Wintery Knight

…integrating Christian faith and knowledge in the public square

Video, audio and summary: Jim Wallis debates Jay Richards on Christianity and the common good

I had to re-post this post again because Facebook decided to mark it as SPAM. This is the same post I put out 4 hours ago.

The video recording:

  • The organizers of the debate tell me that the video will be posted shortly after the debate, and I will link to it in this very post.

The audio recording:

The debaters

Jay Richards:

Jay Richards, Ph.D., is a Senior Fellow of the Discovery Institute where he directs the Center on Wealth, Poverty and Morality, and is a Visiting Scholar at the Institute for Faith, Work & Economics. Most recently he is the co-author with James Robison of the best-selling Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late”.

In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he recently edited the new award winning anthology, God & Evolution: Protestants, Catholics and Jews Explore Darwin’s Challenge to Faith . His previous book was Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem (HarperOne, May 2009), for which he received a Templeton Enterprise Award in 2010.

[...]In recent years, he has been a Contributing Editor of The American at the American Enterprise Institute, a Visiting Fellow at the Heritage Foundation, and a Research Fellow and Director of Acton Media at the Acton Institute. Richards has a B.A. with majors in Political Science and Religion, an M.Div. (Master of Divinity) and a Th.M. (Master of Theology), and a Ph.D. (with honors) in philosophy and theology from Princeton Theological Seminary.

Jim Wallis:

Jim Wallis (born June 4, 1948) is a Christian writer and political activist. He is best known as the founder and editor of Sojourners magazine and as the founder of the Washington, D.C.-based Christian community of the same name. Wallis is well known for his advocacy on issues of peace and social justice. Although Wallis actively eschews political labels, he describes himself as an evangelical and is often associated with the evangelical left and the wider Christian left. He works as a spiritual advisor to President Barack Obama. He is married to the Rev. Joy Carroll, who was one of the first female priests in the Church of England. He is also a leader in the Red-Letter Christian movement.

[...]In 2010, Wallis admitted to accepting money for Sojourners from philanthropist George Soros after initially denying having done so. When conservative writer Marvin Olasky pointed this out, and that Soros also financed groups supporting abortion, atheism, and same-sex marriage, in a WORLD magazine column, Wallis said Olasky “lies for a living”; he subsequently apologized to Olasky for the comments. In 2011, Wallis acknowledged that Sojourners had received another $150,000.00 from Soros’ Open Society Foundation.

[...]In regard to the 2011 United States budget proposal, Wallis described Congressman Paul Ryan and his congressional allies as “bullies” and “hypocrites.”

Wallis just came out this month in favor of gay marriage. He is also a strong supporter of Barack Obama, who is radically pro-abortion. Some pro-lifers have argued that Barack Obama has the same views on abortion as Kermit Gosnell.

The format of the debate

  • 20 minute opening speeches
  • 10 minute rebuttals
  • 10 minutes of discussion
  • Q&A for the remainder

SUMMARY

I use italics below to denote my own observations.

Jim Wallis’ opening speech:

My goal is to spark a national conversation on the “common good”.

A story about my son who plays baseball.

The central goal of Christianity is to promote the “common good”.

Quotes “Catholic social teaching” which values “human flourishing”.

The “common good” is “human flourishing”.

Is the purpose of Christianity is to make sure that everyone has enough material stuff or to preach the gospel?

When Christians go on mission trips, it’s good that they focus on things like human trafficking.

Democrat John Lewis is the “conscience of the U.S. Congress”.

John Lewis gets a 0% rating from the American Conservative Union in 2012.

John Lewis gets a 8% rating from the American Conservative Union in 2011.

John Lewis gets a 2.29% lifetime rating from the American Conservative Union.

Nothing is going well in Washington right now except comprehensive immigration reform.

Does he think that Christianity means giving 12-20 million illegal immigrants a path to citizenship, while skilled engineers cannot even get green cards, even though there is a shortage of them? Does he think that the other people in society who earn more than they receive from the government ought to be taxed more in order to provide more services and benefits to those who earn less than they take from the government?

Jay Richards’ opening speech:

Two topics: 1) what is the common good? 2) what should Christians do to promote the common good?

Catholicism defines the “common good” as “Indeed, the common good embraces the sum of those conditions of the social life whereby men, families and associations more adequately and readily may attain their own perfection.”

We have natural ends that we are supposed to be achieving and some places, like South Korea, are better for allowing that to happen.

The common good is broader and prior to any sort of political specification.

It’s not the political good or what the state is supposed to do.

