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SENATE BLOCKS WAGE HIKE The Time for another Gooberhead Award pre- sented periodically to those in the news who have their tongues going 100 miles an hour...but forgot to put their brains in gear. Edited by Jim Hightower and Phillip Frazer Vol. 7 No. 4 April 2005 Today, I’ve got a whole gaggle of Goobers—all U.S. senators! These are the 49 Solons who recently voted to kill an increase in They want to fix it—just like you fix a dog America’s minimum wage, which has been stuck at $5.15 an hour since 1996. That comes out to about $10,500 a year for full-time Naming the names behind work! Try making ends meet on that, as millions of Americans now have to do. It’s a moral outrage that in the richest country in the the grab for Social Security history of the world, people working 40 hours a week, 52 weeks a year, receive hen George W says he’s the reins of the party’s national leadership with Barry poverty paychecks. This is going to “fix” our Social Goldwater’s 1964 run. Nothing that Bush is saying today why Democratic senators is new. Just as George is now doing, Goldwater painted offered an increase to Security system, I feel like a dog that’s just been told, a picture of a collapsing system 40 years ago, declaring $7.25 an hour. That’s about that “it is not actuarially sound” and contending that he $15,000 a year—hardly the “We’re taking you to the merely wanted “to make Social Life of Reilly, but better. vet to get Security solvent, to improve it.” “No,” shouted the 49 sen- you fixed.” Likewise, Ronnie Reagan called for ators, all Republicans. Whether it’s to dogs or to We the the same sort of privatization Gooberhead Mike Enzi got People,W George’s message is the approach now touted by Bush. “Can’t all ideological about it: same: This radical surgery is needed for we introduce voluntary features that “Wages do not cause sales,” would permit a citizen to do better on he intoned. “Sales are your own good. If, however, you suspect that something besides your welfare is really motivat- his own?” the Gipper asked. needed to provide wages. While politicians from Goldwater Wages do not cause revenue. ing him…you’re exactly right. to George have portrayed their Revenue drives wages.” Extremist, right-wing ideology and assault on the program in terms of Hey Mike, raise wages of the insatiable corporate grab for money “saving” it with a curative dose of working families and—and are the two forces behind Bush’s push not privatization, it’s really the very exis- guess what—sales go up in merely to neuter this enormously popular and effective tence of Social Security that sticks in local businesses. And cor- retirement program...but ultimately to kill it. As report- their craw. (In ’64, in a moment of porate revenues have been ed in last month’s Lowdown, step one is to portray candor about his real intentions, going up for years—so why Social Security as fatally flawed. The Goldwater said, “Perhaps Social haven’t wages? promised benefits are a “hoax,” the taxes Security should be abolished.”) These Goobers even paid into the trust fund are “wasted” Behind this campaign is the right- tried to use the minimum- rather than invested for maximum return, wing’s antigovernment dogma, wage bill to give more tax and “the so-called reserve fund…is no which has trumped the obvious need breaks to their corporate reserve at all.” to guarantee people a basic level of backers, cut the over-time Interestingly, these are quotes not from today’s retirement security. pay protections of workers, alarmist Bushites but from the lips of Alf Landon and These are laissez-faire extremists and ban states from raising the pages of his party’s platform when he who loathe the notion of anything the minimum wage for was the Republican candidate for presi- “public,” who cringe at the ethic of restaurant workers. dent way back in 1936! Note that the the “Common Good,” and who To be fair, though, the first Social Security check was not mailed despise any government program that senators aren’t entirely until 1937, so the ideologues and big- supports anything other than military against wage increases. money interests were predicting doom and and corporate interests. For them, They’ve raised their own pay gloom and trying to undermine the program America is not about a people unit- every year for the last five even before it started. ing to share society’s burdens and years—a total of $28,500. Indeed, dismantling Social Security to stretch the possibilities of indi- has been a central tenet of vidual achievement, but about peo- THE GREED OF the right wing for nearly ple watching out for themselves TELECOM GIANTS 70 years, and it’s been and being solely responsible for In case you have any an increasingly serious their own gains, unfettered by any doubt that corporations will goal of GOP presidential concern for the larger society. A politics since the hard- leading proselytizer for this self- —continued p. 2 core right made its grab for centered ethic of “everyone on 05-04 Lowdown_finaltest.qxd 3/18/05 5:33 PM Page 2

—continued from p. 1 April 2005 The Hightower Lowdown 2

