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Eric Cantor's Know-Nothing Wealth Disparity Speech: "Every Man a Billionaire"

Posted: 10/23/11 03:02 PM ET

Even more egregious than Majority Leader Eric Cantor's (R-VA) cowardly retreat (because it was open to the public) from delivering a speech on wealth disparity is what this undelivered speech actually said.

In this highly touted oration, Cantor proposed... absolutely nothing.

Cantor's "solution" to wealth disparity was not surprising -- private enterprise, especially small business entrepreneurs, would start businesses and give everyone a job.

But, of course, just giving people jobs does not solve the wealth disparity problem. So, Cantor talks about "wealth mobility," that everyone, somehow, can become a billionaire.

This is standard right-wing abuse of optimism. Sure, anyone "might" become a billionaire. But, with a $45T economy, there would only be room for 45,000 billionaires, assuming no one had more than $1B, and no one but those 45,000 had anything.

There are more than 300 million people in the country. 400 families control as much wealth as the bottom 160 million. There is nothing in the Constitution, and nothing in our history since World War II, that suggests there is anything god-given or ordained about that disparity. It is the natural outcome of a rigged system. Indeed, there is very good reason to believe that it is not compatible with true democracy and freedom.

Cantor provides the example of his own family. His grandmother, an immigrant (!) from Eastern Europe, worked hard so her sons could go to college. His father graduated college, went into real estate and did well financially. Eric had an upper middle class upbringing.

Hey, that seems pretty good, all done on their own, no one else helping out, and certainly no help from government -- until one begins to fill in the gaps in the story that are far larger than the high points of Cantor cherry-picks.

One wonders why Cantor aspires to recreate the America of the 1930s (his grandmother's time). That country was not, as Cantor might think, a ribbon of highways with Model-T Fords in place of Toyotas. One-third of the nation was "ill-clad, ill-housed and ill-nourished." Rural areas had no electricity. Grain farmers in the plains states had overused and misused their land producing the dust bowl. Poverty among the elderly was the rule, not the exception.

Much of that was fixed. By government action.

Then, there is Cantor's father. He received a public education, and apparently made good money in real estate -- that would have not have been possible had government not built roads, sewers and water systems, and provided courts and a justice system to enforce contracts, and had Fannie and Freddie and the VA not supplied funding and supported the housing industry. Of course, Fannie and Freddie got out of control along with Wall Street, but for decades they were critical elements of a sound housing market. Without them, home ownership would never have reached levels it did even before the bubble, and Cantor's father would have been in a very low margin, low volume business. Who knows, he might have needed the earned-income-tax-credit and Medicaid for him and his family to survive.

Cantor then turns to Steve Jobs. One can make the obvious point that Steve Jobs is the poster child for entrepreneurship because he is unique. Sure, there are several more stories that will emerge in the next decades in which new "Steve Jobs's" will arise, but they will be a distinct minority. One has no doubt they, whoever they are, will change the way we do things, and become very rich in the process.

It is not clear how that will address wealth disparity.

As for jobs (lower case "j"), if the new breed follows Cantor's new idol, many of those jobs will, like the Jobs' jobs, be created overseas. Why? In part because China, India, Taiwan and other emerging countries are putting major government funds into education and infrastructure, while the US, thanks to Cantor and his gang, forswear such sins.

But, even if one ignores all that reality, there is one unarguable fact that may make Cantor wish he had never mentioned Steve Jobs:

When Jobs started Apple, the top tax rate was 70%.

 

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12:57 PM on 10/27/2011
My mistake. Move the deficit 5 decimal points to the RIGHT; the Republican side.
12:53 PM on 10/27/2011
We can indeed ALL be billionaires. The Federal Reserve only needs to move the deficit about 5 decimal points to the left (or print that much more money). This assumes that everyone can currently lay their hands on about $10,000. Of course, bread would be $50K/loaf, but it would achieve Cantor's understanding of how the economy works.
07:03 PM on 10/26/2011
The sooner little Eric exits the national stage the better.
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demisfine
Often correct, NEVER right.
01:43 PM on 10/24/2011
Cantor, despite the meaning of his name, is no inspirational speaker.
He is not a great thinker.
He and his ilk are touting a policy of austerity.
Austerity does not lead to greatness. Contracting the economy now would make initiate a death spiral.
That, of course, is their goal. Tank the economy, blame this administration, and regain power.
The problem being that no one in the GOP has any idea how to make things better if that should happen.
Obama/Biden 2012. We can't risk the alternative.
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04:19 PM on 10/24/2011
But what I don't get is... let's say that the RepubliCult manages to fillibuster every last thing Obama wants to try, and we are plunged into a DEEP DEPRESSION with million of starving and homeless people, AND that Obama is NOT re-elected, and the RepubliCult takes the White House.

