Recess Appointments: Backlash to Blackmail

In America, when gangs of bullies torment school children, pushing them around and extorting their lunch money, parents know only one response effectively counters the abuse: confrontation. Running, whining, negotiating — none of that works.

For the past year, since Republicans took the majority in the U.S. House of Representatives, they’ve behaved like young thugs, extorting Democrats to get what they wanted. Employing the blackmail techniques of schoolyard gangs, House Republicans repeatedly threatened to hurt the American people and the American government if Democrats didn’t submit.

Then President Obama confronted them. In recent weeks, he finally internalized and implemented the advice of American parents on dealing with bullies. He stood his ground. He called the GOP bluff on the payroll tax. And they backed down. He recess appointed four officials, defying GOP attempts to thwart service to American workers and borrowers.

Apparently, it’s a new day in Washington, one in which Democrats, who control the presidency and the majority in the U.S. Senate, are fed up and not going to take GOP extortion anymore.

For a year, Republicans leveraged their demands with blackmail.  If Democrats didn’t accept draconian and economic recovery-starving budget cuts, Republicans would shut down the government. If Democrats didn’t agree to slash the budget by exactly the amount Republicans required, the GOP would destroy the country’s credit rating.

In December, House Republicans overplayed. Initially, they’d opposed President Obama’s proposed extension of the payroll tax break that puts about $1,000 a year back into the pockets of working Americans. Just before the holidays, they changed their minds and said they’d accept a one-year extension, if it were offset by cuts in the federal budget. A dispute ensured between Democrats and Republicans about what to cut. As time ran out before the scheduled holiday break, the Senate compromised and passed a two-month extension, with the remaining 10 months to be settled later. The approval was overwhelming, 89 to 10. The Senators went home.

That bi-partisan action in the Senate left House Republicans with the choice of approving a two-month extension of a tax break they claimed to support or rejecting it, which would increase payroll taxes for 160 million workers.

For days, House Republicans refused to accept the Senate measure, threatening workers with a tax increase. The House Republicans claimed they wanted a one-year extension, but what they really wanted was a one-year extension paid for by cuts they chose without Democratic input. They demanded Senators return to Washington and vote on cuts to support a one-year deal.  Or they’d increase taxes.

The Senate refused. Obama refused. They confronted the bullies.

And the bullies blinked. The House passed the two-month extension.

Before they left town, however, the House Republican majority refused to allow the Senate to recess for more than three days. The Constitution permits each chamber to deny the other the ability to adjourn for more than 72 hours. The result is charade sessions in which a lawmaker, every three days, smacks down a gavel, declares the chamber open for business, recites the Pledge of Allegiance, then strikes the gavel again to close and leaves.

No lawmaker actually works for the people during these “sessions.” But the political dance allows a chamber to claim it’s not recessed. And that’s supposed to stave off recess appointments by the President.

In this case, Republicans intended to block recess appointments to the National Labor Relations Board (NLRB) and the Consumer Financial Protection Bureau. By New Year’s, NLRB membership had dwindled to two, denying the organization the quorum that this group, whose function is to protect workers’ rights, must have to make decisions.

The Consumer Financial Protection Bureau, by law, could not fulfill all of its duties to protect borrowers from fraudulent lending practices until it had a director. Using blackmail again, Republicans said they would filibuster the appointment of any proposed director, no matter how qualified, until they got what they wanted – which was measures to weaken the Dodd-Frank Wall Street Reform and Consumer Protection Act, legislation designed to prevent another Wall Street collapse.

Republicans created what appeared to be a foolproof scam to cripple implementation of the law. The legislation wouldn’t be fully effective without a Consumer Financial Protection Bureau director and Republicans refused to approve a director unless Democrats agreed to dilute the law. In addition, the GOP would block recess appointments by never officially recessing.

Obama rebuffed this abuse. He called a legislative session that opens for three minutes every 72 hours while 99 Senators are vacationing what it is – recessed. And he made the appointments. He explained:

“When Congress refuses to act and, as a result, hurts our economy and puts people at risk, I have an obligation as President to do what I can without them. I have an obligation to act on behalf of the American people. I will not stand by while a minority in the Senate puts party ideology ahead of the people they were elected to serve. Not when so much is at stake. Not at this make-or-break moment for the middle class.”

Give ‘em hell, Barack!

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Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union. Follow @USWBlogger

Americans Are Greater Together

It wasn’t so much a vote as a proclamation of ideology last Thursday when Republicans filibustered Obama’s nominee to lead the Consumer Financial Protection Bureau.

