Corporate Media Push Wrong Story on Obama's Relationship With Business
Monday 07 February 2011
by: Rose Aguilar | Your Call | Radio Segment
President Barack Obama and Jeffrey Immelt, chairman and chief executive of General Electric, tour a plant belonging to the company in Schenectady, New York, on January 21, 2011. (Photo: Drew Angerer / The New York Times)
President Barack Obama is hoping to “mend ties” with big business by speaking to the US Chamber of Commerce (COC), Washington DC’s top lobbyist. That’s the frame we’re hearing in the corporate media even though the President has extended the Bush tax cuts, recently named JP Morgan Chase executive and former COC board member William Daley as his chief of staff, and chose General Electric CEO Jeffrey Immelt to head the new “White House Council on Jobs and Competitiveness.”
Since 2009, GE has closed more than 25 manufacturing plants in the US and slashed thousands of jobs, according to the United Electrical, Radio and Machine Workers of America. While GE has laid off at least 10,000 workers in the US, it has created more than 30,000 jobs in India over the past decade. The administration’s job czar runs a company that employs more workers overseas than it does in the US.
During his recent eight-hour floor speech on inequality, tax cuts for the ultra-wealthy, and corporate greed, Senator Bernie Sanders (I-VT) cited an investors' meeting on December 6, 2002 at which Immelt said, "When I am talking to GE managers, I talk China, China, China, China, China. You need to be there. You need to change the way people talk about it and how they get there. I am a nut on China. Outsourcing from China is going to grow to $5 billion. We are building a tech center in China. Every discussion today has to center on China. The cost basis is extremely attractive."
Since Immelt became CEO in 2001, he has been paid $90 million in salary, cash, and pension benefits, and like most multi-nationals, GE just posted better-than-expected fourth quarter and 2010 profits.
According to the Wall Street Journal, with about half of the largest corporations already reporting fourth-quarter profits, 2010 is expected to deliver the third-best full-year gain since 1998. Chevron’s fourth-quarter profits rose 72 percent. Dow Chemical’s profits rose a whopping 188 percent.
The banks that received $13 trillion in bailout money and subsidies with no strings attached are also posting record profits and paying their CEOs multi-million dollar salaries. According to the New York Times, 2010 was JPMorgan Chase’s most profitable year. CEO Jamie Dimon is expected to take home $17.5 million, while four of his top executives have been awarded stock worth more than $10 million each.
At the recent state dinner with Chinese President Hu Jintao, attendees included Boeing CEO James McNerney, Goldman Sachs CEO Lloyd Blankfein, JP Morgan Chase CEO Jamie Dimon, Coca-Cola CEO Muhtar Kent, Dow Chemical CEO Andrew Liveris and The Carlyle Group Co-Founder David Rubenstein. Even Henry Kissinger, the man who is facing international arrest warrants for war crimes, was there.
And yet The Washington Post claims that President Obama is speaking to the COC to “rebuild ties with corporate America?”
What most media outlets fail to mention is that many of the corporations that fund the COC are responsible for sending millions of jobs overseas and yet they present themselves as the saviors for job creation as long as they continue receiving tax breaks. “And that’s just wrong,” says Sasha Abramsky, a freelance journalist who is working on a book about the COC. “It’s a rewriting of history and the fact that they haven’t been called on it is a major failing among progressive politicians.”
Abramsky says the COC claims to speak for all American businesses and by extension, for all Americans, but it’s important to point out that it’s “got a very sectarian, very narrow agenda.”
The COC used to claim that it represents “three million businesses of all sizes, sectors, and regions,” but a 2009 investigation by Mother Jones’ Josh Harkinson found that the number is closer to 200,000. A day after the story appeared, the COC quietly revised its membership number from three million to 300,000.
When most people think of the COC, images of their local Chamber and mom and pop shops come to mind, but according to the Mother Jones piece, “many state and local chambers don't want the national body to speak for their members. Since 2006, when the Chamber offered to automatically enroll local members in the national group free of charge, only 354 of the nation's 7,000 state and local chambers have signed up.”
