12.11.11: Bain Capital Moments

It's very attractive to Americans, the notion of this country being more neutral and withdrawn when it comes to foreign policy, particularly in the Middle East specifically with the Israelis and the Palestinians as Congressman Ron Paul would like. There is some wisdom there in his notions on foreign policy. However, with many of Ron Paul's ideas, they do not address the practicality of the situation. For a multitude of reasons, both practical and political, the United States can not withdrawal from the conflict between the Israelis and the Palestinians such as the aid that we give and the lobbyists who fight for it to security on the ground meaning our presence in the region as a strategic deterrent to Iran. On the question of whether we should reduce on military presence around the world, we would agree with the Congressman, as we've stated before, but that's as far as it goes.

Congressman Paul not only wants an isolationist government in regard to foreign policy but also on domestic policy with the elimination of agencies such as education, energy, and the EPA. His overall proposition does play well with a devoted following but in a general election, how well does he do? Not very well.

Yet, there is something to be said for consistent positions. Six months ago we agreed and disagreed respectively with the same positions held by Congressman Paul's as we do today. This is unlike, as Mr. Paul accurately pointed out, Governor Mitt Romney and former Speaker of the House Newt Gingrich who Ron Paul characterized as being from the same mold in terms of policy and the inconsistency of their respective positions. It's all in the nuance for these two.

There's an evident callousness on the part of both men for those who have less. On the part of Mr. Gingrich who believes that it's a good idea to put children in inner-city schools to work as the janitors of those schools, or when he said that the Palestinians were essentially an invented people. In the case of Mr. Romney, the $10,000 bet he attempted to make with Rick Perry during the debate last night. In fact, in the case of Mitt Romney, we'll call that a Bain Capital Moment. These moments are the reason, beside sadly his religious faith, that Republican primary voters have a distaste for the former Massachusetts Governor.

Try to disregard alone that fact of how odd it was that one of the candidates tried to make a wager with another during a debate. What really strikes a reaction is the amount. Another Bain Capital Moment would be when Mr. Romney called the pay roll tax cut a little band aid. "Corporations are people" would be another excellent candidate. And of course, there is the flattering photo of him and his associates at the firm.



On being from the same mold, Mr. Paul also explained that both these candidates are constantly on the defensive, which is true and doesn't bode well for either. Defensive positions are reactions and it will be difficult for either candidate to mount an ultimately successful campaign when in that position.

And before we get into the joint interview with Senators Lindsay Graham (R-SC) and Dick Durbin (D-IL), we'd like to comment on another politician who appeared on the program, Governor Terry Branstad (R-IA). Governor Branstad has appeared on Meet The Press before and he's a particular politician, from our perspective, that we'd like to forget. When Governors, in particular, consistently speak with such partisan rhetoric, it's disappointing whether it be from a Republican or Democrat. It gives a sense that this 'domestic general on the ground' isn't understanding or caring about the reality of the condition of the state. For Governor Branstad's part, he invoked Ronald Reagan as his conservative role model and inspiration, yet Ronald Reagan's positions when presented today are flatly rejected by today's conservative base of which the governor is a part. And as we've seen in Ohio and Wisconsin, when this one-sided partisan rhetoric is actually employed, it doesn't go well. It's a lack of seeing the totality of the situation.

This is something Senators have the opportunity to do as well - look at a problem from all sides and come up with a reasonable compromise that all sides can live with. However, it takes all of thirty seconds to realize that one will not see a compromise between the two players. Mr. Graham immediately blamed a failed presidency that has divided the nation, and held back economic growth. For his part, Senator Durbin spent his air time defending the President's policies in rote. Granted, given the amount of time, it may be difficult to get to an issue where the parties agree, but jeez...

The Consumer Protection Agency exists, and it needs a commissioner. Republican Senators should not block hearings because they simply don't want the agency and are just taking the ball and going home. Mr. Graham misspoke when he said that the commissioner's policies would have no oversight. Mr. Cordray, if he were commissioner, would not be able to make policy, just enforce the laws that Congress passes. To say this seems like an abdication of responsibility, just as when Mr. Graham said that to achieve economic equality, we need to just grow, which is essentially the message that the market should take care of itself.

Senator Durbin called the payroll tax cut a 'make or break' moment for the middle class. If Republicans don't vote for it, it shows that they will cut taxes for the wealthiest Americans and not for the middle class. Republicans require that it be paid for but not by a millionaire surtax imposed on money after the first million dollars as the Democrats want. If the sides can not come together, they have to find another place from which to take the money. This is where the Senate could excel, but they are unable. There are so many ways in which to do it, but the janitors shouldn't be fired and replaced with their kids.