Thursday, February 9, 2012

…But I Still Believe.



These days, turning on the tube and following our current political climate makes me feel like I’ve become an emotional cutter.  I don’t mean to be insensitive to those who have battled or dealt with cases of cutting and/or suicide, but I just don’t know how else to describe it.

As we continue to try and climb out of the detritus left behind by the economic downturn of 2008, the one thing that I can no longer stomach is the obvious evidence of an epidemic that is emerging within our government: “politicking.” Impasse. Gridlock. Stalemate. Call me crazy, but these words seem cancerous to the very idea of democracy. If you look up a garden-variety definition of politics, it may convey something similar to “activities associated with the governance of a particular country or area.” To me, the irrefutable evidence of what we’re supposed to be—and what we’ve failed to live up to—reside in words like “activities” and “governance.” These words speak to action, or the process of reaching a resolution—regardless of how smooth or arduous the terrain. However, when we look at examples of good “politicking,” it’s funny how these examples go hand-in-hand with examples of bad governance, or ineffective politics. Politicking is the most threatening of practices in this country, and it will only serve to cripple the people to whom our politicians are responsible.


When so many American families can do nothing more than stand idly by as their futures are enveloped by a sand storm of uncertainly, those who continue to argue for less taxes on the wealthiest Americans— and against more strict oversight over the financial services industry—seem to be more concerned about political posturing than repairing the damage. It’s akin to a builder who wants to plaster the cracks in the walls and repaint, when the obvious problem is the foundation is faulty. And this just makes me angry. It’s not so much the political posturing that bothers me. It's the manner in which politicking is executed that speaks to a notion that Americans are stupid. Let’s face it, some of us can be. But most are just shadowing boxing with the endless political rhetoric until something strikes a chord. Unfortunately, that siren’s song can be dangerous because, if we are not grounded by common sense and a willingness for the “foundation” to be truly fixed, we will ultimately be guided into troubled waters and smashed against a rocks. 

Here’s what I mean...

Members of the financial services industry unleash their lobbyists and dump considerable money toward campaign contributions to thwart regulations that will mean less operational “freedom.” Deregulation has been tried—with the purpose of spurring consistency in the market and staving off or reducing periods of recession—but has failed all of us. And the reason it failed is because our government ignored the human element of it all. The human element determines if we as a country can truly place our trust and future in the hands of a few—politicians, bank CEO's, etc. The human element can be presented in the form of honesty, integrity and the desire to be the "best in the business" by doing the best for customers. At the other end of the spectrum are the human elements of greed and opportunism. Sadly, it’s this end of the spectrum that flourishes amidst deregulation (no one’s looking), bailout money and lower taxes. It’s like that kid whose mom says, “I’m giving you one cookie, but don’t eat anymore until after dinner. It will ruin your appetite,” but forgets to put the cookie back on the higher shelf. The chocolate-chip-stained kid takes another, thinking that mom will not notice. Soon, one extra cookie becomes an extra six or seven, until it’s obvious that more cookies were eaten. What can mom (government) do about this? Well, she can just remember to put the cookie on a higher shelf to start (regulations). Also,  mom can check the cookie jar from time to time (oversight). Or, mom can just wait until the kid pukes all over the green bean casserole at the dinner table (economic collapse). I don’t know about you, but I’d rather just put the cookies back on the shelf.

The problem is that we’re still not taking the measures necessary to meet the moment and win. Some call it the political process. Huh? In this case, it's nothing more than politicking. Terms such as socialism and “class warfare” are examples of politicking. Make it sound threatening, dirty, un-American to even think of such things. Here’s the thing, the proverbial wild card that is the human element are governed by regulations all the time, as civilization has learned long ago that encouraging folks to do what is just, in some cases, has to be more strictly defined and supported by the law of the land. Our First Amendment right to free speech is also counterbalanced by laws that determine penalties when a person’s practice of free speech/expression defames or injures someone else. Law, in its purest form, is not made to hinder growth—it’s there to protect it. Law is that “higher shelf.” But, when money is involved, it’s amazing what can sound dirty as opposed to simple and right.

Don't get me wrong, politics in its purest form is not a disease. It’s certainly not some sort of evil enterprise bent on crushing pockets of citizens while shielding others. But, I guess the sword itself would not as fearsome as the wielding swordsman. The only true remedy is enlightenment. Following the recent Presidential State of the Union Address, CNN political analyst David Gergen mentioned that, upon speaking with some affluent Americans, many would not be opposed to higher taxes—so long as the money is being used in the right way. Don’t we all want the same knowledge regarding our tax dollars? That’s hardly a tough request. So, if the administration is “down,” and many of the wealthy are also “down” (thank you, Warren Buffett), then where does the problem lie? In a word: politicking. Is there a disagreement on what is the "right way?" Improving a failing education system, making healthcare affordable for all and developing programs that support new a emerging industries in the U.S., and marrying those industries with an enthusiastic workforce. Sounds good to me. These are the initiatives that tax dollars should be funding. Just like better roads and bridges, we all benefit in the end. And, lest we forget, we get some of that shit back each year! Please tell me if I'm missing something.