“The US Chamber is the largest lobbying organization in the country,” says Kristy Setzer, communications director of the union-backed watchdog group, US Chamber Watch. “It is not lobbying on behalf of small business owners. It is lobbying to protect the handful of very large CEOs that fund its budget.”
According to the US Chamber Watch, the COC’s more than 100-member board includes CEOs from Dow Chemical, JP Morgan Chase, AT&T, and Caterpillar; just 16 corporations, including WellPoint, Cigna, Charles Schwab, and Hewlett Packard provide 60 percent of the COC’s $200 million budget.
The COC is not required to reveal specific contribution information, so it’s difficult to break down individual donations. In October, Politico reported that the News Corporation, whose holdings include the Fox News Channel and the Wall Street Journal, donated $1M to the COC.
“That’s probably the most disheartening thing about the Chamber’s business model. It is all so secret. It’s done that way by design,” says Setzer.
She says anonymous contributions allow major corporations to hide behind policy positions that might be unpopular with their customers and the public at large, including repealing the healthcare law, undermining climate legislation, and extending tax breaks to companies that send jobs overseas. Since President Bill Clinton signed NAFTA in 1993, American corporations have shut down 43,000 factories, resulting in the loss of 5.1 million manufacturing jobs, according to Public Citizen.
According to a Bloomberg report, America’s Health Insurance Plans (AHIP), the health insurance lobby whose members include Humana, Aetna, WellPoint, and Cigna, gave the Chamber $86.2 million in 2009 to oppose real healthcare reform. The COC ran TV ads in over 20 states warning that a public option would lead to “expanded government control over your health.”
"By funneling the money through the Chamber," says the report, "insurers were able to remain at the table negotiating with Democrats while still getting the bill criticized."
At the March 5, 2009 White House Health Care Summit, where doctors and single payer advocates were arrested for standing up to ask why single payer reform was not on the table, AHIP president Karen Ignagni told President Obmaa he could count on her and the insurance industry. “We want to work with the members of Congress on a bipartisan basis here. You have our commitment. We hear the American people about what’s not working. We’ve taken that seriously,” she said. “You have our commitment to play, to contribute, and to help pass health care reform this year.”
President Obama responded by saying, “Good. Thank you, Karen. That’s good news. That’s America’s Health Insurance Plans.”
At today’s speech to 200 COC members, President Obama said, “I’m here today because I’m convinced we can and must work together.”
“It’s unclear what is more mortifying: President Barack Obama choosing the club of America’s notorious job-offshorers to talk about the importance of creating American jobs, or his rallying of his fiercest political opponents to help him overcome the majority of Americans who oppose more-of-the-same job-killing trade agreements and pass a NAFTA-style deal with Korea that the government’s own analysis shows will increase our trade deficit,” said Lori Wallach, director of Public Citizen’s Global Trade Watch, in response to today’s speech.
“The US Chamber of Commerce audience must have been thrilled to have Obama push more of the trade agreements that both help them offshore American jobs and, given that most Americans oppose more of these job-killing trade pacts, can help them achieve their political goal of replacing Obama in 2012.”
The Economic Policy Institute estimates that the Korea-US Free Trade Agreement will cost 159,000 US jobs within the first seven years after it takes effect. Congress is expected to vote on the deal in the coming months.
Listen to Your Call’s recent show about the COC. We invited the COC and the California COC to join us, but both declined our invitations.
Guests:
Sasha Abramsky, freelance journalist who is working on a book about the COC
Christy Setzer, spokeswoman for US Chamber Watch
Press play to listen to "Your Call" with Rose Aguilar:
Press play to listen to "Your Call" with Rose Aguilar:
Rose Aguilar is the host of "Your Call," a daily call-in radio show on KALW 91.7 FM in San Francisco and on KUSP 88.9 FM in Santa Cruz. She is author of "Red Highways: A Liberal's Journey Into the Heartland."
