Defending their banker constituency
One of the recurring themes in Paul Krugman's writings has been that the economic thinking currently fashionable with conservative politicians seems completely insensitive to high unemployment, or the fact that we're in an economic slump - they're entirely fixated on a fear of inflation, even though inflation is nearly nonexistent right now. Today he offers a potential explanation:...everything we’re seeing makes sense if you think of the right as representing the interests of rentiers, of creditors who have claims from the past - bonds, loans, cash - as opposed to people actually trying to make a living through producing stuff. Deflation is hell for workers and business owners, but it’s heaven for creditors.
I think to a large extent, Republicans see the financial industry as their real constituency. There are many examples of this, but one of the most egregious is how bank CEOs were allowed to keep their contractual bonuses, even as the companies they had run into the ground were bailed out by the government; but auto workers, when their employers were in a similar situation, were required to abandon their contracts. Another example is the Republican budget plan, written by Paul Ryan, which lowers taxes on the wealthy while cutting government programs that people with lower incomes rely upon. (It doesn't even achieve any notable deficit reduction in the process; it's purely a way to transfer wealth upwards.)
The underemployed and unemployed in this crisis are largely middle class and below; they just don't rate the same level of concern that's reserved for the well-being of wealthy CEOs.
I think to a large extent, Republicans see the financial industry as their real constituency. There are many examples of this, but one of the most egregious is how bank CEOs were allowed to keep their contractual bonuses, even as the companies they had run into the ground were bailed out by the government; but auto workers, when their employers were in a similar situation, were required to abandon their contracts. Another example is the Republican budget plan, written by Paul Ryan, which lowers taxes on the wealthy while cutting government programs that people with lower incomes rely upon. (It doesn't even achieve any notable deficit reduction in the process; it's purely a way to transfer wealth upwards.)
The underemployed and unemployed in this crisis are largely middle class and below; they just don't rate the same level of concern that's reserved for the well-being of wealthy CEOs.