always protect their private- your own” is Grover Norquist, a long- ment). In short, their goal is to can- of Social Security as a government profit interests at the time Washington lobbyist, bagman, cel the basic social contract struck program that would better be put in expense of the public inter- and strategist for the far right. He between ordinary workaday folks private hands, making individuals est, consider the stealth lob- says bluntly that he seeks to shrink and rapacious corporate power in responsible for their own retirement. bying campaign that giant government “to the size where I can FDR’s day and to return us to that Fifteen years later, Bush prac- phone companies and cable drag it into the bathroom and drown earlier, glorious age of the Robber ticed his privatization chops while providers are waging in it in the bathtub.” Barons, when citizens didn’t have a running for a West Texas congres- state legislatures. Because Social Security actually bunch of sissy laws, meddlesome sional seat, telling an audience at Local governments in works and is far more efficient than programs, and a safety net to the Midland Country Club that the cities from San Francisco to private pension annuities, it is espe- empower and strengthen them. program “will be bust in 10 years Philadelphia and in small cially galling to Norquist and his unless there are some changes.” towns from Spanish Fork, allies. Living in an ideological fanta- Enter George W Sound familiar? His “ideal solution” Utah, to Kurtztown, syland, they see the New Deal as All of this frothing at the mouth back in this 1978 race will also Pennsylvania, have launched the Great Evil that transformed by the right-ring fringe would merely sound familiar. He said that people programs to guarantee uni- Americans from mythic rugged indi- be silly—except that the fringe has should be “given the chance to versal high-speed internet vidualists to weakling drones now moved into Bush’s White invest the [Social Security] money access to their people and dependent on the federal govern- House and Tom DeLay’s Congress the way they feel.” small businesses. “We didn’t ment. Starting with Social Security, and is turning silly into policy. Jump ahead another 20 years to want to be a second-class these sprites of the right intend to George himself has long been a 1997, when George was governor of city,” says an official in make us Americans better people part of this journey from the wilder- Texas and prepping to run for presi- Spanish Fork. by freeing us from any traces of ness. He’s currently squawking like dent. For help in framing his mes- Good for them—enterpris- such dependency. a rooster choking on a peach pit sage on Social Security, he brought ing public leadership has “Social Security,” exclaims a top about the urgency of dealing with a in Jose Piñera, the architect of always helped America executive of the privatization-boost- looming “crisis” in Social Security, Chile’s ill-fated conversion to pri- advance. But now Verizon, ing think tank the Cato Institute, “is as though this issue suddenly has vate-market retirement, and Ed SBC, Comcast, and Bell the lynchpin of the welfare state.” appeared on his radar. But he’s been Crane, head of the Cato Institute South have unleashed their Government, such dogmatists con- nurturing privatization as a policy goal and a determined crusader for top- lobbyists to strong-arm state tend, has no business worrying from his days as a prep school brat. pling Social Security. They did not legislators all across the about things like people’s retire- In 1963, while a senior at Andover, have to do much selling to Boy country to make it illegal for ment—let the marketplace sort that he got a copy of Goldwater’s cam- George, who not only embraced local governments to provide out. If they can drive a spear paign manifesto, “Conscience of a their dogma but declared, “I do this essential service. through Social Security, they say, Conservative.” Apparently, this is a believe that privatizing Social Government has no business they can kill the whole beast (which book he actually read, taking to Security is the most important in their business, they say. is how they describe our govern- heart Goldwater’s pointed example issue facing the nation.” But city officials and con- sumer advocates point out that corporations have no interest in providing service Do something! in rural areas and lower- income neighborhoods and Don’t be lulled by positive polls into thinking that the get organized, and you can also plug into the efforts of charge fees that are usually beyond the reach of regular Bushites simply can’t pass their Social Security gut-job. local unions already at work on the issue. folks. If these aloof, faraway Their side is going all out to win it, and we all have to do Campaign for America’s Future (www.ourfuture.org or giants won’t provide the our part to stop them. The good news is that on this crucial 202-955-5665): This group has extensive, pointed, easy- service that everyone issue, our side is strong, organized, and on the move, to-understand information, plus action alerts and lists of needs, then the locals available to provide you with solid information and ideas activist groups. must...and will. for effective agitation. With their help, you can use your MoveOn (www.moveon.org ): This web-active pioneer To join the grassroots personal networks (church, family, coffee klatches, clubs, has timely information, action alerts, petitions, meet-ups, movement for universal etc.) and your own creativity to put together a grassroots and local contacts. access, contact Consumers effort right where you live. AARP (www.aarp.org or 888-OUR-AARP [687-2277]): The Union: www.hearusnow.org This is a time when it really is worthwhile to contact or 202-462-6262. largest