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Douglas LaBier

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Why Obama and Romney Are Both Wrong About Becoming Rich in America

Posted: 04/25/2012 4:16 pm

As Romney begins his pivot, he and President Obama are highlighting their competing visions for growing prosperity and riches: One, building from the bottom up; the other, trickling from the top down. The data show that Obama's argument is more correct, but don't look for any bipartisan compromise towards creating a sane fiscal policy. Nor, for that matter, towards progress on any other major issues. That's because Republicans advocate increasingly extreme and reactionary policies that would create suffering for large segments of society. They're also resuscitating social issues from decades ago.

These have dangerous consequences. You can't help wondering what's driving their positions with such zeal. There are many sources, but a major one is psychological, and it has three strands. All culminate in policies that pervert what politicians like to call The American Dream -- that all members of society can build a successful and fulfilling life. That dream has become pointed towards the few who can become rich, at the expense of the many. Let's look at the three psychological strands that underlie that twist:

Little Boys Play-Acting As Grown-Ups
The younger Republicans often sound like little boys making demands and arguments that they imagine big, grown-up men do and say when they have power, like 'I will have my way, and you must obey me.' Interestingly, most are baby boomers now in their midlife years. Perhaps this reflects a cultural theme that's worth of exploring. But their posturing appears to reflect a twisted sense of what it means to be an adult man, who, in reality, must engage with collaboratively to achieve anything. A recent collection of essays, Global Masculinities and Manhood portrays views of manhood within different cultures and the forms it can take.

Different Mentalities Of Liberals And Conservatives
A recent Washington Post article by Chris Mooney cites research that liberals and conservatives have different ways of thinking. They differ on a number of cognitive traits: Liberals consistently score higher on openness to experience -- wanting to try new things and new ideas. Conservatives, in contrast, tend to be less open -- less exploratory, less in need of change. They enjoy greater order and structure, and they seek more closure around issues than do liberals. Such differences explain some reasons why each orientation perceives problems and their solutions.

Becoming Rich In America
Both Obama's and Romney's parties tacitly embrace Ronald Reagan's statement that the American dream means "... an America in which people can get rich." Of course, becoming rich is always a goal for some people. But policies now seem aimed at benefiting those already there or close to it. Obama highlights that, though arguing for a middle class push. He says, "I want folks to get rich in this country. I think it's wonderful when people are successful." But, he argues, "In this country, prosperity has never trickled down from the wealthy few. Prosperity has always come from the bottom up, from a strong and growing middle class."

In contrast, Romney claims that the best path to riches is to help businesses become more successful, through easing regulations and lowering taxes. And that ... we need to build successful businesses of every kind imaginable. Both Obama and Romney seem to emphasize the importance of having a path towards becoming rich; it's just that their paths differ: Obama supports the rise of the middle class towards greater riches, while Romney supports enabling people at the top to prosper more.

In terms of broad social impact, Obama's strategy is more supported by the data. Obama cites the fact that our "... share of our national income going to the top one percent has climbed to levels we haven't seen since the 1920s." He adds that the richest people in the country are also paying taxes at one of the lowest rates in 50 years.

Growing disparity is a reality. It's creating more problems, as a Washington Post analysis recently documented. The Republican position embraces that disparity for the benefit of the richest segments of society. Analysis of the Ryan budget proposal shows it would support the rich at the expense of the poor by, for example, slashing food stamps and contributing to more poverty. That prompted the Catholic Bishops to lambaste it for hurting the poor.

And adding to the retro-Republican positions now in ascendance, are Congressman Allen West and Fox pundit Bill O'Reilly accusing members of Congress and other public figures of being "Communists" -- odd in this second decade of the 21st Century.

