Sen. Elizabeth Warren Tells Netroots: “Push Back And Fight Hard”

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Senator Elizabeth Warren took her fight against a rigged system to the Netroots Nation gathering in Detroit Friday morning, saying that she is fighting back, and if We the People “push back and fight hard, we can win.”

Outside the hall, people were passing out “Ready for Warren” hats and signs. Inside the hall, the hats and signs were everywhere.

Fighting back against a rigged system was the theme of Warren’s rousing speech to Netroots. She began by briefly telling the story of how the about Consumer Financial Protection Bureau (CFPB) came to be. She had the idea for the agency, started talking about it, people told her it was a great idea and badly needed, but said to her, “Don’t do it because the biggest banks in the country will hate it and you will lose.”

She said they had that half right. “They spent more than a million dollars a day for more than a year lobbying against financial reforms. But we fought back and we won. We won because you and a zillion other people across the country got in the fight. We said we the people will have this agency and we won.”

And now we have the CFPB and it has already returned $5 billion to people that the big financial firms tried to steal, she said.

Warren’s message was that we should “never miss the central point of this story. The CFPB is proof of how democracy can work in the 21st century. It is proof that if we push back against the biggest, strongest, most ruthless lobbying effort in the country, if we push back and fight hard we can win. We can’t win every time and we are still trying to figure out how to make it all work. We don’t win every time but we’re learning to win. We will keep at it; we will fight and we will win that’s my message today.”

A Rigged System

Warren moved from there to what is happening in the country today. She said companies naturally look for profits. “But many of them have another plan – they use their money and their connections to try to capture Washington and rig the rules in their favor … That’s what we’re up against that’s what democracy is up against.”

She compared what happens to regular people with what happens to wealthy elites at the top, saying, “A kid gets caught with a few ounces of pot and goes to jail but a big bank launders drug money and no one gets arrested.”

Not Just Big Banks

Warren said, “But it’s not just the big banks.” She called on the audience to look at the choices the federal government makes, such as piling debt on students. Then she went straight after Republicans as the enablers of the rigging and corruption. “Instead of building a future, this country is bleeding tax loopholes. Billion-dollar corporations squeeze out deals with foreign countries, renounce their citizenship and pay no taxes. How does this happen? They all have lobbyists and Republican friends in Congress to protect every loophole and every privilege. The game is rigged and it isn’t right.”

Rigged Trade Deals

“Take a look at what happens with trade deals. Trade negotiations are like Christmas morning for the biggest corporations,” she said.

Warren described how corporations can bypass pollution and wage laws. “The corporations can get special gifts through trade negotiations they would never get from Congress,” she said, because trade negotiations are secret, held behind closed doors. The corporations are “all smacking their lips at the possibility of rigging the upcoming trade deals.”

“Stop and ask yourself, why are trade negotiations secret? I have had people involved in the process actually tell me, If people knew what was going on they would be opposed. My view is if people would be opposed then we shouldn’t have those trade deals.”

It’s Everywhere

Warren said the tilt in the playing field is everywhere. “When conservatives talk about opportunity, they mean opportunity for the rich to get richer and the powerful to get more powerful. They don’t mean do something about student loan debt or help someone unemployed to get back on their feet.”

The Fight

“Deep down, this is a fight over values. Conservatives and their powerful friends will continue to be guided by their internal motto ‘I got mine and the rest are on your own.’ ”

“My motto we all do better when we work together and invest in future. The country gets stronger when we invest in helping people succeed. … These are progressive values and these are the values we are willing to fight for.”

She then went into a refrain:

We believe that Wall Street needs stronger rules and tougher enforcement.
And we’re willing to fight for it.

We believe in science and that means that we have a responsibility to protect the planet.
And we will fight for it.

We believe the Internet shouldn’t be rigged to benefit big corporations.
And we will fight for it.

We believe no one should work full time and still live in poverty. That means raising the minimum wage.
And we will fight for it.

We believe that fast-food workers deserve a livable wage.
That means we will fight alongside them.

We believe students are entitled to get a good education without being crushed by debt.
And we will fight for it.

