Posted on 01/21/2015 5:23:42 PM PST by 2ndDivisionVet
On Tuesday night, Senator Ted Cruz appeared on Fox News to respond to the State of the Union address — and talked about how the US economy was only working for the "top 1 percent," who he said have gotten "fat and happy" under Obama's administration.
(VIDEO-AT-LINK)
Cruz's rhetorical move is unusual for a prominent Republican, particularly a presidential contender. This emphasis on the "the 1 percent" has long been condemned by many in the party as class warfare. For instance, Sen. Marco Rubio said in 2012 that "convincing one group that their life isn't doing better because another is doing too well" is "divisive."
But Cruz's line is the latest example of why many Republicans are reacting to the latest good economic news by sounding more like Elizabeth Warren, as Matt Yglesias wrote recently. The solutions they're proposing are quite different from Warren's — but, at least rhetorically, their diagnosis of the problem is getting more and more similar.
What Cruz said
Cruz began with a common refrain, saying that Obama’s speech "doubled down on the same failed policies of the past six years." He added, "It’s not working." But when anchor Megyn Kelly pressed Cruz for more specifics, his response was more interesting:
KELLY: He says it is working. He calls it "middle-class economics" and says "the verdict is in, it’s working." Some of the stats offered by the president and in some of the news reports today: Unemployment down to 5.6 percent. Gasoline prices down. Stock markets are up. Economy grew by 5 percent in the third quarter of last year, its fastest rate for more than a decade. How can you hit him on the economy?
CRUZ: Because the facts are, we’re facing a divided America right now when it comes to the economy. It is true that the top 1 percent are doing great under Barack Obama. Today, the top 1 percent earn a higher share of our national income than any year since 1928.
He continued by citing wage stagnation, Americans dropping out of the workforce, and even said that the "rich and powerful" have gotten "fat and happy":
CRUZ: "The sad reality is, with big government under the Obama administration, the rich and powerful, those who walk the corridors of power in the Obama administration, have gotten fat and happy. But working men and women across this country — we have the lowest labor force participation since 1978. The reason the unemployment rate keeps dropping is millions of people keep dropping out of the workforce altogether so they’re not counted in that number. And, I’ll tell you, wage stagnation. For over a decade now, median wages have stagnated, and this is an administration that benefits those with connections to Washington with influence."
What it means
Now that the economy is in better shape than at any other time during the Obama presidency, the GOP is trying to sharpen its messaging on what, exactly, still isn't right.
Cruz’s rhetoric about the top 1 percent and wage stagnation is striking and calls to mind that of not only Elizabeth Warren, but Sen. Bernie Sanders, a socialist from Vermont weighing a run for president. (The statistic that the top 1 percent’s share of the economy is the highest since 1928 is a favorite of Sanders’.)
But of course, Cruz’s focus on "big government" as the problem is very different from Warren or Sanders. So while the GOP senator has adopted a similar diagnosis of the problems we face, he certainly isn’t calling for similar solutions.
The context is that Cruz is gearing up for a likely presidential run. The Washington Examiner’s David Drucker reported Monday that Cruz’s campaign "could start before this spring." Drucker added that Cruz is planning to give a top campaign position to GOP operative Jeff Roe, and quotes a source calling Roe "a mean, bare-knuckles brawler."
But it’s clear that Cruz isn’t turning against all of the 1 percent. Politico’s Ken Vogel reported this week that Cruz will attend a summit hosted by the Koch brothers’ political operation this weekend. Cruz’s argument that "those with connections to Washington" have unfairly benefited is a favorite of Charles Koch, who has condemned government "cronyism."
Top 1% of income not wealth. The ones that Obama wants to hit harder. My point is high income does not equal wealth
This one bothered me:
Republican Tea Party Sens. Rand Paul of Kentucky and Ted Cruz of Texas stood with liberal Democratic Sen. Kirsten Gillibrand, endorsing her bill that would dramatically change how military sexual assault cases are reported and prosecuted
Unlikely Allies Shake Up Military Sex Assault Debate July 16, 2013
He needs to articulate the point that not all one percenters are crony capitalists.
You’re not against rape & sexual assault?
I am against Kirsten Gillibrand’s man hating soldier hating agenda and I would never join it.
What do we want our soldiers to be? All gay sissy's ??
Gillibrand won Hillary's seat. Just because she is cute and has a chirpy voice doesnt mean we must cave to her.
The Fed has pumped tons of cash into Wall Street so fat cats are loving Obama’s money policy. They donate to Dems. Where exactly do middle class benefit with any of O’s policies? Obamacare raised premiums and double deductibles. Is that supposed to help middle class?
I’ve been a recruiter & staffer off-and-on for years. You can’t hire people that don’t exist. That is why Al Sharpton is ultimately going nowhere with his attacks on Silicon Valley and other technical employers.