Nevertheless, the Democrats shy away from arguing for a strong government role in serving and supporting the greater good, for all of society. They appear reluctant to argue that the push towards exclusionary self-interest is occurring at the very time when we need policies and actions that promote opportunity for all segments of society. That's the opposite of extreme self-interest -- becoming rich and amassing power for oneself, to the exclusion of others. Nothing comes from nothing. Success always depends on the help and support of others, whatever your situation. The Ayn Rand fables, enamored by some on the right, are delusion, not reality.

Of course, the globalized world and its insecurities generate understandable fears of loss, confusion, and insecurity. Some, more prone to conservative orientation -- and if driven by insecurity about their standing in the world, or simply too selfish to share resources with those less fortunate -- will congeal around reactionary policies, seeking self-protection.

And that connects with the still-dominant view of a successful life mostly defined by financial and self-interested criteria -- consuming and possessing for oneself. And yet, each person's success and well-being today depends on helping others, especially in the context of economic fluctuations, threats from failed states, and the increasing consequences of climate change.

The upshot is that security, success and well-being require strengthening communal values and behavior; working towards goals that benefit all. Acting on self-interest alone, is a non-sustainable way of life. Interestingly, Edward O. Wilson's new book, The Social Conquest of Earth, cites evidence that collaboration within groups enabled survival and evolution. Similarly, new research finds that collaboration and cooperation spurred the growth of intelligence and brain.

In Obama's 2011 SOTU speech, he emphasized that the world has changed significantly -- that it requires all of us to work towards common goals. But the Democrats seem reluctant to emphasize that now; yet supporting each other isn't just a value shared by religious traditions. It's part of our evolutionary heritage -- and research shows that you can increase your capacity for empathy and compassion. It's "hard-wired."

As many progressive business leaders already know, that's also good for the bottom line. Among the most prominent is the billionaire Richard Branson, who argues that a business with a social conscience will have more motivated employees, save resources, drive higher profits, and be more satisfying than even the material wealth it creates.

We're not isolated entities on a planet that exists for our personal benefit, alone. We all need and depend on each other. President Obama would do well to show aggressive leadership towards pushing that vision. It's the American Dream, after all.

Douglas LaBier, Ph.D., a business psychologist and psychotherapist, is director of the Center for Progressive Development in Washington, D.C. You may contact him at dlabier@CenterProgressive.org. To learn more about him, click here.

 
 
 

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As Romney begins his pivot, he and President Obama are highlighting their competing visions for growing prosperity and riches: One, building from the bottom up; the other, trickling from the top down.
As Romney begins his pivot, he and President Obama are highlighting their competing visions for growing prosperity and riches: One, building from the bottom up; the other, trickling from the top down.
 
 
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HUFFPOST SUPER USER
dbackl
Guns kill people - the rest is rhetoric
06:20 PM on 04/26/2012
I wish this battle would be played out on a level playing field,

However, increasing business and superpacs are drowning out the voice of the people - and through the marketing of half truths and lies via vehicles like Rush and Fox I worry their voice will never really be heard from again.
S M V
Give me your tired, your poor, Your huddled masses
04:36 PM on 04/26/2012
HUMAN COOPERATION
Working together is key to human prosperity. The scale of human cooperation is one defining differences between humans and other species.
RECIPROCITY
The ability to work together began at the family unit, working together promoted survival of our genes. It then expanded to reciprocity relationships between distantly related individuals. The key to reciprocity is to escape the prisoner’s dilemma. At its simplest: Individuals are better off accepting favors but cheating and avoid returning them. Our ancestors did favors for people that they knew well and interacted with frequently.
The frequent interaction allowed people to avoid the free rider problem. People stop doing favors for those that will not return them.

TRADE & MARKETS
Trade allowed people to cooperate with distant individuals. It allowed people acting in their own self interest to work together to create better lives than only working within groups small enough to allow reciprocity.

WARNING: DO NOT MIX
Reciprocity (altruism) cannot be applied consistently with strangers to build a better world. Free riders proliferate and the system self-destructs. Similarly introducing markets and money into personal relationships based on reciprocity destroys them. Imagine applying a dollar value to everything that each individual contributes to a relationship and exchanging money on that basis. The relationship would be destroyed.

