyect @ 7:05 pm

Last week Obama gave a speech at Knox College in Illinois on the economic situation that like his remarks on Trayvon Martin a few days earlier was filled with the number of bromides calculated to give his MSNBC posse just enough to rally around. To give you a sense of the shallowness of it all, he uses the term “folks” 26 times. One supposes that with people like Al Sharpton and Ed Schultz, the only thing that would cause a breach with the President is a Swiftian modest proposal that hungry folks eat their children.

Early on in the speech he says:

See, I had just spent a year traveling the state and listening to your stories — of proud Maytag workers losing their jobs when the plant moved down to Mexico. (Applause.) A lot of folks here remember that. Of teachers whose salaries weren’t keeping up with the rising cost of groceries. (Applause.) Of young people who had the drive and the energy, but not the money to afford a college education. (Applause.)

The hypocrisy in this paragraph reaches achieves Olympian proportions. In 2008, when Obama was first making these demagogic appeals about the fate of Maytag workers, the Chicago Tribune reported that the main union at the plant urged a vote for Hillary Clinton. Leaving aside the logic of that advice, the union was correct to point out that Lester Crown, one of Maytag’s directors, raised tens of thousands of dollars for Obama’s campaigns since 2003. Crown’s son James was Obama’s 2008 campaign’s financial director for that matter. After Lester Crown revealed that Obama never brought up the plant closing with him, Obama’s alibi was that he was unaware that the Crowns had anything to do with Maytag. Oh, sure. To give you an idea of the incestuous relationship between big capital and the Democratic Party, as if you needed any reminder, here’s what warisacrime.org had to say:

Lester Crown first met Obama when he was a 27-year-old intern at the Sidley Austin law firm in Chicago in the summer of 1989. One of Obama’s law professors at Harvard, Martha Minow, had recommended Obama to her father, Newton Minow, who was a partner at the firm. Minow took Obama under his wing and introduced him to his friend Lester Crown. Crown recalls that Minow called him and “said we have in our office a young man who I think is really going places and I’d like you to meet him.” Crown says he has been a supporter ever since.

For people who applauded Obama’s plaint over the Maytag runaway plant, my advice is that outfits like SeaWorld get rid of their trained seals and replace them with these clapping fools.

Obama claims that he is also troubled by the fact that there were “teachers whose salaries weren’t keeping up with the rising cost of groceries.” Really? If Obama really cared about teachers, he would take a stand against the union-busting initiatives of his ex-Chief of Staff Rahm Emanuel or the charter school agenda of his Secretary of Education Arne Duncan. Using the excuse that teacher productivity must be raised, administrations across the country are firing teachers left and right. In 2010 the school board of Central Falls fired all 93 teachers, a move that Obama described: “If a school continues to fail year after year after year and doesn’t show sign of improvements then there has got to be a sense of accountability. That happened in Rhode Island last week.” This led Zeph Capo, a teachers union official in Houston, to state:

I ripped the Obama sticker off of my truck. We worked hard for this man, we talked to our neighbors and our fellow teachers about why we should support him, and we’re having to dig the knife out of our back.

One imagines that Capo fell into line when the 2012 election season started. After all, Obama was better than Romney. Romney would have not only fired the teachers but tied them to the roof of his car on a vacation trip to Canada. We can’t have that, can we?

Continuing along in the education vein, Obama added that the number of “young people who had the drive and the energy, but not the money to afford a college education” distressed him. This statement above all brought to mind the character that Jon Lovitz played on Saturday Night Live, the Pathological Liar.

I didn’t always lie. No, when I was a kid, I told the truth. But then one day, I got caught stealing money out of my mother’s purse. I lied. I told her it was homework – that my teacher told me to do it. And she got fired! Yeah, that’s what happened!

Just days after Obama’s speech, Congress passed a bill that tied student loan interest rates to financial markets. This proposal was not the typical Republican plan “forced” on Obama but was his own profit-making scheme inspired by a paper written by Jason Delisle at the New American Foundation, whose president Anne-Marie Slaughter (appropriately named) was Hillary Clinton’s Director of Policy Planning at the State Department. As a member of the Peterson-Pew Commission on Budget Reform and the Committee for a Responsible Federal Budget, Delisle had just the right credentials to draft a policy paper that would stick it to the students. The Huffington Post reported that a record $51 billion profit could be expected from the student loan shark racket cooked up by Obama. That’s greater than the earnings of America’s most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.

Arguably the only Democratic Senator with a shred of integrity, Elizabeth Warren stated: “I can’t support a proposal that squeezes even more profits out of our kids. In fact, I think this whole system stinks.’’

After listing these items that fell in the doom-and-gloom category, Obama raised his hand over his eyebrows like the captain of a leaking vessel and saw the sun breaking through the dark clouds. Good-god-almighty, jobs were on the horizon: “So you add it all up, and over the past 40 months, our businesses have created 7.2 million new jobs. This year, we’re off to our strongest private sector job growth since 1999.”

An honest appraisal of the job market, however, would be based on the payroll-to-population ratio, something that reflects the real health of the economy. If, for example the population of a country was one million and the number of employed doubled from 100 to 200, who would cheer about that?