All republished content that appears on Truthout has been obtained by permission or license.
Comments
This forum is moderated by software. Please allow up to 15 minutes for your comments to go live and avoid posting the same comment multiple times.
I suggest that you do as I
Mon, 02/07/2011 - 17:44 — Anonymous (not verified)I suggest that you do as I have done, repeatedly. Send a copy of the link to this story (and any other that writes about Obama's overtures to corporations and banks) along with the question:
Whose side are you on? Corporations and banks or the American people??
My motto is: People First!
Mon, 02/07/2011 - 17:46 — Anonymous (not verified)My motto is:
People First! Not corporations!
Share this with President Obama, your Senators and Congressmen.
Enlist your friends to do the same.
Good article. Obama has
Mon, 02/07/2011 - 18:52 — RS (not verified)Good article. Obama has moved considerably to the right of Eisenhower, who was after all, accused of being a communist by the Koch brothers' father.
Why are you wasting time printing the drivel from McClatchy?
Not worthy of Truthout.
Good article pointing out
Mon, 02/07/2011 - 19:04 — MG (not verified)Good article pointing out the fraud being continuously perpetrated on Americans by the corporate media and big business.
Immelt's "Extremely attractive" = maximum profit at the expense of American workers, and the American people.
It's difficult to believe Barack Obama does not realize just how magnanimous he's been with corporate America. There are many more examples than those mentioned in this article:
-using US foreign policy to benefit the Military-Industrial Complex
-using Egypt policy to further MIC arms sales, and further Israeli policy toward Palestinians
-using the FDA and USDA to promote unsafe drugs and genetically modified frankenfoods
And on and on...
I'm done with Obama. I think
Mon, 02/07/2011 - 20:54 — Anonymous (not verified)I'm done with Obama. I think we should give the American public just what they have told they want. Less taxes for the wealthy (too stupid to figure out that $36,000 per year is just above the poverty line.) lower paying jobs to keep that 401K building so they can retire on a non-existent social security. Did you know it's going broke?
Palin/Karzai 2012!
Give the people what they want!
Welcome to the United
Mon, 02/07/2011 - 23:22 — Anonymous (not verified)Welcome to the United Corporations of America and their latest CEO Barack (Barry ) Obama.
if you are one of the chosen few, (Bilderbergers) you will share in the wealth, if not, you will pay...and pay...and pay...
No more 'Gobama!' for me,
Tue, 02/08/2011 - 00:08 — Anonymous (not verified)No more 'Gobama!' for me, that's for sure. I noticed he couldn't even be bothered to pass legislation that was in the works regarding prevention of employee misclassification, which has affected myself and my family very negatively.
Looks like I'd better get serious about using my Canadian citizenship and get the HELL out of here. A nation that sucks up to corporations has no chance of ever promoting a decent standard of living for human beings.
American corporations USE
Tue, 02/08/2011 - 01:42 — Gerald (not verified)American corporations USE the homeland for management's security, convenience and comfort--going abroad to exploit labor for a profit--that goes to foreign tax havens. This must stop.
JImmelt->"I-MELT AWAY USA
Tue, 02/08/2011 - 10:46 — Anonarcmous (not verified)JImmelt->"I-MELT AWAY USA jobs..." As USA militaristic/imperial power declines, the international[NOT USA] corporate elitists have CONVINCED PresObama that the ONLY power we have left is to substitute is economic/imperial. True--to a degree. This is why PresBush took us to Irak--to secure monopoly over large natural resouces origins control and also to maintain the $currency as the international/global choice par excellence. Immelt+ has convinced the USA government that if we give them everything they want, this is the only was they can assure the economic takeover of the world: ie, if GE does bu$ine$$, then they set this pattern.This is why the banks were too big to fail?--NO it is not about the banks, it is about the USA TO NOT fail, not by the power of guns, but by the $power, even at the detriment of the american citizen. The problem is that the world will throw them over eventually.And usa will be x2 behind everyone else. The elite corporatist will go live w/ ErikPrince in Dubai.
