Obama or Romney? The choice of the 1%

On November 6, US voters will make a choice between two very different candidates with very different visions, policies and approaches. Well, that is the official version, at least. The reality is rather different. Barack Obama, Mitt Romney and their respective parties, represent the two wings of capital…

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Burdened by expectation: Barack Obama prepares to leave the White House aboard Marine One last weekend. EPA/Michael Reynolds

On November 6, US voters will make a choice between two very different candidates with very different visions, policies and approaches. Well, that is the official version, at least.

The reality is rather different. Barack Obama, Mitt Romney and their respective parties, represent the two wings of capital, the 1% if you like. No matter who wins on November 6, Wall Street, not Main Street, will still be firmly in control. Big business not ordinary people will continue to run the government.

Almost half of all Congressmen and women are millionaires. In 2010 the average net worth of Senators was estimated at US$2.63 million. This wealth and their high salaries divorces them from the life experience of poverty and unemployment and of falling living standards that many Americans have or are experiencing. To some extent their wealth even shields them from the racism, sexism and homophobia common to much of US society.

The rise of neoliberalism as an ideology of wealth shifting from the poor and working class to the rich was a response to falling profit rates across much of the developed world at the end of long boom in the late 1960s and early 1970s.

Just as in Australia, the two major parties of capital in the US adopted the prescriptions and remedies of neoliberalism: attacking working class wages and living standards, cutting government spending on social services, privatising public goods, cutting taxes on the rich and capital and using the state to suppress unions and union activity.

After almost 30 years of this unrelenting one-sided class war by the 1%, Barack Obama in 2008 inspired millions with talk of change.

Four years later the reality denies the soaring rhetoric. Most working class Americans are worse off than when he came to power and much of his enthusiastic base deserted him as he continued the Bush economic and geopolitical agenda.

In 2008 it was a case of voting for the charlatan of capital whose role in practice of ruling for the rich has been revealed.

Oh, cry the Democrats, at least he is not as bad as Romney.

This lesser evil argument has a few problems. Why vote for evil in the first place? Second, in power the Democrats might end up being just as bad if not worse than the Republicans.

Certainly, Obama has proven powerless in the face of the worst economic crisis in US history since the Great Depression. This is because the economic problems are systemic and neither Obama nor Romney has any intention of attacking the system that produces recession and depressions. Bandaids don’t cure cancer.

Lyndon Johnson won the 1964 election in part because he was the lesser evil compared to Barry Goldwater. The two million Vietnamese killed as a result of Johnson’s escalation of the war in Vietnam might question, if they could, this lesser evil strategy.

Internationally, Obama unleashed more drone attacks in one year than Bush did in eight years.

None of this is to argue that voting for Romney would be a step forward. Romney offers a shit sandwich. Obama asks if you want fries with it.

The two candidates are part of the plutocracy governing America, and that the alternative is to build struggles to force them to adopt pro-people not pro-profit policies. Out of that might arise a challenge to both the parties of US capitalism, one that expresses the anger and frustration many Americans have with policies as usual and ultimately challenges the rule of capital.

There is something else in all of this. US politics, like Australian politics, has swung far to the Right over the last few decades.

Danny Katch puts it this way in his forthcoming book America’s Got Democracy! The Making of the World’s Longest Running Reality Show, in what he calls the “Two Party Shuffle”:

Hey Tea Party, looking for a fight? Step from your Right to your really far Right! Now reach for your partner, the GOP. Pull them a step toward you on three! Okay Democrats, now it’s your turn. Slide to where the Republicans were! Now grab on to your liberal base. Yank them a step to a “realistic” place!

Yet as the Occupy movement shows, and the massive but passive support it got confirms, many Americans in reality reject the remedies and prescriptions of the politicians of the 1%. They want better and more accessible health care and education, action on climate change, even gay marriage and abortion rights.

Public school teachers in Chicago have been on strike over the past week, seeking better pay and conditions. EPA/Tannen Maury

For the last week 25,000 teachers have been on strike in Chicago and 50,000 people demonstrated for them on Wednesday. The strike is against the wage cutting and privatisation plans of Obama’s former right hand man and now Mayor of Chicago, Rahm Emanuel. Mitt Romney came out against the teachers and in support of the Democratic Party’s attacks on teachers.

It didn’t take long for the posters of “Rahmney” to appear, making it clear that in the battle between workers and the elite over the future of education, the two parties of business are in fact on the same side: against teachers.

Even on health care the two parties accept the basic premise that a “free” market in private health care is the best way to look after the sick and unwell. Thus private health funds have been the main beneficiaries of Obamacare.

The US presidential election is a choice between two representatives of big business. The task is to fight the one percent and build an alternative. Occupy gave us a glimpse of the possibilities.

