Speech on Walmart and Living Wages at ‘Town Hall for a D.C. Living Wage’

Yesterday, in my role as campaign director of Ralph Nader’s Time for a Raise campaign, I spoke at District of Columbia councilman Vincent Orange’s ‘Town Hall for a D.C. Living Wage.’ Here’s the recording of the speech:

Here’s the transcript of my talk:

Hello everyone, good evening! I wanted to start with a big thank you to Councilman Orange, Councilman Mendehlson and Reverend Dr. Curry for having us here today and I want to thank, most importantly, you for showing up. You are living proof of the phrase we like to say around the office: “politicians work for you, but only if you show up to remind them!”

The living wage issue is an important one here in D.C. In fact, it is so important that Steven Restivo, Wal-Mart’s PR guy, sent an email to reporters today about this very event. He begins the email with “at tonight’s labor rally” — I don’t know what that means, but we’ll take it; that’s not a pejorative to us! — “you’ll likely hear the usual urban myths about Walmart.” Again, a strange use of words from Walmart: I’ve heard about the phrase “urban legends” — alligators in the sewers, you know — but, urban myths coming out of Southeast… strange words, Steve.

This is all coming from a guy who goes around giving talks to business group about how they can replicate his success in creating spin campaigns that silence critics and morph public opinion. But, I guess, according to him, corporate PR spin campaigns aren’t urban myths.

So, in response to Steven, I’d like to take a few minutes to not talk about myths, but rather to talk about some facts — you can call them urban facts, rural facts, suburban facts, whatever you want to call them — the point is: they’re reality, they’re not rhetoric.

We’ve been working on raising the federal minimum wage for the past year at our office in the Time for a Raise Campaign. We’ve discovered some things along the way that apply to this fight in D.C. and I’d like our discoveries with you. Here’s four facts:

Fact #1: Walmart’s top executives penny pinch on every wage but their own. Walmart CEO Mike Duke makes $11,000 an hour plus great benefits and perks. That means that, during the length of this meeting, he will make more than most Walmart workers make working a full year. Walmart likes to say “Save Money, Live Better” but it seems like the Walmart top brass save money on the backs of low-wage workers, so that they can Live Better. Given these facts, I got a question: Is it fair for Walmart to say it cannot afford to pay workers in D.C. $12.50 an hour minus benefits?

Fact #2: Companies like Wal-Mart are profitable while paying their workers respectable wages. Take Costco, for example: it starts its workers at $11.50 an hour plus benefits and they’re more profitable than ever. The Wal-Mart PR rep in this audience today likely — hiding in a corner, scratching out notes about what we’re saying, taking names — is probably writing down: “Oh we got ‘em! Costco has a different revenue model than Walmart, because you buy in bulk and have a $25 membership card.”

But wait: you know what doesn’t have a different revenue structure than Walmart? Walmart Canada, which starts its workers at $10.25 in Ontario. But they must notice it’s not profitable there in ontario so they don’t build there! But Ontario has 110 stores! And they say they can’t open up stores in D.C. because of a high minimum wage, but they’re opening up new superstores in Manitoba (at $10.25) and Quebec (at a $10.15).

Okay, the PR rep in the corner now saying, “Wait! Canada has all these government benefits and the conversion rate isn’t exactly one-to-one…there they go, labor rallyers spreading your urban myths! But wait, we have a city in America that stood up to poverty wages — Santa Fe, NM. Their minimum wage is $10.50 and it goes up every time inflation goes up. And, lo and behold, at 3251 Cerrillos Rd in Santa Fe there is a Wal-Mart!

“But, a ha!” says the PR rep. “More urban myths!” That might have been there already before they passed it. We’ll never go there again because it’s not profitable anymore. So, I was worried about that, so I called up that Wal-Mart earlier today and this kind lady picked up — New Mexico, Santa Fe charm, you know — and I asked, “Hey, any new Walmarts in Santa Fe?” and she responded, “Oh yah, they just built one on Herrera Drive two years ago”…after the wage bill was passed.

So given these facts — that Costco and Wal-mart Canada are profitable with higher wages, and that Walmart is so confident in the profitability of Wal-marts at a higher wage that they built one two years ago in the city with the highest minimum wage — I have a question: What is stopping Walmart from treating Walmart workers in the District of Columbia with the same level of respect?

Fact #3: Wal-mart can raise their wage without drastic changes to their customers’ experience. A study from UC Berkeley’s Center for Labor Research and Education has shown that raising a Walmart wage floor to $12 per hour would add to every trip — if all of the costs were passed on to customers — just 46 cents.

And this is the highest estimate, presuming that all the wage increases are reflected in the price, because they have a choice: they could put it into the price or they could in their profits. See Walmart tell you, “Well, shucks, we may be a big corporation, but we have razor thin margins every year.” But remind them of this: Walmart has had $51 billion in stock buybacks over the past five years. And since over 50% of the company stock is owned by the Walton family, the result of this is simply just billions of dollars transferring from the Walmart bank account to the bank account of the richest family in America. It’s ridiculous! So, another question: Why does Walmart have $51 billion lying around to buy stock but empty pockets when it comes to paying $12.50 an hour minus benefits to D.C. Workers?