The rebuff had nothing to do with the person, Richard Cordary, who even Republican Senator Orrin Hatch said appeared well qualified.  Rather, it was part of the GOP campaign to hobble the agency created to safeguard borrowers from dodgy payday lenders and predatory mortgage salesmen.

The GOP thwarts regulatory agencies in order to enforce its “you’re on your own” philosophy. That is, each citizen, like an island, fends for himself in a world where the invisible hand of the market serves as regulator. Democrats believe something very different. They espouse the principles set out by President Teddy Roosevelt in his 1910 speech in Osawatomie, Kan., and echoed by President Obama in his address there last week. That is America and Americans are better when citizens work together and watch out for each other, that cooperating invigorates the individual, the economy and the nation, and that primacy is in people and profit is subordinate.

The late Senator Paul Wellstone expressed the essential sentiment most succinctly:

 “We all do better when we all do better.”

Republicans don’t ascribe to that. They want to set up a country where every person is responsible for every aspect of daily life, from ensuring drinking water is safe to reducing workplace hazards. The GOP wants to shred regulations that protect citizens, even eliminate the federal agencies that enforce them. Congressional Republicans have worked to defund the Environmental Protection Agency, a move that would “empower” each citizen to persuade big industrial polluters to limit the particulates, mercury, arsenic, cadmium and lead belching from smokestacks.

Republican presidential candidate Newt Gingrich said he’d reverse laws forbidding child labor –the same regulations Teddy Roosevelt endorsed to keep youngsters in classrooms and out of factories.  In a nation deeply concerned about the quality of schools and the quantity of imported oil, GOP candidate Rick Perry plans to close the Education and Energy departments. Republican candidate Ron Paul would abolish the Federal Emergency Management Agency, the organization citizens created to aid fellow Americans who fall victim to natural disasters like hurricanes, tornadoes and floods.

But that’s just the point: Republicans don’t believe Americans should help each other – they should only help themselves. In the GOP view, greed and selfishness aren’t sins. They’re virtues.

That’s a new fangled philosophy for Republicans, however. Wealthy Republican Teddy Roosevelt, a big game hunter and war hero who led the Rough Riders up San Juan Hill to win the Spanish-American War, might be expected to be a rugged individualist of the go-it-alone ilk promoted by today’s GOP. But he wasn’t. He counseled against a cult of individualism, writing:

“The fundamental rule in our national life – the rule which underlies all others – is that, on the whole, and in the long run, we shall go up or down together.”

The concept is citizens working together for their mutual benefit and the advancement of their nation. American citizenship is not, Roosevelt said in his New Nationalism Address in Osawatomie in 1910, all about individual enrichment:

“Those who oppose all reform will do well to remember that ruin in its worst form is inevitable if our national life brings us nothing better than swollen fortunes for the few and the triumph in both politics and business of a sordid and selfish materialism.”

That could have come from the mouth of an Occupy Wall Street protester.

Then there’s this from Roosevelt in Osawatomie on regulation:

“This, I know, implies a policy of a far more active governmental interference with social and economic conditions in this country than we have yet had, but I think we have got to face the fact that such an increase in governmental control is now necessary.”

His purpose was to ensure equal opportunity for all people who work hard, he said:

“I stand for the square deal. But when I say that I am for the square deal, I mean not merely that I stand for fair play under the present rules of the game, but that I stand for having those rules changed so as to work for a more substantial equality of opportunity and of reward for equally good service.”

One hundred and one years later in Osawatomie, President Obama reiterated those sentiments. He talked about how in the 75 years after Roosevelt’s speech, America moved toward fulfilling the Rough Rider’s goals. The nation decreased income inequality and increased opportunity. Hard work paid off, and anyone who strived could succeed. This gave rise to the largest middle class and strongest economy in world history.

But, over the past 25 years, this progress eroded. Income inequality rose dramatically. Simultaneously, opportunity diminished. The middle class shrank as hard work too frequently stopped paying off.

How to restore opportunity and shared prosperity is, Obama said, “the defining issue of our time.”  Roosevelt sought it through the square deal. Obama called for something similar:

“I believe that this country succeeds when everyone gets a fair shot, when everyone does their fair share, and when everyone plays by the same rules. Those aren’t Democratic or Republican values; 1 percent or 99 percent values. They are American values, and we have to reclaim them.”

Obama rebuked on-your-own selfishness and greed, saying each American has a stake in the success of all Americans:

“We are greater together than we are on our own.”

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Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union. Follow @USWBlogger

Leo W. Gerard : Traditional Voting Fails; Alternative Works

Voting doesn’t work anymore. If it did, Americans would get what they want — or at least some of it — from Washington.