On June 6th Zero Hedge reported that the payroll-to-population was worse than a year ago and that “the unemployment rate is also rising with under-employment – at 18.0% – near 15 month highs.”

There is one sector that appears booming, however. The number of minimum wage waiters and bartenders hit an all-time high of 10,339,800 workers, increasing by a 51,700 in just one month. But mixing drinks like Tom Cruise in “Cocktail” must be a lot more fun than working in some boring factory with a health plan, so it is not that troubling to learn from Zero Hedge that manufacturing jobs have dropped four months in a row, now numbering 11.964 million jobs. Pretty soon the number of bartenders, waiters, and busboys will exceed the number of factory workers. I wonder what Marxist value theorists will make of that?

Obama was also pumped up over the fact that Ford is now hiring workers for its Kansas City plant. Glory be, America is coming back! Well, one can certainly understand why Ford would want to increase the number of workers in Kansas City since it cut a deal with the UAW that entry-level workers will be paid $16 per hour, just about the same amount that fast food workers in New York are struggling to win. Not only that, it will take a lot longer to get a raise. That’s about $31,000 per year, good enough for a mobile home and a night out once a week at the local Burger King. No wonder the UAW bureaucrats got out the vote for Obama in 2012. They, Obama, and the Ford bosses see eye to eye.

Obama made sure to get everybody on board the fracking bus. “We produce more natural gas than any country on Earth. We’re about to produce more of our own oil than we buy from abroad for the first time in nearly 20 years.” That’s great. With shale oil produced by fracking, we’ll be able to take advantage of all those new bartenders to get a pint of beer rather than put up with water catching fire as it flows from your faucet at home.

To make sure that Rachel Maddow will continue to coo over him, Obama made sure to throw in some cheap demagogy:

Even though our businesses are creating new jobs and have broken record profits, nearly all the income gains of the past 10 years have continued to flow to the top 1 percent. The average CEO has gotten a raise of nearly 40 percent since 2009. The average American earns less than he or she did in 1999. And companies continue to hold back on hiring those who’ve been out of work for some time.

Oooh, agitating against the top 1 percent. The Kenyan Marxist is at it again.

One understands why Obama would have to throw in a few words like these. Not only do they come cheap, at least those still laboring under the illusion that the capitalist system is redeemable can con themselves into believing that the President really cares.

Those illusions might finally be breaking down. Who cannot be cheered by the sight of fast food workers calling a one-day strike in New York? As the one host on MSNBC with a smidgen of liberalism left, Chris Hayes had on three people involved with the action last night, as well as my own Congressperson Carolyn Maloney who was on the picket line. Theirs is the voice of a new labor movement. It is a sign of its strength that it can draw upon Maloney for support:

HAYES: We`re talking about the fast food strike under way across the country tonight. Still with me at the table, Tsedeye Gebreselassie from the National Employment Law Project, McDonalds worker, Kareem Starks who is striking and Gregory Reynoso from Fast Food Forward, and joining us is Congresswoman Carolyn Maloney, Democrat from New York. Great to have you here, Congresswoman.

REPRESENTATIVE CAROLYN MALONEY (D), NEW YORK: Great to be here.

HAYES: Gentlemen, I want to get your reaction to the bite I played. If people are feeling they`re not being paid adequately, they have to go find a job someplace elsewhere paid higher wages. What`s your response to that? Just go get a higher wage job.

STARKS: You know, I work for McDonald`s for, like, five months. Before that, I worked for the Parks Department, climbing trees. I made $10.25 more than what I`m making now. So I`ve had a better job, and I was never in poverty like I am now. But whoever is, like, against it, obviously isn`t ever made $7.25 and never tried to budget paying for two kids and an apartment and bills and food all for $7.25.

HAYES: My sense, Gregory, if there were jobs available that paid higher wages, you would be happy to take them.

REYNOSO: Yes, I would be happy. The point is, it`s not these types of opportunities for everybody. There are not a lot of people what can really go out and find these types of jobs. That`s why people have to live on $7.25.

HAYES: Congresswoman, it`s fairly unusual to find members of Congress walking the picket line. There were a number. Why were you out there?

MALONEY: Well, I was looking for you, Chris.

HAYES: I was prepping this segment.

MALONEY: We were out there to show solidarity, the fight we have before Congress. We have a bill before Congress, HR-1010. We have 142 co- sponsors, 30 in the Senate and it would raise the minimum wage to $10.10, over 3 years, 95 cents a year. The president even in 2009 was calling for minimum wage increase in his state of the union and, of course, last week in Illinois. It`s a priority of his. It`s a priority of ours. We`re working hard to pass it.

HAYES: In the past, raising the minimum wage, you`ve been able to get some Republicans to vote for it. There was a minimum wage raised under George W. Bush that happened. There were a number of Republican votes. Is the Republican Party, do you think you can find people on the other side of the aisle who would vote for this bill?

MALONEY: I believe it merits bipartisan support and we`ll certainly be working to secure it. You`re not going to secure it if you don`t try.

HAYES: That doesn`t occur to me very much.

