The Elites Are Unanimous: Lower Everyone's Wages and Standard of Living -- Except They Don't Say it Out Loud
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But Obama, if re-elected, will certainly not have a greater congressional majority than he had in 2009. Moreover, given the massive campaign contributions he will have had to raise fromWall Street and the rest of Corporate America, the elite investor class will play an even more influential role in his victory. Add in the bipartisan commitment to budget austerity, and chances of a significant progressive shift in Washington’s economic policies over the next presidential term become virtually zero.
The mantra of both candidates is, “Jobs, jobs, jobs.” What they leave out is that, because they are unwilling to confront the power of Wall Street and the Pentagon, job growth in America now depends on driving labor costs lower loser and lower to attract business investment. This is the heart of the leveraged-buy out system that Romney offers to bring to the White House. And when Barack Obama cites an expanded GE plant in Kentucky as an example of the rebound of private sector jobs, the press release does not mention that workers who used to make $22 an hour are now making $14.
None of this is a secret to most of our governing class. Certainly, the CEOs and their major shareholders know it. Their economists know it. So do all but the most hopelessly ideological of policymakers. But acknowledging where future living standards are heading would require our political leaders to offer remedies that are unacceptable to Wall Street and the military-industrial complex. Safer not to look into the economic abyss and trust in good old American optimism.
Neither does the public want to stare too hard into the future. Majorities think that the next generation is going to be worse off, but they expect that they, personally, and their kids will be okay. So, while they might agree with the points made by the Wall Street Occupiers, it’s not worth the effort to join the protest. A PEW poll last fall reported that by a margin of 63-21 Americans believed that, “although there may be bad times every now and then, America will always continue to be prosperous and make economic progress.”
The American writer James Baldwin wrote, “Not everything that is faced can be changed, but nothing can be changed until it is faced.” Until Americans face that they and their kids will not be okay, and that their own personal future depends on their ability to find leaders to willing to act on that reality, the implicit Washington grand bargain will remain in force. And we will continue on the road toward lower wages, falling living standards and blasted hopes.