We, the People, call economist Dean Baker to testify on ”How the Wealthy Use the Government to Stay Rich and Get Richer.”
[Note; following information comes from Baker’s book: “The conservative Nanny state.” Mr. Baker will also be called in the future to testify on “How Globalization and the Rules of the Modern Economy were Structured to make the Rich Richer” in his book “Rigged.”]
Baker: “Political debates in the U.S. are routinely framed a a battle between conservatives who favor market outcomes, whatever they may be, against liberals who prefer government intervention to ensure..families have decent standards-of-living. This..is inaccurate; both conservatives and liberals want government intervention. The difference..is the goal of government intervention, and..that conservatives are smart enough to conceal their dependence on..government.”
Baker: ”Conservatives want to use..government to distribute income upward to higher paid workers, business owners, and investors. They support the establishment of rules and structures that have this effect. First and foremost, conservatives support nanny state policies that have the effect of increasing the supply of less-skilled workers [thereby lowering their wages], while at the same time restricting the supply of more highly educated professional employees [thereby raising their wages].”
Baker: “This issue is very much at the center of determining who wins and who loses in the modern economy…It is essential to understand..there is direct redistribution involved..If restricting..supply of doctors raises..wages of doctors, then all..non-doctors..are worse off, just as if..government taxed all non-doctors in order to pay a tax credit to doctors.”
Baker: “Conservatives don’t only rely on the nanny state to keep..wages of professionals high, they want the nanny state to intervene through many different channels to make sure..income is distributed upward..conservatives want..government to outlaw some types of contracts, such as restricting..contingency-fee arrangements..lawyers make with clients when suing major corporations [conservatives call this “tort reform’}. This nanny state restriction would make it more difficult for people to get legal compensation from corporations that..damaged their health and property.”
Baker: “Conservatives also think..a wide variety of businesses..can’t afford..insurance they would have to buy in the private market to cover..damage they may cause.. Instead, they want the nanny state to protect them from lawsuits resulting from this damage. Conservatives even think..government should work as a bill collector for creditors who lack good judgment and make loans to people who are bad credit risks [conservatives call this “bankruptcy reform”].
Baker: “…conservatives..are happy to have..government intervene into..inner workings of the economy to make sure..money flows..upward. It is accurate to say..conservatives don’t like big government social programs, but not because they don’t like big government. The problem with big government social programs is..they tend to distribute money downward, or provide benefits to large numbers of people. That is not the conservative agenda..”
Baker: ”..conservatives don’t own up to the fact..policies thery favor are forms of government intervention. Conservatives..portray forms of government intervention..they favor..patent and copyright protection, as simply part of the natural order of things…[making].. these policies much harder to challenge politically. The public rightfully fears replacing..natural workings of the market with..intervention of government bureaucrats.. in part from a predisposition not to have..government meddle in their lives…the public recognizes..in many cases the market will be more efficient than..government in providing goods and services..”…
Baker: “The conservative framing of issues is so deeply embedded..it has been wide accepted by ostensibly neutral actors, such as policy professionals or the news media that report on national politics…news reports routinely refer to bilateral trade agreements, such as NAFTA or CAFTA, as “free trade” agreements. This..in spite..one of the main purposes of these agreements is to increase patent protection in developing countries, effectively increasing the length and force of government-imposed monopolies.””
Baker: “It is clever for proponents of these agreements to label them as “free trade”..but that is not an excuse for neutral commentators to accept this definition.”
Baker: “..media have even gone one step further – they routinely denounce opponents of these trade agreements as “protectionists.” This would be like having the New York Times refer to..opponents of the MX missile as “war mongers.”
Baker: ”In nearly every important area of economic policy, conservatives have set the terms of debate.”
[Note: Read the book!!! Sample chapter titles: ”Doctors and Dishwashers: How the Nanny state Creates Good Jobs for Those at the Top”; ”The Secret of High CEO Pay and Other Mysteries of the Corporation” [..”in a free market corporations do not exist”]…”The Rigged Legal Deck; Torts and Takings”…”Small Business Babies” [..the cuddly p.r. face”..]…”Don’T Make Big Business Compete Against Government Bureaucrats” [prevent Medicare negotiating prices!!!!!!!}
With Justice For All 