It’s not about the communal good, as in Soviet Russia, where the communal good was above individual and familial good.

The common good is the social conditions that promote the things that we humans have in common as individuals and members of family.

The common good takes account of who we are as individuals and in associations with other individuals, e.g. – families.

Christians don’t have to be doing the same things to promote the common good, e.g. – pastors, entrepreneurs, etc.

The church, as the church, has as its primary goal making disciples of all nations.

But even in that capacity, the church should be interested in more than just conversions and saving souls.

We also have to care about God’s created reality including things like physics, education, etc.

How should Christians promote the common good in politics?

Question: when is coercion warranted?

In Romans 13, Paul says that the state does have power to coerce to achieve certain ends, like justice.

Most Christians think that there are some things where the state can use coercion, for example, to prevent/punish murder.

It is OK for the police to use coercive force to maintain public order and the rule of law.

But we need to ask whether other things are legitimate areas for the state to use coercive force.

We should only give the state power to coerce when there is no other way to achieve a goal.

We need to leverage the science of economics in order to know how to achieve the common good.

Jay Richards' main point in the debate

Jay Richards’ main point in the debate

Henry Hazlitt: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example, what happens if we raise the federal minimum wage to $50. What happens next for all groups? That’s what we need to ask in order to know which policies achieve the common good.

When it comes to economics a lot of things have been tried in other places and times.

We can know what works and doesn’t work by studying what was tried before and in other places.

Many things are counter-intuitive – things that sound good don’t work, things that sound bad do work.

Principle: “We are our brother’s keeper”. Christians have an obligation to care for their neighbors.

We all agree on the goal. But how do we do things that will achieve that goal?

We have to distinguish aspirations from principles and prudential judgment.

Principle: We should provide for the material needs of the poor.

Prudence: Seeing the world as it is, and acting accordingly.

Example policies: which minimum wage is best? None? $10? $20?

We decide based on seeing how different economic policies achieve the goal of helping the poor.

Jim Wallis’ first rebuttal:

Jesus commanded us to “care for the poor and help to end poverty”.

Actually, Jesus thought that acknowledging him and giving him sacrificial worship was more important than giving money to the poor, see Matthew 26:6-13:

While Jesus was in Bethany in the home of Simon the Leper, 

a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.

When the disciples saw this, they were indignant. “Why this waste?” they asked. 

“This perfume could have been sold at a high price and the money given to the poor.”

10 Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. 

11 The poor you will always have with you, but you will not always have me. 

12 When she poured this perfume on my body, she did it to prepare me for burial. 

13 Truly I tell you, wherever this gospel is preached throughout the world, what she has done will also be told, in memory of her.”

It’s not clear to me whether Jim Wallis thinks that preaching is more important than redistributing wealth to address material inequality.

I like what Jesus said in a TV series, even though it’s not in the Bible when an actor playing Jesus said to “change the world”.

Jesus never said to “change the world” in the Bible. Should we be concerned that he is quoting a TV actor playing Jesus instead of Jesus.

Here is a terrific story about Bill Bright.

I love Catholic social teaching.

Quote: “All are responsible for all”.

I go to the World Economic Forum at Davos, Switzerland every year. I spoke once at 7 AM on the 4th floor.

It’s a funny place for a Christian to be if they care about the poor – rubbing shoulders with leftist elites. He must have named a dozen high-profile people that he spoke with during the debate, as if he could win the debate by some sort of argument from name-dropping. He mentioned the Davos thing several times!

The greatest beneficiary of government actions to deal with the economic crisis was Wall Street banks.

I’m going to tell you a story about what a Washington lawyer says to Jesus.

I’ve had conversations with business leaders where I tell them to integrate moral truths.

I talk about the Good Samaritan parable.

Quote: “Do you love your undocumented neighbor?”

Quote: “Do you love your Muslim neighbor?”

Jay Richards’ first rebuttal:

Who is responsible for your own children? Who knows the most about them?

Parents should have more discretion over their children because they have more knowledge about their child and what’s best for them.

The Good Samaritan doesn’t show that government should confiscate wealth through taxation and redistribute it.

The Good Samaritan emphasizes voluntarily charity to help people who are not necessarily your immediate neighbor.

Some of the things we do should be for the good of other people in other countries.

But then we are back to leveraging economics to know what policies are good for those other people in other countries.

The principle of subsidiarity: if a problem can be addressed by a lower level of society (family) then we shouldn’t make higher levels (government) address it.

The best place to take care of children is within the family.

