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Richard (RJ) Eskow

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Five Reasons Romney's "Plan" Is the Same Old Job-Killing Madness

Posted: 09/07/11 02:55 PM ET

Mitt Romney has very serious ideas for fixing the economy. How do we know? By the typeface.

Romney's released a 59-page plan in one of those very, very serious typefaces -- Garamond, or Cambria, or Times New Roman -- Well, to be honest, I'm not sure which. But trust me. It's a serious typeface. And get this:

There are graphs.

The graphs and layout and typography in this "jobs plan" remind us that Romney's crowning career achievement was running the massive consulting company Bain. He's clearly taken the chief maxim of the consulting profession to heart: If you can't dazzle 'em with brilliance, baffle 'em with bullsh*t.

That's exactly what this "plan" is. It's a slickly packaged re-presentation of the same agenda that's killed millions of American jobs and will kill millions more if enacted again.

But it is pretty. All typesetters show you their proposed layout using the same dummy Latin language, which begins "Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna ..." Those typesetters did a great job with this booklet. But the ideas?

Here are five reasons Romney's "new ideas" are the same job-killing conservative poison we've swallowed and regurgitated before:

1. It ignores the lessons of history.

Romney opens with the human touch, which is another old consultant's trick. He talks about how joblessness "breaks his heart" and personalizes the statistics with his own life story: "In 1947, the year I was born, unemployment was 3.9 percent. In 1968, when I turned 21, it was 3.6 percent."

But he doesn't explain why unemployment was so much lower then. In 1947 the country was in a period of massive spending, driven first by the war effort and then by postwar rebuilding. The top tax bracket that year was 86.47%. In 1968 the country had initiated a number of spending measures under Presidents Kennedy and Johnson, including the War on Poverty. The top tax bracket that year was 75%.

Today the Republicans have driven the top bracket down to 35%. The taxes collected during those earlier years was used to generate jobs, fuel our nation's economic growth, and build a thriving and prosperous middle class.

By mentioning those years, Romney undercuts his party's agenda before he even presents it.

2. It adds to that "giant sucking sound" of jobs lost to outsourcing

Washington insiders laughed at Ross Perot during the 1992 Presidential campaign when he said NAFTA would create the "giant sucking sound" of Americans jobs going to lower-cost Third World countries. NAFTA passed with massive Republican support, and President Clinton signed it.

But Ross Perot was right. The US manufacturing sector, along with other portions of our working economy, was decimated by free trade agreements that led to the outsourcing of jobs to other parts of the world.

What does Mitt Romney promise to do as "Job One, Day One" on the first day of his Presidency? He says he'll introduce an "Open Markets Act" to " implement the Colombia, Panama, and South Korea Free Trade Agreements." He has the temerity to claim that this will actually create jobs.

Romney's ignoring something the rest of us have learned the hard way: When it comes to American jobs, free trade "sucks."

3. It cuts the "red tape" -- tape that keeps us from falling apart

Romney says he'll issue an Executive Order on "Day One" to "cut the red tape." He says he'll "direct all agencies to immediately initiate the elimination of Obama-era regulations that unduly burden the economy or job creation, and then caps annual increases in regulatory costs at zero dollars."

Republicans love to talk about how "cutting red tapes" creates jobs. But we saw massive cuts in regulations under George W. Bush -- and we lost jobs. So that part of their theory's been disproved.

What did we see as the result of deregulation over the last twenty years? The biggest financial crisis since the Great Depression. And the massively expensive, job-destroying, environment-killing, life-threatening BP spill in the Gulf of Mexico.

The "red" on that tape might as well be American blood. And as for cutting it -- well, just take a look at our economy and the Gulf of Mexico and then paraphrase Sarah Palin a little: How's that regulation-cuttin' thingy workin' out for ya?

4. It would destroy unions -- and the middle class

Romney says he'll "reverse the executive orders issued by President Obama that tilt the playing field in favor of organized labor, including the one encouraging the use of union labor on major government construction projects."

Unions won all the major concessions -- in wages, benefits, working hours, and work conditions -- that built the American middle class. Unions were larger and more powerful during those years of low unemployment Romney waxed nostalgic about than they are today.