organization of seniors, AARP is making the your congress critter, for even Republican members are defeat of Bush’s privatization plan its top priority and quite skittish about pushing a Wall Street boondoggle offers information, action, and local contacts. CORPORATE that their constituents strongly oppose. Call their district USAction (www.usaction.org or 202-624-1730): This grass- WELFARE offices and ask for an appointment to see your House and GONE BAD roots activist network has many state/local affiliates at work Senate members—go with two or three friends/col- on this issue and provides good materials and action tools. leagues if you’re nervous about going alone. The phone Would you loan $5 billion Economic Policy Institute (www.epinet.org or 202-775- numbers and addresses of your lawmakers are listed in of U.S. taxpayers’ money to 8810) and Center for Economic Policy and Research a British-owned company so the blue pages at the front of your phone book—look (www.cepr.org or 202-293-5380): These are two excellent that it can make a profit by under “Government Offices, United States, Congress,” or sources for research data and detailed analyses of all selling U.S. nuclear technol- you can locate their numbers at www.senate.gov and aspects of the issue. ogy to China, which in turn www.house.gov. is likely to copy that technol- Alliance for Retired Americans (www.retiredameri- ogy and become the world Here a few of the good-guy groups that can help you: cans.org or 202-974-8222): This group works closely with leader in manufacturing it? AFL-CIO (www.aflcio.org/socialsecurity): The national union retirees across the country and has good informa- If that sounds like a good labor federation has tool kits and materials to help you tion, materials, and local connections deal, then you’ve got a —continued on p. 3 05-04 Lowdown_finaltest.qxd 3/18/05 5:33 PM Page 5

June 2004 The Hightower Lowdown 5 —continued from p. 4 ing for the elderly.” Seven out of ten by anyone in the Bush Rhetoric V. Reality oppose shifting to private accounts administration.” Bush’s rhetoric on Social Security is, to say the least, truth-challenged. Here are if that means cutting the guaranteed The problem for political just a few examples: benefits of the present system. liars is that they don’t know Still, George is stamping his tiny when to stop.They keep pil- “By the year 2042, the entire system would be exhausted and bankrupt.” RHETORIC: feet and demanding that Congress ing it on until the lie becomes REALITY: Enough new taxes will be coming into the trust fund to pay up to 80% of simply must give Wall Street and the too extreme and too big to be promised benefits to everyone after 2042 and for the foreseeable future—and that ideologues what they want, even if true. Rumsfeld’s denial, for prediction is based on pessimistic assumptions. the people (damn them) don’t want example, was incredible RHETORIC: Social Security faces “a crises” (sic) that’s unprecedented. “In the year it. To try to swing some polls, the when he issued it, and now 2018, for the first time ever, Social Security will pay out more in benefits than the gov- front groups will spend tens of mil- we learn that it was patently ernment collects in payroll taxes.” REALITY: In 14 of the past 47 years, Social Security lions of dollars in the next few untrue—ie, a bald-faced lie paid more in benefits than it collected in taxes. Cashflow ebbs and flows. weeks on predictably deceptive TV issued for political purposes. RHETORIC: “As we fix Social Security, we also have the responsibility to make the ads. Bush, Cheney, and a gaggle of Rolling Stone magazine system a better deal for younger workers.” REALITY: Social Security earns 3% a year cabinet officers and White House recently unearthed an internal on the Treasury bonds it holds. The nonpartisan Congressional Budget Office calcu- staffers are presently barnstorming selective service memo that lates that Bush’s privatized accounts could deliver a 3.3% return. But even that across the country on a frenetic “60 details a meeting of two of measly .3% gain would be wiped out by the fees and administrative costs that Wall Cities in 60 Days” propaganda tour Rummie’s top aides early in Street will charge for handling the private accounts. Plus, the CBO did not factor in (the tab for which, by the way, 2003 specifically to debate, stock market risks—so the net result is more likely a loss for those who switch to they’re passing to us taxpayers). discuss, ponder, and other- Bush’s scheme. The problem for these proselytizers wise consider reinstating the RHETORIC: “The role of a president is to confront problems—not pass them on to a of privatization, however, is that the draft. Indeed, the head of the future president, future Congress, or future generation.” REALITY: Bush’s plan more people learn about the plan, selective service later testi- requires the government to borrow some $15 trillion to cover the cost of converting to the more they oppose it. fied before Congress that, private accounts, thus passing on to future generations a mountain of new debt. Folks are figuring out what following “consultations with RHETORIC: “I think it’s important for people to be open about the truth when it comes George’s proposal means: tossing senior Defense manpower to Social Security.” REALITY: Yeah right, George. out the guarantee of retirement officials,” the agency began security; slashing benefits and rais- preparing a plan to draft ing the