We believe after a lifetime of work people are entitled to retire with dignity. That means protect Social Security and Medicare.
And we will fight for it.

We believe – I can’t believe I have to say this in 2014 – in equal pay for equal work.
And we will fight for it.

We believe equal means equal and that true in the workplace and at home and everywhere.
And we will fight for it.

We believe immigration has made country strong and vibrant.
And we will fight for it.

And we believe that corporations are not people. (The crowd was on its feet making a lot of noise so I don’t know what she said next.)
And we will fight for it.

Right here in this room this is where it happens. This is 21st-century democracy. This is the future of America. This is where we decide that We the People will fight together and do that, we will fight together and we are going to win.

And the crowd went nuts.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Puppy Crushers: How The Front-Group Game Works

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Hunter explains how the front-group hame works in this post,

“Sorry—the story of wealthy businessmen funding ballot measures to pass transparently self-serving but state-damaging things is a bit of a sore spot in this state, it being something that happens Every Single Damn Election. The measures are then advertised by groups like “Citizens for Happier Puppies,” which turns out to be a front for the American Puppy Crushers Association, and we get lovely ads about how taxes will go down if we stop oppressing industries that just want to give all our puppies sharp metal hugs.”

A Simplified Way To Tax Multinational Corporations

You’ve been hearing a lot about corporations “renouncing their U.S. citizenship” through “tax inversions.” This is when a company buys or merges with a non-U.S. company and claims to no longer be based in the U.S. to get out of paying certain taxes. The company does, however, keep the same employees, executives, buildings, sales channels and customers it had inside the U.S. before the switch.

The epidemic of tax inversions represents just one of many ways corporations are dodging their taxes by taking advantage of our outdated and rigged corporate tax system. It is time for a serious debate about corporate taxes, and on Monday a new report by District Economics Group economist Michael Udell offered a bold new alternative that is so radically simple that even the most clever corporate tax accountant would have a hard time finding a way around its fair and universal proposition: If a company sells products or services in the U.S., it must pay taxes on the U.S. proportion of its worldwide sales.

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Immigrants And Disease

Immigrants and disease? Really? Isn’t this KKK / Nazi stuff?

This is what the right is pushing. It’s old, racist, KKK/Nazi/Bircher stuff. Pushing it out to the public through supposedly “credible” outlets is called “mainstreaming” where they make white supremacist / KKK / Nazi stuff seem more normal and acceptable for people who are not radicalized into the racist right yet. But this is just the same old “mongrel races” and “mud people” stuff they’ve been pushing for a long time.

The following are just headlines, think of all the stuff that doesn’t have it as a headline. And most of this has been pushed out through Drudge, etc…

Beitbart June 2
REPORT: LICE, SCABIES, DISEASE AT CHILDREN’S IMMIGRATION SHELTER ON TEXAS AIRBASE

American Thinker June 8
Illegal immigrant flood bringing disease outbreaks

WND June 17
Deadly diseases crossing border with illegals

Daily Caller June 23
Doctor Says Illegal Immigration’s Causing ‘Public Health Crisis’ [VIDEO]

Breitbart June 23
DOCTORS WARN OF LOOMING HEALTH CRISIS DUE TO FLOOD OF YOUNG ILLEGAL IMMIGRANTS

National Review June 24
Texas Immigration Center a Magnet for Disease

The Blaze June 24
‘Potential for a Public Health Disaster’: Illegal Immigrant Surge Leaves Officials With ‘No Idea’ Which Diseases Are Coming Across

Newsmax June 24
Infectious Disease Outbreaks a ‘High Risk’ for Border Immigrants

American Thinker June 26
Diseases are Crossing the Border, Too

Liberty News June 29
OBAMA’S UNLOADING DISEASE-CARRYING ILLEGAL ALIENS INTO LARGE U.S. CITIES IS A ‘PERFECT STORM’ FOR PANDEMIC DISEASE OUTBREAK IN THE USA

Fox News June 30
Immigration crisis: US experiencing major public health crisis, too

WND June 30
TERRORIST ATTACK VIA INFECTIOUS DISEASE?
“…these illegal disease carriers.”