Continued…
S M V
Give me your tired, your poor, Your huddled masses
04:44 PM on 04/26/2012
Continued from above
CHARITY
Charity seems to violate the “do not mix” rule. It involves altruistic acts between strangers. Charity is a one sided venture. The one giving gains status or personal satisfaction from the transaction, but the two parties are not working together to create something greater than each alone could achieve. Add politics/government force to the mix and the incentives to free ride will expand to a point that prosperity is destroyed.

Reciprocity and Trade/Exchange applied in their correct social spheres has allowed developed societies to escape the grinding poverty experienced by our ancestors. Used inappropriately and society is destroyed.
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HUFFPOST SUPER USER
Jeffrey Leathem
02:10 PM on 04/26/2012
This sounds more like a Game of Thrones character summary than a political party trait analysis. Has it really come to this?
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HUFFPOST BLOGGER
Douglas LaBier
08:40 PM on 04/26/2012
Unsure what you mean. Could you clarify?
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HUFFPOST SUPER USER
Jeffrey Leathem
10:17 AM on 04/27/2012
I was only suggesting that in this current political landscape, our "leaders" sound a lot more like fictional characters than they do actual people. You could pretty much do a character list of George R. R. Martin's epic fantasy and the current field of major politicians and that's not a good thing for our country. When politicians start acting like archetypes, rather than establishing new archetypes, the outlook seems bleak.
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flyovermark
...Obamacare is tyranny...
11:43 PM on 04/26/2012
When you play the game of thrones, either you win or you die. There is no middle ground.
HUFFPOST SUPER USER
timequake45
01:30 PM on 04/26/2012
I have a problem with the reasoning in this article. It leaves out an important factor (as such articles always do). Who is to be involved in this "collaboration"? Is it voluntary or will it force individuals to join? Lets say, for example, that the collaboration needs the resorces of certain individuals in the form of wealth or their skill set that are not willing to participate, will they be forced into going along at their expense? To have cheap healthcare, do we force healthcare workers to work on the cheap; doctors with years and money spend on honing their skill forced to do work or free just because somone else needs it? Its OK if someone wishes to volunteer, but what if they do not? I ask this because in order to obtain the end progressives apparently seek, it will likely require the taking (redistribution) of resources.
And how exactly does one propose to make opportunity equal? I can understand that certain superficial factors, such as race and gender alone can dealt with, but one cannot assume that we are all equal in ability because we simply aren't. Some people will naturally have more opportunities than others. How do people propose to level the playing field?
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budanatr
US Expat in EU
12:45 AM on 04/27/2012
Evolution will level the playing field.

Evolution is progressive. It favors the flexible and those more easily able to cope with change.

Conservatives will die out over the course of this century and be left behind in the trash basket of history.
HUFFPOST SUPER USER
timequake45
12:48 PM on 04/27/2012
Individuals can evolve to cope with their surroundings. I do not understand why collaboration is necessary. Individuals may still work together without without ceasing to be individuals-- providing value where they can in exchange for the value they recieve. Still, the idea of forced collaboration needs to be addressed, as progressivism may require it.

Regarding evolution, it is not a force unto itself, you're putting the cart before the horse, so to speak. Evolution is a response to changes in circumstance that forces one to adjust. I'm not certain, on a political scale, what would force people to chance their political views and thier values in such a way that their perspectives will cease to exist. As for as evolution leveling the playing field, I'm not even sure what that even means.
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essbird
IOKIYANO
03:13 PM on 04/27/2012
What a perfect answer. I was just about to respond "evolution" when I saw yours.