Fact #4: Low wages cost taxpayers and the economy. As low-wage workers fall further into poverty, they become more reliant on public programs like food stamps, Medicaid, and welfare to get by. And we’re to provide it, but in this sense, taxpayers and small businesses foot the bill for the low wages paid by Walmart. According to a recent report, a single 300-employee Wal-Mart Supercenter may cost taxpayers about a million dollars a year because of their low wages.

And, on the other end, higher wages serve as an economic stimulus. The Chicago Federal Reserve estimated in 2011 that every dollar increase in the hourly pay for a minimum wage worker is $2,800 in new consumer spending from that worker’s household over the year. We know it to be true, it’s common sense: a dollar in the hands of low wage worker is better for the D.C. economy than it being another blip in a corporate bank account.

So there’s some facts. Now, the spin machine is going to try to mask these facts with some misinformation.

For one, they might say raising the minimum wage will increase unemployment! But this does not hold water. Studies before the 1990’s most economists thought that a moderate minimum wage increase did raise unemployment. But in the 1990’s, there was as sea-change and most studies on the topic conclude that there was not a significant employment effect from a moderate increase in the minimum wage. These results have been reproduced throughout the next two decades.

The spinmeisters might say, “the minimum wage only affects teens working part-time.” But most of the beneficiaries of minimum wage increases are adults, female and members of low-income working families.

They might say we should be happy with just having a job… who cares if it’s a good job? For example, Fox News Host Neil Cavuto said: “Only in America today, can our politicians bemoan a livable wage, forgetting a lot of folks would be grateful for any wage, any chance, any job, anytime. All I know is as soon as I turned 16 and heard a fast food chain called Arthur Treacher’s was opening a store in my town, I stood in a line for a position — any position. I got the job… and it all started at two bucks an hour.”
But what Cavuto doesn’t get is that when he was 16 in 1974, his $2 an hour is $9.47 today, $1.22 more than D.C.’s minimum wage. So, we’d be a bit happy with that! And what we’re asking for with this bill is just $2.64 in 1974 Cavuto-dollars!
And even more, what he doesn’t get is that being 16 and living with your parents is much different than the reality of most low-wage workers here in D.C. If you work every week of the year at $8.25, all you get is $17,160 a year, which is below the poverty line for a family of three.

Opponents like to say that this is just a training job: if you want a better job you can find a better one. But the fact of the matter is, the fastest growing jobs are in low-wage industries: retail, food services, home health care. During the recession, middle-wage jobs were lost and during the recovery, low-wage jobs are being gained. If retail, food services and home health care are where the jobs are growing, then they have to be good jobs if this economy is going to work for everybody.

I want to end with this thought. Behind all this back-and-forth, these numbers, these claims, is the real reason we care about good wages in D.C. We care about good wages because good wages are about respect. It’s about affirming that in this city, an hour of a worker’s time is worth something… something more than the lowest number they can shake her down to. Her wage should be more than that. Her wage should reflect our community’s respect for her time. The decline in wages over the past decades — a decline that has dropped millions of minimum wage workers below the poverty line — is disrespectful.

We’ve been reminded about how important it is to demand respect this week by the 50th anniversary of the March on Washington. There are those who want to make Dr. King’s dream some rosy “Let’s all hold hands” vision. But, we in this room know that it was so much more than that. We know that that day was called the “March on Washington for Jobs and Freedom.” We know that Dr. King said that a living wage is right for all working Americans. We know that Dr. King’s final campaign was the Poor People’s Campaign. We know that inside the March’s handbook that was printed and handed out to the crowd that August day 50 years ago was a list of “9 goals of today’s March on Washington for Jobs and Freedom” and that the 8th goal was “An increase in the minimum wage to $2 an hour.”

What’s $2 in 1963 worth today, the number Martin Luther King was calling for? $15.27. If Dr. King thought $15.27 an hour was needed for the dream, the least we can do is $12.50. Thank you.

A Public Project Program for George Mason High School

In 2013, I launched the George Mason High School Public Project Program initiative in Falls Church, Virginia.  It is an effort to “establish a Public Project Program at George Mason that make the imagining, developing and implementing of a public project an institutionalized part of each high school student’s educational experience.”  Here’s the launch video:

A much-thicker outline of the program proposal is located here: GMHS Public Project Program Description.

Fortunately, the essay below, which helped launch the George Mason High School Public Project Program initiative, was originally published in the Falls Church News-Press on August 15, 2013:

“Democracy must be reborn every generation and education is its midwife” rings as true today as it did when John Dewey penned it a century ago. If my generation does not develop the democratic values, civic skills, and public-minded determination to steward and grow our civic culture, then our public life will assuredly wither.