If President Obama "tilted the playing field" toward the unions it's sure not showing up on the scoreboard. Republicans in the states and in Congress are waging a full-out assault on unions' right to organize. The effects of that campaign are showing themselves in wage stagnation and unemployment.

Romney uses the feel-good language of the self-help seventies, describing this action as "an Order to Empower American Businesses and Workers." Apparently businesses haven't been "empowered" enough by their lobbyists, billions in campaign cash, and the Supreme Court's Citizens United decision. They have major influence over the Democratic Party, and the Republicans are their servant class -- lock, stock, and barrel.

He says he'd "empower" workers, too -- be making sure that unionized workers could be replaced at any time by non-unionized replacements unable to fight for wages or benefits. If that happens it'll be "Welcome back to the nineties" -- the eighteen-nineties, that is. Back then people were forced to work sixty or seventy hours a week on subsistence wages, with no overtime or benefits.

Welcome to your "empowerment."

5. Spending cuts that will destroy jobs, crush wages, kill growth

And that's not all, folks! Romney also promises that on "Day One" he'll introduce the "Down Payment on Fiscal Sanity Act," which would "immediately cut non-security discretionary spending by 5 percent, reducing the annual federal budget by $20 billion."

The folklore definition of insanity is "doing the same thing over and over and expecting a different result." By that standard this should be called the "Fiscal In-sanity Act," since it repeats theausterity moves that have worsened economic conditions here and throughout Europe.

Insanity in 12-Point Font

We could quibble about the figures Romney uses, and trust us, there's more madness in this document than we can cover here. But the overarching message is clear: If you liked the financial crisis and the BP oil spill, if you like soaring unemployment rates and stagnating wages, then you'll love the Romney plan.

And the Romney plan is just a gussied-up version of what all the Republicans are selling, packaged by a slick consultant with slick advisors. This document would be better if Romney had just left in the dummy typeface the printer used: "Lorem ipsum dolor sit amet, consectetur adipisicing elit magna ..." These ideas are literally "worse than useless." They're extremely destructive.

The Democratic team has made more than its share of economic mistakes, and we've been vocal about them. But the GOP is offering a plan for more and deeper economic devastation. It would hurt pretty much everyone except billionaires and top corporate executives.

And typesetters. A Romney Presidency would mean more work for them. It would bring boom times for the "baffle 'em with BS" industry.

This "jobs plan" is a compendium of madness. But man, it sure is pretty.

 

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04:52 AM on 09/08/2011
"an Order to Empower American Businesses and Workers"...? Given that Big Business is looking for the end of unions, minimum wage, benefits, etc., while workers are for...euh...well, the opposite, we can one deduct that one side won't feel too "empowered" in the end...

Question: Which side funds campains the most, again?
12:17 AM on 09/08/2011
RJ, you imply that low unemployment and high spending (in your reference to '47 and '68) go hand-in-hand, but they do not. During the highest periods of spending during the Obama stimulus unemployment was at its highest. You are right about corporate tax rates however. The Romney / GOP plan of cutting corporate taxes won't create jobs - it will create more corporate wealth for companies that outsource jobs overseas. The so-called Perot "giant sucking sound" is the real issue. Unfortunately, neither the Democrats nor the Republicans want to touch our trade imbalance just like they won't address the real issues around the housing crisis and financial bailouts - they fear pissing people off. It's time we enacted good policy first, and worried about the public relations fall-out second. We need an environment and set of policies that will create jobs. Greater spending and more corporate tax cuts wont create a single job, and they will further harm our economy and our future.
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Vernon Gudger
04:51 AM on 09/08/2011
Who said anything about Corporate tax cut? Do you mean payroll tax cut? Get your fact correct before posting BS!
08:42 AM on 09/08/2011
Vernon, you obviously have not read Romney's plan nor the media stories about it. One of his proposals, and that of other Republicans, is to cut the corporate tax rate from 35 percent to 25 percent. It is one of the signature components of his plan. Sounds like you are the one who needs to get his facts straight.
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heron77
Drive on the right
08:35 AM on 09/08/2011
The US has the highest corporate tax rate in the world with federal and state tax. Japan is second with 40%, This is only one reason some corporations change their country of incorporation. Excessive regulations and abusive labor unions are another. Lower the tax rate and some may change their incorporation back to the US.
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unitron
My email notifications are in Spanish now...
11:34 PM on 09/07/2011
These ideas are literally "worse than useless."

