Business and Wall Street Agree: Republicans Are Killing the Economy

income_inequality
In philosophy, the natural order is the moral source from which natural law derives its authority and encompasses natural relations of beings to one another, in the absence of law, which natural law attempts to reinforce. According to Republicans and their Koch brother masters, the natural order encompasses bestowing the entirety of America’s substantial wealth on the richest one percent at the expense of the rest of the population. Indeed, there is nothing that will ever convince Republicans that a nation of peasants existing to enrich the wealthy elite is inherently detrimental to the country or its economy. Now, after over five years of economists’ warnings, banks, Wall Street, and the preponderance of retailers have joined Democrats in calling for quick and complete implementation of President Obama’s economic policies to save America.

Although Republicans work tirelessly to perpetuate, and truly love, increasing the income inequality that is killing the economy, America’s retailers and bankers joined Democrats in agreeing the government must “constrict the abyss between America’s struggling 99 percent and the one percent.” According to recently released reports, both “Wall Street and Main Street (retailers) have endorsed the President’s economic principals to reduce inequality for the sake of the economy, and support Democrats as the solution to a robust economic revival.

Even though Republicans depict themselves as the party for business and banks, it turns out that the GOP’s economic policy is detrimental to their bottom lines and continued existence; particularly rising costs and stagnant wages since the Bush-Republican Great Recession. What both bankers and retailers really want instead of tax cuts, deregulation, and more Republican austerity and budget cuts are better incomes for all Americans that will lead to increased consumer confidence and greater purchasing power to trigger higher business profits. What they have learned after thirty years of “trickle-down” is that the trillions of dollars taken by the 1%, especially since 2009, have failed miserably to stimulate the economy. Instead, they demand more buying by the masses that Wall Street firms and analysis of 65 of the nation’s top retailers claim will only happen with, as President Obama preaches, growing the economy from the middle-out.

For example, in a report last month titled Inequality and Consumption, Morgan Stanley economists said, “Despite the roughly $25 trillion increase in wealth since the recovery from the financial crisis began, consumer spending remains anemic. Top income earners have benefited from wealth increases but middle and low income consumers continue facing structural liquidity constraints and unimpressive wage growth. To lift all boats, further increases in residential wealth and accelerating wage growth are needed.” Republicans completely disagree and either resist consideration of raising the minimum wage or promote abolishing it altogether. According to the Republicans, increasing income inequality must continue and it is crucial that they convince the population that no wage is too low. It is a belief the Koch brothers espouse but it is rapidly losing favor in circles whose survival depends on a population of consumers.

Standard and Poor’s (S&P) rating agency concurred with Morgan Stanley’s economists in their August report, How Increasing Income Inequality Is Dampening U.S. Economic Growth, And Possible Ways To Change The Tide, and strongly advised the federal government to create “a path toward more sustainable growth, that in our view, will pull more Americans out of poverty and bolster the purchasing power of the middle class. A rising tide lifts all boats…but a lifeboat carrying a few, surrounded by many treading water, risks capsizing.” To “lift all boats,” S&P suggests a “high degree of rebalancing” that includes increased “spending in the areas of education, health care, and infrastructure to help control the income gap that, at its current level, threatens the stability of an economy still struggling to recover.” Contrary to wisdom of real economists concerned with America’s economic survival, Republicans across the country have been laser-focused on their austerity crusade to cut spending on education, infrastructure, and healthcare including the cruel heartlessness of refusing free Medicaid expansion under the Affordable Care Act.

Despite the call from both banks and businesses to increase the minimum wage and spending on essentials for a robust recovery, congressional Republicans have obstructed and outright blocked each and every attempt by the President and Democrats to stimulate the economy. Despite trailing every developed nation on Earth in infrastructure, Republicans consistently refuse the President’s calls to increase spending on desperately-needed infrastructure repairs including roads, bridges, public buildings, and sewers that numerous economists, including some highly respected conservatives, say is crucial for job-creation, increased consumer spending, and a vibrant recovery. Increased consumer confidence, and spending, is something all economists agree is for the good of the country’s economy but can only happen if incomes rise for the majority with higher wages and more well-paying jobs.

In yet another report released earlier this month titled “Retailer Revelations: Why America’s Struggling Middle Class Has Businesses Scared,” retailers believe that declining and stagnant wages, not taxes or regulations, are damaging their businesses; 88% of all businesses said weak spending is imperiling their stock prices, and 68% said that consumers’ perpetually falling incomes is a direct threat to business profits and their companies’ survival.

