United Steelworkers president Leo Gerard likes to say that Washington policymakers "treat the people who take a shower after work much differently than they treat the people who shower before they go to work." In the 21st century Gilded Age, the blue-collar shower-after-work crowd is given the tough, while the white-collar shower-before-work gang gets the love, and never before this week was that doctrine made so clear.
Following news that government-owned American International Group devoted $165 million of its $170 billion taxpayer bailout to employee bonuses, the White House insisted nothing could be done to halt the robbery. On ABC's Sunday chat show, Obama advisor Larry Summers couched his passive-aggressive defense of AIG's thieves in the saccharine argot of jurisprudence. "We are a country of law -- there are contracts (and) the government cannot just abrogate contracts," he said.
The rhetoric echoed John Adams' two-century-old fairy tale about an impartial "government of laws, and not of men." Only now, the reassuring platitudes can't hide the uncomfortable truth.
Last month, the same government that says it "cannot just abrogate" executives' bonus contracts used its leverage to cancel unions' wage contracts. As the Wall Street Journal reported, federal loans to G.M. and Chrysler were made contingent on those manufacturers shredding their existing labor pacts and "extract[ing] financial concessions from workers." In other words, our government asks us to believe that it possesses total authority to adjust contracts at car companies it lends to, and yet has zero power to modify contracts at financial firms it owns. This, even though the latter set of covenants might be easily abolished.
According to New York Attorney General Andrew Cuomo, these allegedly inviolate AIG agreements promised bonus money the company didn't have and were crafted by executives who knew the firm was collapsing, meaning there is a decent chance these pacts could be invalidated under "fraudulent conveyance" statutes. They also might be canceled via "force majeure" clauses allowing one party to rescind a pact in the event of extraordinary circumstances -- like, perhaps, the collapse of the world economy. (Note: BusinessWeek reports that corporations are already citing the recession as reason to invoke such clauses and nix their business-to-business contracts.)
But, then, those legal cases require a government that treats AIG's shower-before-work employees with the same firmness that it treats the auto industry's shower-after-work employees, not the government we currently have -- the one that believes "the supreme sanctity of employment contracts applies only to some types of employees but not others," as Salon.com's Glenn Greenwald says.
Mind you, this double standard works the other way, too.
Congressional Republicans have long supported the laws letting bankruptcy courts annul mortgage contracts for vacation homes. Those statutes help the shower-before-work clique at least retain their beachside villas, no matter how many of their speculative Ponzi schemes go bad. But for those who shower after work, it's Adams-esque bromides against "absolving borrowers of their personal responsibility," as the GOP announced it will oppose legislation permitting bankruptcy judges to revise mortgage contracts for primary residences.
Certainly, for all the connotations of fairness inherent in American politics' "country of law" catchphrases, most of us know that the selective application of legal principles is as old as the Republic. However, lots of us are only now discovering that inequality is so pronounced that the time of day we bathe determines the enforcement and reliability (or lack thereof) of even the most basic contracts.
We are just realizing that for all the parroting of America's second president, we are ruled by a government of men, and not of laws.
© 2009 Creators Syndicate Inc.
BOOKS
Dreams from My Father: A Story of Race and Inheritance
Obama's first book, a memoir focused on personal issues of race, identity, and community.
By Barack Obama
The Audacity of Hope: Thoughts on Reclaiming the American Dream
Obama's second book, in which he shares his personal views on faith and values and offers a vision of the future that involves restoring a government that has fallen out of touch with the people.
By Barack Obama
10 reasons there's a bright future for journalism
An optimistic take on what's coming, both for news outlets and news consumers.
By Mark Glaser, Salon
Obama: From Promise to Power
In this compelling book, a Chicago Tribune reporter draws on interviews with Obama, his family, friends, and rivals, as well as his own extensive coverage since Obama's days in the Illinois Senate, to offer a nuanced look at a man of idealism and ambition intent on making history.
By David Mendell
SPEECHES
July 28, 2004: Obama's first national prime-time speech
In this speech, Barack Obama urges America to remember its unity, pledging that "out of this long political darkness a brighter day will come."
August 28, 2008: Obama's acceptance of the Democratic Party's presidential nomination
In this speech, Obama lays into John McCain, describing him as "anything but independent."
November 5th, 2008: Obama's victory speech
In this speech, Obama tells his ecstatic supporters, and the entire nation, that "change has come to America."
January 20, 2009: Obama's inaugural address
The new president calls upon the nation to face its challenges head on, with determination, strength and a commitment to ensuring the delivery of freedom to future generations.
SALON STORIES
How would Barack Obama handle foreign policy?
The presidential contender on dealing with Iran, fighting AIDS in Africa and restoring America's standing in the world.
By Walter Shapiro, Salon
Chicago is Barack Obama's kind of town
The city has a unique history of launching the careers of powerful black politicians -- which is part of the reason Obama moved there.
By Edward McClelland, Salon
American revolutionary
In his acceptance speech, Barack Obama stood up for Democratic values, took the fight to McCain -- and proved that the United States is still capable of reinventing itself.
By Walter Shapiro, Salon
Barack Obama's epic win
The culmination of a brilliant campaign, Obama's unequivocal defeat of John McCain marks a political and generational transformation.
By Walter Shapiro, Salon
Barack Obama, honeymoon killer?
The Clintonites in his Cabinet, forgiveness for Lieberman, the creeping signs of centrism -- progressives aren't ready to panic, yet.
By Mike Madden, Salon
"A new era of responsibility"
Mixing straight talk about dire times with lofty rhetoric about hope and determination, Obama repudiates Bush and vows to get to work.
By Mike Madden, Salon
OTHER STORIES
The Conciliator
Where is Barack Obama coming from?
By Larissa MacFarquhar, The New Yorker
Time's "Person of the Year" coverage of Obama
A strangely fascinating database of Obama-formation, including everything from "6 Degrees of Obama" to a collection of Obama-themed art from Flickr.
Time
The presidency of Barack Obama
This New York Times megapage is the last word on Barack Obama, including everything from his personal biography to his current political stance on detainees and Africa.
The New York Times