Fortunately, we have a civic culture in Falls Church schools and, as I recall, every individual in the school system was always willing to help students with civic development. However, at the high school level, we had very little institutionalized structure for developing the skills of civic creativity and public action in the way that we, say, had such a structure for English or Math. Mason’s single course on Government is not enough: learning how a bill becomes a law or why the 7th amendment matters in a classroom setting is not the same as developing the hands-on skills, experience and commitment that is needed for students to become the confident, public-minded, problem-solving civic creators that our Little City and big nation desperately needs them to be! Many Falls Churchians raised similar imperatives at the 2013 FCCPS Community Visioning: the need for adult mentorship, tighter bonds between the school and community, and project-based learning.

In response to these goals and in the spirit of Superintendent Jones’ commitment to community visioning, I have an idea: A George Mason High School Public Project Program that makes the imagining, developing and implementing of a public project an institutionalized part of each GMHS student’s civic education experience. This will involve: (1) making “the creation of a public project” a new graduation requirement; (2) developing a cross-curricular Public Project Program for the implementation of this new requirement; and (3) organizing community engagement with the program. Each student will: pick a public project to work on early in 11th grade; recruit an adult civic mentor and underclassmen teammates; learn how to articulate ideas in English class; learn how to place their project into historical context in History class; investigate the ins-and-outs of the problem they are solving; and spend their final two years of high school working to make their vision a reality.

Each student’s project has to be a concrete project they initiate. Volunteering at a soup kitchen does not count – this is not a service hours program – but starting the student group for the local soup kitchen does count. Attending city council meetings does not count – this is about more than just civic participation; it’s about student leadership, too! – but writing a serious report to the council on a public issue does count. Examples of public projects include: organizing a group to paint a public mural (as one Class of 2007 student did); proposing a safety initiative (as Marta Eckert-Mills did in creating the bike path bridge over Broad Street); setting up solar panels on the school (as James Peterson ’08 did); and opening up a local chapter of a national movement (as Matt Abel ’12 and others did with Transition Falls Church).

I anticipate some questions. First, how do we fit this in? One proposal could be to house the program in a class, as TJ High School does with its required student project. Some might insist we make such a class voluntary, to which I ask: “when we decided that foreign language learning or physical education were important to us, why did we choose to make them mandatory?” If you make civic creativity an elective, it will only attract those who are already exposed to civic creativity.

Second, wouldn’t there be too many projects? Students could work together or join an existing project in town, as long as their contribution is a discrete creation within the initiative they join. Finally, isn’t mandating service problematic? This is better than mandatory service hours, because it is a student-directed, integrated project experience on which you work long term.

We – Superintendent Jones, Principal Byrd, and the whole FCCPS community – have a chance to come out of our Community Visioning with a concrete initiative that: provides students a unique, self-driven lesson in commitment, leadership, creativity and resilience; makes every student a civic leader; and weaves a tighter bond between GMHS and the wider community through civic mentoring. Realizing such a vision is easier said than done – it is going to take a robust conversation among all stakeholders. However, I hope we can get started this year on the path towards making this dream – a public project for every student, a life lesson in civic creativity, and democracy reborn in a new generation – a reality at George Mason!

If you are excited, check out www.GMHSPublicProject.org to find out more information and sign our petition to Superintendent Jones. Email GMHSPublicProject@gmail.com to get involved.

 

Washington Post Letter to the Editor on Walmart’s poverty wage regime

While working for Ralph Nader’s Time for a Raise campaign, I had a wonky letter to the editor published in the Washington Post today regarding Walmart’s poverty wage regime:

In the July 11 front-page article “Council approves ‘living wage’ bill,” The Post placed front and center the claim that the District’s Large Retailer Accountability Act requires big-box-store employers to pay “a 50 percent premium over the city’s minimum wage,” a phrasing that could have left readers wondering whether the act goes too far. It is important to note, however, that the act calls not for a $12.50 wage but rather a $12.50 wage minus benefits, stating clearly: “The prorated hourly cost of any benefits that a large retailer chooses to provide an employee may be credited toward payment of the minimum hourly compensation required under this act.”

If Wal-Mart gave its District employees the health benefits they deserve, their minimum wage under the act would amount to significantly less than a “50 percent premium” over the current wage. Within the limits of the act, Wal-Mart can pay an hourly wage less than $12.50 if it offers its District workers, as the act states, “benefits related to health care, retirement security, disability, training and education, or paid leave.”

Peter Davis, Falls Church

Civic Idea of the Day: A Traceback Curriculum

One of the most important ideas to show kids is this: “what exists in society today only exists because somebody decided to make it happen. Everything has an origin; everything that is in society today was once something else (or nothing) until someone decided to make it what it is today… and thus, today, you can play a part in the origin of new things!”

Kindergarten, flip flops, the newsticker at the bottom of certain TV channels, the Dollar Menu, the STOP sign, the seventh inning stretch, prom, the greenspaces near highways, and the weekend — as well as everything else in society! — were conceived, realized, developed and expanded by individuals and groups who were no different than themselves.