Winning the immediate fight and building that alternative, as Occupy and now the Chicago teachers’ strike shows, can only be done on the streets and in the workplaces, through demonstrations and strikes.

Join the conversation

19 Comments sorted by

  1. Ian Donald Lowe

    Seeker of Truth

    Added to all of this (very good article John), the Federal Reserve Bank, which is a private bank, has just started QE3, or QE unlimited, which will do nothing except move private debt into public debt by buying $40 billion worth of high-risk, unsecured mortgage debt a month from the banksters, supposedly to stimulate the economy but really just to get that bad debt off the bank's books. This must have an inflationary effect, especially if the U.S. dollar loses it's oil trading status. China has already…

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  2. Mark Schneider

    Freelance coypwriter

    Some time ago a thought sprung into my head that was so vile I thought I should wash my brain out with soap. It's this:

    "The capitalists, united, will never be defeated!"

    Sadly, in my heart of hearts, I know it to be true.

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    1. David Collett

      IT Application Developer at Web Generation

      In reply to Mark Schneider

      They certainly look like an unbeatable force.

      Time changes the playing field though. One idea I entertain is that the 1% might lose their power is if items become worthless.

      For example, combine extremely keep electrical power (from solar and other renewable sources) with cheap creation technologies (such as the ability to create items using 3D printing, and the ability to copy digital goods, and the ability of the internet to share knowledge and information) and suddenly the price of everything drops to rock bottom. As even the poorest of the poor could then afford all the consumable they need, the power the 1% have over them (buy controlling wages, forcing them into poverty etc) is diminished and new forms of society arise.

      Or you could take a social uprising approach - for example, the occupy movement becomes a revolution over time.

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    2. Lorna Jarrett

      PhD candidate, science education; Physics teacher

      In reply to David Collett

      A wealthy elite lining their own nests ever-deeper while a significant proportion of the population are increasingly driven into poverty - sorry, but isn't that how the communist revolutions started?

      Can't say I'm a fan of communism or violent revolutions - so it's encouraging to think that there might be an alternative in the form of local, renewable power generation, free information-sharing etc. Sounds like the sort of revolution we can all enjoy - well, 99% of us anyway.

      On the other hand, look at what the far-Right state governments of NSW and Victoria are doing to renewable energy. Doesn't look as though they're prepared to allow any changes to the status quo.

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  3. Peter Andrew Smith

    Retired

    Yes, Dr Martin Luther King Jr. had it about right when on April 4 1967 he said: "We must rapidly shift from a "thing-orientated" society to a "person-orientated" society. When machines and computers, profit motives and property rights are considered more important than people, the giant triplets of racism, materialism, and militarism are incapable of being conqured." 45 years later the need for a radical change in direction remains.

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    1. Firozali A.Mulla

      PhD

      In reply to Peter Andrew Smith

      If you want to contribute to a charitable cause, your first step is to find at least one organization that supports a cause close to your heart. You can find them through your regional business calendars or community listings. Another handy resource is your clients: You already know which charities many of them support; ask them if they volunteer their time as well. Once you select a charity, the next step is to become involved. You can donate money, but understand that most charities have an even…

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  4. Brandt Hardin

    logged in via Twitter

    The dynamic duo of Romney and Ryan would drive the entire economy into a nose dive as long as it benefits the richest Americans. Income inequality is endangering the Middle Class and making paupers of us all who don’t have those millions upon millions of dollars. Read more about the role of Romney’s riches in this election and the power of his sacred undergarments at http://dregstudiosart.blogspot.com/2012/05/mitt-romneys-magic-mormon-underwear.html The working class of our country can’t AFFORD to allow this election to be bought and sold!

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  5. Jason Bryce

    logged in via Twitter

    Is this a first year tutorial discussion from 1985? You cannot be seriously arguing there is no major differences between Obama and Romney/Ryan.
    Obama was not "powerless" in the global financial crisis. His stimulus stopped a depression.
    Obama took the troops out of Iraq - in congress he was one of the few who voted against going to Iraq in the first place.
    And Obamacare is the biggest leap forward in US social policy in a generation. You are an unreconstructed Stalinist. The 1980's are over.

