Month: May 2015
Massachusetts political roots aside, you might think that the comparison of Democratic Sen. Elizabeth Warren and former governor and failed Republican presidential candidate Mitt Romney is absurd.
Warren, the progressive populist who in both rhetoric and regulation has sought to shackle “predatory” financial institutions as a means of supposedly protecting “the little guy,” and Romney, the patrician and wealthy denizen of the financial establishment of 47 percent infamy, would appear to be polar opposites.
But alas, as so often is the case in politics, Warren’s public face is contradicted by her private actions – actions that we will soon see are similar in nature to those that made Romney a millionaire.
Warren, like Romney, profited by buying assets at low prices and through either improving said assets or waiting for the market to strengthen, selling them at higher prices.
As Jillian Kay Melchior and Eliana Johnson lay out in a recent National Review exposé, Warren “bought and sold at least five [residential] properties for profit,” generating at least $240,500 before accounting for remodeling costs.
Several of the homes Warren purchased and then flipped had been foreclosed upon.
The focus of the piece is the rank hypocrisy that Warren would execute such profit-seeking transactions, given that she has called the idea of buying and selling properties quickly for profit a “myth” that contributed to our economic woes, and decried the banks that foreclosed on the homes of working class Americans.
Rightfully, the column closes with the following flourish:
In her 2014 autobiography, Warren wrote of the events that precipitated the financial crisis that “everyone seemed to have a story about someone they knew who was getting rich by flipping houses.”
She omitted a crucial one.
But it ought to be pointed out that not only were Warren’s actions counter to her stated principles – they mimicked those of the private equity companies and other financial institutions that she has spent her entire public life railing against.
Democratic presidential candidate Hillary Clinton has suggested that a key litmus test in evaluating prospective Supreme Court appointees would be their willingness to challenge “the right of billionaires to buy elections.”
Presumably, a suitable judge would indicate a desire to overturn the Citizens United decision that struck down a ban on political expenditures by corporations and unions ruled to violate the First Amendment protection of free speech – a case coincidentally centered on Citizen United’s attempt to advertise for and air a film critical of none other than Clinton.
In light of recent allegations swirling around the presidential favorite, Clinton’s support of such a position is highly ironic.
For while the former secretary of State may oppose the rights of the wealthy to spend money on politics, she seems to have no such concern with the wealthy spending money on the Clinton Foundation and her husband Bill – all while Hillary served in the Obama administration.
Would Clinton seek a Supreme Court justice who would protect the rights of the likes of Carlos Slim and James Murdoch to contribute to the favored cause of a politician and shower the politician’s spouse with millions for speaking engagements?
If so, this apparent hypocrisy can be read in one of two ways:
- Clinton believes that money does not have a corrupting influence so long as it is funneled through “indirect” channels
- Clinton believes that the wealthy and powerful ought to bypass funding elections and simply pay politicians outright.
Appearances of impropriety aside, there are a few substantive questions around political speech that Clinton should be required to address.
Why does Clinton believe that the government has a compelling interest in stifling the political speech of any American, rich or poor?
More generally, given a system in which millions of dollars are spent on losing causes each election cycle on both the left and right, what have Americans to fear about spending so long as laws are enforced equally and impartially regarding “pay-to-play” schemes and other politically corrupt activity?