retirement age; no spousal Americans who have special —continued from p. 4 lines), people have risen up to give a benefits or disability payments; skills that the military needs, resounding “No, uh-uh, forget it, go promised stock gains that are iffy at such as nurses and doctors. Dobson’s political book, Jarvis has away” to this scheme. Especially best (check the decline in your own A selective service official run an internet ad claiming that bad for George is that he now has 401(k)); and Wall Street fees and confides that “with some very AARP supports same-sex marriage. less support for privatization than he fraud that will devour any gains. slight tinkering, we could The USA Next ad features two men did before the White House’s propa- Many old folks recall that we tried change that skill to plumbers in tuxedos kissing each other and a ganda blitz. So far his campaign has privatized retirement in the past—it or linguists or electrical engi- banner headline declaring this “The included forcing the Social Security was called the Great Depression. neers or whatever the military REAL AARP Agenda.” Administration to tout George’s And some folks already know was short.” Yep, if you oppose privatization of agenda, creating a Social Security what privatizing retirement means, America’s retirement fund, you must “war room” in the Treasury because they’ve seen that future... be a gay-marriage backer! Jarvis Department, wheeling out the old and recoiled from it. JOBS DOWN, says his group will dump $10 million political hack Alan Greenspan to shill Nebraska, West Virginia, Montana, WALL STREET UP into such sleazy attacks, “revealing for the plan, exploiting a few Black Michigan, Ohio, and Florida have The headline said it all: areas where the AARP is out of Republicans as props for the false tried shifting their public employees “Weak U.S. job growth touch with a large number of their claim that Social Security is unfair to into do-it-yourself, private retire- boosts market.” members, including the issue of African Americans, and using the full ment accounts, but the efforts You see, when there’s bad marriage.” Never mind that the staid bully pulpit of presidential PR failed. Once the employees saw news on your street (the lack old AARP has never taken a position tricks—but to no avail. the plans, very few took the bait, of new jobs), there’s joy on on gay marriage, pro or con. It’s also encouraging that the and those that did generally ended Wall Street. As one market Truth will be no barrier to USA public is overwhelmingly rejecting up with lower benefits than they analyst explained, since the Next’s political campaign. Jarvis has the Bushites’ cynical appeal to self- would’ve gotten from the public economy is not spinning out even hired the same sleazeball ishness. To divide the opposition, system they left. enough new jobs even to hatchet men who were behind the George’s plan deliberately exempts keep up with the increase in infamous “Swift Boat Veterans for people 55 and older from any Failure in Chile and Britain the number of new workers Truth,” sliming John Kerry’s war change in their guaranteed benefits, Likewise, the rush to privatize entering the job market, record. Backed by funding from hoping to buy off these politically pensions in Chile, England, and “there’s not a lot of labor-cost Houston developer Bob Perry, the active people so they won’t object elsewhere has not ended happily pressure in the system.” Republican sugar daddy behind the to slashing the benefits of younger for retirees. In Chile, the govern- When economists use the Swift Boat ads, USA Next will soon workers. But as one Pennsylvania ment now has to pour billlions of term “labor cost,” they mean be smearing AARP on your TV. retiree put it, “We refuse to accept dollars annually into the private sys- you—or, more specifically, this concept of ‘you got yours, now tem, for it can’t provide enough your wages. By holding Surprise, George! back off.’ We built the system. We benefits to poor workers to assure down your wages, corpora- The ideologues, the corporations, believe it should be available to our even basic needs, and middle-class tions fatten their profits, the front groups, and the Bushites children and grandchildren.” retirees find that hidden fees in the stock prices rise, and Wall thought they had all of their ducks in The latest New York Times/CBS private accounts take as much as a Street’s high-rolling a row to ram privatization into law, poll confirms this strong expression third of the money they had put investors rejoice. Twisted as but they didn’t count on one thing: of support for the Common Good, into them, leaving retirees with far it is, this is actually the goal You! with four out of five people saying it less than they would’ve gotten of economic policy in the All across the country (and cut- is “the government’s responsibility under the public system. And ting across all party, racial, and age to provide a decent standard of liv- England’s 20-year run with its priva- —continued p. 6 05-04 Lowdown_finaltest.qxd 3/18/05 5:33 PM Page 3

