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Brian Ross

Brian Ross

Posted: August 31, 2010 05:44 PM

Manufacturing a Phony Job Crisis

What's Your Reaction:

After the narrow loss on health care, corporate America and the GOP are setting the stage for a November showdown with President Obama and Democrats by manufacturing a crisis they can "solve." Much of what you will see, read and hear between now and the midterm general election is nothing more than the paid advertising of a few very rich people who manipulate your fears and prey on your anxieties to serve their own ends.

Take the phony drum beat on jobs. There are three primary sources of jobs in the United States. Big business. Small business. Government.

Big corporations, by way of their mouthpieces, the U.S. Chamber of Commerce and the Republicans, claim that they cannot hire as they whine about the "uncertainty" of the regulatory environment, a weak excuse for parking billions in profits on the sidelines.

Small businesses could provide the jobs numbers some needed relief, but the Republicans have stalled the package of tax incentives and stimulus that they want, and are waiting for.

That leaves government, which has already run through the majority of its employment-related stimulus money, as the one employer that can impact the numbers hypothetically, but which is largely not creating any new hiring agenda in an election year.

So the unemployment number burgeons, lumbering ominously towards 10%.

It is a phony number though. It is being artificially inflated by those who fear real change and regulation that can prevent some of the catastrophes we have endured.

Their mission is simple: Generate enough anger and angst in the electorate to force voters to vote for the very party who landed us in this economic mess in the first place. Change the political dynamic so they can defeat Wall Street reforms in the name of "job creation."

While individual Americans have been suffering, a leaner, meaner corporate America has been getting fat. AT&T has seen its revenue grow 25% over the last three years. Oil companies like ExxonMobil have booked between $3.1 and $4.7 billion a year over these "lean" years. Bank of America took bailout money, paid it back and boasts 80% revenue growth over the last three years. Asset management firm BlackRock, which was one of the big players in the overheating of the stock market, booked $4.7 to $5.0 billion in profits over this "troubled" time.

These exceptional results are not unique. A lot of foreign and U.S.-based corporate titans have done pretty well over the last two years, wiping down or out whatever damage may have hit them three years ago when they started shedding jobs. America's biggest corporations are sitting on mountains of cash. Sitting on the sidelines. Not hiring.

Why not put it back to work now?

Timing. Right now, corporate America is making an investment in their future. Their political arm, the GOP, is preaching "tax fairness," which is in reality extending the tax cuts for the 2% of the richest people in this country. They propose to "stimulate" the economy in the same way that caused the meltdown of the housing market and the tanking of the economy, and promise not only to strip away regulations on these barbary pirates, but unleash investigations of the majority party that will snarl government for another two years at least.

Historically midterm elections favor the party out of power. Flat-lining the job market until the election drives up discontent and amps up voter anger enough that they will go Bush-blind just long enough to vote Republican.

Their moves are cynical, manipulative, and they are working.

Pundits are falling for the job numbers story without doing their homework on the corporate side to see a pretty healthy corporatocracy retying their strings to their puppet sticks.

There is a lot of real pain out there, to be sure. The unemployment rate is unacceptably high nationally, and skyrocketing in some states into the mid-double-digits. People are losing their homes, their kids' futures, and their patience with Big-G Government.

The problem is that we have a government that isn't governing. We have seen a historic record intransigence by the party out of power. The GOP has used the senatorial filibuster to bring the entire government to a standstill on major legislation, and the death of Senator Kennedy has only added complication to the situation in the Senate.

Steven Hurst at the AP reports:

In the 110th Congress of 2007-2008, with Republicans in the minority, there were a record 112 cloture votes. In the current session of Congress -- the 111th -- for all of 2009 and the first two months of 2010 the number already exceeds 40. The most the filibuster has been used when Democrats were in the minority was 58 times in the 106th Congress of 1999-2000.

"The numbers are astonishing in this Congress," says Jim Riddlesperger, political science professor at Texas Christian University in Fort Worth in an AP article.

President Obama told Americans at his inauguration that change would be difficult, and that the road ahead would have these kinds of challenges, but our instant-gratification culture, and nanosecond news-cycle world is geared towards extreme reactions in the immediate moment.

The people who sell us soap and insurance and our homes want us to be good consumers, and stay in our place, modestly frightened of the bogeymen mosques and the mirage cast over the labor pool that they put out to keep us from seeing that they are using their considerable economic might to manipulate our compliance.

The Tea Party is not a grassroots movement. As Frank Rich in the New York Times points out:

There's just one element missing from these snapshots of America's ostensibly spontaneous and leaderless populist uprising: the sugar daddies who are bankrolling it, and have been doing so since well before the "death panel" warm-up acts of last summer. Three heavy hitters rule. You've heard of one of them, Rupert Murdoch. The other two, the brothers David and Charles Koch, are even richer, with a combined wealth exceeded only by that of Bill Gates and Warren Buffett among Americans. But even those carrying the Kochs' banner may not know who these brothers are.