One CEO Said, “Consistent with so many of our fellow retailers, we are experiencing a retail funk” because our “fortunes and the middle class are inherently linked. When family incomes fail to rise, when the cost of living increases, or when workers cannot find jobs, retailers’ sales decline.” It is why some retailers, such as Costco, bucked the trend and instead of cutting wages when Bush-Republicans crashed the economy, they increased wages at the outset of the recession and gave new workers a starting wage of $11.50 an hour; subsequently Costco’s stock prices have tripled since the 2009 recession.

As CEO Craig Jelinek said “people need to make a living wage with health benefits to both put more money into the economy and create a healthier country. It’s really that simple.” Contrary to Republican economic sophistry and to punctuate a point savvy economists and President Obama have made ad nauseum, when the middle-class has more income, they will spend and as spending increases, businesses create jobs and the economy will thrive.

It is an incredibly damning indictment of Republican economic policy when businesses, banks, and Wall Street, groups Republicans claim depend on their economic prowess to survive and thrive, openly call for implementation of economic policies championed for over five years by President Obama and Democrats. For dog’s sake, even the wording S&P, Wall Street giant Morgan Stanley, and most businesses used to plea for “growing the economy from the middle out” was lifted directly from any one of President Obama’s economic speeches pleading with congressional Republicans to pass legislation to create “a path toward more sustainable growth and pull more Americans out of poverty and bolster the purchasing power of the middle class. Instead, Republicans have went in the opposite direction to guarantee the wealthy got all of the “$25 trillion increase in wealth since the recovery from the financial crisis began,” and make sure the middle and low income consumers continue facing structural liquidity constraints and unimpressive wage growth” regardless the damage to private enterprise.

Even though the main stream media is never going to report that businesses, banks, and Wall Street have endorsed President Obama and Democrats’ economic policies, even if it is for their self-preservation, there is no reason Democrats running for office should stay silent. American voters have heard President Obama say things like “a rising tide lifts all boats,” “the income gap is threatening the stability of the economy,” and the nation desperately needs a “high degree of rebalancing, increases in residential wealth, and accelerated wage growth.” However, if they heard it from Wall Street, banks, and the business sector, it may finally sink in that a vote for Republicans is a vote to destroy America’s economy and by extension, their own well-being.

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60 Replies to “Business and Wall Street Agree: Republicans Are Killing the Economy”

  1. The last thing the uber-rich club wants is to share the pie or the power. They do not want new members, they want servants and ass kissers – in other words they want republicans.

  2. I bet everyone of those CEO’s and business owners are in the Chamber of Commerce who have aided and abetted the teahadist.

    In spite of all of that •The unemployment rate has fallen from a high of 10% during the downturn to 5.9% last month.
    •The federal deficit has fallen at the fastest rate since the period following World War II, falling from 9.8% of GDP in FY 2009 (Bush’s last budget) to 2.8% in FY 2014.
    •Since the President’s re-election, long term unemployment has fallen an average of over 20% per year.
    •10.3 million new private sector jobs since the beginning of the recovery, and the longest stretch of private sector job creation on record.
    http://www.thepeoplesview.net/main/2014/10/16/thanks-obama-us-job-security-highest-on-record

    But Chuck Todd will never say due to republicans obstructionism they are disqualified for office. I wonder why

  3. “Business and Wall Street Agree: Republicans Are Killing the Economy”

    That being said, it is going to be a treacherous ride if the GOPT wins the Senate.

    What are Americans thinking that vote GOPT?

  4. Both political parties are complicit with a model which allows corporations to have greater financial autonomy than rank and file citizens. Until the model (and the politicians) are changed, nothing else will.

  5. this is exactly what Pres. Obama said,, when he said wealth distribution. the economy cannot live without the base and the middle surviving and being successful.

    indeed, the 1% cannot live because income equality is central to their survival. While many of the 1% could lose their income today and survive for several hundred years, if the rest of the people do not survive(Financially), what is their money worth? Nothing.

    It is good to see that banks and others realize that there is more to life than the 1% that they themselves cater to. now the question is, will they buck the trend and start giving some other money to someone besides the Republicans. will they start giving money to small businesses and end the practice of forcing them out of business? If they understand that a successful society is required for their survival, what will they do about it?

