"Whenever the people are well-informed, they can be trusted with their own government." Thomas Jefferson

The Real Deflate-gate: The Depressed State of Our Union

Melanie Sturm | @ThinkAgainUSA Read Comments - 14
Publish Date: 
Thu, 01/29/2015


Aired-out uproariously on Saturday Night Live, “Deflate-gate” has been a national fixation since word broke that the New England Patriots used under-inflated footballs in their Super bowl birth-clinching victory over Indianapolis. The alleged cheating controversy has even pumped up the lovability of the oft-despised Seattle Seahawks.


However, Think Again if you believe Deflate-gate is merely hot air. Though overblown, Americans’ disquiet reflects our fairness instinct and commitment to equality of opportunity – the ideal that all competitors in the race of life, no matter their status, can succeed on a level playing field.


Sensing a slanted NFL field, Seahawk Richard Sherman questioned the close relationship between NFL commissioner Roger Goodell and Patriot owner Robert Kraft, calling it a “conflict of interest.”


Sherman’s unease resonates in an America increasingly distrustful of society’s umpires. President Obama spoke to this anxiety in last week’s State of the Union address. “This country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules,” he declared, labeling this “middle-class economics.”


Yet the story of our five-year-old recovery is how poorly working Americans have fared. With workforce participation at forty-year lows, “America’s wealth gap between middle-income and upper-income families is the widest on record,” Pew Research recently reported. From 2010 to 2013, household incomes fell for all except the most affluent 10 percent, a 2014 Federal Reserve survey revealed, with the bottom 40 percent suffering disproportionately.


So while Wall Street, Silicon Valley and Washington boom, the rest of America suffers crisis levels of job insecurity, economic immobility and government dependency, with a record 50 million living in poverty.


That’s because our economy’s playing field is askew, warped by a cronyist system -- long in the making -- that is neither “middle-class economics” nor Thomas Jefferson’s ideal: “a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement.”


Free to pursue their individual life objectives, American entrepreneurs -- and immigrants fleeing societies where one’s start pre-determined one’s end -- transformed an agrarian backwater into human history’s greatest economic wonder. Between 1800 and 2007, economic well-being (real GDP per-capita) increased 32-fold in America compared to 14-times in Great Britain and 5-times in India. 


It’s not a miracle; it’s the free market where rivals meet in open competition, generating a continuous stream of innovation, choice and value. In return for pleasing customers and being good corporate citizens, entrepreneurs earn profits.


As government has grown, so have its anti-competitive powers, corrupting the free market with corporate cronyism -- the incestuous relationship between Big Government and Big Business that rewards political connections over competitive excellence.


Our tax code is a cronyist masterpiece, allowing well-connected individuals and big companies like GE to lobby for, win and exploit tax breaks, rendering their tax bills negligible and affording lawmakers unending contributions.


Equally distortive are corporate welfare programs sold as economic saviors -- the 2009 stimulus, cash-for-clunkers, farm bill, bailouts, Export-Import Bank loan guarantees and Dodd-Frank “Wall Street reform.” Each benefits well-connected private companies, forcing Americans who “work hard and play by the rules” to subsidize elites who don’t.


Then there’s cronyism’s granddaddy, Obamacare, “the product of an orgy of lobbying and backroom deals,” according to Steven Brill, whose new book “America’s Bitter Pill” details how the $3-trillion-a-year health industry’s largest stakeholders – drug and medical device companies, hospitals, insurers – profited, at taxpayers’ expense.


When profits accrue to those with the most to invest in politics -- and the most to lose in the free market -- wealth and opportunity shift from ordinary people to the government and its friends. That’s why Americans struggling to maintain living standards must contend with ever-increasing prices in government-controlled sectors -- housing, health, and education.


Most worrisome, the small business sector, which generates two-thirds of new jobs, is languishing. Unable to grow in a market that protects large corporations from competition, and disproportionately burdened by an explosion of regulatory red tape, small business deaths now exceed business births for the first time in the Brookings Institution’s thirty-plus-year history of data collection.


So who are the greedy Gordon Gekko’s? Those who prudently risk hard-earned money to continuously deliver life-enhancing benefits – iPhones, 3-D printers, medicines, refrigerators – or cronies who relegate competitors, consumers, employees, and investors to the sidelines of a rigged game?


To protect our freedom and broadly share prosperity, shouldn’t we disperse power away from economic leeches, returning it to economic producers whose raison d'être is the fulfillment of needs and desires?


Think Again – It’s human nature to want competitive advantages -- whether tax breaks or deflated footballs.  That’s why a free society needs referees with only enough power to assure fair competition, not so much that they become self-interested players in the game.



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A well made argument for

A well made argument for small government that doesn't meddle in the affairs of businesses or the people, but concentrates on maintaining an economic environment in which the players are assured equal opportunity but not equal outcomes. Businesses are neither helped nor hindered, not to mention there is no such thing as´too big to fail´ or ´too small to succeed.´

Moreover it should be an environment in which people are not made equal by redistributing the wealth they produce. Redistribution seems to be the liberal definition of ´fair´ and is also the definition of ´socialism.´ As history has shown, it is anything but fair, always resulting in a wealthy ruling elite and a poverty-stricken but oh-so-equal population of serfs.

Wow, this is a beautifully

Wow, this is a beautifully written and insightful piece that nicely encapsulates our current economic situation in America. The historical context is what really fleshes it out.

So, here we are; how do we get out? This needs to be read by every Congressman and Senator; it´s a Must Read.

Wow. This could have been

Wow. This could have been entitled "Back to the Future of Prosperity". It's a beautifully written and powerfully argued reminder of who we are, how we came to be, and how we've come to lose our way.

And it offers Today's Sign of Hope in its kill-shot: "Americans’ disquiet reflects our fairness instinct and commitment to equality of opportunity — the ideal that all competitors in the race of life, no matter their status, can succeed on a level playing field." That's how and why we WILL find our way back.

Thank you for reminding us, Melanie.

I agree with your article but

I agree with your article but wonder if the problem of the middle class isn't of the middle class' own making. The human fault that fuels cronyism may underlie the shrinking economic power of the middle class.

Cronyism will always be with us due to the selfish nature of each individual and that selfish nature of the masses has led to our manufacturing jobs being shipped beyond our borders. Demand for benefits, pensions, healthcare, hourly wages, paid vacations, sick leave, profit sharing.........all good things for the middle class but not sustainable without import duties on products produced by workers who receive $5 per day and no other benefits.

Wal Mart fills its shelves with products from 8,500 factories in China and our middle/lower class flock to Wal Mart. It would be hard to find a family of the shrinking economic class that doesn't have at least one I-phone that was produced beyond our shores by workers who only seek a job while we demand increased benefits. 308 million of us want increasing benefits but we also want our money to buy more stuff so Wal Mart becomes America's largest retailer of foreign made widgets.

Yes, the Keystone pipeline is prevented by cronyism.....meanwhile Buffet's Burlington Northern Railroad reaps millions per day hauling crude oil from North Dakota.......308 million of us don't care, we want $1.75 per gallon gas however we can get it. Saudi Arabia or North Dakota makes no difference when I swipe my card at the pump. I want, I want, I want.

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