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Corporate Greed Weakens the EconomyBy Ronald Honse
One of the first things George W Bush did in his presidency was to insist on a huge tax cut for corporations and the millionaires that control them. You remember that tax cut? That was the one where you received a rebate check, then had to subtract that rebate from any refund you had coming at the end of the year. Well, it didn’t work that way for the rich. They will continue to enjoy new tax breaks over the next three years. Tax breaks that benefit only “big business” as well as the wealthiest, smallest percent of the population are unfair and unjust. Why were these tax breaks bad? Because economically they have seriously set us backwards. We were poised to reduce the national debt, with its complete elimination within ten years. Now, we face a tremendous increase in the national debt, as well as funding problems in many areas that are important to working men and women, and their families. On September 11th 2001, our country was attacked by terrorists with horrifying results. Because of those attacks, we were thrust into a war against terrorism and a renewed need to boost our homeland security. We knew that the cost would be great, but necessary. Knowing that there would be an increase in spending, an appeal to the president, asking that the tax breaks for the rich be suspended so that our economy wouldn’t be devastated. But those appeals fell on deaf ears, as President Bush sought new ways to fund the new war. As a result of this rejection of common sense, the Social Security surplus has been completely exhausted, we have no way of paying down the debt, and we have once again mortgaged our children’s’ future. Corporate heads and boardroom bosses bailout as they leave the stock market in a shambles, leaving working American’s 401k’s and savings plans devastated. Enron, Global Crossings, Polaroid, K-Mart, WorldCom/MCI, Xerox. The list goes on and on. What happened? Corporations throughout the country have been inflating their value, hiding expenses and costs and misreporting their worth. The recession that has been so conveniently blamed on terrorism is, in truth, being promulgated by corporate greed and fraud. As this accounting scandal grows, the dollar value of corporations decrease. These declines are not a result of the typical reasons given for economical downswings, such as reduced consumer spending. Rather, they are the direct result corporations misrepresenting their worth, claiming they were worth much, much more than they were. As their true value is disclosed, their value drops and their stock value plummets. This drives the entire stock market down as investors become wary of yet undetected fraud. Since a large portion of 401k’s and retirement funds are invested in the stock market, their value also decreases. Any of you that have a 401k or other investments in the stock market and savings plans need only look at your statements to validate this. But how has corporate America reacted? Three days after the WorldCom fraud was reported, top management and corporate leaders from WorldCom began a corporately funded junket in Hawaii, staying at a posh resort where the room rates were between $600 and $10,000 per night!!!!! It’s refreshing to know that the people that caused this mess are suffering along with the rest of us. Organized labor has been reporting on corporate greed for a long time, and now, unfortunately, we are all feeling its results. This is why we have a political action committee, C.O.P.E. (Committee On Political Education) and ask members to contribute to it. We must elect those who will champion our causes and protect us from corporate abuses. We must support candidates who will protect our pensions, and promote safe and healthy workplaces. We must support candidates who promote affordable health care and prescription drug costs. We must support candidates who will stand up for working men and women and be our voice in Washington, D.C. Please -- register to vote, sign up to contribute to C.O.P.E., and take the time to learn about the candidates before you vote. As we approach another Labor day, I hope we all pause to reflect on what the Union has done for us all. I invite you to celebrate those achievements with us on Labor Day. We will begin the day with the annual Labor Day parade in downtown Toledo (watch for details). Then we will move the festivities to Olander Park in Sylvania for our annual Union picnic. Please plan to join us on this day of celebration. It’s a family affair and there will be plenty for the kids to do. See you there and --Happy Labor Day! In Solidarity,
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We have been told that our nation’s economy is in a typical recession and that stimulating corporate America will help end it. But this is misleading. First, there is nothing “typical” about this recession. On the contrary, it is a result of corporate greed that has benefited greatly from the present administration.
