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Daschle's Demise Is Just the Beginning: Get Ready for a Torrent of Populist Outrage

By Frank Rich, The New York Times. Posted February 9, 2009.


Americans have had just about enough of watching insiders with the right connections living well off the rest of us.

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Someday historians may look back at Tom Daschle’s flameout as a minor one-car (and chauffeur) accident. But that will depend on whether or not it’s followed by a multi-vehicle pileup that still could come. Even as President Obama refreshingly took responsibility for having “screwed up,” it’s not clear that he fully understands the huge forces that hit his young administration last week.

The tsunami of populist rage coursing through America is bigger than Daschle’s overdue tax bill, bigger than John Thain’s trash can, bigger than any bailed-out C.E.O.’s bonus. It’s even bigger than the Obama phenomenon itself. It could maim the president’s best-laid plans and what remains of our economy if he doesn’t get in front of the mounting public anger.

Like nearly everyone else in Washington, Obama was blindsided by the savagery and speed of Daschle’s demise. Conventional wisdom had him surviving the storm. Such is the city’s culture that not a single Republican or Democratic senator called for his withdrawal until the morning of his exit. Membership in the exclusive Senate club, after all, has its privileges. Among Daschle’s more vocal defenders was Bob Dole, who had recruited him to Alston & Bird, the law and lobbying firm where Dole has served as “special counsel” when not otherwise cashing in on his own Senate years by serving as a pitchman for Pepsi and Viagra.

In New York, editorial pages on both ends of the political spectrum, The Wall Street Journal and The Times, called for Daschle to step down. But not The Washington Post. In a frank expression of the capital’s isolation from the country, it thought Daschle could still soldier on even though “ordinary Americans who pay their taxes may well wonder why Mr. Obama can’t find cabinet secretaries who do the same.”

As Jon Stewart might say, oh those pesky ordinary Americans!

In reality, Daschle’s tax shortfall, an apparently honest mistake, was only a red flag for the larger syndrome that much of Washington still doesn’t get. It was the source, not the amount, of his unreported income that did him in. The car and driver advertised his post-Senate immersion in the greedy bipartisan culture of entitlement and crony capitalism that both helped create our economic meltdown (on Wall Street) and failed to police it (in Washington). Daschle might well have been the best choice to lead health-care reform. But his honorable public record was instantly vaporized by tales of his cozy, lucrative relationships with the very companies he’d have to adjudicate as health czar.

Few articulate this ethical morass better than Obama, who has repeatedly vowed to “close the revolving door” between business and government and end our “two sets of standards, one for powerful people and one for ordinary folks.” But his tough new restrictions on lobbyists (already compromised by inexplicable exceptions) and porous plan for salary caps on bailed-out bankers are only a down payment on this promise, even if they are strictly enforced.


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Daschle was sabotaged by the NYT for a very specific reason:
Posted by: gunboat diplomat on Feb 9, 2009 12:55 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Daschle was axed by Senate Republicans working with the New York Times because he promised to push for radical health care changes, such as:

1) A nationalized public health insurance program.

2) Rapid approval of low-cost generic versions of patented drugs.

3) Revamping Medicare to focus on preventative health care and reimbursing doctors.

4) Reviewing Project Bioshield and the political manipulation of science at the CDC and other National Labs.

The New York Times has a Schering-Plough (pharma) CEO on the board, as well as a Carlyle Group director - it's no wonder they wanted to get rid of Daschle and sabotage any efforts to remake health care in the U.S. - it's just too profitable as it stands.

What the New York Times won't discuss is how major pharmaceutical corporations like Merck, GlaxoSmithKline, AstraZaneca and Schering-Plough avoid billions in taxes by setting up subsidiaries in the Cayman Islands - they'll go after Daschle for an obscure tax bill and demand his resignation, but not Big Pharma.

Can you imagine the NYT running a editorial arguing that companies that set up offshoring tax evasion schemes should be banned from getting any U.S. government contracts, for example? Of course not.

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» The Torpedoing of an Honorable Man Posted by: MausMasher54
Who?
Posted by: Revolutionary (Direct) Democracy on Feb 9, 2009 1:35 AM   
Current rating: 4    [1 = poor; 5 = excellent]
The world will little note nor long remember that Tom Daschle ever existed.