April 2005 The Hightower Lowdown 3 —continued from p. 2 The push was too far out for serious consider- bright future at the Export- Import Bank. Because this Today’s push for those accounts ation,” says the author of the mani- is an actual loan approved has nothing to do with the pro- festo. “It needed vetting.” THE TRAGEDY OF by the geniuses at this gram’s long-term finances, as the Next came the political road map, BUSH SYNDROME bank—a bank that is sup- Bushites and most media pundits again from a little noticed document George W just can’t seem to tell the posed to help American tell us, and everything to do with prepared under the auspices of truth. Maybe it’s some sort of genetic companies increase their this relentless decades-long cam- Cato. Written in 1983, it laid out a flaw that compels him to fabricate, exports, ostensibly to create paign by antigovernment zealots to five-point strategy for creating a dissemble, twist, distort...lie. Call it: U.S. jobs.You can argue, as replace our public system with a pri- political environment that would Bush Syndrome, or BS. I have, that the Ex-Im Bank vate one. In a flash of refreshing give privatization a chance: Those nonexistent weapons of is mostly a corporate wel- frankness, Norquist says that Social (1) maintain constant criticism of mass destruction in Iraq are the most fare fund, financing projects Security should be privatized “not Social Security to influence the famous instance of BS, but we’re see- that giant corporations can because the system is going broke, media and to undermine public ing it break out again over Social and should finance them- but because it’s a lousy program.” confidence in the soundness of Security. First was his insistence that selves—but (excuse my From this corporate-backed, ideo- the program; the fund will soon “be bust”—au con- chauvinism here) the subsi- logical tower, they literally plotted (2) build a network of influential traire, as explained in last month’s dies at least should go to the demise of the public system, supporters of private accounts, Lowdown, the program is sound. American corporations. drawing up both the privatization including Wall Street brokers Now he’s trying to convince us that This deal looks like it policy they intended to implement who would profit from them; taking 4 cents of the 12.4 cents that qualifies, for the $5 billion and a long-term political plan for get- (3) divide and conquer the opposi- now goes into Social Security for every loan is to Westinghouse ting it done. tion by assuring retirees and dollar we earn in wages, and putting it Electric to build four huge These two documents are to those nearing retirement that in private Wall Street accounts, is a nuclear reactors in China. Social Security privatization what their benefits would be fully paid; safe and savvy move. As exhibit A, he But in 1998 BNFL, owned Paul Wolfowitz’s 1992 “Defense (4) enact laws creating 401(k)s and points to TSP, the Thrift Savings Plan, by the British government, Policy Guidance” memo is to the other private accounts so peo- which lets federal government work- bought this nuclear division Bushites’ mad scheme of unilateral, ple learn to accept them; and ers put some of their paychecks into of Westinghouse. So our pre-emptive military strikes on Iraq (5) have a privatization plan waiting private investment accounts. Calling and elsewhere. Cato’s documents tax dollars are protecting in the wings when a president TSP a model for his scheme, Bush the investment of Brits, and have received very little media atten- came along who was willing to says, “It’s time to extend the same tion, but they are key to understand- any profits from the deal go claim that Social Security’s security and choice and ownership to to them. ing today’s attack on our retirement trust fund faces a shortfall. young Americans” through Social program, for they put the lie to But wait, says the bank, Cato’s planners called for pro- Security privatization. George’s assertion that he’s merely some components will be tracted “guerrilla warfare” against the Only...it’s not the same thing at all. responding to a financial “crisis” in made in the good ol’ US of system and its supporters. “We must TSP is an add-on to Social Security for the system that suddenly has A, creating 5,000 American be prepared for a long campaign,” the federal employees, not a replacement. loomed on the horizon. jobs. OK, five billion dollars Cato document declared. “It could be Indeed, these workers have a “three- Indeed, the ideologues have been divided by 5,000 jobs is many years before the conditions are legged stool” for their retirement. They planning to privatize for the past what? A million dollars of such that a radical reform of Social get regular Social Security, a govern- quarter-century, making a constant our tax money to create Security is possible.” Then, amazingly, ment pension, and TSP. and concerted effort to move their each job! it cited a Communist as a political In Bush’s plan, however, the money radical idea from the fringes of our Meanwhile, BNFL will use guru: “As Lenin well knew, to be a for workers’ private accounts would nation’s public-policy discussion to our money to sell our tech- successful revolutionary, one must come out of their guaranteed Social the front burner. Their push began in nology to the Chinese gov- also be patient and consistently plan Security benefits. George would saw 1980 when Cato published a little- ernment, which intends to for real reform.” one leg off the retirement stool in the take over the manufacture of noticed, 600-page manifesto on pri- hope that the new Wall Street leg vatization. To give their wacky plan a the very components now Wall Street’s wallflowers would support a decent retirement. made here. If this makes patina of legitimacy, Cato convened And, because most people don’t have a 1980 Washington policy confer- Bush’s intention is not revolution sense to you, rush your but devolution, and the big bucks a third pension, Bush is leaving them resume to the export-import ence for staffers of conservative with, at best, a one-legged stool. congress critters. “I knew this idea —continued p. 4 bank today. CORPORATE The YES! I want to receive a full year of The Hightower Lowdown—12 AMERICA’S issues in all—for an unbelievably ridiculous, low, low price. EDITORS: Jim Hightower, Phillip Frazer CLUELESS GENIUSES COPY WIZ: Gwenda Blair ARTISTE: Matt Wuerker Send me one year of The Hightower Lowdown for just $15. (Seniors & DESKTOP: Sahu Barron CIRCULATION: John Ernst It’s hilarious to hear the for- students—$12.) 