TracebackSo here’s an idea for history education:

(1) have kids go around and make a list of things in their own lives and communities: concrete things, abstract things, products, institutions, events, ideas, cultural artifacts, places and more (the pencil, the school’s lunch policy, the song “Happy Birthday”, the no skateboarding policies at the mall… anything that affects them!);

(2) Narrow the list to a manageable size;

(3) Have the kids start tracing things on the list back through history… all the way to the original creative thought or set of thoughts;

(4) Have the kids share the story of the thing and the individuals, groups, institutions, and ideas that led to it being what it is today with each other; and, excitedly,

(5) Have the kids imagine the thing into the future, answering “Do you like the thing as it is? Is it good or does it need to be changed? What ideas do you have for it?”.

This “trace back and imagine forward” approach is assuredly a more inspirational use of history for kids than the standard “this happened, then this happened, then this powerful guy did this, then this happened, then this happened…” approach to history education.

It makes history seem consequential, it makes the present world become more alive, and inspires creativity and purpose for the future. Try it out and let us know how it goes!

Adults in the Room: A Letter to Fellow Young People

In the original iteration of this site, i launched the short-lived “Pete Davis Riffs” with Adults in the Room: A Letter to Fellow Young People, a speech I wrote at the end of college in 2012:

https://youtu.be/_2IJw9HxKpY

I would like to take this opportunity to write to you as members of a particular generation at a special time in history.

By the time we came of age, a wall had fallen, a Cold War had ended, a crime wave had receded and a budget was balanced. We rang in the new millennium with hopes that the information superhighway and global trade would bring about a lifetime of peace and prosperity.

However, with every festive night comes the morning after. The SUVs that drove us to soccer practice became the greenhouse gases we were warned about in our teens. The big house our uncle bought had a foreclosure sign up five years later. Global trade and information networks came on the same wave as outsourced industries and global terror networks. Something had to give, and it did: levees broke, bubbles popped, economies crashed, and public trust bottomed out.

Having been the generation of kids who were raised on such safe touchstones as Tickle Me Elmo, Seinfeld reruns, and AOL Instant Messenger, and then suddenly flung into a world of Columbine, 9/11, and Katrina, it was no surprise that we thought the 2000s to be a great time to drop everything and play around with wizards at Hogwarts. Indeed, in times of shock and confusion, we tend to hide away in fantasy worlds: places with clear heroes and villains; nations with perfect presidents played by Martin Sheen; universes where the only available feedback option is a “like” button.

But when we return from these fantasies, we are left standing in a real world still facing rising inequality, a warming globe, and a continued struggle to have our humanizing endeavors catch up with our commercial ones.

For the past couple of years, we have had the luxury to reflect on the age we find ourselves in, but I will be the first to admit that, in this very real world, it is not always clear what is going on. We see a black president but read about the black unemployment rate. We are excited by the freedom that comes with the Internet, but still frustrated by the old power structures.

It seems that society, like us graduates, is in a transitional phase, an in-between state where it all seems out of sync. We use twentieth-century language to describe twenty-first-century problems; economic orders are collapsing; populist movements crop up right and left.

All the while, there remain big public problems — problems that are overwhelming and complicated. What is to be done in such an age?

Well, we have a choice.

We can turn a blind eye and retreat from the confusion of our era back into the safety of fantasy. Some have made that choice: those who choose to be cynical, who use irony to distance themselves from any conviction; those who yearn for nonexistent pasts when “everything was better”; and those who reject the great life in favor of their own big life.

Others look for a quick fix, like the election of a president who will solve our problems for us, or the hope that we will all take to the streets and — with enough noise — the problems will cease. To some, the quick fix is the vanquishing of the latest boogeyman: if only we got rid of the federal government, or Muslims, or Southerners, or immigrants, or evangelicals, then everything would be solved.

But it is never that easy. That is fantasy, too.

This leaves a final option: to reject these fantasies as childish. It is the option to be an adult, which is to say, “Yes, the problems we face are complicated; yes, the path forward is not always clear; yes, the solutions we need might take decades; but, because of this, it is even more important that we struggle!”

To be an adult is to be a participant in co-creating the world, not just another spectator watching others create it, or destroy it, for us. It is to think in the long term, putting sustainability over short-term gain. It is to back up complaints with hard work. To be an adult is to be childlike, but not childish — still able to use our imagination to envision new alternatives but ready to implement them ourselves. To be an adult is to have hope; it is to recognize that a world where people are good and ideas can sweep across the globe in seconds is a world where we can, with time, solve some of the great problems we face.

By this standard, some wielders of power are not acting like adults: they continue to play childish games with our economy, our democracy and our earth.

But we do not have to. We can be better. When we turn to each other and ask “Are you ready to enter ‘the real world’?” we do not have to mean, “Are you ready for the daily grind?” To continue the failed patterns of the old era and to expect that there will not be grave consequences is to not live in the real world. The real world desperately needs adults.