WND June 30
TB, swine flu assaulting border agents: Who’s next?

WND July 3
Savage: Media ‘hiding’ illegal-alien disease threat

American Thinker July 6
It’s happening: Border Patrol personnel infected by illegal immigrant flood

National Review July 6
Scabies Spreads Among Border Detainees

Fox July 7
Border Patrol union claims scabies ‘outbreak’ threatens agents, public

Fox July 7
Immigration crisis: Tuberculosis spreading at camps

Fox July 7
Dr. Manny: Is America on the verge of a major health crisis?

Fox July 7
Immigrant illness: What you need to know about scabies and tuberculosis

Daily Caller July 7
Scabies Outbreak At US Border

Townhall July 8
Illness on the Rise: Cases of Scabies, Tuberculosis and Swine Flu All Reported at US Southern Border

Breitbart July 8
BORDER DOCTOR: PREVIOUSLY-DEPORTED ILLEGAL ALIEN WITH TUBERCULOSIS IGNORED BY FEDS

TONITE (or later as podcast) Virtually Speaking 6pm PT / 9pm ET Dave Johnson Cliff Schecter

Commentary. Immigration and the right wing media/policy machine. Corporate tax inversions. Plus political satire from Culture of Truth. Jay Ackroyd moderates. Dave Johnson and Cliff Schecter.

Listen here live — or later as a recording:
http://www.blogtalkradio.com/virtuallyspeaking/2014/07/14/cliff-schecter-dave-johnson-vs-sundays

Is Walgreens Trying To Leave The US?

Here’s the latest corporate tax scam: Companies are renouncing their U.S. corporate status and claiming that their headquarters are instead located in one or some other low-tax country, like Switzerland. The technical word for what they are doing is an “inversion.” It involves buying or merging with a company in the new country while actually keeping the same employees, operations, sales outlets and other assets right here.

Lately Walgreens – the nation’s largest pharmacy retailer with 8,200 stores and locations in all 50 states – is in the news because they are considering an “inversion.” The company is deciding whether to renounce its U.S. corporate status and instead claim on paper to be a Swiss company. To do this it will merge with a Swiss company, Alliance Boots. This would let them dodge billions in U.S. taxes. According to Americans for Tax Fairness, this move would mean Walgreens avoids paying $4 billion of taxes they would otherwise owe to the U.S. government in the next five years.

Walgreens is doing this even though, as Americans for Tax Fairness points out:

  • Walgreens receives nearly a quarter of its income from taxpayers through government programs. Of its $72 billion in 2013 sales, an estimated $16.7 billion, or 23 percent, came from Medicare and Medicaid.
  • U.S. taxpayers have spent $11 million subsidizing executive bonuses at Walgreens over the last five years. A table showing the Walgreens executives getting subsidies is available here.

Repeat: Walgreens receives a quarter of its revenue from programs like Medicare and Medicaid that are funded by U.S. taxpayers, but is renouncing its U.S. “citizenship” to avoid paying taxes for the U.S. services it uses and customers it gets. (How long will it be before we’ll be hearing another round of “we’re broke” and have to cut Medicare and Medicaid?)

But wait, there’s even more. Andrew Ross Sorkin at The New York Times’ Dealbook points out:

[Illinois] gave Walgreen $46 million in corporate income tax credits over 10 years in exchange for a pledge to create 500 jobs and invest in upgrading its offices. The state also provided $625,000 in training money and $875,000 in other tax incentives.

Walgreens, collector of gobs of tax dollars, is preparing to renounce citizenship and stop paying taxes. But they’ll still be benefitting from the roads and schools and courts and military those tax dollars pay for – and will still be collecting those tax dollars from government programs like Medicare and Medicaid.

But wait, there’s even more. Not being a U.S. company does not mean they won’t still be getting money from and bribing influencing the U.S. government! Robert Reich points out, in “Walgreens shouldn’t have a say about how the U.S. government does anything,” that the “Swiss” company should not be lobbying the U.S. government.