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—continued from p. 3 April 2005 The Hightower Lowdown 4 personal pay for being man- agerial “geniuses” who guid- that would flow out of Social Washington lobbying shop, followed Security would devolve not to “the Goldman Sachs $2,388,311 ed their corporations to the Chuck at AWRP. Max wears an addi- little guys” that George puts on con- tional hat these days as honcho of top... but have since tumbled Morgan Stanley $1,897,715 spicuous display at each stop of his the Coalition for the Modernization all the way down into the pub- Merrill Lynch $1,486,740 Privatization Propaganda Tour but to and Protection of America’s Social lic dock, accused of fraud, the big boys of Wall Street. Imagine: JP Morgan Chase & Co $1,479,683 Security, or COMPASS. (Who comes conspiracy, lying, and more. Every year, 118 million Americans UBS Americas $1,425,007 up with these names, and who do Bernie Ebbers, for exam- would be eligible to divert $1,000 they think they’re fooling?) The ple, engineered a series of MBNA Corp $1,137,988 each from Social Security into pri- national political director of the corporate takeovers in the vate accounts. And each year, Bush, Citigroup Inc. $1,336,418 BushCheney ’04 campaign is a paid 1990s that made WorldCom who once said, “We need to make American Bankers Assn $1,370,487 consultant to this umbrella group, a multibillion-dollar giant the pie higher,” would be creating a created by AWRS and funded by the and rewarded himself with Bank of America $1,272,973 $118 billion pie that he would pass usual corporate suspects. Currently the extremely good life of Wachovia Corp $1,191,353 into the hands of stockbrokers, bond COMPASS is working with the CEO stardom. He was a houses, mutual funds, insurance Credit Suisse First Boston $ 955,587 White House to run an outside-the- darling of Wall Street, which hucksters, and the like, all of them beltway PR campaign hoping to called him a genius. AFLAC $ 921,072 grasping for ever-expanding fees, juice up public support for privatiza- Alas, WorldCom soon Lehman Brothers $ 734,103 commissions, and other extra slices. tion. Max’s two front groups expect became the largest corpo- OK, not everyone will participate, but Bear Stearns $ 712,302 to spend some $150 million in this rate bankruptcy in history, Wall Street is drooling at the year’s effort. and Bernie has been found Source: Center for Responsive Politics www.opensecrets.org prospect that many millions of peo- USA Next: This is the rabid attack guilty of orchestrating the ple will be enticed into the game. A America, Freedom Works, and dog of the loopy right, originally cre- $11 billion fraud that sank Merrill Lynch survey estimates that Alliance for Retirement Prosperity. ated in 1991 by archconservative it. The company’s former at least $70 billion a year would flow Corporate interests fund these direct-mail guru Richard Viguerie as chief accountant said Bernie from the public pool into stocks and facades, which are run by a small, just USA, for United Seniors ordered him to falsify finan- bonds. Think of the endless array of closely knit group of political Association. This paper organiza- cial records. fees now imposed by your bank, activists and old GOP warhorses tion’s job was to bombard the elder- But wait, Bernie said as credit card firm, and phone company, who’ve long been involved in “Astro ly with fund-raising mail solicitations he faced 25 years in prison, and you can imagine the money that Turf” lobbying for various ultra-right and to pose as a seniors’ organiza- not only am I innocent, but I these financial outfits will rake off. causes. A couple of the biggest and tion in right-wing opposition to the knew absolutely nothing Yet despite being the big winners noisiest in this fight are: 55-million-member AARP. While about finances and stuff. if George passes his plan, Wall Viguerie’s group claimed to be a Even though he was the top Street is being remarkably shy Alliance for Worker Retirement network of a million senior activists, boss known for demanding about publicly supporting it. When Security (AWRS): Beware of any it has reported no income from “all the details” about the Los Angeles Times recently advocacy group that has “worker” membership dues. It doesn’t need WorldCom affairs, he pro- called the big names of the finance in its name...but no workers in its them, for it received an “unrestrict- fessed that he was “shocked” industry for a comment, not one group. This outfit, created by the ed educational grant” of some $14 to learn about that little $11 would go on record for privatiza- National Association of Manufacturers million in 2002 from the drug giants billion hickey in the books. “I tion—not even Bush buddy