Are we going to be the last gasp of an old era or the first breath of a new one? If we want the latter, now is the time to be the adults in the room, to have the courage, wisdom, and grit to walk into the halls of power and utter the sacred phrase: “We are here to get to work.”

Civic Idea of the Day: The Crowdsourced Dinner Course

If you’re a group of people who wants to learn something, here’s a fun way you can do it:

Let’s say you have 10 people. Split what you want to learn into 10 chunks and assiDinnergn one out to each person. Each person is required to become an expert on their chunk. Each week, have one person present on their chunk to the rest of the group over dinner. After 10 weeks, you’ll all have learned it, in addition to being a double expert on a part of it. It’ll also build community and spread the stress of learning one thing out (you’re only stressed about it on your week; every other week, you sit back, enjoy dinner and listen). After you’re done with the 10 weeks, have a follow-up email list to share any links or ideas that have arisen because of your crowd-sourced course. The applicability is endless: have a group learn any course syllabus that you missed in college, finally understand Econ 101, catch up on the Pentateuch or the Gospels, learn the different areas of public policy, learn 10 different schools of philosophy, etc. etc.

It’s The Crowdsourced Dinner Course: A Lifelong Learning Tactic + A Community-Building Opportunity among friends.

An Election 2012 Mini-Dispatch: America deserves a strong alternative to Obama…but Mitt’s not it

In advance of election 2012, here’s my take — America deserves a strong alternative to Obama…but Mitt’s not it — in video and written form:

https://www.youtube.com/watch?v=rIxz0Jy9zPs

Part 1: A nation in trouble

Our Economy, Our Democracy and Our Earth are in trouble.

With regard to the Economy:

  • A financial crash that destroyed $11 trillion four years ago has not been investigated and prosecuted.
  • Students are still trained for lame 20th century corporate life instead of disruptive and innovative 21st century start up life.
  • and Economic inequality is on the rise, ripping America in two and calling into question the continued existence of the American dream

With regard to our Democracy:

  • The branch of government that was designed to remain closest to the people — our American Congress — has an approval rating in the high single digits.
  • Congressmen spend an average of 30-70% of their day dialing donors for dollars, resulting in Congress to be reliant not on the People alone, as the Constitution states, but rather on the Funders.
  • and our elections have become national jokes, leaving us no more informed about federal issues than we were before they started and, worse off, leaving us wrongly believing that democracy is about our role as spectators of the powerful and not as generators of change ourselves.

With regard to our Earth:

  • Global warming is real and the most powerful nation on Earth has yet to develop a serious response.
  • Drone strikes abroad, in addition to killing over 176 children, have become the recruiting tool of choice for militants.
  • Martin Luther King’s call to acknowledge that we are in an “inescapable network of mutuality, tied in a single garment of destiny” with our fellow man worldwide remains unanswered when we treat rising education levels and job opportunities in other countries as something to fear.

Part 2: Failed Democrats 

And yet, the contemporary incarnation of the Democratic Party fails to provide a vision to meet these challenges.

  • It has become a reactionary party, defending the glorious victories of the past — Social Security, Medicare, women’s health rights and the like — without pairing that necessary conservatism with a progressive vision for the future.
  • It has failed to prosecute the financial crisis nor empower the poor.
  • Despite claiming to not wish to “play the game better” in Washington, but rather “change the way the game is played,” President Obama — who ran as the transformational anti-Clinton — has embraced the Clintonian politics of transaction and triangulation, utilizing cultural wedge strategies to micro-target voters by demographic, thus continuing the culture war he dreamed of moving us past.  All the while, he has failed to address the implicit corruption of epic proportions that money in politics has been wreaking on our legislative system.
  • The party has failed to speak truth to corporate power on global warming and has continued the militaristic rhetoric of the Cheney era.
  • Worst of all, it has embraced a politics of personality, inspiring young people like myself to exercise our citizenship not through civic creativity and action in our own communities, but rather through our continued spectatorial support of politicians in Washington acting as proxy citizens for us.

It is no surprise that such a party is polling at no more than 51-52% while facing off against such a weak candidate and a tired, occasionaly-grotesque opposition party.

Indeed, we desperately need an alternative.

Part 3: Inadequate Romney

Unfortunately, Mitt Romney and the contemporary incarnation of the Republican Party is not the alternative that we need.

Their three central claims to the Presidency — that Mitt Romney knows how to create jobs, that Paul Ryan knows how to cut the deficit, and that the Congressional Republicans know how to be bipartisan — are not credible.

3a. Romney is not a job creator

Romney’s claim that his business experience proves his ability to create jobs fails to withstand scrutiny.

Bain Capital is not a standard firm in the Capitalism 101 sense of the term.  It does not make money by selling a valuable good or providing an excellent service, like Apple and Starbucks do… or George Romney’s American Motors Corporation did.  It also is not a standard venture capital firm, which makes money by taking supportive risks on entrepreneurs that want to sell valuable goods or provide excellent services.