By treaty, the U.S. government can’t (and shouldn’t) discriminate against foreign corporations offering as good if not better deals than American companies offer. So if [the Walgreen Company] as a Swiss company continues to fill Medicaid and Medicare payments as well as, say, CVS, it’s likely that Walgreen will continue to earn almost a quarter of its $72 billion annual revenues directly from the U.S. government.

… In 2010 it lobbied for and got a special provision in the Dodd-Frank Act, limiting the fees banks are allowed to charge merchants for credit-card transactions — resulting in a huge saving for Walgreen. If it becomes a Swiss citizen, the days of special provisions should be over.

… Since the 2010 election cycle, Walgreen’s Political Action Committee has spent $991,030 on federal elections. If it becomes a Swiss corporation, it shouldn’t be able to spend a penny more.

One more thing. If Walgreens does this “inversion” it avoids $4 billion in U.S. taxes over the next five years. Here is what $4 billion could pay for:

Why Inversions?

Companies that invert are trying to dodge U.S. taxes. They say taxes are too high in the country that provides them with educated employees, good courts, police and military protection, infrastructure (admittedly deteriorating since the Reagan tax/budget cuts…), and other resources. If they “move” to Switzerland, Ireland, the Cayman Islands, whatever, they will still be able to get all of those things, still get fat government contracts, still get what’s left of our middle class as customers, etc.

The top U.S. corporate tax rate is higher than other countries, but there is a story behind that. First, this isn’t the “effective tax rate” – the rate they actually pay after all the tax-avoidance schemes and various breaks are taken into account. The effective rate for the companies that pay any taxes at all (several don’t) is currently 13 percent on worldwide income.

But there’s a more important reason at work. Our corporate tax rate used to be much higher than it is now. Companies complained that it was higher than other countries, so Congress danced with the ones that brung ‘em and lowered the rate. Then these companies went from country to country complaining that the U.S. rate was much lower, they were not “competitive” and had to lower their rate, too. (Alliance Boots, the company Walgreens might merge with, moved from Britain to Switzerland in 2008 to avoid “high” British taxes.) And now that the giant corporations have made the circuit, playing one country against another, extorting lower taxes in country after country, they’re back here. It’s called a downward spiral, a race to the bottom.

A Bill In Congress

The House passed an amendment by a vote of 221-200 denying federal contracts to American companies that have reincorporated in Bermuda or the Cayman Islands. This is not yet law, but is attached to the Energy/Water appropriations bill. It is a beginning, but only lists these two tax haven countries and won’t affect Walgreens, should they make themselves appear to be a Swiss company.

The “Stop Corporate Inversions Act of 2014” is a more comprehensive effort that “increases the needed percentage change in stock ownership from 20 percent to 50 percent and provides that the merged company will nevertheless continue to be treated as a domestic U.S. company for tax purposes if management and control of the merged company remains in the U.S. and either 25 percent of its employees or sales or assets are located in the U.S.” Republicans will obstruct the bill.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Today’s Housing Bubble Post

The SF Bay Area is in another housing bubble. In fact prices are higher than they were in the last one, which didn’t end well. 3br, 1-or-2ba houses in bad neighborhoods are selling for $800,000. People are “bidding up” houses to one or two hundred thousand over the asking price.

Here’s a clue to what’s coming eventually (not right away): I heard an ad on the radio telling people to “take money out of your house” saying you could get $100,000 to spend.

That’s right, home equity loans are back, telling people to “take money out of your house.”

Bay Area home prices soar

Is Bay Area housing bubble back?

Real Estate Expert Says China Cash Is Driving Soaring San Francisco House Prices

What the Court’s “Harris v Quinn” Union Decision Means

In case you were wondering why it is so hard for regular working people to get ahead in our economy, look no further than today’s Harris v. Quinn Supreme Court decision. In the usual 5-4 pattern, the corporate-conservatives on the Supreme Court struck another blow against the rights of working people to organize and try to get ahead.

