Joan Walsh
joan.walsh@salon.comRomney’s “vampire capitalism”
Obama's focus on Bain Capital could hurt Romney with working-class white voters and all the economy's victims
Mitt Romney (Credit: Reuters) Former Obama auto “czar” Steve Rattner stepped on his old boss’s message a little Monday morning, telling the folks on “Morning Joe” that President Obama’s just-released ad blasting Mitt Romney’s Bain career was “unfair.” As Rattner explained: “Bain Capital’s responsibility was never to create 100,000 jobs, or some other number, it was to make profits for its investors.” Rattner is a big Democratic Party donor who worked at Lehman Brothers before starting his own private equity firm, Quadrangle (where he was accused of participating in a New York state pension fund kickback scheme and paid millions of dollars in settlements without admitting wrongdoing).
Rattner’s reaction to Obama’s tough Bain ad shows why Democrats have had a hard time capitalizing on anti-Wall Street sentiment among worried, screwed-over American voters: because for the last 20 years, at least, they’ve too often done Wall Street’s bidding almost as reliably as the GOP.
But Obama is to be praised for his aggressive rollout of RomneyEconomics.com, which features the new ads. The president is going to have a problem with voters who are not seeing signs of the economic recovery, particularly working-class whites who didn’t go to college. He probably can’t win a majority, but he has to defend his margin in 2008, when he did better with that group than John Kerry or Al Gore before him. He may not be able to do much before the election to make those voters feel less economic pain, but he can make clear that Romney would only make their pain worse. Because that’s what he’s done his whole career.
Obama’s new ad released Monday, which will run in the swing states of Iowa, Ohio, Pennsylvania, Virginia and Colorado, features laid-off workers from GST Steel in Kansas City describing how Romney’s Bain Capital acquired their employer and gutted it. GST went into bankruptcy in 2001, throwing 750 employees out of work with no health benefits and reduced pensions. Ultimately the federal government had to spend $44 million to bail out its pension fund. But Bain made $12 million on its original $8 million investment, along with another $4.5 million in “consulting fees.” This wasn’t an unusual situation for Bain: 22 percent of the company’s investments ultimately wound up in bankruptcy, but the company made healthy profits and consulting fees nonetheless.
“Bain Capital walked away with a lot of money that they made off this plant,” steel worker John Wiseman says. “We view Mitt Romney as a job destroyer.”
If that sounds familiar, that’s because Republican primary opponents Newt Gingrich and Rick Perry made similar charges against Romney. Obama’s ad accuses him of “vampire capitalism”; Perry accused him of “vulture capitalism.” Either one works for me. But the class warfare appeal didn’t seem to work in the GOP primary, where party leaders were more concerned about protecting business than trying to fake populism, and smacked down Gingrich and Perry for emulating Obama’s rhetoric. Will it work in November?
I think it will, as long as Obama combines it with practical proposals to ease the unemployment and underemployment crisis. One Wall Street Journal story that didn’t get enough attention last week found that if it wasn’t for public sector layoffs, the nation’s unemployment rate would be at roughly 7 percent. And those layoffs have been concentrated in red states, particularly Texas, Ohio, Wisconsin, Indiana, Michigan and Florida, where high-profile GOP governors have been spreading the pain on a state level that Paul Ryan would like to extend nationally. The nation’s unemployment crisis is at least partly a Republican production.
The economy is all Romney has against Obama. Just Monday morning, Romney spokesperson Andrea Saul falsely but energetically claimed that “Mitt Romney helped create more jobs in his private sector experience and more jobs as Governor of Massachusetts than President Obama has for the entire nation.” They’re brazen; they’ll keep repeating that without evidence. The most recent Gallup poll shows that 61 percent of voters say Romney would do a “good or very good job” with the economy if elected president. The CBS/New York Times poll released Monday showed Romney up over Obama by 3 points, with voters saying the economy was the most important issue to them. (The poll needs an asterisk because it’s following up with an earlier group of voters previously sampled, and only got in touch with two-thirds of them, which some analysts say could skew the results.)
But most voters haven’t tuned in to the presidential campaign yet. It’s important that Obama help those voters understand that Romney’s touted “experience” with the economy has more to do with job destruction than creation. The Obama ad features Romney saying, “I know why jobs come and why they go.” That last part is true. He certainly knows “why jobs go”: because guys like him make a fortune eliminating them.
