Issue #73

Last Update May 20, 2013

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National and International The Makers and the Takers by Gerry Krownstein March 31, 2013   The Republicans have made a lot of noise about Makers and Takers. In their Ayn Randian view, the Makers are those with money, who control American business and create jobs and tangible goods. The takers are the moochers that live on the dole, sucking up the surpluses that the Makers have created. In their view, we would be better off if all the Takers suddenly ceased to exit. They may be right, but they have misidentified who is a Maker and who is a Taker. In fact, many of the richest and most powerful  Americans are actually the Takers, parasites who leach off the efforts of the real Makers, American workers, artists, entrepreneurs, and effective government employees who keep our infrastructure going and give aid in emergencies.

Who are the “Makers” extolled by Mitt Romney, Paul Ryan and Fox News?  Often they are businessmen that have inherited their wealth (as Romney famously said, “If you want to go to college or start a business, you can always borrow money from your parents”). Not exactly Makers. Many of the ones who feel most entitled to wealth and respect are in the financial industry doing things that are unproductive from an economic standpoint: leverage buyouts, stock speculation, invention of derivatives with no connection to the real world, bankers who gamble with your money, and on and on. These are no more Makers than the tapeworm that resides in your intestines. They are parasites on the economic body, and are thus Takers.

Members of the C-suite (CEOs, CFOs, etc.) who receive huge salaries and enormous incentive bonuses while their companies lose money and stock prices fall, or who are rewarded with Golden Parachutes when finally given the boot are likewise Takers. Mining and petroleum executives who rack up huge profits for their companies while shifting the costs associated with these profits, in terms of lives lost, environments ruined and global warming are Takers; their profits are based on public welfare. And while we're at it, those states (mostly southern) where they get more money from  the Federal government than they pay out in taxes, are they Takers?

Who are the makers, really? They are the entrepreneurs that start new companies that provide real goods, services and jobs to the economy. They are the factory workers that actually make the goods we consume. They are the service workers that provide everything from medical care to haircuts. They are the government employees that teach our kids, maintain public transportation, respond to emergencies (health, fire, or crime), preserve our infrastructure – highways, bridges, water supply,, and others. They are the office workers that keep things running, pay the bills, handle the reports. They are the middle managers and senior managers that are competent and add value to their organizations.

Very few are the ultra rich. Because they run the show, they kid themselves into believing they are the Makers. Only the competent among them can make that claim. Unfortunately, that is only a small minority of business leaders.