Or as Dr. Who put it, they have a "negative utility factor".
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Oilvike
Go Hawks! Go Vikings! Go Cards!
11:19 PM on 09/07/2011
I guess it's ok so long as he uses a real cool looking font. I'll bet Obama's jobs plan fonts are really dorky looking and totally unbecoming of the President of the United States. I want my country back! (sarcascim)
11:59 PM on 09/07/2011
The President doesn't put anything on paper. From Stimulus thru the debt ceiling debate, he never puts anything on paper. Never put anything on paper and always maintain plausible deniability.
07:58 AM on 09/08/2011
no
12:04 AM on 09/08/2011
In case you haven't noticed, President Obama never puts anything on paper. From the Stimulus thru the debt ceiling, nothing on paper. Nothing in writing allows you to maintain....Plausible Deniability..........kind of like voting Present
07:59 AM on 09/08/2011
still no.

Repeating a lie doesn't make it true.

A few more people may believe it, though, so I guess you're right to give it a shot.
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Jody Dobis
10:46 PM on 09/07/2011
No one ever questions the productivity and/or value of the CEO and CFO. On the other hand, everyone has an opinion on the productivity and/or value of the union teacher, firefighter, millwright, welder, etc. When did our citizens become such experts on productivity in general and on job performance issues that most, if not all, have neither the knowledge or expertise to evaluate? I am always fascinated that everyone feels they are not making what they are worth while everyone else is making too much. If the goal is to drive down everyone's wages to the bottom of the barrel, please continue with your criticisms. I'm sure the executive branch is in full agreement with you and hopes the natives below their perch continue to devour each other in the pursuit of more profits for fewer employees.
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heron77
Drive on the right
08:37 AM on 09/08/2011
You are joking. A CEO is hired based on his competitive and productive record. And he expected to perform or he will be fired. Like a coach for a pro team, the coaches winning record is his main asset. If he starts a losing season, he is shown the door and somebody else will be hired.
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jzannoni
10:06 PM on 09/07/2011
Want to create jobs in the US

1. establish a long term energy plan and policy
2. national health care
3. no corporate tax for 10 years on new manufacturing jobs
4. no payroll tax for 10 years on new manufacturing jobs
5. federal tax credit on factory investments for new manufacturing jobs
6. free land to build the factory
7. 50% subsidy on energy used by the new factory
8. streamline permitting and environmental review for new factories
9. creation of manufacturing zones for duty free status and close to ports and rail
10. provide reduced interest rate capital directly from the government - forget the banks
11. provide incentives for foreign investors to build factories in the US - tax breaks etc
12:06 AM on 09/08/2011
Drop number 2,6,7 and 10 and ya got me
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drwtsn
Could I please get an upgrade to a macro-bio?
01:47 AM on 09/08/2011
Unless you can guarantee that all these manufacturing jobs will pay top rate, you'll have all these new manufacturing plants building all these products that will sit in warehouses because the middle class still won't have any money to buy them. You're just bringing trickle-down to a new level.
08:46 PM on 09/07/2011
Ron Paul's plan is better:

- End the Fed, it's hopelessly bankrupt

- Protect domestic economy from cheap imports

- End wars and MIC

Many other remedies are obviously needed but these steps are crucial.
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heron77
Drive on the right
06:30 PM on 09/07/2011
Ross Perot was wrong about NAFTA. It was a trade agreement to lower or negate any import/export taxes on products traded between the nations involved. That meant that oil products from Mexico and South America would be cheaper, It means that food products from the southern hemisphere in their summer could be sold in our store in our winter at reasonable prices. Where did you think all that great looking fruits and vegetable come from in January? It meant that other stuff we buy like clothing, TVs, appliances etc. being made at cheaper prices could be shipped across boundaries without high tariffs, saving the consumer lots of money.