But they don’t.

Instead of the people’s priority, which is jobs, country club conservatives in Congress stubbornly fixate on deficits. Instead of ensuring millionaires and corporations pay their fair share, House Republicans passed a budget that would destroy Medicare and Medicaid.

Corporate and clandestine campaign contributions have undermined the power of traditional voting, the kind done at polls on election day. Rather than voters, politicians now serve donors — billionaires and banksters — who invest untold millions and demand returns in the form of self-serving policy.

This is demoralizing to those who cherish democracy and the sanctity of one person, one vote.

Hope, however, arrived with the debit card fee victory. The 99 percent forced Bank of America to back off its proposed fee. Average Americans accomplished this by voting differently, not at the ballot box but at the twitter account, the Occupy march and the teller window, where 1 million depositors went to move $4.5 billion from the big Wall Street banks to community banks and credit unions. They found another way to exercise their franchise and force the powerful to respond.

The 99 percent must exploit the method of this triumph to get what they need. Because politicians sure as hell aren’t giving them what they want.

The numbers don’t lie. Coin-operated conservatives in Congress have rejected President Obama’s jobs plan, parts of the jobs plan and Obama’s pitch to raise taxes on the rich to pay for it.

And yet, the electorate strongly supports both surtaxing millionaires and the elements of the jobs plan. In a CNN poll in October, 75 percent favored sending federal money to the states to hire teachers and first responders and 72 percent favored infrastructure investments.

A whopping 76 percent wanted millionaires to pay higher taxes.

In that same CNN poll, there’s another compelling statistic. Sixty-one percent said reducing unemployment was the most important issue. Reducing the deficit didn’t even come close at 35 percent.

The numbers aren’t flukes. Another survey, taken a week later by CBS found the same thing.

At a time when companies are hoarding $2 trillion in reserves, failing to create jobs and demanding tax cuts, the CBS poll provided a snapshot of public opinion on corporate responsibility. It found 67 percent opposed shrinking big business tax obligations.

That is a result of the public knowing intuitively what a report released last week proved: corporations aren’t paying their fair share. Citizens for Tax Justice conducted a comprehensive study that showed 280 of the nation’s largest publically-traded corporations paid only 18.5 percent of their profits in taxes over the past three years. That is little more than half the official rate of 35 percent, and it is lower than the rate paid by their competitors in other industrialized nations.

Thirty of the companies paid nothing. For three years.

Numerous polls over time found Americans, including Tea Partiers by a two-to-one margin, strongly oppose cutting Social Security, Medicaid and Medicare benefits. Yet, what is the Congressional super-committee talking about? Cutting Social Security, Medicaid and Medicare.

If only the public could get their elected representatives to listen. If only they could walk into those plush Congressional offices — the way corporate lobbyists do — grab those lawmakers and get them to understand the sentiment of all those polls, the feeling of the vast majority of the electorate: Tax the rich; don’t cut the social safety net; create jobs now; worry about the deficit when the economy improves.

Traditional balloting has failed to get country club conservatives to listen to the public. To the majority. To the people who a democratically-elected government is supposed to serve.

The Bank of America debit card fee reversal suggests, however, that the majority can win with non-traditional balloting. In this case, a big bank that had been bailed out by the public after it engaged in excessively-risky betting, a bank that gave its CEO a $9 million bonus after he lost billions, announced that it had “the right to make a profit” off the backs of poor people by charging them a new $5-a-month fee to use their own money with their debit cards.

Other Wall Street banks indicated they would do the same.

Fed up, depositors said they wouldn’t take it anymore. They began transferring their money out of the Wall Street banks, participating in the “Move Your Money” campaign that urged citizens to deposit their savings in community banks and credit unions. YouTube began featuring outrageous videos of Wall Street bank branches denying depositors access to their accounts when they tried to withdraw their money to move it.

The effort was tweeted and blogged. It was cheered by Occupy Wall Street protesters who marched to bank headquarters buildings in New York City carrying thousands of letters of complaint.

Wall Street banks began backing off their new fee plans. One by one they abandoned Bank of America. Finally, it too cancelled the fee, meanwhile refusing to disclose just how much businesses it lost.

Last Saturday was the big, official “move your money” day. Of course, the Wall Street banks won’t tell how many more customers they lost. But depositors, more than 78,000 of whom pledged to make the move, made their point.

They voted differently. They voted with their feet and their wallets. And they won. They cast ballots in the only way coin-operated politicians and big banks respond to.

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Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union. Follow @USWBlogger