Charles in 1998 solely to lobby for privatiz- to run political ads backing the put those people in place,” Schwab, who had previously been a ing the public retirement system, industry’s prescription-drug bill. It he moaned, “I trusted them. particularly vocal advocate for the has about 40 members, including also took oil money to back Bush’s I just had no earthly idea private accounts, which would be a the American Bankers Association, effort to open the Arctic Wildlife that anything like that would windfall for him. Business Roundtable (the CEOs of Refuge to drilling. have occurred.” Their public reticence, however, America’s 200 largest corporations), Tainted as a mercenary for any is a calculated ploy. “They don’t Paine Webber, Charles Schwab, corporate-backed GOP policy, this UNCLE SAM want to appear to be licking their Securities Industry Association front group changed its name in WANTS YOU chops too much,” observes a New (Wall Street’s official lobbying February, reincarnating itself as USA York University business professor. group), U.S. Chamber of Is it just me, or do you Next—but it’s the same old nasty But these financial powers never Commerce, and Wachovia Bank. feel a draft? piece of work. Armed with a reported have to shout to be heard loud and AWRS was a spawn of Cato’s ide- In last year’s presidential $28 million in corporate funds, Next clear inside Washington. Their cam- ologues and is tightly wired into the run, young voters were is now snarling and snapping at paign contributions and cadre of White House. Its first director was wary that Bush & Co. was opponents of Social Security privati- hired lobbyists make them the ulti- Leanne Abdnor—a former Cato vice quietly preparing for a mili- zation, initially going after AARP for mate inside players. They already president, a member of George W’s tary draft. The concern was blocking Bush’s plan. “They are the have the attentive ear of the hokey 2001 “national commission” spreading so quickly that boulder in the middle of the high- Bushites, having bought it in 2004— on Social Security, and now head of George himself was rushed way,” said USA Next president the list below of top corporate the PR group called For Our out to denounce what he Charlie Jarvis. “We will be the dyna- donors to Bush and the GOP Grandchildren (which in turn is called “rumors on the inter- mite that removes them.” Congress in last year’s election stacked with such Republican opera- nets,” and he flatly declared: Jarvis, a former Reagan official, reads like a Who’s Who of Wall tives as Grover Norquist). Her suc- “We’re not going to have a had previously been a top dog at Street brokers. cessor was Chuck Blahous, a corpo- draft—period.” Donnie Focus on the Family, the far-right While Wall Streeters aren’t out rate lobbyist who also sat on Bush’s Rumsfeld went even farther, religious group run by James front, they are diligently working the Social Security commission. He offering this absolute state- Dobson, notorious as a demonizer back streets. They presently are served so faithfully that George then ment: “The idea of reinstat- of Democrats and as the wacky financing a grab bag of more than moved him into the White House, ing the draft has never been cleric who recently claimed that the 20 right-wing front groups to do where he’s now a top presidential debated, endorsed, dis- children’s cartoon character their dirty work on Social Security. assistant and is in charge of—what cussed, theorized, pon- SpongeBob SquarePants is gay. These tend to have nonthreatening, else?—Social Security policy. dered, or even whispered Apparently taking a page from even sweet-sounding names, like Derrick Max, who previously —continued p. 5 For Our Grandchildren, Progress for worked at NAM and later ran Cato’s —continued p. 5 05-04 Lowdown_finaltest.qxd 3/18/05 5:33 PM Page 6

—continued from p. 5 April 2005 The Hightower Lowdown 6 U.S. today. Another market tized system has produced fraudu- analyst explained that lent brokers, exorbitant fees, tax- CODE-RED GOBBLEDEGOOK January’s lack of job payer bailouts, and the harsh reality If you’re confused by the complexity of Bush’s privatization plan, why not go to growth has created the that at least 75% of those with pri- the horse’s mouth for clarification? In February, as part of his road show to sell his perfect economic environ- vate accounts will not have enough scheme, George held one of his “conversations” with the public in Tampa. A woman ment: “It really is the sweet in them at retirement time for there asked him how his plan would solve the long-term “red problem,” referring to spot,” he gushed. “adequate pensions.” Bush’s claim that, as of 2018, Social Security would sink into a pool of red ink. Unless, of course, you True conservatives, including It was meant to be a softball question. Here’s George’s explanation: need a job or are struggling many corporate CEOs, go slack- “Because the—all which is on the table begins to address the big cost drivers. to make ends meet on stag- jawed when they learn that the real For example, how benefits are calculate, for example, is on the table; whether or not nant wages, which includes cost of converting to Bush’s private benefits rise based upon wage increases or price increases. There’s a series of most people. Nearly 8 mil- accounts will be $15 trillion over parts of the formula that are being considered. And when you couple that, those lion Americans were offi- the next 40 years—a nuclear