It used to be, when Romney helped get Staples off the ground.  But then Bain Capital changed, seeking higher profits.  It became a leveraged buyout operation, which followed a different playbook: seek out a struggling business, put down a small amount of money, get a big bank to put down a lot more, use the two to buy a controlling stake in the business thus buying it out, charge management fees for your ‘consultations’ in turning the business around, occasionally call in ‘special dividends’ as payouts to you and other stakeholders, try to turn the firm around to an IPO, sell your stake, and leave… leaving the target business to pay off your original bank debt and management fees and leaving you to profit irregardless of whether the company makes it far past its turnaround.

Whether Romney’s tenure at such an operation is good or bad is for you to decide.  But what it is definitely not is a credential as a job creator.  A 2008 study showed that the job growth of companies bought by private-equity firms is about one percent slower than that of average similar firms. Even Marc Wolpow, a former Bain colleague of Romney’s, has stated: “job creation was not Romney’s or Bain’s or the industry’s primary objective.  The objective of the leveraged buyout business is maximizing returns for the investor.” And in fact, even Bain Capital’s record at maximizing returns is mixed.  Bain’s returns on 67 of 77 deals were lower than what you would have earned from investing in an index fund at the time.  Only ten investments were home runs and four of those ended in bankruptcy for the targeted firms.

Romney likes to talk about how creative entrepreneurs move our country forward through taking risks, creating jobs and producing valuable products.  I agree…I just don’t buy that Mitt Romney’s work at Bain Capital resembles entrepreneurship: taking risks, creating jobs, or producing valuable products.  And many who do know something about entrepreneurship — like Howard Schultz of Starbucks, Michael Bloomberg of Bloomberg and various tech leaders in Silicon Valley — have endorsed Romney’s opponents.  Take Gary Johnson, Romney’s Libertarian Party opponent as a contrast: he founded Big J Enterprises in 1976 as a one-man mechanical contracting business.  He eventually grew Big J into a multi-million dollar corporation, hiring 1,000 employees.  By the time he sold the company in 1999, it was one of New Mexico’s leading construction companies.  If Romney had a similar background, his claim to being a job creator would be much more credible.

Even more, Obama’s jobs record isn’t as bad as Romney casts it.  The trend of increasing month-to-month job losses turned around immediately after the stimulus bill passed.  As Michael Grunwald reports, “top economic forecasters estimate that the stimulus produced about 2.5 million jobs and added between 2.1 percent and 3.8 percent to our gross domestic product.”  And the stimulus’ green energy investments (like Solyndra) that are so often criticized by Romney?  The program as a whole had only a 2.6% default rate… much less than the failure rate of the investments of Bain Capital.

3b. Ryan is not a deficit hawk

The second central claim of the Romney campaign is that he has a plan to balance the federal budget and roll back the national debt.  They doubled-down on this claim by selecting Paul Ryan as a running mate, who had gained prominence through his famed Path to Prosperity budget.

Unfortunately, Paul Ryan is a deficit hawk like Mitt Romney is a job creator…he is not.  In 2001, he complained that Bush’s $1.2 trillion tax cut was too small.  He lobbied Republicans to pass the 2003 deficit-financed prescription-drug benefit.  In 2006, he opposed a measure requiring that any new spending or tax cuts be offset by new revenue or spending cuts.  He opposed the Bowles-Simpson plan to reduce the deficit (in part because it included a tax increase).  His opposition to deficit-lowering increases to the top-bracket income tax and capital gains tax rates is based on the claim that low rates lead to economic growth which in turn lowers the deficit… despite the fact that a recent Congressional Research Service report shows that changes over the past 65 years in the top marginal tax rate and capital gains tax rate are not correlated with economic growth.

His budget proposal bases its claim of deficit reduction on promises to eliminate trillions of dollars’ worth of tax deductions, but fails to give details as to which ones. Even more, when it does give details, they’re disturbing.  Because Ryan’s plan does not raise taxes, two-thirds of Ryan’s cuts affect programs for the poor. In Ryan’s budget, proposed sacrifice for the wealthy, the middle class and seniors is vague and distant; proposed sacrifice for the poor is detailed and immediate.  For example, as the United States Conference of Catholic Bishops pointed out in a letter to Congress on budgetary respect for “human life and dignity,” Ryan’s Plan threatens the Supplemental Nutrition Assistance Program, which helps feed millions of households.

Obama administration policies (namely the stimulus) have added $1.44 trillion to the deficit, but the entirety of the Obama deficit is smaller than the deficit-financed Bush tax cuts alone.  Romney, in not putting tax increases on the table (with the exception of vague loophole-closing rhetoric), has failed to provide a compelling case that he will do better than Obama at addressing the national debt.  And Ryan has proved himself to be less of a deficit hawk than an anti-tax ideologue.