Only if the family fails should wider and wider spheres get involved.

Although we want to think of the common good in a global sense, we don’t want to lose sight of the fact

The financial crisis: we need to integrate moral truths, but also economic truths.

We don’t want to assume policies based on intuitions, we want to check our intuitions using economic principles.

Why did we have a financial crisis in mortgages, but not in commodities futures or technology, etc.?

Greed is a contributing factor in all areas of business.

Something more was going on in the mortgage markets than just greed.

There were specific policies that caused the mortgage lending crisis.

The root cause of the problem were “affordable housing policies” that lowered lending restrictions on low income people.

The policy ended up degrading the underwriting standards on loans.

Government intruded into the market and undermined the normal ways of

People were getting massive loans with no income, no jobs, no assets and no down payment.

The federal government created a market for risk loans by guaranteeing

There was a government imposed quota on mortgage lenders such that 50% of their loans had to be given to high-risk borrowers.

That is what led to the financial crisis. Not the free market, but intrusions into the free market.

These policies were well-meaning and implemented by people from both parties. But they had bad effects.

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Video, audio and summary: Jay Richards and Jim Wallis debate Christianity and the common good

Note: if you are having trouble liking this page on Facebook or sharing it on Twitter, please click here for an updated one that is shareable. Something went wrong in Facebook and they’ve marked this post as spam! But the new one is fine for sharing.

The video recording:

  • The organizers of the debate tell me that the video will be posted shortly after the debate, and I will link to it in this very post.

The audio recording:

The debaters

Jay Richards:

Jay Richards, Ph.D., is a Senior Fellow of the Discovery Institute where he directs the Center on Wealth, Poverty and Morality, and is a Visiting Scholar at the Institute for Faith, Work & Economics. Most recently he is the co-author with James Robison of the best-selling Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late”.

In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he recently edited the new award winning anthology, God & Evolution: Protestants, Catholics and Jews Explore Darwin’s Challenge to Faith . His previous book was Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem (HarperOne, May 2009), for which he received a Templeton Enterprise Award in 2010.

[...]In recent years, he has been a Contributing Editor of The American at the American Enterprise Institute, a Visiting Fellow at the Heritage Foundation, and a Research Fellow and Director of Acton Media at the Acton Institute. Richards has a B.A. with majors in Political Science and Religion, an M.Div. (Master of Divinity) and a Th.M. (Master of Theology), and a Ph.D. (with honors) in philosophy and theology from Princeton Theological Seminary.

Jim Wallis:

Jim Wallis (born June 4, 1948) is a Christian writer and political activist. He is best known as the founder and editor of Sojourners magazine and as the founder of the Washington, D.C.-based Christian community of the same name. Wallis is well known for his advocacy on issues of peace and social justice. Although Wallis actively eschews political labels, he describes himself as an evangelical and is often associated with the evangelical left and the wider Christian left. He works as a spiritual advisor to President Barack Obama. He is married to the Rev. Joy Carroll, who was one of the first female priests in the Church of England. He is also a leader in the Red-Letter Christian movement.

[...]In 2010, Wallis admitted to accepting money for Sojourners from philanthropist George Soros after initially denying having done so. When conservative writer Marvin Olasky pointed this out, and that Soros also financed groups supporting abortion, atheism, and same-sex marriage, in a WORLD magazine column, Wallis said Olasky “lies for a living”; he subsequently apologized to Olasky for the comments. In 2011, Wallis acknowledged that Sojourners had received another $150,000.00 from Soros’ Open Society Foundation.

[...]In regard to the 2011 United States budget proposal, Wallis described Congressman Paul Ryan and his congressional allies as “bullies” and “hypocrites.”

Wallis just came out this month in favor of gay marriage. He is also a strong supporter of Barack Obama, who is radically pro-abortion, according to Planned Parenthood. Some pro-lifers have argued that Barack Obama has the same views on abortion as Kermit Gosnell, who is currently on trial for murdering born babies.

The format of the debate

  • 20 minute opening speeches
  • 10 minute rebuttals
  • 10 minutes of discussion
  • Q&A for the remainder

SUMMARY

I use italics below to denote my own observations.

Jim Wallis’ opening speech:

My goal is to spark a national conversation on the “common good”.

A story about my son who plays baseball.

The central goal of Christianity is to promote the “common good”.

Quotes “Catholic social teaching” which values “human flourishing”.

The “common good” is “human flourishing”.

Is the purpose of Christianity is to make sure that everyone has enough material stuff or to preach the gospel?