Politicking means speaking to small business owners and middle-income families and proclaiming with teary eyes that “we’re fighting for you,” when the reality is they could give two shits. If they did, the process on The Hill would be much smoother than it is now. Having been in a position to help run small businesses, I take offense to the Alderman Davis-way in which politicking politicians say, “You’re stupid. Sit back and let us handle this for you.”

Anyone running a small business (or any business, for that matter) knows that, when tough economic times hit, you have to do two things: 1. Stop the hemorrhaging. 2. Fix the wound.

Stop the hemorrhaging: First, make decisions regarding what the company can no longer afford to do: find ways to save the company money, which are tough choices like reducing compensation and benefits, downsizing and finding cheaper ways to keep operations going.

Fix the wound: Simply, find ways to continue to make money. This may mean expanding or altering the current business model to find new avenues to increase revenue.

The reality is that you don’t have to be a small business owner/leader to connect these dots. Millions of American families are facing the same decisions every day:

Stop the hemorrhaging: First, make decisions regarding what the family can no longer afford: cut back on, or cut out “luxuries” and find ways to address needs of the family in less expensive ways.

Fix the wound: Simply, get a  job. If you are currently employed, find a new job that pays more.

Sadly, the level of stalemate that exists regarding the important issues—and their remedies— proves that politicking politicians have no true connection with the middleclass in America. If they did, they would also realize that the solution of increasing taxes on the wealthy would go a long way toward solving the problem:

Stop the hemorrhaging: First, make decisions regarding what the country can no longer afford. That may mean spending cuts, which has happened already. But it should also mean eliminating tax breaks that do not necessarily lead to stimulating our economy. Without a true programmatic approach for stimulating the economy (like tax breaks and other incentives received by companies as a result of increased investments in the U.S. that boost the economy), companies will continue to look at tax breaks as found money...and spend it that way.

Fix the wound: Simply, increased taxes means more money pumped into the economy faster than anything else can achieve right now.

If you stop the hemorrhaging without fixing the wound, death is still a possibility. Yes, on the surface, I agree that this country can no longer afford low tax rates for the wealthy. We have an unemployment rate that’s like a daily punch in the gut whenever you repeat it. We’re recovering from nearly a decade spent at war. We have an overall economy that is still struggling to rebound even after the Wall Street slap-around and rescuing the auto industry. American companies have to re-invest in America.

 Do I hate wealthy people? Hell no. I admire what they’ve accomplished—given the human elements from which they draw inspiration— and, whenever possible, take the lessons I’ve learned from them and apply it to my life. But, in laymen’s terms, shit does not add up.

Now, I get the math of it.  Fourteen percent of $30 million is a hell of a lot more than fifteen percent of  $65,000. However, when you look at the disparity, in terms of overall disposable income, it’s hard to feel too bad about raising taxes on wealthy Americans at a time when the country needs recovery dough. Even with a twenty-nine percent tax rate, a person making $1 million a year could achieve in a few years what middle-income Americans would need a working lifetime to achieve:

·      Buy a home…and pay it off
·      Buy a car, or two…and pay them off
·      Establish a good nest egg for retirement
·      Set aside money for college tuition(s) without resorting to student loans

The principle issue is that, through the use of credit, these achievements become far more costly to middle-income Americans because of mounting interest paid on loans. Add to this the challenge of addressing everyday needs such as running a home, paying for kids to go to better schools and the unforeseen, it’s a wonder middle-income Americans made it as far as they did before 2008. 

Many will argue that, without tax reform, increasing taxes on the wealthy may not mean much revenue to the government. It's a small portion of the whole, after all. I don't know about that, but struggling families and small businesses tend to live by the motto that "every little bit helps." Politicking politicians should take heed. The economic debacle was nearly two decades in the making, slowly draining dough from America. If you pump some money back in at a steady rate, real progress can be made in a quarter of the time.  I agree that the Leona Helmsley's and Wesley Snipes's of the world also need to be figuratively flogged, as well as any who are finding ways to "get by" the white beard of Uncle Sam. Again, we have to fix the wound any and every way we can. If we sit around and do nothing more, death is still a possibility.

Politicking politicians should stop talking to the rest of us like we're stupid, and show us that they're smarter than we think they are. Swap out impasse and gridlock for action and resolution—no matter how smooth or arduous the task—and help this country to avoid crashing onto the rocks. Remember, our taxes are also paying their salaries. 

Can we avoid the siren's song? Can Obama and members of Congress become our Odysseus of this economic Odyssey? God, I hope so. More than hope, I still believe that the voices of many will triumph over the songs of a few. I have to believe it because once belief is gone, the voices will become irrelevant. And death will not only be possible, it will be inevitable.