explo- different cost drivers, affecting those—changing those with personal accounts— cially unemployed in sion in federal debt that will sock it the idea is to get what has been promised more likely to be, or closer delivered to, January, and on average to young people (the very ones what has been promised. they had been out of work Bush claims to want to help), force “Does that make sense to you? It’s kind of muddled. Look, there’s a series of for nearly 20 weeks. interest rates up, and threaten the things that cause the – like, for example, benefits are calculated based upon the Meanwhile, on the same stability of the dollar. Essentially increase of wages, as opposed to the increase of prices. Some have suggested news day, we got word that these trillions would be spent on that we calculate—the benefits will rise based upon inflation, as opposed to while CEOs were being benefits owed to retired workers, wage increases. There is a reform that would help solve the red if that were put stingy with wages, they while the trust fund is collecting a into effect. In other words, how fast benefits grow, how fast the promised benefits were going on a wild spend- third less in taxes from present-day grow, if those—if that growth is affected, it will help on the red.” ing binge in another area: workers, since that portion would mergers. Billions of dollars be going into Bush’s private stock- most obvious and most effective ing what is now a regressive tax are being thrown into shaky brokered accounts. reform would be simply to remove into one that’s progressive while takeover deals, such as When a price tag reaches 15 fol- the plutocratic cap arbitrarily also pumping new grassroots SBC swallowing AT&T, lowed by 12 zeros, you’re talking placed on income subject to retire- spending into the economy. Procter & Gamble grabbing real money, and even corporate ment taxes. Actually, the Bushites might Gillette, and Verizon picking chieftains can recognize that a due At present, Social Security taxes have done us a favor by making this off Qwest. bill of that size means that money affect only the first $90,000 of a greedheaded and ideological lunge Every one of these merg- won’t be available down the road for person’s wages. The vast majority for our Social Security money. First, ers will result in thousands things America will need, including of us make less than that, so every their audacious move has solidified of jobs being cut, assuring things on the corporate wish list. penny of our yearly income is taxed. and energized progressive forces to that “labor-cost pressure” But the likes of Bill Gates, Donnie fight against it. Second, it rips away will stay weak. Solutions Trump—or, hey, George W—make the “compassionate conservative” Then there’s the infuriating reali- way more than $90,000. The cap and “family values” masks that SMOKERS WILL ty that Bush & Company are delib- gives them a “wealth exemption,” Bush has been wearing. Third, it BE FIRED erately and cynically ringing a false letting them hide away the bulk of opens up the big debate about alarm, proposing an extremist dis- their salaries, bonuses, stock what kind of country we want More and more bosses mantling of a successful public pro- options, and other pay. Remove that America to be. Will we be an I-got- are insisting that they have gram that needs only fine tuning to wage cap, and the retirement sys- mine, you’re-on-your-own society, the right to monitor and reg- continue delivering retirement tem is flush. If you applied the tax or a nation of people who continue ulate the activities of security for every American for not merely to wages but also to the striving for America’s egalitarian employees off the job, even generations to come. There are stock payouts, currency speculation, ideal of the Common Good. perfectly legal activities. numerous small steps, such as and other unearned income of the This is more than a fight over Howard Weyers is one such raising the minimum wage to a liv- superrich, then America’s lower- our retirement (as big as that is). boss. He’s honcho of Weyco, ing wage level, which would mean income folks (say, less than It’s a fight for America’s democratic an insurance management more Social Security tax money $30,000 a year) could have their soul. It’s also a fight we can—and corporation in Michigan. flowing into the system. But the Social Security taxes lowered, turn- must—win. Howard doesn’t like smok- ers, so he has instituted an MOVING? MISSED AN ISSUE? anti-smoking policy. www.hightowerlowdown.com Please call or write us at: Fine...except that Weyers’ The Hightower Lowdown policy outlaws smoking off P.O. Box 20596 New York, NY 10011 the job as well as on. He has [email protected] imposed random, mandatory Subscribers’ toll-free breathalyzer tests on his 200 number: (866) 271-4900 employees. Fail once—and you’re fired. “You work for 7:4 April 2005 me,”Weyer says, “this is THE NAMES BEHIND what I expect.” THE GRAB FOR If Weyer can be the no- SOCIAL SECURITY smoking dictator, other boss- 1 Senate blocks wage hike

es can dictate that employ- Telecom greed New York, NY York, New

e ok Y10011 NY York, New 2 Corporate welfare gone bad

ees can’t have a beer after at Paid Postage

3 Clueless CEOs P.O. Box 20596 Box P.O. work, must go to a particular CLASS

4 Uncle Sam wants you PERIODICALS kind of church on Sunday, or Lowdown Hightower The can’t have a Democratic 5 Jobs down, Wall St. up bumper sticker on their cars. 6 Smokers will be fired