Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search
 

cali

(114,904 posts)
Fri Jul 11, 2014, 05:15 AM Jul 2014

Hillary Clinton's Inequality Rhetoric Is Weak

One of the lines I tripped over during Hillary Clinton’s riff on income inequality last week was her contention that “we have to have a … consensus on how to deal with this [issue].” The formulation struck me as a little strange—who thinks consensus is remotely possible on an issue as thorny as inequality? But I had other quibbles with what Clinton said and didn’t want to get bogged down on what might, after all, have been an innocent verbal misfire.

Then, earlier this week, the Times ran a detailed piece about the challenge Clinton faces in channeling the current populist mood without alienating her longtime Wall Street benefactors. Tucked away near the end of the piece was a nugget that brought that “consensus” line immediately back to mind. It came from a source who summarized Clinton’s message in her paid speeches as, “We’re all in this mess together,” the mess being taxes, financial regulation, and economic growth. Which is to say, there had been no verbal misfire. This is apparently how Clinton frames the discussion these days.

It is, to say the least, discouraging. The only other time I’ve heard people use words like “consensus” and “in this together” during conversations about financial regulation was while talking to Wall Street executives, whom I spent countless hours on the phone with in 2009 and 2010. Many would complain about Obama’s hostile rhetoric (like “fat-cat bankers”) and even more hostile policies (like the Volcker Rule) before positing an alternative approach. What was the approach? You guessed it: He should reassure the country we’re all in this together (I actual heard that phrase), get Wall Street on board with his proposals, and move forward from there.

Has Hillary picked up this line because she’s spent too much time in the company of well-heeled corporate types? It doesn’t take a conspiratorial mind to conclude as much. But let’s set aside the question of where she got it and sort out the fallacies that underlie it, the biggest being that it’s almost literally untrue. When it comes to inequality, the numbers show a tiny group of ultra-rich amassing a shockingly large and rapidly accelerating share of income and wealth. (To her credit, even Clinton has pointed this out elsewhere.) According to data collected by economists Emmanuel Saez and Thomas Piketty, the top 1 percent of earners in this country took home over 22 percent of the income in 2012, versus only 10 percent in 1980—that is, their share of income roughly doubled. The share for the top .1 percent of earners nearly quadrupled during the same period (from 3 to 11 percent); the share for the top .01 percent more than quintupled (from 1 to about 5.5 percent). By comparison, the share of income for the bottom 90 percent fell from 65 percent to just under 50.

<snip>

http://www.newrepublic.com/article/118632/hillary-clintons-inequality-rhetoric-insulting

I can hear the echoes of outrage over this article even before they've been expressed: The New Republic is right wing (it's not). Hillary will fight for economic justice. (what in her record indicates that?), etc.

19 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
 

obxhead

(8,434 posts)
3. The consensus is between her and her fat cat wall street friends
Fri Jul 11, 2014, 05:41 AM
Jul 2014

On how to continue and enhance the shifting of every penny and property into their portfolio.

I have an entire city to sell whoever thinks Hillary will fight for us.

joshcryer

(62,276 posts)
4. The metric will be if she comes out for raising the SS cap.
Fri Jul 11, 2014, 07:00 AM
Jul 2014

Obama was for it but Clinton was against it because it'd "hurt the middle class." Of course, at the time and even now, it'd only "hurt" the top 5% at most. So if she really wants to make it known where she stands on inequality, raising the SS cap would be the start.

dsc

(52,166 posts)
13. while I wouldn't use the words middle class
Fri Jul 11, 2014, 09:45 AM
Jul 2014

the central point of her critique is valid. SS, by definition, only applies to earned income and no one suggesting raising the cap is suggesting changing that fact. The vast majority of the truly wealthy became that way off of unearned income. If you want to tax the rich the better way to do that is to increase the number of brackets and to get rid of the carried interest loophole or just outright tax capital gains the same as earned income.

joshcryer

(62,276 posts)
16. It's not about taxing the rich, it's about saving SS.
Fri Jul 11, 2014, 12:27 PM
Jul 2014

Clinton used to argue that raising the cap would hurt the middle class when most people (95%) don't even make the kind of money that would be affected by raising the cap. Clinton was just wrong on that. If she comes out in favor of raising the cap, then she will show that she understands where 95% of Americans stand.