Nonsense. $400,000 is top 1%. I've cracked that a couple times. Got my first real job at 33 after college, medical school and 6 years of residency making $25K a year working 60-80 weeks. After federal, state and local tax I pay close to $.65 on the dollar in taxes. I work evenings, weekends, nights and holidays. 2 kids soon to be in college. I drive a Subaru and wife drives a 12 year old Nissan.
You put me in a "permanent political class" and the IRS puts me in the same category as Zuckerberg and Buffet. Of course thanks to OholeCare I won't be there much longer, but no matter what, I'm sure I still won't be paying my "fair share".
I can see both sides so I didnt jump in.
Here in Howard county Maryland there is so much government job $$$ that educated Indians and Korean Immigrants are moving here from there in such large numbers that they don't bother to socialize with anyone but their own immigrant groups here.
My neighborhood turned from mostly white American born here neighbors who were real friend neighbors to strangers who act like we are the aliens here in the USA. My past neighbors used know each other by name and say high and even throw neighborhood parties.
Many of my American neighbors fled to Carroll County that looks like Howard County did 20 years ago that is still 92% white, but thats a hell of commute for many of them.
Eat the fat cats.... I’m not Asian.
I suppose Chelsea has learned how to hide her income and not pay taxes. She has learned at the knees of the masters-her parents, especially her mother.
He continued by citing wage stagnation, Americans dropping out of the workforce, and even said that the "rich and powerful" have gotten "fat and happy":
CRUZ: "The sad reality is, with big government under the Obama administration, the rich and powerful, those who walk the corridors of power in the Obama administration, have gotten fat and happy. But working men and women across this country — we have the lowest labor force participation since 1978. The reason the unemployment rate keeps dropping is millions of people keep dropping out of the workforce altogether so they’re not counted in that number. And, I’ll tell you, wage stagnation. For over a decade now, median wages have stagnated, and this is an administration that benefits those with connections to Washington with influence."
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Facebook's Zuckerschmuck isn't wealthy enough with his billions, he has to lie to Congress and the President that there aren't enough skilled tech workers in America and that he needs tens of thousands of H1B visa employees.
He's going to p!ss on my field, I will call him out on it. He isn't just affecting the salaries at his firm, he's depressing the wages for an entire industry so he can make more bank. When the money goes to the top dog, it doesn't benefit the bottom line of the company. Shareholders and coworkers don't reap the benefits.
You better believe that Sen. Cruz and his team discussed this term at length before rolling it out. I think that it is a smart move on Ted's part. This demonstrates how fearless Cruz is.
If you technically slip into the 1% from time to time and feel demonized, suck it up, we've got an election to win. Afterwards, Sen. Cruz can get to work on things that will improve your lives, like the tax code and the Fed.
He's not waiting for his term to be over. He's done a pretty good job of raking it in now.
Fully agree. Conservatives don’t have to give a quarter on issues of environmentalism and crony capitalism. Conservatives must fight against deforestation, the slaughter of seals and whales. Today’s young crowd is an eco-friendly voting group and we lose their votes be ceding entire issues to liberal lunatics. Go Ted, Go!
I wish we had a like button. I agree.
Cruz has been doing this to Rand Paul, as well, taking his talking point and turning it to fit the Cruz conservative agenda.
I’m not going to insult you in this post, I’m going to legitimately try and turn on a couple of economic light bulbs in your head for you.
We’ve seen oil prices tank - and as a result, gas prices and other energy prices have tanked. This has been a HUUUGE benefit to many, most in fact, Americans and American businesses. And yet, it’s been horrible for oil companies, oil service companies, jobbers, and many in the futures markets.
POINT A: ALL ECONOMIC news, all economic happenings, are both GOOD and BAD - for different segments of the population.
POINT B: No one....NO ONE...predicted this. None of the “experts” saw it coming. This is what always happens.
POINT A plus POINT B = conclusion C, as in common sense: It is pointless, damaging and counter productive to have “experts” come in and figure out how to artificially pervert prices with tariffs and other protectionist measures - and if it’s tried, it will help some, but it will hurt others.
POINT D: Duh: all of these winners and losers should be determined by the market, not regulators or legislators. PERIOD.
The first and easiest step should be to bring back American profits. Apple, and other corporations, have big bucks that they earned overseas but which would be heavily taxed if brought home. So there they sit - or, more likely, there they get invested. Immediately pass a law making dividends tax deductible against the corporate income tax.Then Apple and the rest would bring that money home, and pay it out in dividends. Which would go into investment and consumption - and individual income taxes, BTW - here. Which would improve the business climate here.
That would be a simple pro-American change in American law, to which no foreigner would have a legitimate complaint, but which would help Americans here. Whether they invest in America or whether they work for someone else who invests in America. And frankly, any worker needs to save for their children’s future (e.g., college) and for his own retirement - so everyone needs to invest, and to live off the fruits of those investments after retirement.
” Many of my American neighbors fled to Carroll County that looks like Howard County did 20 years ago that is still 92% white, but thats a hell of commute for many of them. “
If I were you, I would sell now, and rent until retirement : )
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