I talked about the president’s new Bain Capital ad focus with Rep. Chaka Fattah on MSNBC’s “Politics Nation” with Rev. Al Sharpton:
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John Roberts’ Gilded Age SCOTUS
Jeffrey Toobin shows how the Citizens United ruling challenged a century of efforts to rein in corporate power
John Roberts (Credit: AP/Pablo Martinez Monsivais) The most important revelation in Jeffrey Toobin’s 10,000-word New Yorker piece on Chief Justice John Roberts’ takedown of campaign finance laws in the Citizens United case is the extent to which modern conservatism is trying to restore the Gilded Age. That was a time when corporations had more rights than individuals, when a conservative Supreme Court did its best to protect those corporate rights, and wealth and corruption ran unchecked. Of course, we live in a neo-Gilded Age, when income inequality is more pronounced than at any time since the Great Depression, and the Roberts court’s decisions in the Citizens United case helps bring us all the way back to those bad old days.
Continue Reading CloseYes, Mitt gets worse
Romney's chuckling non-apology for his prep school bullying shows his entitlement and lack of empathy
Mitt Romney (Credit: AP/Jae C. Hong) It’s not precisely the same as Gary Hart daring reporters to follow him, when faced with Donna Rice rumors back in 1988, and then getting caught in an affair. But when Ann Romney pointed to her husband’s fun-and-games prankster high school days to show us “the real Mitt,” she made those years even more interesting and relevant to political reporters, and potentially to voters. “I still look at him as the boy that I met in high school when he was playing all the jokes and really just being crazy, pretty crazy,” she told the CBS “Early Show” 10 days ago. “There’s a wild and crazy man in there.”
Continue Reading CloseMitt, the prep-school sadist
His attacks on gay students and disabled teachers reveal a preppy, entitled cruelty. Not remembering makes it worse
Mitt Romney in 1962 (inset) and Cranbrook Tower and Quadrangle
(Credit: AP/Wikipedia) (Updated below)
Last week we learned about President Obama’s first post-college romantic relationships. This week, we’re discovering details of Mitt Romney’s prep-school sadism. While I think we should tread carefully when examining the youthful experiences and mistakes of both presidential candidates, I thought Obama’s romantic past was fair game in Vanity Fair. I think the Washington Post’s well-reported feature on Young Mr. Romney’s entitled cruelty to gay classmates and a disabled teacher is even more revealing and important.
Continue Reading CloseA big day for civil rights
President Obama's gay marriage support carries political risk, but he had no moral choice
(Credit: Reuters/Yuri Gripas) >Make no mistake: President Obama’s decision to publicly endorse gay marriage carries serious political risk, though also moral reward. Every state gay-marriage ban referendum has passed, except one in Arizona that was rewritten and adopted on a second try. And in swing states, from North Carolina (which just banned both marriage and civil unions Tuesday) to Nevada to Virginia, the president’s stance could cost him votes.
The latest Gallup poll shows that public opinion has gotten a little cooler toward gay marriage in just the last year, though most Americans support it. The sad truth is, most Americans may back it, but those who oppose it have been far more motivated to cast votes based on their animus, so far anyway.
Continue Reading Close2012: Youngs vs. Olds
Can Republicans turn class warfare into generational warfare?
(Credit: Darryl BrooksKati Neudert via Shutterstock/Salon/Benjamin Wheelock) Does Mitt Romney have a prayer with young voters? As the media help him shake his Etch-A-Sketch and reposition himself for the general election, along comes a poll Republicans claim shows danger for President Obama and opportunity for Romney in one of the White House’s prized electoral targets, the youth vote.
A new survey by Harvard’s Institute of Politics shows that voters 18-24 are less engaged in this election than that age group was in 2008, with only 64 percent registered to vote, as opposed to 73 percent four years ago. Where two-thirds said they’d definitely vote in 2008, less than half say that today. “The president’s support among young voters is bleeding away,” Republican strategist Mark McKinnon claimed in the Daily Beast, using IOP data. When McKinnon hyped his piece Monday on MSNBC’s “Morning Joe,” Republican Joe Scarborough intoned that “the bull’s-eye is really on the back of the young voters,” who know that the “burden” of Social Security, Medicare and “the $17 trillion debt will fall on them.”
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