Home care workers (mostly women) in Illinois (like elsewhere) were on their own, working long hours for very low pay. They were treated poorly and did not have any job security. So they organized and a majority voted to join a union, Service Employees International Union (SEIU) Health Care Illinois-Indiana (SEIU-HCII). The union then worked with the state of Illinois to forge a contract to deliver services to elderly and disabled state residents. Since they formed the union, they were able almost double their hourly wages and they get health insurance, regular professional training and representation from the union.

An anti-union organization, the National Right to Work Legal Defense Foundation (NRTWLDF) – funded by the Koch and Walton families and others – brought filed the Harris v. Quinn suit against the union. This suit wound its way through the courts and finally the Supreme Court decided to rule on it.

The Court decided that a contract between the state of Illinois and Medicaid-funded home care workers cannot require the covered workers to pay a “fair-share fee” that covers the costs of benefits they receive from union representation. This “fair-share fee” (union dues) covers the costs of the union’s activities – collecting bargaining, implementing and enforcing the contract including making sure people are paid the right amounts, representing employees at grievance hearings, etc.

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The Democrat’s Agenda Should Be: Fix The Trade Deficit

There is no way around it: There are three issues on people’s minds as we go into the midterm elections: jobs, jobs and jobs.

Since the 2008 financial crash – actually since Reagan was elected – most of the gains from our economy have gone to the 1 percent and many of the jobs have been shipped out of the country. And everyone knows it. What they don’t know is the direct relationship between the two. That relationship is the trade deficit.

The trade deficit is a direct measure of jobs leaving the country. The trade deficit is factories closing. The trade deficit is American dollars going to other countries so people there can spend them. The trade deficit is our standard of living leaking away. And the trade deficit is a major factor driving what remains of the budget deficit.

The trade deficit is our economy’s problem. Democrats need to get on board with that message. It doesn’t hurt that it’s also true.

Democrats Don’t Get That Republican Propaganda Works

Democrats in Washington are surrounded by D.C.’s daily events and don’t get it that the public doesn’t see what they think they see. They are immersed in the news and fighting daily battles and tend to think the public is informed and doing that, too. They tend to put reasons on things the public does that line up with what they experience in D.C.: “The reason voters in district 5 of the county special election in Colorado voted for Kranitz was because the sub-amendment to our section 5 jurisdictional funding retroparticle was blocked in committee on the third markup. Because it was on C-SPAN.”

But the public isn’t seeing it that way. The public is seeing “Democrats have been in charge” since 2008 and the economy is still bad. Period, end of story. (Not 2009, by the way; the election was in 2008 so they think the 2009 $1.4 trillion budget deficit was caused by Obama and the stimulus.)

Democrats Need A Simple And Clear Economic Agenda

If Democrats can’t come up with a counter to the Republican message that the economy is bad because Democrats are “in charge” and spend too much, they are going to lose badly. (P.S.: The answer is not to say “OK, so we’ll spend less.” That’s just feeds the lies and – as we have seen – just makes the economy even worse.)

At The New Republic, Danny Vinik writes in “Hillary Clinton’s Biggest Vulnerability: Her Economic Agenda” that “as we enter the latter half of Barack Obama’s second term, the public increasingly blames him and his party for the weak recovery.”

Vinik explains that there are Democratic proposals that would really help fix the economy, but they are from “left-leaning economists” and “they have little political support.” One proposal is in a paper from (“left-leaning”?) Larry Summers, who argues that we have entered into “secular stagnation” and the “solution to secular stagnation is significant rounds of fiscal stimulus to fill the still-large hole in consumer demand for goods and services, known as aggregate demand.” In other words, more “stimulus” that Republicans will obstruct.

Another proposal is to fix the trade deficit:

A separate paper, from left-leaning economist Dean Baker, argues that the trade deficit is a significant impediment to full employment. U.S. imports exceeded exports by $500 billion in 2013—that is, $500 billion of American demand for goods and services supported jobs overseas. In response, Baker proposes lowering the value of the dollar and cracking down on currency manipulators like China who artificially lower the value of their currency so that their goods and services are cheaper, boosting exports. Yet, trade policy is not an exciting or accessible issue to most voters. A candidate could include it as part of their economic platform, but it cannot form the backbone of it.