Widespread homelessness and starvation, though, now THERE'S some issues that are gonna breathe a new sense of urgency into the American public.


FREE AMERICA

REVOLUTIONARY (DIRECT) DEMOCRACY

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Who? Posted by: Beck
» RE: Who do you propose? Posted by: Edward George
Yeah, and the way America took down Geithner!!!
Posted by: Erik1968 on Feb 9, 2009 2:28 AM   
Current rating: 3    [1 = poor; 5 = excellent]
Can we return to reality? Daschle was probably just too liberal. Why else was he replaced by a hardcore conservative?

I LIVE in New Hampshire. Judd Gregg is about as "moderate" as a block of granite.

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» 'Scuse me? Posted by: BobKincaid
also
Posted by: Erik1968 on Feb 9, 2009 2:43 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Paul Volcker is supposed to RESCUE us somehow? How old were you in the 70's when Volcker purposely threw America into recession to break the unions?

From wikipedia:

"Volcker's Fed is widely credited with ending the United States' stagflation crisis of the 1970s. Inflation, which peaked at 13.5% in 1981, was successfully lowered to 3.2% by 1983.

The federal funds rate, which had averaged 11.2% in 1979, was raised by Volcker to a peak of 20% in June 1981. The prime rate rose to 21.5% in '81 as well. [[1]]

These changes in policy contributed to the significant recession the U.S. economy experienced in the early 1980s, which included the highest unemployment levels since the Great Depression. These conditions were predictable by Carter when he appointed Volcker, and these circumstances contributed, predictably, to the defeat of Carter. Volcker's Fed also elicited the strongest political attacks and most wide-spread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of the high interest rates on the construction and farming sectors, culminating in indebted farmers driving their tractors onto C Street NW and blockading the Eccles Building.[6]"

This is the populist hero?

Here's Christian Parenti on Volcker:

"So capital tries to attack labor in the Seventies. They try to drive down wages, but it doesn't work, and the ruling class is trying to figure out "well, why is this?" And there's no better illustration than this story: in 1969, General Electric, then the fourth largest employer in the country, one of the top blue chip firms, faced a strike against twelve unions that previusly hadn't gotten along, but they unite, in part driven by their young rank and file, a lot of then coming out of radical movements, coming out of Vietnam, they don't have deference for authority, they're not going to take no for an answer and they don't care. And so the leadership in the union realize they have to strike. They fight GE, they win this massive strike, and wages go up even though, at the same time, unemployment is going up nationally and there's supposively a recession going on. So the honchos at GE get together and they look at "well, what happened here?" and they realize the strikers were not only getting their strike benefits from the union, but they were collecting welfare thanks to a recent liberalization in federal law, and they had collected thirty million dollars in welfare. So from the point of view of general electric, this sort of move towards social democracy in the U.S. was basically state-funded class warfare against them. And so what they had to do to actually get the price of labor down was to destroy this social welfare system that was about containing and controlling the poor which was very much a response to the riots and all that stuff before in the thirties and then in the sixties.

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» continued Posted by: Erik1968
» RE: also Posted by: gimmie shelter
This is why people have stopped reading the Times.
Posted by: Perry Logan on Feb 9, 2009 3:02 AM   
Current rating: 5    [1 = poor; 5 = excellent]
One can instantly see why Mr. Rich's newspaper is dying...

The article posits a national outrage without citing a shred of evidence that the outrage exists. Doh!

As is typical of the right-controlled media, the author tries to spin his imaginary outrage as a bipartisan affair, conveniently forgetting which party just got thrown out on its ass.

This is the classic corporate-media strategy--pretending the two parties are essentially the same. if you can't make the Repubs look good, you can at least make the Democrats look bad.

Going Back in Time

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The Queen Speaks!
Posted by: Sparks56 on Feb 9, 2009 3:14 AM   
Current rating: 5    [1 = poor; 5 = excellent]
"Taxes are for little people." Leona Helmsley

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An apparently honest mistake?
Posted by: taxidriver on Feb 9, 2009 5:46 AM   
Current rating: 3    [1 = poor; 5 = excellent]
How can you accept a car and driver as a "gift," knowing that the favor is worth scores of thousands of dollars, and not know that you have to pay taxes?