  6. One way to convince the masses you care is to write an article about how much you care, this is total tea party hyper BS from both wall street and the big banks.

  7. One only has to look at Kansas to see what “trickle down” will do to this country if not stopped. Brownback has followed the Koch brothers formula for how to run government leading to their credit ratings being cut by two agencies.

    http://www.washingtonpost.com/blogs/govbeat/wp/2014/08/06/kansas-bond-rating-downgraded-after-tax-cuts/

    Even the European Union is having trouble with their austerity program. They have cut so much that their unemployment is twice what ours is and some of the countries are rebelling.

    It is about time that businesses and Wall Street wake up to the fact that destroying the middle class will only achieve one thing, another great depression.

  8. Yet many on Wall Street donate to the party. Why? Same for retailers, they speak out of both sides of their mouths

  9. U.S. patriot, mindset, 100% patriotic enters polling booth. Patriot comes out, wide eyed as if on an LSD-PCP trip. Lo and behold spots John Beohner and immediately drops to his knees. Beat me baby! Beat me! Please I beg of you. They jes’ love the Republican way. That’s true patriotism.

  10. We’ve allowed ourselves to be conned into believing that the economy is the problem of governance. Wrong. Infrastructure is the task of governance.

    They provide the infrastructure for citizens. Citizens then build their own economy.

    Demand better property managers in public office. Not stock brokers.

  11. I call BS!! If they all thought it was such a great idea why aren’t they applying it in their business’s?? Why don’t they start with themselves?? Why does it take a law to change what they know is right?? Why does a politician have to tell them to do something good for themselves!! I understand they can’t do anything about infrastructure repairs but what about the rest of it?? Seems like retail, banks, and most everyone in Wall Street are the only ones making bank, so why aren’t they making changes??

  12. It’s about time the truth comes out. What everyone has known for quite some time but are either to timid to say it, too brainwashed by Republican noise and Propaganda, and or paid off to keep quiet.
    But the records are there and they don’t lie. The media has to open this up too…complicit in the cover up? With so called experts BSing and blaming Democrats for stagnation, which is BS. So, let’s hear more stories like this.

  13. Of course they’ve all been in the Chamber of Commerce, 100% complicit in where we are right now. It’s really difficult to feel any sympathy for them if not for the fact that the rest of us are dying slowly of starvation. It’s a truly sad fact that it took this long and this point to make them sit up and say, whoa, hrm, maybeeeeeeee if the peons don’t have any money to spend, gee, that might actually hurt us!

    Case in point: I went to buy groceries yesterday. I detest milk, but occasionally I’ll buy a half gallon for cooking, etc., and usually throw half of it out because I can’t use it fast enough. I got to the register and it was almost $3 for a HALF gallon! I told the cashier, put it back. Forget it. I refuse. And heck, that was generic store brand.

    And yet, the morons will continue to vote for these bastards.

  14. Great comments, Thank you!
    As Eleanor Roosevelt said;
    “It’s better for everybody when it’s better for everybody”.

  15. “Brainwashed by Republican noise and Propaganda, and or paid off to keep quiet.”

    I take the 2 above, but not timid. They are not timid in the least, far from it.

    But the other 2? Yep..spot on.

  16. Now that the damage is done & the 1% own all the millions of foreclosed houses & we’re all renters, its time to start all over for the middle class, from nothing while the 1% enjoy that 25 trillion.

  17. Neither GOPTP politicians nor their supporters seem to understand that the major driver in a market economy is demand. Funneling income in an upward direction for over 30 years is now causing businesses major headaches. Companies cannot afford to stay in business with anemic demand. If the 99% don’t have a certain amount of disposable income, it’s impossible for them to support businesses. In times when the wages of the 99% stagnate, trade offs occur, and the first things to go are unnecessary purchases. As GOPTP politicians and their supporters starve the poor and the middle classes of much-needed income, they have no idea that they’re stifling American businesses and the economy. One of the CEOs said it best…”our fortunes and the middle class are inherently linked. When family incomes fail to rise, when the cost of living increases, or when workers cannot find jobs, retailers’ sales decline.” It’s basic economics and commonsense–one can’t spend what one doesn’t have.

  18. Why don’t the banks, retailers and the Wall Street take out full page adds in all the newspaper letting the people of the U.S. know their thinking? As my daddy use to say “You got to have money to spend money”!