Yet another proposal is a change in monetary policy to promote full employment. This brings up a political problem, according to Vinik. The public doesn’t understand monetary policy and has been propagandized to be against further stimulus. (The public thinks “government spending” causes unemployment.)

Vinik writes “Democrats will have to convince voters that much of the Obama agenda is still the right prescription for the economy, despite the weak results over the past five-plus years. That’s not easy.”

What Went Wrong: Filibusters And Austerity

President Obama and Democrats have made significant proposals that would have made a tremendous difference in the economy we experience today, but they also contributed to the mess we are in.

It’s a fact that Senate Republicans filibustered literally everything Democrats offered that might have helped the economy. That’s their strategy and it’s working: Block anything that could help the economy and blame Democrats because they were “in charge” while the economy continued to stagnate.

Here’s the thing: Democrats let them do it. They did not end the filibuster. For whatever reasons – tradition, attempting to remain “bipartisan” and “civil” against uncivil partisan opponents, whatever – the end result was they did not deliver for their constituents, the American people.

The other thing that Democrats let Republicans do to the country was austerity. In fact, most Democrats bought into it, went along with it, pushed it, reinforced it, messaged it and gladly fell into the Republican trap.

So, with an election coming, Democrats haven’t delivered for their constituents – the 99 percent – and the public is not happy with that.

The Problem Is The Trade Deficit, Not The Budget Deficit

Here is a path for Democrats: Talk about the trade deficit.

Our trade deficit is literally a measure of how many jobs we ship out of the country. And our trade deficit is huge. It is humongous. It is enormous. It is larger than any trade deficit in the history of the world, and the parts of it that most affect jobs continues and continues and gets worse and worse. Last year’s trade deficit with China was a record.

The trade deficit is also a traditional Democratic issue. It is about jobs, blue-collar workers, jobs, factories, jobs, manufacturing, good wages and jobs. It is about seeing “Made in America” in stores again.

Everyone knows where the jobs went and continue to go: out of the country, mostly to China.

Everyone knows that the reason their pay is stagnant of falling is because people are afraid their job will be sent out of the country, too.

Everyone knows that something has been going on with these trade deals that let companies move out of the country to places where people and the environment are exploited and then bring the same goods back to the U.S. and sell them in the same stores for the same prices. OF COURSE that means jobs leave the country!

Ask almost anyone what they think of “NAFTA” – shorthand for all trade deals – and you will discover what is certainly one of the most salient, activating issues in politics today. Democrats, Republicans, Tea Party members, they all get it that jobs are being shipped out of the country (because they are), they all get it is making a few people really, really rich (because it is), and they all get that it is causing the rest of us to feel pain (because that is the result).

Economist tell us that the trade deficit represents “demand” that is leaving our country and is fueling jobs elsewhere. This means that people here are buying stuff – “demand” – but that the stuff they are buying is made somewhere else so we don’t get the benefit of those people all buying stuff. And the fact that there is a “deficit” means that the “somewhere else” is not reciprocating by buying stuff from us. They are not “trading” with us, they are selling to us but not buying from us. They are cheating and playing tricks to drain our country of those jobs and factories that would come back if they were buying the same amount from us as we are buying from them.

If Democrats want a simple jobs plan, this is it: Fix the trade deficit. Explain to people what balanced trade means and demand that trade be balanced. Come up with a clear plan to BALANCE trade and explain how this will bring back the jobs.

Do your part. Ask every candidate for Congress if they understand what the trade deficit is, how bad it is and what their plan is to fix it.