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    1. Firozali A.Mulla

      PhD

      In reply to Jason Bryce

      This is on bank employee who did it Many of the banks are involved in rent-seeking activities and gambling.The usual process of capitalism must apply to this industry and banks should be allowed to go bust like any other business.He was able to hide the losses for three years and the bank’s internal controls have failed. The top people at the bank should also be held accountable.This is not the first time that this kind of fraud happened and it is highly unlikely to be the last!The loss of $2.3 billion is enough to pay a year's salary for 70,000 nurses or six new hospitals! I thank you Firozali A.Mulla DBA

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    2. Eamon Vale

      eLearning Designer

      In reply to Jason Bryce

      Hi Jason,

      If you disagree with the author of the article why don't you respond to the arguments he makes rather than dismiss him as a 'stalinist' (whatever that is and whatever it has to do with the 80s). In response to your claim that Obama took troops out of Iraq:

      The Obama administration attempted to maintain troops in Iraq but could not get an agreement of immunity from prosecution so reluctantly withdrew:

      http://www.huffingtonpost.com/2011/10/15/iraq-withdrawal-us-troops_n_1012661

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    3. Jason Bryce

      logged in via Twitter

      In reply to Eamon Vale

      The author of this article is a self proclaimed Marxist - and seems to be of the Stalinist variety - if you know better than please fill me in.
      The arguments in this article date from the 80s - he even talks of the long boom of the 60's and 70's and uses it to try and make a point about the GFC. There was a much more recent and relevant long boom - of the 90's and 2000's, but the arguments here are dated. And Barry Goldwater - wtf??? You don't even mention the 8 year George W Bush disaster - oh right coz that wouldnt fit with the marxist thesis.
      Its typical Marxism to argue that the social democratic parties always inspire working people then disappoint them, therefore the only option is direct action.
      What is totally incorrect is the proposition that having Democrats in the white house makes no difference. A Romney/Ryan victory would further enrich the 1% and condemn more working Americans to poverty.

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    4. Lorna Jarrett

      PhD candidate, science education; Physics teacher

      In reply to Jason Bryce

      The author's info says he's interested in tax (I forbear to comment) "from a left-wing perspective".

      Jason, is that what you mean by "self proclaimed Marxist - and seems to be of the Stalinist variety" - or do you have some other source for this claim?

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    5. Jason Bryce

      logged in via Twitter

      In reply to Lorna Jarrett

      I might be wrong about the Stalinist - His website seems to feature a pic of Trotsky as well as Marx - so maybe that's where his completely out of date perspective comes from.

      see here:
      http://enpassant.com.au/

      Whether its Trotsky or Stalin that inspires him, this article is completely without academic merit and has no place on this site.

      If you still sling to the simple idea that there is no difference between Obama and Romney, today's New York editorial may change your mind: (unless you have written off the NYT as an organ of the capitalists):

      http://www.nytimes.com/2012/09/19/opinion/mitt-romney-class-warrior.html

      Or maybe Romney can convince you:

      http://www.motherjones.com/politics/2012/09/secret-video-romney-private-fundraiser

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  6. Gary Murphy

    Independent Thinker

    Unfortunately under a system that does not have preferential voting a third party will just split the vote and promote nihilism. And in a country that does not have compulsory voting and where mobilising the base is so important nihilism is a very dangerous thing.

    If people want to change the direction of the major parties in the US the only way forward is probably to join a major party and try to change their policies from within.

    There are major differences between the Democrats and Republicans (especially since the TEA party) and the reason Obama hasn't been more successful is because the Republicans control the Senate/House(?) and won't let him repeal the Bush era tax cuts for the rich.

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    1. stib

      logged in via Twitter

      In reply to Gary Murphy

      Exactly. Until someone leads a coalition of the willing to bring real democracy to the US, it's never going to change.

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  7. Rosco Hamilton

    logged in via Facebook

    I'm not disagreing with the author, but I am again disappointed in the editorial standards on The Conversation.
    I have no problem with educated experts sharing their opinion, right wing or left but I would expect them to provide a bit of expertise with that opinion.
    Surely John can do better than "American politicians are all rich and only look after the 1%".
    For example, how are poor Americans worse off since 2008 and how is Obama accountable for that?
    Obama has approved a stack of drone…

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  8. Chris Borthwick

    logged in via Facebook

    Yes, I can remember much this same argument over Gore and Bush. And I can recall, some three years later, wishing that instead of asking "Are these people both creatures of higher capital?" people on the left had asked the question "Which one of these two is most likely to involve us in a disastrous war leaving half a million dead?"
    I don't actually remember the reign of James the second, but I have read Charles James Fox on one of the rebellions at the time;
    “Add to Argyle’s problems that where…

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  9. Firozali A.Mulla

    PhD

    Will this bring a change I have no idea many have come and many have promised but the economy is still in the doldrums Goldman Sachs Group Inc's longtime chief financial officer, David Viniar, will retire at the end of January and be replaced by Harvey Schwartz, the current global co-head of securities, the investment bank said on Tuesday. Schwartz, 48, joined Goldman in 1997 from Citibank and is among a small group of executives who are considered candidates for the chief executive position when…

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