Murdoch's pot-stirring is cynically geared towards the enrichment of Fox News. The Koch Brothers, on the other hand, who sell you everything from Dixie Cups to the Lycra in womens' underwear, are ideologues. They're from a Who's Who family of wealthy right-wing extremists.

Father Fred was a John Bircher railing against communism and the socialist policies of FDR.

David Koch ran to the right of Reagan in the 80's, pulling 1% of the vote for the abolition federal regulatory agencies all welfare including Social Security, the FBI, the CIA and public schools.

Throughout the history of this great nation, wealthy whack-jobs have sponsored so-called "populist" movements from the anti-FDR "Liberty League" to today's Tea Party.

The problem is that America has become little more than a Pavlovianly conditioned consumer culture, seeking a lot of personal gratification from food to the latest gadget, blissfully surfing the web and making new BFFs on Facebook.

We become less relevant internationally by the day as we pull father away from the rest of the world on everything from global warming, which Republicans largely deny along with evolution. A large chunk of this country sits transfixed before Murdoch's magic mirror, Fox News, a warped recasting of patriotism that causes too many Americans to become narcissistically nostalgic.

They make it easy, fun even, for a lot of folks who wrap themselves up in the Jerry Springeresque simple comforts of a TV visit to Glenn Beckistan, or a folksy Palin moment, where she stands draped fashionably in the flag, shedding a tear for a white America that has lost its honor, its roots, its rightful place in the world. Lower the lights. Cue the commercial for Goldline.

The people who overcooked our economy, sent your jobs overseas, and gave the keys to companies like Halliburton to drain the treasury through one needless war and one badly executed war, are now asking you to turn the keys of government over to the party that represents them, the Republicans.

Yet they have not governed in the last two years. They have not worked constructively for the benefit of this great nation. We are, apparently, supposed to blindly trust that the GOP somehow will develop an answer, and agenda, get a clue, that they did not have two years ago as the nation was crumbing around their Nero, George W. Bush. John Boehner promised one last week, but we heard nothing more than the same Democratic slams, half-truths and mendacities that are his stock-and-trade.

They're counting on our anger and our apathy to turn on the Democrats for their bad acts. They channel it with Mosques and misdirections. They want you to be dumb enough to stick it to yourself (again).

Don't let them win. Get out and vote for the Democrats. True, they're far from perfect, but at least they have been trying to govern this country. You can argue that their repeated extension of the olive branch to try and get consensus with the Republicans was foolish.

On the other hand, maybe the America that Barack Obama envisions in the future, the one where we can coexist and our political parties can govern constructively rather than just seize power, may not be such a crazy idea for our future stability after all.

If you vote Republican, you can guarantee that the only people who win in the next election will be sitting in corporate boardrooms and on Wall Street. Wake up, America, and smell the coffee in your Dixie Cup. You are being played. Be smarter than they think you are.

My shiny two.

 

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Curious Black
voices in your head tell u what u already believe
06:44 PM on 09/09/2010
good work, but you miss some points.
corporate america is expanding their payrolls, just not in america. other economys are growing and have money to spend, so 2 purposes are served. starve and anger the American public while growing profits and develope markets at the same time. the labor is cheaper and the regulations are fewer.
the hiring in the US is non registered workers. paid untaxed cash, therefore at a much lower wage but higher take home than a comparable rate (increase in productivity, no increase in labor cost, increase in profit)
corporate america hates American workers, thats why the republicans love coporate america.
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Curious Black
voices in your head tell u what u already believe
06:58 PM on 09/09/2010
forgot. keep educational standards low and underfunded to keep the populace too stupid to realise they (we) are being duped
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11:45 AM on 09/02/2010
The fat cat corporations will lose to enterprising people who will expolit the very real opportunities that exixt today. A doom and gloom media, graciously funded by fat cat corporations, ignores the wonderful possibilties and actualities that are happening right now in America.
The gato gordos (fat cats) can snooze comfortably on thier piles of money. The gato flacos (skinny cats) have already gotten to work on the future.
Do not be afraid.
Despair is not an option.
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Brian Ross
Managing Editor of Truth-2-Power.com
01:39 PM on 09/02/2010
Fat cats from a little puppy ;) Fear sells. Always has. We move more on our fears than our hopes and dreams, which is sad, but real. Thanks for the observation!
10:58 AM on 09/02/2010
Mr. Ross,