Sweetie, Social Security is
Tue, 02/08/2011 - 20:42 — Guinnevere (not verified)Sweetie, Social Security is NOT "going broke." It is being looted systematically, and even at that it is still fully able to cover the mandate it was conceived to cover: a safety net for seniors who have worked and contributed all their (our) lives to the fund.
So far the program has been misused for things it was never meant to cover, but even though Congress is a greedy bunch of suckers they've been wise enough to know that the public were not about to stand for too much tinkering with OUR safety net.
But times have changed. Some of the greedy little suckers are now admitting — as if it were something to brag about — that their plan is to **privatize** Social Security. They pretend that would be a good thing, when in reality they want to get SSA in private hands, where it can be plundered and wrecked in earnest. Once the program becomes "privately owned and administrated," all restraint will effectively be gone. That's what the fascist elite have wanted ever since SSA's inception, and they're gaining on it. I hope they choke on their own vomit and die before that happens. That would actually be kinder than what is apt to happen to them when the citizens finally realize what they've done to us.
DONOHUE FOR
Tue, 02/08/2011 - 22:18 — Edgar Nelson (not verified)DONOHUE FOR PRESIDENT!
"Thomas J. Donohue is president and CEO of the U.S. Chamber of Commerce. Since assuming his position in 1997, Donohue has built the Chamber into a lobbying and political powerhouse with expanded influence across the globe."
O'bama is tied to corporate
Tue, 02/08/2011 - 23:51 — Anonymous (not verified)O'bama is tied to corporate entities just like Bill Clinton was. when Clinton went out of office he was worth an estimated $350,000--3 years later he was worth an estimated 32 million! Where did all this money come from? Corporations he helped with nafta and other garbage!
The corporate media helped to get O'bama elected because corporate media also has control of the same corporations that benefit from him! Remember how the media had front page headines about the daily death toll of our soldiers? Dont hear much anymore do you!
What happened to all the lies about closing guantanamo, ending the invasion of Iraq, and on and on......
The Chamber of commerce was
Wed, 02/09/2011 - 00:03 — I HAVE HAD ENOUGH! (not verified)The Chamber of commerce was infiltrated by people from the mining and manufacturing entity. This started in Wisconsin at the paper valley hotel meeting between Tommy Thompson and Exxon Oil (British Petroleum) at a time when Exxon wanted to mine gold on the Wisconsin Indian reservations. And after good ol Tommy helped pass legislation to assist Exxon to mine the Ladysmith gold, he was elected governor because of the biggest monetary political by Exxon to the Republican coffers.
Exxon went on to help with the take over of the Chamber of commerce at the same time with the help of good ol' Tommy
His brother went on to run against him and won a delagate seat, but guess what? THEY REFUSED TO SEAT THE DELEGATE!! Why? because the process is controlled by dem's and rep's and no other parties thats why!
Hey Nelson! I say we shut
Wed, 02/09/2011 - 03:08 — Kevin Schmidt (not verified)Hey Nelson! I say we shut down the criminal "US Chamber of Commerce", confiscate all of their money, and throw traitor Donohue and the rest of his minions in prison, because they are truly a danger to the future of the U.S.
Obama is a Democrat?
Wed, 02/09/2011 - 03:11 — Kevin Schmidt (not verified)Obama is a Democrat? Really??
Before Obama can run again for president, the Teabaggers want Obama to prove his citizenship.
Before Obama can run again in the Democratic Presidential Primary, I want him to prove he is a Democrat!
Don't listen to what he says, watch what he does. Same goes for the rest of the politicians.
I just meant that if these
Wed, 02/09/2011 - 12:25 — Edgar Nelson (not verified)I just meant that if these bastards are running everything, they might as well be out in the open and have to assume responsibilities and take blame.
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