Heck, I get $100 for writing a book review, and the magazine wants my SSAN to report my income so that it's taxable.

Daschle is an arrogant and dishonest boob--it's that simple.

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gimmie shelter
Posted by: gimmie shelter on Feb 9, 2009 6:05 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Almost everyone by now should be aware that the cards were always stacked against those not connected or in government. Most of these former politicians just ride out their lives living off of the favors they did while in power. Look at former Senator Stevens, does anyone really think this is merely an exception and not the rule. The exception came in the fact that he was prosecuted. They all say it was a favor from a friend or he only loaned it to me for 25 years, and they all seem to have lots of friends who like to give things, I'm sure all those who read this receive all kinds of gifts all the time. You mean you have never been loaned a private jet, oh well.
And why are almost all of them millionaires, some of them you would swear could not have graduated from H.S. and that's only by listening to them orate.This is a club and all those connected eventually take their turn at the public trough or the corporate helms, which really are one in the very same.

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» RE: gimmie shelter Posted by: samd11
More Repug smoke & Mirrors- Exxons Tax Evasion!?!
Posted by: Purple Girl on Feb 9, 2009 6:12 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I don't give a shit about Daschles rectified Tax problems, nor even about his hired Driver.
I do give a shit about the Repugs and their media Butt Buddies changing the subject away from th eFact the Repugs ran our country into th eground with an Illegal invasion, a Feudal Invasion and Corp Free for alls.
Don't tell me what I'm Pissed about- I see this BS 'Dems with Tax problems' as nothing more than trying to destract Americans away from thsoe who should be facing High crimes Prosecutions- not only for War crimes, Crimes Agaisnt Humanity but TREASON, Most notably Economic Teason.
What your next article will claim we are outraged by Solis' Husband $6,000 tax issue, when it is obvious the Repugs are scared shitless about a Pro labor Labor Sec! Their dirt diggers and Propagandists didn't even get their teeth into this BS claim until Weeks into her confimation hearings.
Besides if thisng keep going the way they have- far more of US will be cheering and supporting them because paying taxes will be at the bottom of our lists too- below our Groceries, our utilities, our mortgage payments. Consdering how the Repugs have Scammed Money out of US for 8 (30 yrs),and Ran up a needless deficit, I'm glad to hear people are refusing to pay their taxes!What was the Taxes paid by Exxon, allowing them to have a Record breaking Profit year of 45.2 Billion dollars- Now That Tax Evasion pisses me off far more than Daschles.

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» Lobbyist are People too Posted by: SeattlePackedSnowandCollidedCars
» RE: Lobbyist are People too Posted by: madmax427
» Exxon Steals your money Posted by: marid
» RE: Lobbyist are People too Posted by: veg4peace
Ordinary Americans
Posted by: adp3d on Feb 9, 2009 6:15 AM   
Current rating: 5    [1 = poor; 5 = excellent]
This ordinary American knows the that TARP program was an eleventh hour grab of treasury money by the Bush administration with no intention of helping out those who lost their homes, jobs, and retirement savings. The first thing these new jokers need to do is fully re-instate Glass-Stengel(or however its spelled). That would go a long way toward gaining confidence with us "ordinary people".

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» RE: Ordinary Americans Posted by: MyLeftFoot
» RE: Ordinary Americans Posted by: madmax427
» Abolish the Fed! Posted by: veg4peace
» RE: Ordinary Americans Posted by: fitzjohn
It wasn't republicans
Posted by: brer on Feb 9, 2009 6:24 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I'm a very liberal voter who called my Senator and asked him to vote against Daschel. We're sick of this stuff!

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Funny, no vetting of Republican appointments especially the biggest sellout Judd Gregg !
Posted by: jwverez on Feb 9, 2009 6:32 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I'll bet Judd Gregg has his share of hypocrisy but then again, as long as he or she sells the country out the most, they're "fine". When will Alternet post up on Judd Gregg and when will they stop promoting Newt Gingrich's advertizing crap ?

