The Republican Party is eating itself

Conservatives have forgotten that Americans are pragmatists first, ideologues second.

We say we are pro-life and then say we want abortion to be legal. We say we're mostly economically conservative but then say we like Medicare and food stamps. We say we want affordable health care and then say that the law that makes it affordable is un-American. What gives?

Part of it is the media. It can badly distort reality. But part of the reason (I think the greater part) is that Americans are so often lied to. Europeans have no doubt heard of the impact of Citizens United, the US Supreme Court case that permits unlimited sums of money to be spent on elections. This is the ruling that allowed Newt Gingrich to survive the GOP nomination process for much longer than he would have under prior conditions, and it allowed Mitt Romney to take the GOP nomination without the political benefit of charm, charisma or likeability.

Europeans, however, may not have heard of the army of secretive front groups that stealthily spread corporate propaganda. Recently, one of those advocating for the coal industry paid people $50 each to attend a regulatory meeting in Chicago. The goal here was creating the illusion that coal enjoys mass grassroots support when in fact it does not. This same tactic prevailed in 2010 when billionaire-backed groups like the Center for Protect Patient's Rights created the false impression that the Tea Party was a bottom-up conservative "insurrection." It funneled more than $44.5 million in 2010, much of it provided by two people: Charles and David Koch.

"Grassroots" isn't the only way the power elite masks its unpopular and oligarchical agendas. So is "small business." Few things are more sacred in Washington than the entrepreneur and small-business owner. Carrying its mantle, a group called the National Federation of Independent Business (NFIB) is challenging the constitutionality of Obama's health care reform law along with 26 states. The US Supreme Court is expected to issue a ruling in June. Meanwhile, a cursory look at the group's leadership suggests it has long-held ties not to small business but to Big Business Republicans. 

Its president is a former lobbyist for the steel industry who served in Ronald Reagan's White House. Its chief lobbyist served in the first Bush administration before working for Citizens for a Sound Economy, a think-tank financed by the Kochs. Citizens for a Sound Economy is now part of the brothers' Americans for Prosperity, which, along with FreedomWorks, underwrites much of the Tea Party. And the NFIB's communications director once worked for the American Legislative Exchange Council, which, as a service to state legislatures, writes "model legislation" that often undermines the right to collective bargaining. The Kochs are known for their anti-unionism.

But in politics, lies don't last forever. Eventually, there is a reckoning, and in the case of the president's health care law, a GOP reckoning may be on the horizon.

Consider Congressman Allen West of Florida. Over the weekend, he told a liberal blog that if the Supreme Court strikes down the law, it has to be replaced with something. That is, as a practical matter, something has to do done, and as a political matter, it's important to consider features of the law that Americans now like. Those, in West's words, would include: allowing children up age 26 to be covered by a parent's plan, outlawing discrimination based on "pre-existing conditions" and expanding drug coverage, aka closing the "donut hole."

For those paying attention, West's remarks amount to a tiny incendiary device going off beneath the skullcap, as West is one of the beneficiaries of the Tea Party "insurrection" and probably best known for saying that more than 80 Congressional Democrats are members of the Communist Party (they're progressives, but that's the same thing, right?). He and other Tea Party conservatives (libertarians mostly) won office by slamming "Obamacare" as evil socialism, and now, here he is, saying, well, some of that socialism is kinda sorta OK.

Unsurprisingly, West is up for re-election, as are many other Congressional Republicans (the House has two-year terms). And some of them, even among the GOP's leadership, are saying privately that Obamacare ain't all that bad. This has inspired worry among ideologues and swift reprimand from conservative groups like FreedomWorks, which demands that none of the law be re-packaged. Ever. FreedomWorks and others scare the bejesus out of Republicans because of the cyclical threat of primaries. They recently gave the boot to Indiana's Dick Lugar. He was the Senate's longest serving member.

This puts the entire party in a position that perhaps only presidential candidate Mitt Romney can fully appreciate. As he turns his attention to the general election and starts courting mainstream "swing" voters, Romney must constantly protect his right flank from trumped up charges of being a RINO (Republican in name only). Same for House Republicans. They must appeal to mainstream voters who are only now warming up to the health care law while ducking the ire of the conservative power elite.