3c. Congressional Republicans are not committed to bipartisanship

The final major claim to the Presidency that Mitt Romney puts forward is that he — unlike President Obama — is committed to bipartisanship.  Again, both halves of this claim — first, that Obama was inadequately bipartisan and second, that Romney and the Congressional Republicans have proven to be — do not hold water.

On the policy front, Obama was exceptionally bipartisan from the outset.  He invited conservative Evangelical Rick Warren to give the invocation at his inaugural.  He sat down in his transition with conservative writers, like Bill Kristol and Peggy Noonan, before meeting with liberal writers.  He made sure that tax cuts composed a third of his stimulus bill.  He completely ignored calls from the Left-wing of his party to pursue a single-payer health care bill, instead choosing an individual mandate system inspired by a Republican Massachusetts governor.  He continued the Bush/Cheney anti-terror policies, extended the Bush tax cuts and adopted the GOP-favored Cap-and-Trade response to climate change instead of the Left-wing favored Carbon Tax response.  His education policy is widely praised by Republicans and criticized by those from his Left.  He engaged in long budget deliberations with John Boehner throughout most of 2011.  This is not the tale of a partisan ideologue.

Meanwhile, early in Obama’s term, Republican leader Mitch McConnell stated: “The single most important thing we want to achieve is for President Obama to be a one-term president.”  Pete Session echoed: “The purpose of the minority is to become the majority.”  Indeed, Congressional Republicans have successfully executed on a plan of blanket refusal to participate in any bipartisan achievements. Conservative and respected political scientist Norman Ornstein of the conservative American Enterprise Institute recently published a piece titled: “Let’s just say it: The Republicans are the Problem.”  It is worth quoting at length:

We have been studying Washington politics and Congress for more than 40 years, and never have we seen them this dysfunctional.  In our past writings, we have criticized both parties when we believed it was warrented.  Today, however, we have no choice but to acknowledge that the core of the problem lies with the Republican Party.

The GOP has become an insurgent outlier in American politics.  It is ideologically extreme; scornful of compromise; unmoved by conventional understanding of facts, evidence and science; and dismissive of the legitimacy of its political opposition.

When one party moves this far from the mainstream, it makes it nearly impossible for the political system to deal constructively with the country’s challenges.

Democrats are hardly blameless, and they have their own extreme wing and their own predilection for hardball politics.  But these tendencies do not routinely veer outside the normal bounds of robust politics.  If anything, under the presidencies of Clinton and Obama, the Democrats have become more of a status-quo party.  They are centrist protectors of government.

As proud conservative Andrew Sullivan points out, the contemporary incarnation of the GOP resembles the radicals that have always been the enemies of conservativism.   Whereas conservatism has always been a philosophy that “tends to argue that less equals more, that restraint is sometimes more powerful than action, that delay is often wiser than headlong revolution” and that reality is more important than ideology, the contemporary GOP holds that 97% consenses on climate science aren’t to be trusted, that the deficit can be closed without increasing taxes, that the Constitution should be swiftly amended to criminalize abortion, that new preemptive wars in the Middle East should be on the table, that the President should be openly accused of having “Kenyan, anti-colonial values”, and that a sitting Congressmen should be able to accuse 70-80 of his fellow members of being Communists without recourse.  As Republican Dick Lugar put it, upon losing his primary to a Tea Party challenger who had accused Lugar of working too much with Obama: “Republicans cannot admit to any nuance in policy on climate change. Republican members are now expected to take pledges against any tax increases. For two consecutive presidential nomination cycles, GOP candidates competed with one another to express the most strident anti-immigration view, even at the risk of alienating a huge voting bloc.”

Romney fails to provide a compelling case that he will stem this radicalization and has yet to demonstrate courage in combatting it.

Part 4: Vision

4a. An era in need of a vision

 Two decades-old coalitions are reaching the ends of their arcs:

The 20th century conservative movement that started with Goldwater, ascended with Reagan and expanded with Bush Jr. is fracturing and greying.  If Romney loses tonight, Republicans will have lost the popular vote in five of the last six Presidential elections.  Party leaders know that they are failing to inspire young people, Black people, Hispanic people, gay people and single women.  As Senator Lindsey Graham has said: “if we lose this election, there is only one explanation – demographics.”  As a Bush official echoed: “We’re in a demographic boa constrictor and it gets tighter every single election.”

The late-20th century Democratic party coalition that re-emerged with Clinton and peaked with Obama in 2008 has also failed to inspire a lasting majority.  When the Republican Party becomes more inclusive of minorities, gay people, and pro-choice women, the Democratic Party’s majority coalition will fracture.  Soon enough, they will no longer be able coast on being “the party that does not have Michele Bachmann in it.”

Meanwhile, dissatisfaction with American political life increases with each news cycle and calls for fundamental reform grow louder with each election.

Times like these provide an opening for a strong, passionate vision for our new century; one that can jump-start our 21st century movement.