When Christians go on mission trips, it’s good that they focus on things like human trafficking.

Democrat John Lewis is the “conscience of the U.S. Congress”.

John Lewis gets a 0% rating from the American Conservative Union in 2012.

John Lewis gets a 8% rating from the American Conservative Union in 2011.

John Lewis gets a 2.29% lifetime rating from the American Conservative Union.

Nothing is going well in Washington right now except comprehensive immigration reform.

Does he think that Christianity means giving 12-20 million illegal immigrants a path to citizenship, while skilled engineers cannot even get green cards, even though there is a shortage of them? Does he think that the other people in society who earn more than they receive from the government ought to be taxed more in order to provide more services and benefits to those who earn less than they take from the government?

Jay Richards’ opening speech:

Two topics: 1) what is the common good? 2) what should Christians do to promote the common good?

Catholicism defines the “common good” as “Indeed, the common good embraces the sum of those conditions of the social life whereby men, families and associations more adequately and readily may attain their own perfection.” (Source)

We have natural ends that we are supposed to be achieving and some places, like South Korea, are better for allowing that to happen.

The common good is broader and prior to any sort of political specification.

It’s not the political good or what the state is supposed to do.

It’s not about the communal good, as in Soviet Russia, where the communal good was above individual and familial good.

The common good is the social conditions that promote the things that we humans have in common as individuals and members of family.

The common good takes account of who we are as individuals and in associations with other individuals, e.g. – families.

Christians don’t have to be doing the same things to promote the common good, e.g. – pastors, entrepreneurs, etc.

The church, as the church, has as its primary goal making disciples of all nations.

But even in that capacity, the church should be interested in more than just conversions and saving souls.

We also have to care about God’s created reality including things like physics, education, etc.

How should Christians promote the common good in politics?

Question: when is coercion warranted?

In Romans 13, Paul says that the state does have power to coerce to achieve certain ends, like justice.

Most Christians think that there are some things where the state can use coercion, for example, to prevent/punish murder.

It is OK for the police to use coercive force to maintain public order and the rule of law.

But we need to ask whether other things are legitimate areas for the state to use coercive force.

We should only give the state power to coerce when there is no other way to achieve a goal.

We need to leverage the science of economics in order to know how to achieve the common good.

Jay Richards' main point in the debate

Jay Richards’ main point in the debate

Henry Hazlitt: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example, what happens if we raise the federal minimum wage to $50. What happens next for all groups? That’s what we need to ask in order to know which policies achieve the common good.

When it comes to economics a lot of things have been tried in other places and times.

We can know what works and doesn’t work by studying what was tried before and in other places.

Many things are counter-intuitive – things that sound good don’t work, things that sound bad do work.

Principle: “We are our brother’s keeper”. Christians have an obligation to care for their neighbors.

We all agree on the goal. But how do we do things that will achieve that goal?

We have to distinguish aspirations from principles and prudential judgment.

Principle: We should provide for the material needs of the poor.

Prudence: Seeing the world as it is, and acting accordingly.

Example policies: which minimum wage is best? None? $10? $20?

We decide based on seeing how different economic policies achieve the goal of helping the poor.

Jim Wallis’ first rebuttal:

Jesus commanded us to “care for the poor and help to end poverty”.

Actually, Jesus thought that acknowledging him and giving him sacrificial worship was more important than giving money to the poor, see Matthew 26:6-13:

While Jesus was in Bethany in the home of Simon the Leper, 

a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.

When the disciples saw this, they were indignant. “Why this waste?” they asked. 

“This perfume could have been sold at a high price and the money given to the poor.”

10 Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. 

11 The poor you will always have with you, but you will not always have me. 

12 When she poured this perfume on my body, she did it to prepare me for burial. 

13 Truly I tell you, wherever this gospel is preached throughout the world, what she has done will also be told, in memory of her.”

It’s not clear to me whether Jim Wallis thinks that preaching is more important than redistributing wealth to address material inequality.

I like what Jesus said in a TV series, even though it’s not in the Bible when an actor playing Jesus said to “change the world”.

Jesus never said to “change the world” in the Bible. Should we be concerned that he is quoting a TV actor playing Jesus instead of Jesus.

Here is a terrific story about Bill Bright.

I love Catholic social teaching.

Quote: “All are responsible for all”.

I go to the World Economic Forum at Davos, Switzerland every year. I spoke once at 7 AM on the 4th floor.