What then, would they do, to get us out of a depression? Boggles my mind. I can't even imagine...

Somalia, anyone?
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HUFFPOST BLOGGER
Paul Abrams
04:53 PM on 10/25/2011
You've answered your own question. I'm writing an article on this in greater detail, but, in summary, the Republican paymasters PREFER a third world country--a. they don't need us, they can sell overseas. b. they can get us more cheaply and without pesky regulations; and c., most importantly, they want to sap your will, destroy you psychologically. Then, you will be grateful for anything they bestow upon you, and they will feel that they are doing a "good deed".
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HUFFPOST SUPER USER
Bradlinsky
"Concept Other Than Self"
01:29 PM on 10/24/2011
Wealth disparity? Hey, don't despair ... there's plenty of wealth out there.
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demisfine
Often correct, NEVER right.
01:46 PM on 10/24/2011
But only for those deemed worthy.
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HUFFPOST SUPER USER
daniel o
10:24 PM on 10/23/2011
...and Jobs was a genius. arguably, the Edison of our time. not everyone is that smart. in fact, few people are. he is, therefore, a poor example, in that his brilliance was rare, and likely something he was born with.

a side note is that he also credits LSD with being a major factor in the opening of his mind and allowing him otherwise unattainable inspiration and imagination. in Cantor's world, the young Steve Job's belonged in prison, not a corporate boardroom.
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HUFFPOST SUPER USER
timm0
It's impossible to have too many malasadas.
01:43 PM on 10/24/2011
Not intended as a swipe against Jobs, but as someone who's been in the industry (and paid for for several years directly by Apple, as a matter of fact), I think a better comparison for Jobs is P. T. Barnum. Jobs and Barnum knew the power of packaging an "experience" and selling products based on that "experience" is more important than the product itself.

When you get down to it, the iPod is the Sony Walkman with different media and content purchasing options. From a technology perspective, white rice in snoozeville. From a marketing perspective (getting revenue on song purchases), a bonanza.

Edison was 100% a technology guy, whereas Jobs was more around 33%. His technology push to get Unix under the Mac OS cost him his job at Apple and forged his ill-fated NeXT pursuit. The development environment for iPhone and iPad is basically from NeXT, which is a tribute to his technical expertise. But the fact is that the Apple brand and "coolness" factor of the iPod (marketing) is what launched the company's latest success... not to mention the company's fanatical litigiousness over "intellectual property" (not that they're the only litigious technology company, of course....) which helps treble competitiveness and innovation while passing along the high development and legal costs to consumers.

Sorry for the nit.... I do agree with your point, though. :-)
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05:35 PM on 10/24/2011
Well... "business" in this country has been more about style over substance for a long time now. After all, look at Wall Street: a glitzy, sexy house of cards.
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HUFFPOST SUPER USER
PatrickforO
America needs a Labor Party
09:36 PM on 10/23/2011
There's another irony in this article as well. If one espouses the failed policies of Milton Friedman and the Chicago school of economics, and their penchant for deregulation, privatization and gutting social programs, then one is basically saying no to small business creation, because these policies surely aid and abet large transnationals and bankers in setting entry barriers very high for new entrepreneurs. One of the biggest problems we still have is that small businesses have difficulty accessing capital. Certainly if you gut government programs, then you're not going to have any government underwriting of small businesses. I guess Cantor doesn't see this...honestly, I don't know what these people do see. When Friedman's policies were applied in Chile in the 80's, inflation took off, unemployment spiked, and poverty dramatically increased. When Pinochet became concerned, the great Friedman himself went down there and advocated an even more strict regimen of deregulaton, privatization and cuts to social programs. That didn't work either, and it was only the copper mines that Pinochet had wisely resisted privatizing that ended up propping up Chile's economy. We've got to get the word out about how these policies have failed every time they've been tried!
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Inkosi
The gods themselves rage aginst stupidity
01:17 PM on 10/24/2011
Naomi Kline - Shock Doctrine!
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Medicine13ear
Jesus wore a hoodie.
06:33 AM on 10/28/2011
Also John Perkins -- Confessions of An Economic Hitman!
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Gestas
Mountain Man
08:20 PM on 10/23/2011
Cantor believes that Lobbyists are people....and He's never had one come to his office or take him to lunch that was not RICH.
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jf12
Occupying myself
08:45 PM on 10/23/2011
And he believe they have real jobs.
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demisfine
Often correct, NEVER right.
01:47 PM on 10/24/2011
and he htinks the people in Virginia should have FEMA funds to repair their homes, right after we take money away from seniors in California.
06:41 PM on 10/23/2011
Say what you will about Eric Cantor, the people in Va. voted him into office. And I bet the farm, these same folks will do it again.
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HUFFPOST BLOGGER
Paul Abrams
07:47 PM on 10/23/2011
He may be beatable--if the Dems have a good candidate, and get out the message as to what this dolt is truly about. One thing for certain--he is NOT about America, NOT about the people of his district.
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demisfine
Often correct, NEVER right.
01:53 PM on 10/24/2011
That's what I've been thinking since the earthquake/storm.
There seemed to be very many unhappy locals on the scene, and Cantor walked back his hard-line, Tea Party stance pretty quickly.
10:50 PM on 10/23/2011
Eric Cantor is definitely not popular in Virginia and he can definitely be beat.
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OneManRoaring
Tech specialist, former educator & active citizen!
05:32 PM on 10/23/2011
Much like Lewis Carroll's Jabberwocky, the sentences have nouns and verbs, but when taken as a whole, they don't make any sense.

