Tag Archives: Bureau of Economic Analysis

Billionaire self-pity and the Koch brothers

Salon – Glenn Greenwald

Since the financial crisis of 2008, one of the most revealing spectacles has been the parade of financial elites who petulantly insist that they are the victims of societal hostility:  political officials heap too much blame on them, public policy burdens them so unfairly, the public resents them, and — most amazingly of all — President Obama is a radical egalitarian who is unprecedentedly hostile to business interests.  One particularly illustrative example was the whiny little multi-millionaire hedge fund manager (and CNBC contributor), Anthony Scaramucci, who stood up at an October, 201o, town hall meeting and demanded to know:  “when are we going to stop whacking at the Wall Street pinata?”

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That said, this Weekly Standard interview shows how delusional and extreme the Koch Brothers are — though in ways quite representative of other resentful elites.  Let’s begin with this:

Ask Charles Koch what he thinks about Obama and he looks like he’s just bit into a lemon. “He’s a dedicated egalitarian,” Charles said. “I’m not saying he’s a Marxist, but he’s internalized some Marxist models — that is, that business tends to be successful by exploiting its customers and workers.”

David agreed. “He’s the most radical president we’ve ever had as a nation,” he said, “and has done more damage to the free enterprise system and long-term prosperity than any president we’ve ever had.”  David suggested the president’s radicalism was tied to his upbringing. “His father was a hard core economic socialist in Kenya,” he said. “Obama didn’t really interact with his father face-to-face very much, but was apparently from what I read a great admirer of his father’s points of view. So he had sort of antibusiness, anti-free enterprise influences affecting him almost all his life. It just shows you what a person with a silver tongue can achieve.” 

So according to the Kochs,  Barack Obama is a “dedicated egalitarian” who has “internalized Marxist” ideas in the Kenyan socialist tradition.  Just compare that to actual facts:

 From The Huffington Post:

Despite high unemployment and a largely languishing real estate market, U.S. businesses are more profitable than ever, according to federal figures released on Friday.

U.S. corporate profits hit an all-time high at the end of 2010, with financial firms showing some of the biggest gains, data from the federal Bureau of Economic Analysis show. Corporations reported an annualized $1.68 trillion in profit in the fourth quarter. The previous record, without being adjusted for inflation, was $1.65 trillion in the third quarter of 2006.

Many of the nation’s preeminent companies have posted massive increases in profits this year. General Electric posted worldwide profits of $14.2 billion, while profits at JPMorgan Chase were up 47 percent to $4.8 billion. 

Since Obama was inaugurated, the Dow Jones has increased more than 50% — from 8,000 to more than 12,000; the wealthiest recieved a massive tax cut; the top marginal tax rate was three times less than during the Eisenhower years and substantially lower than during the Reagan years; income and wealth inequality are so vast and rising that it is easily at Third World levels; meanwhile, “the share of U.S. taxes paid by corporations has fallen from 30 percent of federal revenue in the 1950s to 6.6 percent in 2009.”  During this same time period, the unemployment rate has increased from 7.7% to 8.9%; millions of Americans have had their homes foreclosed; and the number of Americans living below the poverty line increased by many millions, the largest number since the statistic has been recorded.  Can you smell Obama’s radical egalitarianism and Marxist anti-business hatred yet?

Then there are those whom Obama has empowered.  His first chief of staff, Rahm Emanuel, is a business-revering corporatist who made close to $20 million in 3 short years as an investment banker, while his second, Bill Daley, served for years as JP Morgan’s Midwest Chairman.  His Treasury Secretary is undoubtedly the most loyal and dedicated servant Wall Street has ever had in that position, while Goldman Sachs officials occupy so many key positions in his administration that a former IMF and Salomon Brothers executive condemned what he called “Goldman Sachs’s seeming lock on high-level U.S. Treasury jobs.”  Obama’s former OMB Director recently left to take a multi-million-dollar position with Citigroup.  From the start, Obama’s economic policies were shaped by the Wall Street-revering neo-liberal Rubinites who did so much to serve corporate America during the Clinton years.  Meanwhile, the President’s choice to head his Council on Jobs and Competitiveness — General Electric CEO Jeffrey Immelt — heads a corporation that “despite $14.2 billion in worldwide profits – including more than $5 billion from U.S. operations – [] did not owe taxes in 2010″:  an appointment the White House still defends.          More…

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