It’s a funny place for a Christian to be if they care about the poor – rubbing shoulders with leftist elites. He must have named a dozen high-profile people that he spoke with during the debate, as if he could win the debate by some sort of argument from name-dropping. He mentioned the Davos thing several times!

The greatest beneficiary of government actions to deal with the economic crisis was Wall Street banks.

And Wall Street bankers are huge supporters of Barack Obama for exactly that reason.

I’m going to tell you a story about what a Washington lawyer says to Jesus.

I’ve had conversations with business leaders where I tell them to integrate moral truths.

I talk about the Good Samaritan parable.

Quote: “Do you love your undocumented neighbor?”

Quote: “Do you love your Muslim neighbor?”

Jay Richards’ first rebuttal:

Who is responsible for your own children? Who knows the most about them?

Parents should have more discretion over their children because they have more knowledge about their child and what’s best for them.

The Good Samaritan doesn’t show that government should confiscate wealth through taxation and redistribute it.

The Good Samaritan emphasizes voluntarily charity to help people who are not necessarily your immediate neighbor.

Some of the things we do should be for the good of other people in other countries.

But then we are back to leveraging economics to know what policies are good for those other people in other countries.

The principle of subsidiarity: if a problem can be addressed by a lower level of society (family) then we shouldn’t make higher levels (government) address it.

The best place to take care of children is within the family.

Only if the family fails should wider and wider spheres get involved.

Although we want to think of the common good in a global sense, we don’t want to lose sight of the fact

The financial crisis: we need to integrate moral truths, but also economic truths.

We don’t want to assume policies based on intuitions, we want to check our intuitions using economic principles.

Why did we have a financial crisis in mortgages, but not in commodities futures or technology, etc.?

Greed is a contributing factor in all areas of business.

Something more was going on in the mortgage markets than just greed.

There were specific policies that caused the mortgage lending crisis.

The root cause of the problem were “affordable housing policies” that lowered lending restrictions on low income people.

The policy ended up degrading the underwriting standards on loans.

Government intruded into the market and undermined the normal ways of

People were getting massive loans with no income, no jobs, no assets and no down payment.

The federal government created a market for risk loans by guaranteeing

There was a government imposed quota on mortgage lenders such that 50% of their loans had to be given to high-risk borrowers.

That is what led to the financial crisis. Not the free market, but intrusions into the free market.

These policies were well-meaning and implemented by people from both parties. But they had bad effects.

Filed under: News, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

New housing bubble: Obama proposes lowering mortgage-lending requirements

I must have blogged a million times about how the Democrats caused the recession by forcing banks to make bad loans to people who couldn’t pay them back. Although the Republicans got blamed for the crisis, they were the ones who tried to regulate Fannie Mae and Freddie Mac, but they were shut down by Democrats. Well, guess what? The Democrats didn’t learn their lesson the first time, and they want to start another housing bubble, just like the first one that gave us the recession.

Take a look at this article in the leftist Washington Post. (H/T ECM)

Excerpt:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

[...][A]dministration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.

“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.

And if that was not enough,the Democrats also have another bubble being inflated. They nationalized the student loan industry, and now taxpayers are going to have to bail out those risky unpaid student loans as well.

Excerpt:

America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.

[...]With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.

To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn’t include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.

And liberals in Congress have proposed forgiving all student loans via “The Student Loan Forgiveness Act 2012,” costing taxpayers $1 trillion.

Adding another $1 trillion dollars to the national debt isn’t exactly “forgiveness” for young people—it’s prolonging the payoff. In fact, student loan bailouts are a catch-22 for young people because they’re going to be held accountable for paying off the national debt and interest payments.

At least the young people who voted for Obama are going to be the ones to get the bill for his socialist economic policies.

Related posts

Filed under: News, , , , , , , , , , , , , , , , , , , , , , , , ,

Mitt Romney’s tax returns would make him lose the election to Obama

Wall Street Banks contributions to Mitt Romney

Wall Street banks make huge contributions to Mitt Romney

From The Hill. (H/T Riehl Worldview)

Excerpt:

It’s important not to overstate the perils Romney faces. He is still by far the best-funded candidate in the race. He has a state-by-state infrastructure that is the envy of his rivals. Even if he were to lose Saturday’s South Carolina primary, he would  likely remain the overall favorite to clinch the nomination.

But the procession of errors has been striking nonetheless — and it has raised concerns among many in the GOP about his vulnerabilities in a general election contest with President Obama.

