UFPPC (www.ufppc.org) Digging Deeper XXXII: June 4, 2007, 7:00 p.m.

Thom Hartmann,

Screwed: The Undeclared War against the Middle Class—and What We Can Do about It

(San Francisco: Berrett-Koehler, 2007).Foreword by Mark Crispin Miller.

Americans have let things drift (ix-x). They need to reclaim their “revolutionaryorigins,” “the truth of what America is allabout (x-xi). A “soporific mythos” aboutthe “Founding Fathers” has been boughtby right and left alike (xi). Time to turnagain to study of the Framers (xii).

Introduction: Profits before People.

Father’s life story, death from asbestos-caused mesothelioma (1-2). There arefewer and fewer good jobs with benefits(2-5). Challenges the view that theFramers were not egalitarian (5-8).Arguments from the social behavior of animals: red deer, birds, fish, gnats,ants, gorillas—“democracy is the normamong animals” (9). Democracy requiresa middle class; the “American Dream” (9-10). In America today there is a battlebetween democrats and élitists (11-12). Two kinds of “cons”—predator cons(“simply greedy” [12]) and true believercons (believers like Ronald Reagan in

corporatocracy

, “the view that aneconomic aristocracy benefits theworking class because wealth will ‘trickledown’ from above to below” [13; “acorporate aristocracy” (63)]) (12-15).“Translated, the cons’ policies mean onlyone thing: you and I get screwed” (15).New Deal reversed two generations of “con” control (15). But since 1980 conshave been in the ascendancy (16).Critiques “trickle-down economics” (16-19). Precarious state of U.S. economy:low savings, high personal debt, highunemployment, twin deficits (federalbudget and trade), excessive militaryspending, foreign ownership of manyindustries (19-25).

ART

I: A M

IDDLE

LASS

EQUIRES

EMOCRACY

Ch. 1: There Is No ‘Free’ Market.

“[T]he middle class was the creation of liberal democracies” (29). The idea that“free” markets produce a middle class isfalse (30-31). Since Reagan, people havebeen conned into believing that smallgovernment is better; “The cons’ mantrais ‘Let the markets decide.’ But there isno ‘market’ independent of government,so what they are really saying is ‘Let’smake government work to helpcorporations instead of people . .’” (31;31-36). Hurricane Katrina shows thecons knew the importance of governmentand how to make it work—for them (36-38). “[W]e must take our governmentback” (39).

Ch. 2: How We the People Create theMiddle Class.

We need to return to“classical economic policies” (42).Historically, two great periods of middle-class ascendancy: “from the 1700s tothe mid-1800s” and 1933-1980 (42-48).Government must not give up its rule-making function, as Jefferson understood(48-51). Refutes idea that taxes takes“your money,” because by accepting tolive in this society you are reapingbenefits that imply an obligation to pay:“I’ve agreed to pay for them because Ilive here and I use them” (51-53).“When today’s cons make

tax

a dirtyword, they are really saying they don’tcare if the middle class gets screwed”(54). The destruction of the public schoolsystem is due to the ethos of privatization (54-56).

Ch. 3: The Rise of theCorporatocracy.

Self-help programs arenot the answer (59-60). The health carecrisis is due to deregulation andprivatization (60-61). The élites blamethe victims: Americans aren’t sufficientlywell educated, etc. (62-63). The present

era is a new form of feudalism, a newRobber Baron era (64-67). The relativefreedom from taxation of the élites is aproof of this (67-69).

Fascist

is also apossible descriptor for the group that iswaging a “war against democracy” (69-70).

ART

II: D

EMOCRACY

EQUIRES

IDDLE

LASS

Ch. 4: The Myth of the GreedyFounders.

That the U.S. was foundedby and for “rich white men” is a myth(73-74). Charles Beard, whose

AnEconomic Interpretation of theConstitution of the United States

(1913)established this thesis, “was wrong”(citing Bernard Bailyn, Kevin Phillips,Forrest McDonald) (74; 74-78). TheConstitutional Convention was held insecret because “most of the wealthy menamong the delegates were betraying theinterests of their own economic class . . .voting for democracy instead of oligarchy” (78; 78-79). The Founderswere “revolutionaries” (80).

Ch. 5: Thomas Paine against theFreeloaders.

The middle class wasbased on progressive legislation (81-82). Thomas Edison revived Thomas Painefrom obscurity in 1925 (82-83). Paineand Edmund Burke (83-87). Paineopposed charters and corporate “rights”(88-89). He advocated progressivetaxation and the estate tax in the lastchapter of

The Rights of Man

(1791-1792) (89-92). FDR said he was inspiredby Thomas Paine (93).

Ch. 6: Taxation withoutRepresentation.