Obviously calling for a progressive tax schedule would also indicate a stronger stance on inequality, but "raising the cap" doesn't sound like "raising taxes" and she could rightly say "raising the cap only affects the top 5%." And you can't expect a running presidential candidate to argue for a progressive tax schedule (say, 90% on the top 1%).

90-percent

(6,829 posts)
8. Speaking of Economic Inequality
Fri Jul 11, 2014, 08:24 AM
Jul 2014

Wall Street and too big to fail banks have only gotten bigger and more powerful since the crash of 2008. I live in fear and loathing awaiting for the next "nobody could have predicted" bursting financial bubble.

The next collapse and requisite bailout of the elites by the taxpayers is not a question of if, but a question of when.

And one of the newest perverse financial constructs is to securitize rental income? Like a replay of the rampant mortgage fraud prior to 2008 that helped trigger the collapse!

He who smiles in a collapsed economic bubble has already lined up the taxpayers to bail them out, to abusively paraphrase the old saying. "He who smiles in a crisis has found someone to blame."

Hillary, and the entire Clinton family, You are either with Wall Street or you are with the bottom 99%. You cannot be both.



"It' incredible how stupid they're being economically." - Thom

-90% Jimmy

el_bryanto

(11,804 posts)
9. She is who she is
Fri Jul 11, 2014, 08:33 AM
Jul 2014

I do think she's too closely allied with wall street - I doubt she will regulate them even as much as Obama has. I think she has the wrong idea that Wall Street somehow produces the money that keeps the economy going and that without it functioning and providing that money everything will fall apart. And since Wall Street Professionals tell her they need to be under regulated or not regulated at all, that's what she does.

But in reality Wall Street is more like an energy grid - it's mission is to take capital that already exists and get it to where it can be most effective. Most of what Wall Street Professionals do is to siphon off as much capital as they can, which makes the whole system more and more inefficient. That's why they desperately need regulation, to ensure that capital gets where it should go without being diverted into wasteful or destructive channels (see for example the synthetic CDO).

This all assumes you support a continuation of capitalism, which some don't, of course.

Bryant

Baitball Blogger

(46,756 posts)
12. The problem with consensus is that the parameters of the consensus are limited to
Fri Jul 11, 2014, 09:34 AM
Jul 2014

the people who have a voice in the decision-making. Even when it appears to be a broad base of representatives, there are hundreds of ways to manipulate just who made it to the table. Once that number is determined, inducements can be used to get people to think your way, while the rest are relegated to minority status.

This is why trickle down will never work. The benefits that accrue from these discussions are being routed to the most greediest of people who don't have an altruistic bone in their body.

bigtree

(86,005 posts)
14. It's not only weak, it's been nothing less than dissembling lately
Fri Jul 11, 2014, 09:53 AM
Jul 2014

. . . I suspect that's because she's afraid of offending moneyed interests. I just cringe when I read her remarks on the subject. I don't think they're complete or well thought out, so, I'd perhaps like to hear more from her on this subject.

antigop

(12,778 posts)
15. she had to be "advised" to "address income inequality"?
Fri Jul 11, 2014, 10:17 AM
Jul 2014

According to Politico:

http://www.politico.com/story/2014/01/hillary-clinton-2016-shadow-campaign-101762.html

Page 2:
>>
She is working closely with clusters of aides on different policy initiatives — one involves child development, and Clinton is also being advised to address income inequality.
>>

Good grief.

She didn't even know that this needs addressing? She had to be advised to address it?

 

LittleBlue

(10,362 posts)
17. BS. We are not all in this mess together, Hillary
Fri Jul 11, 2014, 12:32 PM
Jul 2014

The 1% are not in any mess at all. They're getting richer. And their enablers are people named Clinton, Bush, Romney etc.

You and Bill are both worth over $100m. Don't pretend that you've experienced any form of economic hardship, or that there is some fantasy consensus.

 

betterdemsonly

(1,967 posts)
19. The New Republic is neocon/neoliberal dem central
Fri Jul 11, 2014, 02:06 PM
Jul 2014

so if they are worried it means Hillary is in bad trouble.

Latest Discussions»General Discussion»Hillary Clinton's Inequal...