4b. The proceduralists

And yet, Mitt Romney’s political personality seems defined by his lack of vision.  When asked about his ideology by the Wall Street Journal in 2007, Romney responded, “Obviously, I have — just like in the consulting world — I have ‘concepts’ that I believe.”  “What Romney values most,” Ezra Klein writes, “is Management.  A lifetime of data has proven to him that he’s extraordinarily, even uniquely, good at managing and leading organizations, projects and people.  It’s those skills, rather than specific policy ideas, that he sees as his unique contribution.The irony here is that the other major politician of our time defined by his lack of ideological vision is Barack Obama.  What Obama values most is Facilitation.  He ascended in politics as a post-ideological politician, skilled in the procedures of pragmatic deliberation.  “He revels in the back and forth,” Lawrence Kudlow writes, “and he wants to keep the dialogue going with conservatives.”  He was elected President of the Harvard Law Review not due to a vision for the Review, but rather due to his ability to be trusted by both the conservative and the liberal blocs of the editorial staff.  In 1998, after helping to pass a campaign-finance bill in the Illinois Senate, he boasted in his community paper less about the merits of the bill and more that “the process was truly bipartisan from the start.”  The Audacity of Hope was filled less with a vision for the future, but rather a description of how our politics can transcend partisan and ideological strategy.  “If there was a single unifying argument that defined Obamaism from his earliest days in politics to his Presidential campaign,” Ryan Lizza write, “it was the idea of post-partisanship.  He was proposing himself as a transformative figure, the man who would spring the lock.”

Both men, at their core, are Proceduralists: they believe that any given cause matters less than the procedure by which you make decisions while executing on that cause.  Mitt’s style of procedure is management consulting: “Let me see the data,” Mitt told the Wall Street Journal in 2007. “I want to see the client’s data, the competitors’ data.  I want to see all the data.”  Barack’s style of procedure is community deliberation: “Let’s get everyone in the room,” Barack probably said at some point. “I want to hear our views, I want to hear our opponent’s views. I want to talk to everyone.”  

The thing about proceduralists is they are really good at being in charge once the creative challenge of setting a vision has already been met.  They’re much better long-term executors than the visionaries are.  But in an era in need of a vision, proceduralists don’t have much to offer.    They might very well end up doing “more good than bad,” making a rusty era slightly more efficient.  But they’re not the Teddy Roosevelt our time calls for.

4c.  Who is the alternative?

I’m probably going to end up voting for the proceduralist I trust over the proceduralist I don’t, but I shouldn’t fool myself: Second-term Barack Obama is not the alternative to first-term Barack Obama that we desparately need.

Who is it then?  Who is to provide a vision for the next American century?  Who is going to seriously address the crises facing Our Economy, Our Democracy, and Our Earth?  Who are we waiting for?

You.

‘The system’ has not produced major candidates who have the vision to build the next great American century.  Fortunately, this is America, so we don’t have to wait for ‘the system’ to make something happen.  Our generation has the tools and the passion to build it ourselves.

So let’s not make the same mistakes we did last time:

  • treating Election Day as the end of our involvement in American democratic life;
  • believing that all we need to do is watch powerful people make change for us;
  • treating the political areas outside of federal government policy — like our local communities — as not worthy of time and intelligence;
  • ignoring the great change we can make outside of law and statecraft, with the tools of business, social enterprise, media, education, community initiatives, and the internet.
  • forgetting that, as Howard Zinn wrote, “historically, government, whether in the hands of Republicans or Democrats, conservatives or liberals, has failed its responsibilities, until forced to by direct action;”
  • and failing to grasp, as Dr. King reminded, “that human progress never rolls in on the wheels of inevitability.”

An insightful 2008 Presidential Candidate once said: “Change will not come if we wait for some other person or if we wait for some other time. You are the ones you’ve been waiting for. You are the change that you seek.”

I think it’s time we start to take him at his word.

BostInno on CommonPlace

BostInno, a Boston innovation blog, just spotlighted CommonPlace:

Founded by former Harvard roommates Peter Davis and Max Novendstern, CommonPlace was inspired by Robert Putnam’s book Bowling Alone. In the book, Putnam highlights how disconnected we’ve become from our family, friends and neighbors, warning that our stock of social capital and community connections have drastically decreased.

At the end of the book, Putnam challenges young people to invent new ways to get involved in their community. And that call to action was just what Davis and Novendstern needed to build the foundation of CommonPlace.

“We were sitting on that challenge,” Davis says. “The Boston startup scene was taking off, the iPad came out, The Social Network was being filmed.” The timing couldn’t have been better, as more people began thinking of college students as those who had the power to create these various networks and platforms. “We were thinking community needs to be revitalized,” Davis admits, and they wanted to use “the tools of the Internet” to do just that.

They launched the first CommonPlace in Davis’s hometown of Falls Church, Virginia. Through the platform, community members can create a profile and post conversation starters, requests and events, propose a meet-up or publicize a service or organization. Other members in the community can then respond publicly to any thread or click on the poster’s profile and send a private message.