MALONEY: We`re going to try. We`re going it try because it`s too important and talking to Greg and Kareem, you see the importance of it. I believe you`re working two jobs.

REYNOSO: Yes.

MALONEY: He doesn`t have time to sleep. He`s working two jobs and it`s hard.

STARKS: I actually work the overnight shift last night and I`m here now.

HAYES: Thank you for coming in.

STARKS: I just, like, want to thank everybody for the support.

HAYES: Tsedeye, when I was talking to Kareem and Gregory about this idea that if you want a better job then go get a job that pays a higher wage what is happening right now in this economy, I don`t think this is underappreciated. The jobs are being created at the bottom of the wage scale. That is a trajectory that many Americans are experiencing.

GEBRESELASSIE: Kareem`s story is the story of our economy and how our labor markets have shifted so we`ve like hemorrhaged these decent paying jobs. What`s taking its place jobs that pay low wages like fast food and retail. Not only are those the jobs that are being created. They`re also jobs where real wages are actually declining, you know, since —

MALONEY: Out of the 3.2 million low-income jobs, 2/3 of them are women. Women are disproportionately in these low-income jobs.

GEBRESELASSIE: They`re also adults. That`s the other thing.

MALONEY: They always say they`re teenagers. They`re not. Most of them are —

HAYES: Were your co-workers, your co-workers, the image is, like, these are teens on summer jobs. Your co-workers were supporting families.

REYNOSO: Yes.

STARKS: There`s a few co-workers I know that has kids and supporting families and paying bills and stuff like that. I mean, it`s probably — McDonald`s and fast food chains usually target younger kids or whatever, but at the end of the day, there are still older people that have these jobs. There`s, like, a 60-year-old lady in my store.

GEBRESELASSIE: The median age for a fast food worker in this country is 29 years old.

HAYES: Wow.

GEBRESELASSIE: That is an adult. The other thing the industry says these are stepping stone jobs.

HAYES: You could rise up in the ranks.

GEBRESELASSIE: That`s just not the case. There`s limited opportunities for advancement.

REYNOSO: People from 50 years old, they`ll be working in these companies. Imagine those people supporting families.

HAYES: Will you quickly show that mobility graphic? It`s 2.2 percent jobs in the fast food industry are managerial, professional and technical occupations.

GEBRESELASSIE: The vast majority, 90 percent are frontline occupations. The median wage is $8.94 an hour.

HAYES: Compared to all industries, 31 percent —

MALONEY: It hasn`t gone up in four years.

HAYES: And it hasn`t gone up in four years. Tsedeye Gebreselassi from the National Employment Law Project, McDonalds worker, Kareem Starks, Gregory Reynoso from Fast Food Forward, and Congresswoman Caroline Maloney from New York, thank you all.

5 Comments »

  1. Good post, Louis. You have to hand it to Obama. He is a real master of acting as if he has had nothing to do with how the economy has performed. With respect to organizing workers, perhaps altogether new forms of organization will be essential. Fast food workers will have to join with many other types of workers to form larger, geographically-centered unions. And an altogether different ideology will have to be part and parcel of how working people are education into the labor movement. It would be nice if existing unions would do what they could to reinvigorate the labor laws, so that workers could file suit if they are discriminated against for engaging in concerted actions. A few unions have, but not nearly enough. Maybe collectives of labor lawyers are needed, good work for all the de-classed intellectuals.

    One thing missing in discussions about rebuilding a labor movement is the fact that there are many workers still in jobs critical to the functioning of the national economy: transportation, communications, and logistics come to mind. Here is where capital can be crippled. All of the MacDonald’s workers in NYC could strike for a long time, and what would it matter?

    Comment by michael yates — July 30, 2013 @ 10:31 pm

  2. […] of bromides calculated to give his MSNBC posse just enough to rally around. To give you a sense of the shallowness of it all, he uses the term “folks” 26 times. One supposes that with people like Al Sharpton and Ed […]

    Pingback by President Hopey promises middle class exciting new changiness - Not the Singularity — July 30, 2013 @ 10:57 pm

  3. Thank you for the details about the Crown dynasty and Obama.

    The attitude toward Marxism is laid over with too many layers of irony:

    Pretty soon the number of bartenders, waiters, and busboys will exceed the number of factory workers. I wonder what Marxist value theorists will make of that?

    Oooh, agitating against the top 1 percent. The Kenyan Marxist is at it again.

    Comment by Realist — July 31, 2013 @ 12:39 am

  4. Comment by Jurriaan Bendien — July 31, 2013 @ 1:42 am

  5. Comment no. 1, actor no dictator yes. Our dear leader loves to hear himself talk forcing his agendas and policies down us peasants throats all while continuing to focus on unimportant stuff like what we eat and drink and not doing enough about the economy. His kingdom is too busy spying on our phone records after he criticized China for monitoring and censoring their citizens on the web. You expect objective reporting from MSNBC? The network is so biased in its presidential coverage. Overbearing and intrusive is the best way to describe the administration we live under but our dear leader knows what’s best for us FOLKS.

    Comment by Deborah Jeffries — August 4, 2013 @ 1:20 am


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