Friday, February 24, 2012

Is Obama a Communist?

Tony, I hate to disappoint. I have just reread this long string and I know this will raise feelings of both disappointment and frustration, and will undoubtedly infuriate you and others who posted here, but I do not think Obama is a Socialist or a Marxist or a Communist. With respect to you my friend, the suggestion at least to me is sort of preposterous. Some of us on the left actually feel that the president has been far too timid in fact.


And let me state clearly that I am not anti-business. I have been in business for my whole life and over the years have done quite a bit of it with the people down there in NW Arkansas. Walton was in my opinion a brilliant guy. Over the years his company has done much damage to small businesses and small towns themselves, but I do not see the big W, where Hillary Clinton once sat on the board of directors,  as some combination of child labor camp overseers and punitive robber barons. Many of the regional retailers that Sam competed with and eventually drove from the market were too sleepy and complacent for their own good. All of them, I am sure, would have followed the same path and developed the same business model if they were smart enough and visionary enough to have done so.


That being said there are many areas of concern and this is where government and the press has a role to play.  Conditions in some factories are and were atrocious. There has been more than adequate reporting on that. Business people of all stripes without regulation look to cut corners and increase profits. That is their reason to exist. Increased profits mean more opportunities for workers, more wealth for shareholders, and a better standard of living, both for consumers who have benefited from the low cost of good as well as the workers, especially in China which is where I have a lot of experience.  


There can be little doubt that the standard of living in China has benefited greatly in the past 20 years, and that some of that has come at the expense of American workers. But there also is little doubt that were it not for China some other low cost country would have developed the manufacturing base to meet the needs of a worldwide market in search of low cost consumer goods. The idea that America would continue to make 90% of all the manufactured goods in the world while two countries with a billion people were each waking from decades, centuries really, of feudal oversight is patently absurd. Through better education and investment—government and private-- America needs to pivot its manufacturing base to new technologies where it has a tremendous capacity to lead, not try to recreate something that is long gone.  In my view both the left and right have the argument about half wrong on that.


That does not make the argument for better working conditions in those factories any less powerful. I have been in dozens of factories in China and have seen the good and the bad. I have worked with many, many  Chinese business people, and I like a lot of the people I have met.  A lot. Many with their kids and their school woes and so forth have so often reminded me of the commonality of aspirations for people everywhere. I have heard their stories, but also seen their recognition that the cost of business is improvement conditions and worker safety. These are not American wages of course, but in their country and their culture they provide food and other non-essentials and the country has been transformed. There is an increasingly large middle class who no longer survive from meal to meal, and so look and seek from their government and business leaders cleaner government. There is growing environmental movement in China. Here the right considers environmental regulation some sort of commie plot. What would you call those in Communist China who advocate for similar goals. There is still much corruption, and the human rights record is still stuck in many ways in feudal times, but there is an increasingly vocal and active press.


Progress has been too slow, and the media spot light is as important as ever in bringing the truth to the world. Millions of yuppies are poorly informed about the troubling conditions in the Foxconn factories where their iPods and X-Boxes are built. That being said those who think protectionist measures or currency controls are going to bring back the days when Mattel made most of their toys in the US or most of the shoes in America were made in factories in New England are sadly mistaken. There is little doubt the Chinese are holding the value of their currency down to maintain the astonishing levels of exports. And there is little doubt that some factories are not doing the right thing by the workers in those factories, but I know from experience the efforts of many good people to address those concerns both here in the US at the companies and outside organizations, and in China and other manufacturing countries. Ironically, the free market, and as importantly a free press, have done much to benefit the efforts for improvement. Whatever the right says WM competes in the free market and people who believe their consumer goods are produced in factories with slave conditions will quickly go elsewhere.


So, no I do not hate business, big or small. And no I do not think our President is a Marxist, Socialist, Commie whatever. But I do think over these past twenty years the country has seen carnival of de-regulation and tax policy that has greatly tilted the playing table. The middle class and the working poor (notice I said working) have gotten screwed and are coming up short as a result, really short.  Meanwhile, conservatives act as if millions are happy to live off the dole. Unemployment before Bush got hold of the economy was 4%. Does Gingrich really believe that all those people who worked when jobs were available really want to live off food stamps? Do you?  


Obama has tried to do some things and I recognize the right sees most of those efforts as something verging on revolutionary class warfare. But the rich get richer and the gaps between them and the rest of the country grows at a staggering pace. If there is a war between classes I’m hard pressed to suggest the rich aren’t doing really well at it. Far from reigning in Wall Street, bonuses and other compensation are back to all-time highs and there can be little doubt Obama will raise hundreds of millions there for his reelection bid this fall. Rhetoric is one thing, but lots of people on the Street do not see Obama has the enemy. I’m sure you’re aware that Obama has up until a month or so ago raised more money on Wall Street then the entire Republican field combined.


I hold the river boat gamblers down on Wall Street and the government regulators who looked the other way whole they mortgaged and the country’s entire financial future directly responsible for the calamity of 2008. As with the elements in the US Government that approved and sustained  torture and rendition policies totally contrary to our laws I believe there should have been prosecutions. In both cases   Obama chose to let sleeping dogs lie. I did not agree, but the right responds as if to some alternate history.  


Still, I have heard what you have been saying. The disconnect between the perceptions of right and left is deeply troubling. I worry for my country, and the bitter dialogue that now envelops us all. Not because we are going Socialist or because Capitalism is the root of all evil, but because the opportunity for reconciliation and compromise and real solutions to real problems seems nearly impossible. I write about that in the blog today. I hear you, brother, but I suppose I will have to disappoint.

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