I do believe that these non-cooperative memes will result in their hosts dying off, and they'll probably take me with them. Or at least my savings and well-being and that of my children. Heck, it appears that even China is better at capitalism than our new Ayn Rand model is.
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12:41 PM on 04/26/2012
How is it that a presumably educated and prosperous society could elect people who blatantly flaunt equality and fairness. Why have our Congressmen seemed to have forgotten what made this country once great or are they simply eager to destroy everything?
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flyovermark
...Obamacare is tyranny...
11:36 PM on 04/26/2012
I'm presumably educated and prosperous, Nora. First define what you mean by "equality and fairness", and I will be more than happy to explain why I will flaunt it.
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HUFFPOST BLOGGER
John Friedman
Helping companies live their values and tell their
10:51 AM on 04/26/2012
I think we equate being 'rich' with being 'complete' or 'wealthy.' I consider myself rich - my life is full of wonderful people, a beautiful and loving spouse and a delightful child (okay, most of the time). I live in a house that I can afford, in a neighborhood that suits my life and lifestyle. And I have excellent and supportive friends. That's 'rich' in my book.

But I am not 'wealthy' by any measure. I save what I can and worry it won't be enough for retirement/medical needs. My car is 11 years old (but thanks to routine maintenance and a fair amount of luck) I am not looking at replacing it any time soon.

This country was founded on the principle that we each have rights - to 'live, liberty and the pursuit of happiness.' We need to stop equating the happiness with financial remuneration. If reality TV has proven anything - a questionable statement - it has demonstrated that people with money are not intrinsically happier than the rest of us. They just have more 'stuff.'
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timequake45
12:56 PM on 04/26/2012
The preamble originally said, "life, liberty and property", but of course that was during a time when owning land was your livelihood. But for the most part, I agree with you. People seem to want stuff when they dont have it, and then only want more of it when they do. Ultimatety, it never fills that void, because that isn't what make us truly satisfied.
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flyovermark
...Obamacare is tyranny...
11:31 PM on 04/26/2012
This country was founded upon the "self-evident" idea that individual rights, bestowed on each of us by the "Creator", are "unalienable"; and the principle for securing those individual rights is to limit the power of government to infringe upon them, or to deny them outright. That would include the right to decide for ourselves as individuals, according to the dictates of our own conscience, whether "we" need to stop equating the [sic] happiness with financial remuneration.
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HUFFPOST BLOGGER
John Friedman
Helping companies live their values and tell their
08:59 AM on 04/27/2012
Of course...but assuming that all of us do is a mistake.
07:58 AM on 04/26/2012
What a great article, and the comments are wonderful too. I think Obama seems to get himself in trouble when he feels he has to respond to/keep up with republican talking points like getting "rich", I'm pretty sure that ship has sailed for most everybody. I am small business owner and I agree much of what is said in these comments. It is tough, but having enough money to raise a family, have a decent home, have health care, some retirement money is all many people want. Personally another goal is to take care of the earth. When Obama leads with the more progressive issues he seems to really harness some pent up energy in this country toward making America and the world a better place. I'm looking forward to seeing him out there again.
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budanatr
US Expat in EU
06:16 AM on 04/26/2012
Left wing = We are all in this together
Right Wing = I am independent and I have mine soscrewyou.
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budanatr
US Expat in EU
06:14 AM on 04/26/2012
Great article Douglas. Well done.
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HUFFPOST BLOGGER
Douglas LaBier
08:42 PM on 04/26/2012
Thanks, budanatr - and unfortunately our political polarization is moving towards the extremes that you indicated, re left vs. right.
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budanatr
US Expat in EU
12:55 AM on 04/27/2012
This is merely a play Douglas. Reality will gradually expose itself and all the conservative props and propaganda in the world will not stop that eventuality. It may take decades or a century but human beings will evolve beyond this.

Human life on this planet would not survive if conservative ideology were to be followed to its logical conclusion. So, one way or another, conservatives will die out like the dinosaurs.