NAFTA never had anything to do with labor or jobs.
10:29 PM on 09/07/2011
I guess you never heard the word "maquiladora". Factories closed in San Diego and factories called maquiladoras opened in Mexico to take advantage of cheaper labor. Of course, now the maquiladoras have become too expensive and the manufacturing has been sent to even cheaper countries.
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heron77
Drive on the right
08:42 AM on 09/08/2011
One of my clients was a company in California that built institutional furniture. On deliveries to his customers like hotels, the furniture was poorly assembled and had bad damage. The workers in the plant were the problem and he tried to fire the negligent workers, but the unions said no. So he opened a plant in Mexico, closed the one in California and has had no more issues on deliveries.

One case closed and it wasn't the cheap labor.
10:43 PM on 09/07/2011
Knowing facts and understanding them are two different things
05:29 PM on 09/07/2011
Actually, if creating jobs is the goal, then the most inefficient means must be selected. By definition, efficiency is defined by output per worker. Since the government, and unions, are the uncontested champions of doing less with more, we should have lots of each. All we need to do is convince the public that paying 3x for everything is worth supporting millions of useless bodies on the payroll.
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Jody Dobis
10:32 PM on 09/07/2011
"Since the government­, and unions, are the unconteste­d champions of doing less with more"

Such broad and stereotypical statements, as the one stated above, is red meat to non-union and anti-government citizens that consider themselves efficient and worth their wages at whatever level they may be at. Excuse me, but have any of you worked on a hot line in a unionized steel mill lately? Or performed general labor tasks on a down turn? You have to be a simpleton to go along least believe that all union workers just sit and take home pay as well as their government counter parts. Is that all you got? Is this the best you can do? Based on your comment, I would grade your productivity in making effective comments very low. Please let the more productive commentators your space.
ThePeacemakers
Concerned Citizen
05:05 PM on 09/07/2011
"What does Mitt Romney promise to do as "Job One, Day One" on the first day of his Presidency? He says he'll introduce an "Open Markets Act" to " implement the Colombia, Panama, and South Korea Free Trade Agreements." He has the temerity to claim that this will actually create jobs."

Tomorrow night lots of people here are going to be cheerleading a guy that proposes the same damn thing.
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HUFFPOST COMMUNITY MODERATOR
Breth
Wanna trade your Medicare for this here coupon?
07:52 PM on 09/07/2011
Sadly that is true.
12:10 AM on 09/08/2011
Except Obama wants to extort $283 billion in socalled job displacement funds to give to the unions in exchange for sending the FTA's to the Senate.
03:51 PM on 09/07/2011
"the GOP is offering a plan for more and deeper economic devastation. It would hurt pretty much everyone except billionaires and top corporate executives."

And that's where it ends. At some point, Republican catering to top earners will hit the wannabees (Republican leaners/Teabaggers who will never make $200K AGI). Right now wannabees back Republicans because they don't like Obama - but that'll change if Republican plans get passed (like with Ryan's Medicare "fix", minimum wage cuts, taxes on the 50% who pay no tax (though SOME should), and finally the mortgage interest deduction - all this so top earners can enjoy less tax on money they've made from bailouts/stimulus/other government contracts, Wall Street money games, oil speculation, and us peons buying necessities. It's good that stimulus is gone so we'll see how states do without budget subsidy. Republican governors seldom chant "shrink the fed" because they use the money for budgets - if not from the fed, revenue will be passed to citizens through higher state income tax, sales tax, property tax, car registration fees, etc.
03:41 PM on 09/07/2011
Excellent article, RJ. How about a few job creation ideas from a man at ground zero, me? But first, let me state two things: In a free enterprise system it is not the job of government to create jobs for the private sector and secondly, one does not "create" jobs. Jobs are needed then filled by supply and demand. If a LARGE section of the populace is hoarding their cash, afraid to spend for fear of what to do when the ax falls on their heads, the economy stagnates. We the consumers drive 70% of the economy with spending. But, we are not spending. From major purchases to chewing gum, we are not buying. Back to job creation. Government incentives to hire or rehire workers would help. Assurances that gas will not go higher would help. How to guarantee that? Make sure that the govt. watchdog agency that oversees stock price manipulation does its job. With lower gas prices, average folk will have more cash to spend. The more they spend, the more jobs that are created.
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heron77
Drive on the right
06:22 PM on 09/07/2011
Agree with most of your post except for the government incentives. If a business saw a reason to expand, they would hire workers with or without incentives. Even with incentives, in this sick economy, would any business hire simply to get a little incentive? What would those new hires do? Sit and watch TV with no customers around?

