The AIG Bonuses Scandal has the potential to strengthen the Obama Administration.
Criticism was starting to mount over the policies the Democratic-controlled Congress and the Obama Administration had been pursuing; reducing the proportion of populist anger at the corporate elite and big business. Then the story about the bonuses being given to AIG and, specifically, those in the AIG Financial Products division who caused so much of AIG and the overall financial system’s problems broke in the national media. Populist outrage — exemplified apparently by pitchforks? — has been the big buzz; outrage at AIG, at corporate executive compensation, at Treasury Secretary Geithner, at President Obama. If handled and channeled properly, however, the Obama Administration might come out of the AIG Bonuses Scandal with less antipathy directed at them and more momentum for their policies.
To do this, the Obama Administration will need to change its political and policy strategy. If the goal is to reduce the proportion of the populist anger directed at them, the Obama Administration needs to increase the proportion of that anger directed at someone else. While Liddy (not to be confused with Scooter Libby), the Bonees, and the rest of AIG are obvious targets at the moment, the next burst of outrage will come eventually after the current one and there is no telling where it will be directed. There needs to be a longer-term bogeyman, but Rush Limbaugh and the Republican Cabal are so marginalized that a wider net has to be cast than the partisan one.
A good example of what an attack at such a target might sound like was actually offered by President Obama himself today. He said “Well, I don’t want to quell anger. I think people are right to be angry. I’m angry…Now, keep in mind — I think it’s very important to remind ourselves that there are a whole bunch of folks now who are feigning outrage about these bonuses that a year ago, or two years ago, or three years ago, said, well, we should never meddle in these compensation plans.” Who might he be talking about? Well, one epithet for them is Free Market Fundamentalists. They are also known as laissez faire capitalists (and include almost every Republican in the US government). Now, there is a bigger punching bag than what’s left of the Republican Rump.
To properly pivot against this adversary, the Obama Administration would need to modify its policy strategy. Laissez faire capitalism is based on the belief that any government interference in the market is a bad thing. Policies that counter this belief are ones in which the government acts to temper the recklessness of the market. While the Obama Administration has obviously already pursued some such policies, they need to more fully embrace them as a political tactic if they want to deflect the populist outrage that gets more intense with each day. A strategy involving persecuting AIG corporate executives for economic fraud, putting serious caps on all corporate executive compensation, taking over control of the firms which the US government already owns controlling amounts of (AIG, Citigroup, etc.), declaring a complete foreclosure moratorium, implementing significant investments in infrastructure and “green” technology, empowering workers through the Employee Free Choice Act, and launching employment programs would begin to boost the popularity and strength of the Obama Administration as the ally of working Americans against the greed, corruption, failure, and exorbitant power of the corporate elite and big business.
Filed under: Uncategorized , AIG, AIG bonuses, AIG Bonuses Scandal, AIGFP, bailouts, banksters, bonuses, capitalism, economic crisis, economic depression, economy, Edward Liddy, employment, executive compensation, financial crisis, Financial Products, Free Market Fundamentalism, media, Obama, outrage, populist, Republicans, stimulus, Timothy Geithner