The Paradox of American Populism
Those who listened to President Obama’s State of the Union Address last Wednesday were treated to numerous opportunities to lambast the rich. Evil bankers, greedy CEOs, and executives flitting around on private jets were blamed for the vast multitude of economic ills facing our nation today. Ladies and gentlemen, this is demagoguery of the worst variety.
Not only is the idea that the wealthiest Americans are responsible for our economic woes completely false, I can prove to you that Obama himself does not believe it.
The class warfare bandwagon is overflowing; our media and popular culture are steeped in stereotypical visions of smoke filled board rooms populated with dollar-eyed executives pointing at pie charts outlining how best to oppress the poor.
But American financial machinations are not quite as Conservative as you might think. Welded to the mainspring of our economy is the core belief that the government can and should induce investment in the private sector.
In simple terms, it is widely believed that, during a recession, the government should 1) inject money into the private sector (see: stimulus), and 2) lower the Prime Interest Rate, coercing investors to pull capital out of banks and invest it in new ventures, thereby creating jobs.
Rather than devolving into an esoteric discussion of economics, and likely putting everyone within earshot to sleep, let’s assume this is true.
Obviously, the only reason investors invest is to turn a profit; no one wants in on a losing venture. When the government hands money to the private sector, or lowers the Prime Rate to encourage the expansion of business, the capitalists who put their money on the line are hoping to make a return. Nothing wrong with that.
However, this administration has decided that those who make too much money are opportunists. And therein lies the paradox. It is pure hypocrisy to urge investors to open new ventures, and then to malign them when they do so effectively.
This is not to say that we should regress to the 1950’s and assume all corporations are benign. Forever gone are the days of idolizing executives, of the term ‘captain of industry’, or of the belief that the finance barons have a moral stake in the well-being of the community. Fine. But if altruism is dead, and cynicism rules, then the narratives of the Left must be scrutinized as well.
The lure of anti-rich populism is strong. Our culture encourages us to dream of being rich, and simultaneously impugn those who have amassed fortunes as silver-spoonlings or backstabbing brigands. But the bedtime story of the nefarious corporatist and the wholesome politician is naïve. If money and power are analogous, then Washington is no more trustworthy than Wall Street.
To pierce the fog, you and I must inoculate ourselves against the viral outbreak of classism presently permeating our media and culture. It is a brute fact of American capitalism that the profit motive is what creates jobs. To vilify or punish the profit motive is to misunderstand the foundations of our economy.
Washington is actively promoting government policy that encourages investment, in the hopes that new investment will boost the economy. At the same time, Obama is spewing rhetoric intimating that those who profit from investing are evil. But if Obama really believes that investors are nefarious, why support policy that stimulates investment?
Our President is betting you won’t recognize this deception. I’m betting you will. The winner will be decided by this year’s congressional elections.
Not only is the idea that the wealthiest Americans are responsible for our economic woes completely false, I can prove to you that Obama himself does not believe it.
The class warfare bandwagon is overflowing; our media and popular culture are steeped in stereotypical visions of smoke filled board rooms populated with dollar-eyed executives pointing at pie charts outlining how best to oppress the poor.
But American financial machinations are not quite as Conservative as you might think. Welded to the mainspring of our economy is the core belief that the government can and should induce investment in the private sector.
In simple terms, it is widely believed that, during a recession, the government should 1) inject money into the private sector (see: stimulus), and 2) lower the Prime Interest Rate, coercing investors to pull capital out of banks and invest it in new ventures, thereby creating jobs.
Rather than devolving into an esoteric discussion of economics, and likely putting everyone within earshot to sleep, let’s assume this is true.
Obviously, the only reason investors invest is to turn a profit; no one wants in on a losing venture. When the government hands money to the private sector, or lowers the Prime Rate to encourage the expansion of business, the capitalists who put their money on the line are hoping to make a return. Nothing wrong with that.
However, this administration has decided that those who make too much money are opportunists. And therein lies the paradox. It is pure hypocrisy to urge investors to open new ventures, and then to malign them when they do so effectively.
This is not to say that we should regress to the 1950’s and assume all corporations are benign. Forever gone are the days of idolizing executives, of the term ‘captain of industry’, or of the belief that the finance barons have a moral stake in the well-being of the community. Fine. But if altruism is dead, and cynicism rules, then the narratives of the Left must be scrutinized as well.
The lure of anti-rich populism is strong. Our culture encourages us to dream of being rich, and simultaneously impugn those who have amassed fortunes as silver-spoonlings or backstabbing brigands. But the bedtime story of the nefarious corporatist and the wholesome politician is naïve. If money and power are analogous, then Washington is no more trustworthy than Wall Street.
To pierce the fog, you and I must inoculate ourselves against the viral outbreak of classism presently permeating our media and culture. It is a brute fact of American capitalism that the profit motive is what creates jobs. To vilify or punish the profit motive is to misunderstand the foundations of our economy.
Washington is actively promoting government policy that encourages investment, in the hopes that new investment will boost the economy. At the same time, Obama is spewing rhetoric intimating that those who profit from investing are evil. But if Obama really believes that investors are nefarious, why support policy that stimulates investment?
Our President is betting you won’t recognize this deception. I’m betting you will. The winner will be decided by this year’s congressional elections.