This administration continues to show their lack of business experience and naivete with financial management. Obama is overwhelmed and spinning his wheels like a toddler on a tricycle on ice.
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PostRationalDissonance
03:35 PM on 09/07/2011
Correct on all points, but this isn't Romney's real "job's" plan. Republicans don't have the luxury of being free to share their actual thoughts and ideas and simultaneously get nominated to run for office. No one knows what Romney or any republican really thinks personally about any issues because they are acting out a scripted part. Whenever they try their hand at improvisation they get the smack down from their minders on Talk radio and Fox News toot sweet.

Romney might make a halfway decent President actually. He's competent enough to do the job and he is cut from the same mold as Obama in the sense that he is not a political idealist.

The primary process for GOP candidates now demands strict and unwavering ideological purity to the point of absurdity. Romney himself probably agrees with 95% of the above mentioned points, but he can't admit it and get nominated. He is so transparent it makes no difference. When he says this stuff the insincerity is so obvious it is painful to watch. You almost feel sorry for the guy until he says particularly stupid things like, "Corporations are people" and realize that was him being sincere.
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kvanness
Follow the money and the rest will make sense
06:13 PM on 09/07/2011
"Romney might make a halfway decent President actually."

That may or may not be true, but he'd still be surrounded by Tea Party obstructionists and bound by Grover Norquist's pledge to not raise taxes.

I refuse to vote for a candidate who has signed a pledge that binds him tighter than the oath of office.
12:22 AM on 09/08/2011
"cut from the same mold as Obama"? They are polar opposites. Obama is a committed siocialist who finds capitalism anathema to all his idealistic, socialist, utopian ideals. Where in Obama's biography do you see any chance for free market capitalism to have taken root?" Harvard? Columbia? Acorn? Illinois State Legislature? Where did he learn the promise and reward of capitalism?
He's then thrust into thePresidency, surrounds himself with academics with similar progressive backgrounds and lack of real world experience. Wait 30 months and you get the slowest recovery of any 20th century recession except the Great Depression. THE SLOWEST., and no sign when it might end. Come 11/02/12 will you finally admit its not working and will not work and not give him 4 more years?
08:07 AM on 09/08/2011
You are so pathetically and demonstrably wrong, it's amazing.
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PostRationalDissonance
10:01 AM on 09/09/2011
Don't just repeat the same tired cliche nonsense that the advertisers for the GOP are making up. Do you really even know who Obama's economic advisors are or what backgrounds they have? I doubt it. You are parroting what you hear in the conservatainment media.

I am amused by this new slow recovery meme. Comparing recessions is such a silly exercise. There are no logical conclusions to be drawn from comparisons of post recession growth rates. Still, is it coincidental that the deepest economic decline since the Great Depression would also experiencethe longest recovery since the G.D.? Of course not, but you conveniently fail to address that glaringly obvious deduction because it doesn't help sell your narrative.

Beyond either of the above facts you are making an argument that presumes Presidents have broad powers to affect the economy one way or another. This is just plain magical thinking. It's a notion that appeals to a stubborn and primal fantasy about the role of the Presidency. 223 years of constitutional democracy and We The People still think the POTUS is the elected King of America, he isn't. It's basic elementary school civics, but the mythical is more powerful than reality.

We sow the seeds of our own discontent when we expect one elected citizen can solve all of our political, economic and social challenges. We still fancy the notion of a King and it's a major flaw of We the People who stubbornly cling to this illusion.
03:32 PM on 09/07/2011
RJ - As always, this is a well reasoned commentary. However, there seems to be a problem with "well reasoned" these days. The main stream media gives more weight to right-wing corporatist cliches than it does to facts or reasoned arguments. If Romney wants to call destroying unions "empowering workers," even though it's the opposite since it puts workers totally at the whim of the monied few, then that's what is reported as truth. If Romney wants to "cut red tape," then that's what will work. It doesn't matter that reality has been lots of people have being poisoned by industrial waste when companies got to do what they wanted rather than having enforced regulations.
moldndecay
Only that day dawns to which you are awake
03:11 PM on 09/07/2011
Got that right. Same tired pablum.