  19. Sorry, Poor Americans, But You’re on Your Own

    New Jersey Governor Chris Christie, a man who looks like a deflating yoga ball, really, really doesn’t want to talk about the minimum wage. He didn’t want to do a thing about it last year when he vetoed a bill to raise the minimum wage, which the voters of New Jersey ended up hiking anyway by a landslide vote of 61% to 39%. He doesn’t want to now.

    – See more at: http://rudepundit.blogspot.com/?tw_p=twt#sthash.cv3JQR25.dpuf

  20. Unemployment is at 14%. Thus, 43 million people on food stamps. If you use the identical criteria used to calculate the 10% figure from 2009, you get 14%. Check the GAO (government accounting office) It’s accurate.

  21. Who benefits most? Politicians. They came to Washington with a lawyer’s salary. They are ALL now millionaires. They did not earn it like the “evil” rich did. They have taken it form us. (since our taxes are their only source of income)

  22. Agreed. If you are willing to work hard, make sacrifices and take risks you deserve to have more than somebody who doesn’t want to.

  23. They pour money into both campaigns because they don’t know the outcome and are hedging their bets. Like a hedge fund.

  24. Not all unemployed are on food stamps, and some employed are. Junior enlisted military are big users of SNAP, because their pay is so low.

    If America had a lick of sense, school lunches would be free. And done in-house.

  25. Don’t blame the rich. Blame the ones who can take your money. Your government. They are the thieves and they try to blame someone else. (the rich)

  26. Do you really want to settle for the bare minimum? You can make as much as you want. Take an entry level job with potential. Go to work. Give 110% every day. Get there early. Stay until the job is done. Apply yourself. No guarantees but you are now a valued employee. You will move up. Either at your current job or elsewhere. Thus, making a “minimum wage” irrelevant. Unless you are an under-achiever. Then, minimum wage might be right for you.

  27. Just like a libertarian. Get called out on your bullshit and then try to change the subject. Just like your buttboy Aqua Buddah you have no credibility. You want to live in a country with no government or taxes/ Take your ass to Somalia. They would love you to death over there. Just remember there is no government to protect your disingenuous ass

  28. You answered your own question. “It takes money to make money” You wan them to spend their money to give you free advice in a full page ad? No. You gotta pay. That’s how they make their money. Hire them and they will tell you exactly what they are thinking and make money for both you and them.

  29. No government is anarchy. Social Darwinism. Survival of the fittest. Big government is socialism. Today, our government is too big and moving toward socialism. I want less government. Efficient government.

  30. Hey I know they didn’t teach you economics in homeschool but the more money people have the more it helps the overall economy. And since they didn’t teach history either when the top tax rate was 90% the US had the greatest growth and expanded the middle class.

    America has been doing income taxes wrong for more than 50 years.

    All Americans, including the rich, would be better off if top tax rates went back to Eisenhower-era levels when the top federal income tax rate was 91 percent, according to a new working paper by Fabian Kindermann from the University of Bonn and Dirk Krueger from the University of Pennsylvania.
    http://papers.nber.org/tmp/99111-w20601.pdf

    It has some big words but I think you can handle it

  31. But what your dumbass failed to realize you are not one of them and will never be one of them that’s why you are on here making a fool of yourself

  32. If this is true then what is the purpose of the article? If this are fine and dandy as you suggest, what is the need for bashing Republicans?

  33. Laws of economics state that the price of a commodity is set by the market. The market is set by the laws of supply and demand. You can’t vote for lower prices. The market has to find its equilibrium.

  34. Because the teahadist have done everything in their power to hurt the middle class and the Chamber of commerce are their brothers in arms. Now when profits are down they want a do over while still funding the terrorist. That’s why they get bashed. WAKE THE F*CK UP

  35. Most foreclosed homes are taken up by entrepreneurs. Regular folks like you and me. These people have taken on the risk to rehab and renegotiate loans and resell for a profit. Banks don’t want to own property. It is a liability on their books. Learn something before you post BS.

  36. WTF are you talking about? You pay a living wage then your dumbass wont have to subsidize people with your tax dollars so they can live. I swear you people are a walking piece of bullshit. BTW you can Koch suck all you want but you will never be the 1% and they laugh at you because, next you will be their serfs

  37. When you speak I can see you setting on the koch lap and they are manipulating your mouth. Is that fun? Why dont you go back to Iran?

  38. How many miles on public roads do Walmart and Koch industries log each year?

    How many people does Walmart employee full time which still have to receive public assistance to just get by?

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