I appreciate your holistic perspective. It seems company Bullfrog productions was ahead of it time from the perspective of who or what will be controlling the minions. The basic premise of the game was that the world would be run by multi-national companies not the governments.

http://en.wikipedia.org/wiki/Syndicate_(computer_game_series)

http://en.wikipedia.org/wiki/Syndicate_(video_game)
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HUFFPOST BLOGGER
Brian Ross
Managing Editor of Truth-2-Power.com
01:42 PM on 09/02/2010
Politicians are not Big Brother. Big Brother has to be corporate. Elections cost money. Other than Mr. Obama, who is unique in his enormous grass roots fundraising, the majority of money that oils the political machine is corporate dollars, either directly or through back-channel deals. Orwell had the right idea, but the wrong folks, because it is enterprise that controls the money, and money is the life blood of oligarchies which quietly expunge democracies.
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NoMoFearNoMoHate
02:38 PM on 09/02/2010
Many predicted this in the 80's, possibly earlier.

http://en.wikipedia.org/wiki/Shadowrun
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SGlitz
Independent and Proud of it
10:28 AM on 09/02/2010
So the 9.5% unemployment is a ploy by big business? And only Government creates jobs by giving money away...
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Brian Ross
Managing Editor of Truth-2-Power.com
10:32 AM on 09/02/2010
Between small business with its government incentives, and big business putting a lot of the sidelined capital to work you should, based on the productivity of America's largest corporations, see both an uptick in their output and their manpower needs. They are sitting on the sidelines to a purpose. The Republicans stopped the small business bill to the same purpose. The Democrats will restore the regulation and safety valves that W's Administration stripped out of the agencies that regulate Wall Street and Corporate America. They make a profit, not maybe as big this year as next, but they keep their off-shore tax havens and they beat back more of the regulations with a larger percentage of Republicans going to bat for keeping their status quo. It's a good investment on their part, even when it's bad for the country and its citizens.
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02:21 PM on 09/02/2010
I'd fan you again if I could
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11:47 AM on 09/02/2010
Actually, yes it is. http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?printable=true
Take a look and get back to me with your thoughts please.
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Brian Ross
Managing Editor of Truth-2-Power.com
01:48 PM on 09/02/2010
Great article! I highly recommend the read!
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blueken
Finger Picking blues man
09:43 AM on 09/02/2010
"Money doesn't talk it swears, obscenties, who really cares, it's easy to see whithout looking too far, that not much is really sacred"
"Do what they do, just to be nothing more than something they invest in."
Bob Dylan
07:40 AM on 09/02/2010
If you were responsible to employees and shareholders, then you would have a completely different opinion. Not sure that being a Writer, Journalist, Documentarian, and Political Satirist exactly qualifies you on the best way to run a business.
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blueken
Finger Picking blues man
09:46 AM on 09/02/2010
Granted a CEO shouldn't be focused on the common wealth. That's our govenrment's job, which they have relenqueshed. The CEO of a corporation's duty is to maximize profits within the regulatory landscape. It is our government that needs to make laws that curb and channel the power of greed to do the most good for all society. Our government hasn't done it's job for over 20 years. That's how we got where we are today.
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Brian Ross
Managing Editor of Truth-2-Power.com
10:28 AM on 09/02/2010
Ah. Well, I've also been a publisher for a decade, and run my own business (There's only so much horn-tooting you should do on your bio at HP). If you're referring to the CEOs who made millions in bonuses lightening up their companies employment rosters, I would say that $12 Million in compensation to the CEO should have been directed back at employee retention if the guy was as smart as all that. People are not interchangeable like Kleenex, in spite of what some companies think. The board rewards the short-term move, but it hurts the company's ability to step into recovery mode because you've drained off a lot of the experience that gets you back in gear quickly after the dip.
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Brian Ross
Managing Editor of Truth-2-Power.com
10:59 AM on 09/02/2010
Oh, and I invest too. It's not too hard to look at the numbers and connect the dots if you bother.
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11:51 AM on 09/02/2010
F & F. Good thinkin' Mr Ross.
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hrpmap
Retired man still active..
06:53 AM on 09/02/2010
This article is the biggest load of cr*p I have read on HP so far. The people who brought this on us are still there. Who in reality is in control of the economy, isn't it the fed? And who is still in place? Geithner bernanke summers, all a part of the crew who brought this economy.
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Brian Ross
Managing Editor of Truth-2-Power.com
09:03 AM on 09/02/2010
The Fed is really little more than a pressure valve on the machine. You're right in that the people who brought this on are still there, but it's folks at Citicorp, Bank of America, General Motors, and those who overheated the housing market, from construction to financing, who bear the large part of the blame for the overheating of the economy. The other hand in the destruction of our economy belongs to Dick Cheney and his minion, George W. Bush who drained the bank on a war to acquire power in the Middle East and an underfunded effort to root out the terrorists who attacked our country, all financed by negative revenue through a generous tax deduction. Simple math has not worked in our favor.
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deepseas
Have courage and seek truth.
01:47 PM on 09/03/2010
hrpmap...there's loads of crap at HP and elsewhere, so you're not much of a reader. Brian is right: it's the banks and BushCo who led us down the drain. It's also you as well. Unless you grow your own food, make your own products, don't use oil and gas, and live in a hole, you contributed to this mess by supporting the corporations who work against our best interests. In that sense, ignorant, clueless, apathetic Americans have allowed these crooks to run wild with our money. Until we demand ethical elections without corporate funding, become responsible educated consumers, get involved in the process, put a stop to illegal wars, and demand that employers receive no money for sending jobs overseas, it will be business as usual and we can continue to bend over. Let's put the blame where it belongs.
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4real
Don't drink the tea, it's poison
01:09 AM on 09/02/2010
Thank you for this great post! The uninformed American voter is their own worst enemy.
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Brian Ross
Managing Editor of Truth-2-Power.com
07:51 AM on 09/02/2010
That's only part of the problem. The larger problem is the informed voter with the power and money to manipulate the uniformed. The Koch brothers are a directly political manifestation. Mr. Murdoch is a more visible version of the corporatocracy. Halliburton, Raytheon, Boeing, Blue Cross, etc all will spend a lot of money to manipulate the uniformed as well. It's just much less obvious than Fox News. This trend of millionaires like Meg Whitman and Carly Fiorina in California or Jeff Greene and Rick Scott in Florida just screams for campaign reform.
01:04 AM on 09/02/2010
This is the best article I've read since Obama was elected. But you'll never get those brain-dead Palinites to believe one word of it. They'll just write it off as Lib propaganda. This country is in big trouble.
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Brian Ross
Managing Editor of Truth-2-Power.com
08:59 AM on 09/02/2010
The difference between ignorance and stupidity: You can lead a horse to water. A stupid horse won't know it's water. An ignorant horse won't care.
01:00 AM on 09/02/2010
"There are three primary sources of jobs in the United States. Big business. Small business. Government."