The AmericanRevolution was against being “screwed”(95-99). Early Americans limitedcorporate power (99-100). The 1886case of

Santa Clara County v. SouthernPacific Railroad

, decided on a mistake,became the basis for a return of corporatocracy (100-02). The case of

Nike v. Kasky

heralds a reversal: Nikefailed in its bid to assert corporations’free-speech rights, though it was backedby the U.S. solicitor general and the U.S.Chamber of Commerce (102-04).“Perhaps it’s time for another tea party”(105).

Ch. 7: James Madison versus theBusiness of War.

War is a way forcorporate élites to distract the public(107-10). Madison foresaw, andEisenhower recognized, the danger (110-13). American must choose between thepath of democracy or of corporatocracy(113-14).

Ch. 8: FDR and the EconomicRoyalists.

The nature of fascism (115-16). Warnings of the danger in the 1930sand 1940s (117-19). Fascists disguisetheir aims behind a rhetoric of efficiencyand patriotism (119-21). FDR’s June 27,1936 speech against “economicroyalists,” accepting the nomination of the Democratic Party (122-28).

ART

III: G

OVERNING

FOR

THE

EOPLE

“Americans stand at a critical moment inhistory” (129). The disaster of Iraqblamed on the ethos of privatization(129-33). True believers, they seek thesame end in the U.S. (134). Butdemocracy enables us to resist thisproject (134-35).

Ch. 9: Too Important for the PrivateSector.

Privatization of the military(137-39). Privatization of prisons (140-43). Privatization of elections, the“ultimate crime of privatization” (143-46).

Ch. 10: Knowledge Is Power.

Privatization of education is not thesolution to schools’ problems; rather,“[i]t’s to change the way we areteaching” (148). Education is not “justanother commodity” (149). The No ChildLeft Behind Act is regressive (149-51).

Ch. 11: Medicine for Health, Not forProfit.

The health care system in the

U.S. is an appalling “spectacle” (153-54).Privatized health care has failed theAmerican middle class (154-56). “Thecons say the solution is morecompetition. This is nonsense” (157).Health care must be made a right (158-59). “Socialized medicine” vs. “single-payer” system (159-60). Advocatesextending Medicare universally (160-61).

Ch. 12: The Truth about the TrustFund.

Explanation of the Social Securityfinancing “crisis,” created through afinancing scam of funding the federalbudget with IOUs from social securitytaxes (163-66). The “cons” seek tocreate “single-party rule for a generationor more” by persuading the generationunder thirty that privatizing SocialSecurity will give them the best return ontheir investment, prevent Democratsfrom pandering to old people and“special interests” (166-70). But SocialSecurity is not an investment program,the Republican proposal relies onunrealistic assumptions, privatizationdoes not solve the cash-flow problem(170-72).

Ch. 13: Setting the Rules of theGame.

Talk of “free markets” ignoresRicardo’s dictum that the “natural” priceof labor is mere subsistence (173-74). Tax cuts as a way of “starving the beast”and undermining social programs (175-76). Low wages produce higher profits,not, as a “tragic lie” would have itgreater efficiency and productivity; evenRicardo says so (177-78). Advocatesusing tariffs “to balance traderelationships,” as was traditionally done(178-80). “We should pull out of theWTO, NAFTA, CAFTA, and othermultilateral treaties that givecorporations the power to enforce theirwill on our government and our workers.. . . This is easily doable” (180).

Ch. 14: The Illegal EmployerProblem.

Employers, not immigrants,are to blame for the excessively large“labor pool” (183-84). Reagan’s“crackdown on organized labor” led tothe problem of illegal immigration, mostobviously in construction but also “in allsectors” (184; 184-86). The real effect of the proposed immigration law would beto drive down wages and create non-voting residents (186-87).

Pace

LouDobbs, illegal employers, not illegalemployees, are the root of the problem(188-89). There is no need for a fence(189-90). “It’s time to stop talking about‘illegal immigration’ and time to starttalking about how the cons are trying toreplace the American middle class with alabor pool of ‘working poor’ Americansand powerless illegal (or ‘guest’)immigrants” (190).

Ch. 15: Leveling the Playing Field.

People are working more and more in anattempt to stay in the middle class (191-92). Low prices vs. high wages is a falsedichotomy (193-94). Raising theminimum wage is not a threat to smallbusinesses (194-95). Executive pay isexcessive (195-97). “Unions are foranyone who wants to be middle class”(198; 198-99). Workplace rights areessential (198-99). The history of thestruggle for labor rights (199-200). SinceReagan, U.S. society has been regressing(200-02). Energy prices are contributingto the screwing of American workers(202-04). A seven-item to-do list (204-05).

ONCLUSION

: T

OAD

ICTORY

Examples of Americans getting involved(207-09). Advocates “taking back theDemocratic Party” (209; 209-12). Praisesthird parties and advocates InstantRunoff Voting (212-14). InvitesRepublicans to “take back your partytoo!” (214; 214-17). Involvement meansconsistent participation “in a deep,visceral, meaningful way” (217-18).Advice to write letters, use the internetand pamphlets, contact congressionalrepresentatives, join “the union