Evolution, life and reality are progressive.
RealistBC
Micro-bios must pass muster.
05:53 AM on 04/26/2012
Obama joined the wealthy through the portals of academia, long disparaged as consisting of ivory towers where reality never intrudes. Romney inherited the attitude that money is power, and abused that power to become wealthy himself. He is also separated from the real life the vast majority of us endure. Yet these two are the choices Wall Street has given us, defeating all of the other candidates of wealthy demographics such as energy and religion. The two-party idea is so firmly embedded in most voters that they won't even consider looking outside of this rigged game to locate leaders who share our experiences, preferring instead to let Big Money do their thinking for them. This is why America is in decline and won't reverse before Big Money dictates all.
HUFFPOST SUPER USER
timequake45
01:38 PM on 04/26/2012
I'm not certain if it is just "big money" that controls, but money is certainly used as an asset to control. The two party system is a set-up, I think. It provides an illusion of choice and option when we really have none. Gather people into two teams, that way they always have someone else to blame; get them riled on hot-button, emotional issues while they let slip what is really being done and to garner irrational loyalty-- that your team is always right. In reality, though they have different ways of going about it, its all about control for either "team".
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
04:55 AM on 04/26/2012
What's interesting is that the American Dream is NOT for everyone to be rich, but rather for all those who willingly work to be able to raise a family without too much hardship.
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HUFFPOST BLOGGER
Douglas LaBier
09:36 AM on 04/26/2012
Exactly -- It's a broad vision for everyone, not exclusionary nor just aimed at getting rich.
HUFFPOST SUPER USER
timequake45
01:41 PM on 04/26/2012
But I wonder: how do we go about making that a reality?
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HUFFPOST SUPER USER
jamenta
There are other human values besides greed
01:03 PM on 04/26/2012
I believe most Americans would be content with decent wages, not a huge mansion to live in - and schools that their children could go to that weren't falling apart or underfunded with overcrowded classrooms.

Most Americans don't need to be billionaires. Don't need to own 10 homes across the country. Don't need Swiss bank accounts like Mitt Romney.

The problem with this country right now is greed of the few has gone too far. These absurdly few rich Americans seem to believe they are entitled to ungodly wealth - begotten on the backs of hard working Americans, while at the same time - ordinary Americans are not even entitled to decent affordable medical care, decent quality education for their children, and a home to live in - which used to be within reach of the majority of Americans.

And the big lie being used right now is that we as a nation can't afford Universal medical care. Or we can't afford to build better schools for our children. Yet we have been able to afford 2+ billion a week on foreign wars abroad - and 50% of our federal budget goes to the military-industrial-complex. And we can afford to give trillion dollar tax breaks to corporate America and the absurdly rich.
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flyovermark
...Obamacare is tyranny...
09:53 AM on 04/27/2012
Some people go into journalism to write articles, others go into politics to make laws, some go into the clergy to save souls, and still others go into business to make money. Most do it in order to "make a difference", and most who do aspire to exellence in each area in order to be more effective at "making a difference".