If the big companies (which are most likely international) started increasing their hiring more, it would not ALL be in the USA.
The small businesses are still affected by growing monopolies (look at what happened to many grocery stores when Wal Mart got into the grocery biz, especially in small towns and rural communities), customers who still see declining wages, and lack of access to many of the subsidies the bigger businesses lobby for.
Government (especially State and Local) is in the process of cutting services, not expanding them.
The Federal government is more committed to spending on foreign military occupations (and much of the military is now privatized due to defense contractors and the money is not finding its way back to the USA).

The job crisis is real as long as there is no committment to rebuilding the USA. The committment is to free flowing, international capital.

It was over 30 years in developing.
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Brian Ross
Managing Editor of Truth-2-Power.com
09:13 AM on 09/02/2010
TP - A nice theory, but fundamentally flawed in a couple of ways. First, in the largest consumerist economy in the world, we have many international companies which set up business here to produce cars and other types of manufacturing because our import rules set up under the Clinton Administration make bringing the parts in for assembly here cheaper than bringing in many types of finished goods. Toyota, Honda, Panasonic, and many others are American employers. They still belong to groups like the Chamber and they still play the corporatocracy game just as big American corporations do.

Second, American corporations are also global, and they do outsource a lot of manufacture to other countries where it's cheaper. Customer service has been outsourced to places like New Dehli. That trend was accelerated in the Bush years when their White House was actually holding seminars for American companies on how to do it. It has abated somewhat both because of quality/customer satisfaction issues, and because there are a few companies which can't make products abroad and meet delivery and/or service needs. It is an area that still needs to be addressed by producing better products here, which is a private sector issue that government can only cheerlead.
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AtheistMaximus
10:45 AM on 09/01/2010
It's so sad, how misinformed ppl. truly are. Today's empires are tomorrows ashes.
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Brian Ross
Managing Editor of Truth-2-Power.com
11:38 AM on 09/01/2010
To prevent our demise, it is critical that people vote. You can get your absentee ballot and register through a common-link site that seems pretty good:

To register, or to get an absentee ballot form, visit Long Distance Voter which has instructions for all 50 states:

http://www.longdistancevoter.org/absentee_ballots
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AtheistMaximus
12:37 PM on 09/01/2010
Great article Brian. I'll be sharing this on Facebook, as well as the absentee ballot link. Being a resident of Florida it is imperative to get the vote out, to keep the criminal Rick Scott away from any position of power here in our state.
08:55 PM on 09/01/2010
Thanks. Very helpful.