Eric Cantor shows his true colors. It is like that old saying: "If you can't dazzle them with brilliance, baffle them with BS!"

It may be a very sad day for the country when/if Cantor is returned to Congress!
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HUFFPOST BLOGGER
Paul Abrams
06:06 PM on 10/23/2011
I don't know anything about Cantor's district except that he won his first election very narrowly. It would be a good idea for the Dems to target him and Ryan.
09:32 PM on 10/23/2011
7th District in Virginia - he used to be my congressman. Fairly conservative district but it is less red than it used to be, much like Virginia itself.

I would agree, a really sharp Democrat could beat or scare the hell out of Cantor. He has made a lot of incredibly stupid remarks lately and has been nothing but an obstructionist.
05:25 PM on 10/23/2011
Advocates for the rich have such silly arguments for that class. As a Representative of the people, Cantor lacks the thoughts and gumption to actually legislate for the people.
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gutenmorgen
a.k.a. poopdeck
03:36 PM on 10/23/2011
Many years ago a student at my university wrote a delightful essay about an old codger living on his farm in Iowa who was the last US citizen who was not a millionaire. He first refused to accept dollar contributions flowing to him from all over the country begging him to end his status as the last non-millionaire whenever his bank account reached $ 999,999.99. He eventually relented and died the next day of a heart attack because of the stress of becoming a real millionaire.
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Paul Abrams
06:04 PM on 10/23/2011
Good story!
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Enjay 1
Enjay in E MT
03:32 PM on 10/23/2011
It would be interesting to hear from some of the newer "self made billionaires" from the last 10 years.

Did they use any bank loans or 100% private funds?
Did their customers need a bank loan or credit card to purchase their product?
How about community or state tax breaks for business start-ups?
Public roads, city sewer & water, fire & police protection?
Were truck drivers tested & licensed by the state?
Did the trucks themselves pass inspection and meet government guidelines?
Was your patent protected to prevent a big company from stealing your idea (intellectual property)?

Government has its hand in every aspect of our lives: electrical lights, wiring codes, plumbing, roads, vehicles, coffee pot, food, water, radio & tv stations to the pillow we sleep on at night.
02:43 PM on 10/23/2011
If everybody is rich, nobody is.

You can't be rich without someone else around who has less.

If everybody had as much money as Bill Gates, who would he hire to scrub his toilets?

At which point he's asking himself "Hey, if I'm so rich, how come I have to clean the bathrooms myself?".

If you think about it, the rich need the less well-off more than the other way around, because the less well-off can band together for enterprises that need large capitalization.
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paxatman
Do no harm, Help others.
02:42 PM on 10/23/2011
Like Bush, Cantor is afraid of dissent. He knows he is wrong and his arguments won't stand up to scrutiny.
The members he leads have no more courage than he does.
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demisfine
Often correct, NEVER right.
02:00 PM on 10/24/2011
Cantor is a fan of the quick exit.
No confrontation or heated conversation for him.
Uncomfortable? - He's out of there.