Which methods meet with your approval, jamenta, and which do not?
HUFFPOST SUPER USER
yintwin
02:26 AM on 04/26/2012
Obama's speech, where he "emphasized that the world has changed significantly -- that it requires all of us to work towards common goals", is spot on. Couple that with your last paragraph and we have 'bingo'
"We're not isolated entities on a planet that exists for our personal benefit, alone. We all need and depend on each other. President Obama would do well to show aggressive leadership towards pushing that vision. It's the American Dream, after all."
Our interconnection is revealing itself in the global economic situation. Each country is intertwined with all the others to such a degree it is impossible to separate. If one country sinks, it will bring down the others. The economy cannot be artificially sustained or revived anymore its just another tug on the thread of an overcomplicated and interconnected ball of yarn. We cannot rely on economic growth in a world where the average person cannot afford to buy luxuries. Its a catch 22.
At the end of the day, 'in a world where we all need each other and depend on each other', but where economic growth is no longer a viable option, what is the new vision, the new American Dream? Could it be a life worth living, where people become mutually responsible toward one another and the planet and live life in harmony with each other and nature? Would that be a common goal worth working toward? Could this be the vision where Obama needs to show aggressive leadership?
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Craig2
Living in the great State of Jefferson
12:21 AM on 04/26/2012
Good evening, At it's most simple. Conservatives = Property Rights. Liberals = Human Rights. In America today, and in the past 32 years, Property Rights exceed Human Rights. Don't tell me they are the same, they are not. Money is not speech and Corporations are not people.
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LeftRight
TANSTAAFL
04:55 AM on 04/26/2012
Of COURSE they're not the same!
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Craig2
Living in the great State of Jefferson
11:26 PM on 04/26/2012
Good evening LeftRight, I'll get responses that declare differently. Friends of Edmond Burke.
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timequake45
02:05 PM on 04/26/2012
What do you consider to be one's property? The stuff that someone owns? Their money or real estate? How have they accquired that house, that money and what do they do with it? They use it to buy food, medicine, clothes and shelter, right? Are these not considerations of human rights-- the right to acquire such things for survival for themselves, their children?

Then what of the excess, that which is beyond their need for survival. Who is to determine that level which one needs to survive? Would such be downgraded from human rights considerations then, to be distributed to those below the survival limit? If so, the why would anyone produce more then what they need to survive? Should society force them into doing so for the greater good?
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Craig2
Living in the great State of Jefferson
11:24 PM on 04/26/2012
Good evening timequake45, Property Rights does not mean "my stuff". At it's root the question is are humans property? Edmond Burke, Adam Smith, Thomas Paine, Hume and Voltaire discuss this. Oc you are in jail are you Human or Property?
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HUFFPOST SUPER USER
SparkyAdams
11:40 PM on 04/25/2012
I laughed out loud reading the Branson quote. He is one of the most ruthless and tight-fisted businessmen on the planet. Don't take anything he ever says at face value.
10:05 PM on 04/25/2012
All well and good, and even inspiring, on the macro level. On my level, as the owner of a small business, things look a little different. Yes, I drive on roads, and use utilities and such, yet my goal is to build a business, a business that makes a healthy profit, that I use to live a nice lifestyle. Before you berate that profit, please consider the lifestyles of our elected leaders and academics
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minto
you know what they say about opinions...
01:01 AM on 04/26/2012
I don't think he was berating that profit. He was saying that profit isn't necessarily the only goal that we have in life.

My husband is a commercial fisherman. He runs a boat and fishes for salmon and halibut. One of his goals is profit. Another is keeping the ecosystem healthy so that he will have fish in future years. He also is ready to help anyone, even a competitor, who gets into a dangerous situation because people can be killed on the sea. What I took from the author is that we need to acknowledge that we as people have many goals and while profit is one, it is not the only one.
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Ninotchka KS
I am woman; watch me vote.
04:10 AM on 04/26/2012
Excellent point! F&F
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jamenta
There are other human values besides greed
01:36 AM on 04/26/2012
Most of the business owners I know say that the most important item that keeps their business thriving is consumer DEMAND.

Ordinary American workers haven't had a "real" pay raise since the 1970s, while the top 1% wealthy have nearly tripled their incomes since then.

Without enough DEMAND - our American economy will die a slow and painful death. And eventually there will be social upheaval due to the gross wealth inequalities - that the right-wing in this country is turning a blind eye too.
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HUFFPOST BLOGGER
Douglas LaBier
09:41 AM on 04/26/2012
Agree -- thanks for pointing out that circularity that the right-wing seems to ignore.
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timequake45
02:10 PM on 04/26/2012
I believe is was Ford that made certain that those working to manufacture his vehicles were paid enough to at least afford what it was they they were producing. It seemed to work at the time. Perhaps you're on to something