The irony is that the power elite is hoping to elect candidates of dubious electability. The more ideological they are, the less likely Americans are to vote for him. Americans are pragmatists first, ideologues second. Fixing the problem is more important than who's right, and the problem is so clearly that health care costs too much (it grew at twice the general rate of inflation).

The other irony is that the power elite, by backing candidates of dubious electability who themselves parrot the power elite's missives of misinformation, are setting themselves up for failure. They have manufactured an entirely self-contained world of delusion and hysteria that has no application to real-world issues. That is, they aren't offering solutions unless you count preserving the status quo as a solution, and Americans, despite our abundant confusion, know that the status quo is not sustainable.

The next couple of months are going to be a doozy for the radicalised Republican Party. Either it navigates this political mine field, repudiates the propagandists or gives itself entirely to the theatre of the absurd, in which case we may really be witnessing a party eating itself. Fun!

Republican presidential candidate Mitt Romney smiles as he is introduced during a campaign rally at Somers Furniture on May 29, 2012 in Las Vegas, Nevada. Photograph: Getty Images.

John Stoehr teaches writing at Yale. His essays and journalism have appeared in The American Prospect, Reuters Opinion, the Guardian, and Dissent, among other publications. He is a political blogger for The Washington Spectator and a frequent contributor to Al Jazeera English.

 

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Love him or loathe him, Britain needs more Alan Sugar

Big business is driving down wages, failing to invest, and funnelling rewards to the richest.  Entrepreneurs - and the state - need to fill the gap. 

The business baron who loves a bust-up has just been hired by Her Majesty’s Government to tour the country inspiring the next generation of apprentices. And he’s got his work cut out for him.  

Britain is loads more enterprising than it used to be - but the truth is, we’re miles behind our rivals. The good news is that Britain boasts nearly two million more firms than at the turn of the century. Over 40 per cent of Europe’s “unicorns” (new firms worth over $1 billion) are UK based. And by the next election, there will be more self-employed people than public service workers. 

But, here’s the bad news. Globally, we’re only 48th out of 60 in the global enterprise league table - and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America - google.co.uk and amazon.co.uk. Worst of all, according to new House of Commons library figures which I commissioned this week, over a million people have left entrepreneurial activity in the last three years. 

Yet in my new history of British capitalism, Dragons, published today, I show how we’re a nation built by some of the greatest entrepreneurs on the planet. They were the buccaneers like Robert Rich, who built the trading companies and colonies of north America. The traders like Thomas Diamond Pitt who built old multi-nationals like the East India Company. They were industrial revolutionaries like Matthew Boulton who perfected the steam engines, and capitalists like Nathan Rothschild who built the bond market. Down the ages, there were of course great rogues and fraudsters, slavers, opium dealers and imperialists, like George Hudson, William Jardine and Cecil Rhodes. And through the centuries, women were in particular, were frozen out of the power structures of the market. 

But, throughout our past, great visionaries like George Cadbury, William Lever and John Spedan Lewis not only created new wealth but invented new ways to share it, from Port Sunlight to Bournville, to the board rooms of the John Lewis Partnership. 

Theirs is the entrepreneurial spirit we are going to need to rebuild Britain. Why? Because we can no longer leave the task to big business. Big business is driving down wages, failing to invest, and funnelling rewards to the richest. Today, UK firms are sitting on an extraordinary £522 billion in cash. And that’s after they lavished out £100 billion in share buy-backs in 2014. According to Larry Fink, the head of Black Rock which is the world’s biggest investment manager, the gargantuans of the global economy are simply failing to invest in the new jobs and industries of the future. 

So we’re depending on our entrepreneurs to turn new ideas into new industries and new industries into new jobs - whether it is in big data, cyber-security, driverless cars, the internet of things, or genetic medicine. It’s not just good for progress. It’s good for jobs. In fact, if our young people today were as entrepreneurial as their counterparts in Germany or America, its estimated they would create an extra 100,000 jobs. 

The big lesson from 600 years of the history of capitalism is simple: entrepreneurs make history - by inventing the future. So we need the government to start doing an awful lot more for the enterprise economy; spreading enterprise education, investing more in science, shifting government contracts to small high growth firms, and sorting out the banking system. But if we want a better future for Britain, we need an awful lot more entrepreneurs to do well. And so we need AlanSugar to succeed.  

Dragons: Ten Entrepreneurs Who Built Britain is published by Head of Zeus today

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.