Virtually Speaking Tonite 6PT / 9ET

6p pt/9pm et – Avedon Carol & Dave Johnson

Shortsighted centrism empowers republicans while implementing bad policy. Triangulation backfires, as with immigration or misses opportunities, as with the ACA, SS benefit cuts, gay marriage. Policy and political concerns would be much more successful if widely popular, effective polices were adopted. Instead, we get Rahm’s memo. Plus political satire from @Bobblespeak

Follow @Avedon_Says @DCJohnson @JayAckroyd

Listen live or later at http://www.blogtalkradio.com/virtuallyspeaking/2014/06/23/avedon-carol-dave-johnson-virtually-speaking-sundays

The 2014 Virtually Speaking Media Panel: Avedon Carol, Cliff Schecter, David Dayen, Dave Johnson, David Waldman, digby, Gaius Publius, Joan McCarter, Marcy Wheeler, RJ Eskow, Stuart Zechman

A Different View On Cantor’s Surprising Loss

Last week Republican House Majority Leader Eric Cantor was defeated in a primary. He not only won’t be Majority Leader anymore, he won’t even be in Congress. This was an absolutely unexpected and shocking upset that has reversed the narrative that the Republican “establishment” has taken back momentum from the Tea Party.

The reason there as a fight over control between the Republican establishment and Tea Party was that the Tea Party uprising has threatened not only Republican electability nationally, but the domination of the Republican Party by Wall Street and the giant multinationals — the Chamber of Commerce types. The real grassroots-based core of the Tea Party is actually quite upset by the “crony capitalism” corruption that is rampant in Washington, DC and rampant in both political parties. (This is one thing the Tea Party types have in common with progressives.) The Tea Party types are anti-Wall Street and are very, very aware that the giant multinational corporations have been profiting from closing factories and moving jobs out of the country. This awareness threatens the Republican “establishment” because the Republican establishment is Wall Street and giant, multinational corporations. Hence the fight for control.

So there are lots of opinions talking about how the Republican Party establishment and the party’s Wall Street/corporate funders have “created a monster” with the Tea Party, and now the monster is turning on them. …

My Take: 12%

Here is my take on Cantor’s loss. Turnout was 12%. That’s what you need to understand about what happened.

You can’t tell anything about the electorate from a 12% turnout. You can’t learn about what the district wants. You can’t even learn what “the Republican base” wants. You can’t tell if immigration (or any other issue) is or is not a driving force and is or is not a candidate killer. You can’t really tell anything from this except that turnout was exceptionally low.

Here is the real reason this is bad for the Republican “establishment.” For decades the Republican Party has been engaged in efforts to drive down election turnout and this is the result.

Higher Turnout Favors Democrats

Here is a political truth: High turnout favors Democrats. So to elect Republicans they have to keep turnout low. Then Republicans use whatever it takes to get “their” voters to show up. For decades this has meant a combination of fundamentalist Christianity, racism, nativism, whatever.

The game is clear and cynical: Create apathy so people don’t vote. Make people hate government in general so they don’t vote. Make people feel like voting won’t change anything so people don’t vote. Use negative ads to turn people off from the process so they don’t vote. Create division and despair and so people don’t vote. Do what it takes to convince people not to bother to vote.

For the ones who will still bother to vote make it hard for them to vote — “suppression.” Make it hard to register to vote. Purge the voter roles. Enact restrictive ID laws hopefully requiring actual birth certificates. Only let the polls open for one day — a workday. Keep voting machines out of Democratic-oriented districts.

Then, after you have done everything possible to keep most people from voting stir up the activists and rubes — your activists and rubes — with distractions and fear to get them to the polls. This is why you see so many “Democrats secretly plan to ban the Bible” and “black mobs attack white women” and similar headlines at the right’s paid outlets.

Once Elected Pass Capital Gains And Corporate Tax Cuts

Once your people are elected they vote for capital gains tax cuts, corporate tax cuts and deregulation. Ignore the distractions that you used to get your activists and rubes to the polls. If you actually give them what they want you can’t offer it to them next time.

After decades of driving down turnout this is the result. Only the farthest-right talk show listeners are turning out now and the Republican establishment can’t control them. And they actually remember that they were promised something last time. Maybe it was abortion, maybe it was immigration … they remember and want it, not capital gains tax cuts and lower corporate taxes.

This bit Eric Cantor in the ass and it is finally biting the Republican Party establishment in the ass. And there is nothing Republicans can do about it, because higher turnout always favors Democrats. To keep turnout low Republicans have driven the morale of the voters down and down and down. They have driven the economy down and down and down. They have driven the process down and down and down. They have driven everything we value down and down and down.

Now they have literally hit bottom.