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The outrage exists.
Posted by: littlepitcher on Feb 9, 2009 7:48 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The unemployed are afraid to protest, for fear of being unemployed permanently.
The average citizen is afraid of losing his/her job.

In many neighborhoods of our nation, you will find a new variety of roofing on unforeclosed houses. It's blue and uses bricks, rocks, or concrete blocks for fasteners.

Sure 'nuff, it's a Big Blue TARP. It's the "vinyl ceiling" which will keep the working people suffering while the little green TARP dollars create a permanent deficit and eventual tax hike which will mortgage their low-paid futures, and which allows no opportunity of a bucket foreclosure or bankruptcy.

Geithner took money from the IMF to pay his overdue taxes, then spent it on rich men's tchotchkes, didn't pay the taxes, and is creating a tax liability for the rest of us.

Moses, where are you? Burn the Bush and its green TARP.

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A bit of naivete........
Posted by: Spiritgirl on Feb 9, 2009 8:02 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I have to admit, as much as I appreciate President Obama energizing this nation out of it's slumber of the past 30 years, I hate to say that it was naivete that led him to think that he could bring that same fresh air to Washington. Don't get me wrong, I do believe that he can with a big push from US!

You remember - "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

That means all of US must work (write letters, phone our "representatives", protest if we must), to force the change that we seek, both Democrats and Rethugnikans must understand not just our anger, but exactly how their behavior has contributed to it, and exactly what they need to start doing to regain the trust of the American people! The rich & Corporate in America has been well taken care of for the last 30 years enabled by laws and taxes that have favored their side for over 30 years, it is well past time that this stops! No one is angry at rich people for being rich - we're angry that they are getting richer at the expense and taxation of the rest of US!!! We're angry that people are getting laid off and thrown out of their homes, and these A$$holes are whining about pay caps, and Congressional Rethugnikans continued braying about more tax cuts!! WHAT PART OF THIS BULLS--- THAT HASN'T WORKED IN 30 YEARS, BUT LET US CONTINUE TO BEAT OUR HEADS INTO THE WALL - DON'T YOU ALL GET!!!

REPEAT AFTER ME: I'M MAD AS HELL, AND I'M TIRED OF THIS CRAP, WE AREN'T GOING TO TAKE IT ANYMORE!

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BAD TIMING
Posted by: VZEQICVA on Feb 9, 2009 8:10 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Daschle is simply no longer in style. Our frame of reference for everything has changed. $128,000 would buy many Americans out of the bind they're in. Five years ago Daschle would have gotten alot of attention, but he would not have had to drop out. We're tired of a different set of standards. Arrogance has run its course and politicians and lawmakers must realize that they will be treated like one of us, that is held to a higher standard. Individually we have no more clout than we ever had, but collectively the picture has changed. There will always be the privileged among us but the rules have changed. Thanks, ANNA

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» RE: BAD TIMING Posted by: HillbillyRob
Overhaul
Posted by: willymack on Feb 9, 2009 8:57 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The one bad apple in the barrel has ruined nearly all the others there. It's time to get rid of all the bad ones and replace them with GOOD ones. It's also time to name names and make it crystal-clear to the American people that REAL change is in the offing, and those who oppose it are the same roaches who screwed things up in the first place. A good start would be to scrap the "patriot" act, the military commissions act, and homeland security. It's time to restore Habeus Corpus, Posse Commitatus, the Sherman anti-trust Act, and the EPA. Finally, it's time to prosecute the bush criminals for their manifold crimes, and end once and for all, the nightmare of the past eight years.

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» RE: Overhaul Posted by: madmax427
» The barrel is rotten Posted by: gar1948
The Great Scams You Progressives Keep Falling For
Posted by: SeattlePackedSnowandCollidedCars on Feb 9, 2009 9:03 AM   
Current rating: 1    [1 = poor; 5 = excellent]
The Democrats are trying to build a Permanent Majority on the backs of the American people and the sad thing there are the willing Democrat voters that will let them do just that just for a "check?" These Democrats are not about helping people but only getting re-elected. Really, name me a Democrat that is a politician of "the people?" Dennis Kucinich as much as I totality disagree with his politics, his heart is in the right place. I'm keep saying "Democrat" becuase they are in charge in all three (House, Senate and W/H), plus Democrat have been mayors of Major Cities in America for decades. Most Americans don't have the time or care about the "inside baseball" as most in the blogsphere however they are going to want "Results" and will hold YOU accountable... will this be at the ballot box or on the streets!

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» Republican's an't in charge no mo Posted by: SeattlePackedSnowandCollidedCars
HALF the US economy is under the table
Posted by: billwald on Feb 9, 2009 10:10 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
ONLY the white collar people who work for the government and big companies DON'T cheat and only because there is little opportunity. The carpenters, electricians, plumbers . . . can work on the side if they so choose.

Several well known pols will get screwed and then everything will die down. The seriously rich people will continue to get seriously richer and that's life in the real world.

If Congress was serious they would demand that the IRS investigate everyone in and connected with Congress and the Cabinet. Fat chance of that!

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Don't knock "class hatred"
Posted by: tommy_slothrop on Feb 9, 2009 10:15 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The only reasonable response to privilege is resentment -- unless you believe that "meritocracy" crapp.

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ba
Posted by: mnstra on Feb 9, 2009 10:28 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I read that they threw eggs at their banks and govt.leaders in Iceland until they stepped downn.
Someone there also expanded that form of protest to using paint ball ammo as a form of protest that is more "effective"

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» If we try that here Posted by: marid
Rise of American Populism
Posted by: FREEDOM OF SPEECH on Feb 9, 2009 11:01 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
"tone deaf to this rage. Obama is not. "
Posted by: oregoncharles on Feb 9, 2009 11:21 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Just what we need in these hard times: humor.

Obama put droves of those same "entitled" people IN POWER. Does anyone actually think he did that because he disagrees with them? He isn't stupid.

So now he's going to go home and ride herd on his own appointees? I don't know what Rich is smoking, but I want some. I just listened to 4 Oregon state legislators explain what cutting 25% of the budget means, and I could use some happy juice.

Good piece, until he started smoking.

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gimmie shelter
Posted by: gimmie shelter on Feb 9, 2009 12:27 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
TIMELY WORDS
FOR BUYERS AND SELLERS IN 2009

Despite the poor economy that most of us are dealing with today, the megayacht industry will have its largest EVER year in 2009 with over 1,000 megayachts over 80' in length on order. The largest increase is in orders for boats in the 150-200' size range. All told, the orders would stretch 24 miles if laid end to end. It does seem a trifle - what's the word - 'bizarre' that there is a segment of the world's population that is doing so well.

For the rest of us who are engaged in the boating industry whether we are sellers, buyers, brokers, lenders or dealers the recreational boating market has declined 30% in the past three years. In a nutshell this means brokerage houses are more than ever educating their customers about the importance of real time values, dealers will be holding the line on floor plans and looking for new value added customer services, marine lenders are going to require higher credit scores and debt-to-income factors will come into play more than in the past. For sellers it means coming to grips with today's boat values. For buyers, it is a heyday.

This is real, can you stand it?

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» RE: gimmie shelter Posted by: gimmie shelter
» Can we buy mini Subs Posted by: marid
Is There An Award?
Posted by: Dixie Dawg on Feb 9, 2009 3:40 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Is there an award for the shrill voiced hysterical writer that we have all missed? Rich sounds like he graduated from the Ali Velshi school of Panicked Communicators. I guess today if you lack knowledge you double up on the bluster and BS.

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How about "mindful" class hatred?
Posted by: shinseiji on Feb 9, 2009 7:13 PM   
Current rating: 5    [1 = poor; 5 = excellent]
The more the merrier.

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It's what they leave out.
Posted by: Gregsdiary on Feb 10, 2009 11:06 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I read just the first page of this thing noticing that it only mentions Daschle's taxes--not the fact that he was receiving big money from insurance industry insiders in an area he was supposedly going to reform.

What's up with that? That's the real story.

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____
Posted by: itouch backup on Feb 11, 2009 1:29 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
______________________
itouch backup

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