Most of Romney’s awkwardness has revolved around questions about his wealth. During a heated exchange during a debate last month, he ill-advisedly offered to bet Perry $10,000 that his own account of what he had written in one of his books was correct. Perry declined, saying he was “not in the betting business,” but the episode heightened perceptions that Romney is out of touch with most Americans.

The same pattern keeps cropping up. Earlier this week, he was asked about the effective tax rate he pays on his income, and managed to injure himself twice in the space of a few sentences. First, he acknowledged that his tax rate was “probably closer to the 15 percent rate than anything.” He then added: “I get speaker’s fees from time to time, but not very much.”

The first claim was almost certainly true. Romney’s income is believed to come chiefly from long-term investments rather than earned income, and that would indeed make him liable for capital gains tax levied at a 15 percent rate. But it still places the multimillionaire in a more lightly taxed band than many voters — something which Newt Gingrich tried to take advantage of with his mocking proposal to introduce a “Mitt Romney 15 percent flat tax.”

Perhaps even worse was Romney’s “not very much” comment. His latest financial disclosure form, which covered the period from February 2010 to February 2011, revealed that he earned $374,327 for speeches. The sum is approximately seven times the median household income in the United States.

Those remarks had been preceded by a televised debate at which he gave a muddled response about whether he would release his tax returns.

Romney flubbed the tax-return question for a second time at a debate last Thursday, eliciting boos from the crowd when he said he would “maybe” follow the example of his late father, former Michigan Gov. George Romney, who released 12 years of tax returns when running for the presidency in 1968.

Romney’s mangled syntax on these occasions seems symptomatic of a wider personal unease in discussing his finances. GOP consultants say he needs to get over that discomfort if he is to prove an effective candidate.

Another concern that I have is that Mitt Romney has $20-100 million dollars in his retirement account.

Excerpt:

Like many Americans, Mitt Romney has an individual retirement account. Unlike most Americans, Mr. Romney has between $20.7 million and $101.6 million in it, a big chunk of his fortune.

Experts on estate planning said it is highly unusual to accumulate such a considerable sum in an IRA, an investment vehicle restricted by annual contribution limits. It appears that Mr. Romney’s grew so large mostly because it holds investments in Bain Capital, the private-equity firm he helped start.

[...]Mr. Romney is one of the richest presidential candidates in decades, and his GOP opponents increasingly are trying to turn wealth into a liability. President Barack Obama is expected to do the same if the former Massachusetts governor wraps up the nomination. Mr. Romney’s tax liability has emerged as a debating point in the GOP nominating contest, a proxy for a bigger argument over who should shoulder the nation’s tax burden.

In recent days, Mr. Romney’s rivals have pressed him to release his tax returns. They have attacked him for his role at Bain Capital, the source of his wealth. When Mr. Romney revealed Tuesday that his effective federal income-tax rate had been about 15% in recent years, both the White House and GOP candidates used the number as a cudgel.

[...]Michael Whitty, a lawyer at Vedder Price in Chicago who advises private-equity executives, said it is impossible to determine from Mr. Romney’s public disclosures how the IRA grew so large. Based on its listed holdings, which include many Bain Capital vehicles, Mr. Whitty theorizes Mr. Romney may have invested in Bain funds through a 401(k)-type plan, or directed some of his Bain holdings into such a plan, which he then rolled into an IRA.

How is he going to explain that? This might be one of the reasons why Romney is not releasing his tax returns. He needs to be pounded on this by Gingrich and Santorum until he drops out – we can’t afford to choose a nominee who has no hope of beating Barack Obama.

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Obama raised more money from rich bankers than any Republican candidate

From the liberal Washington Post.

Excerpt:

Despite frosty relations with the titans of Wall Street, President Obama has still managed to raise far more money this year from the financial and banking sector than Mitt Romney or any other Republican presidential candidate, according to new fundraising data.

Obama’s key advantage over the GOP field is the ability to collect bigger checks because he raises money for both his own campaign committee and for the Democratic National Committee, which will aid in his reelection effort.

As a result, Obama has brought in more money from employees of banks, hedge funds and other financial service companies than all the other GOP candidates combined, according to a Washington Post analysis of contribution data. The numbers show that Obama retains a persistent reservoir of support among Democratic financiers who have backed him since he was an underdog presidential candidate four years ago.

[...]One top banking executive who raises money for Obama and who requested anonymity to discuss fundraising efforts said reports of disaffection with the president “are exaggerated and overblown.” He said a strong contingent of financiers in New York, Chicago and California remain supportive of Obama and his economic policies, even as some have turned on him.

The Daily Caller explains how Barack Obama has received the most money from Wall Street bankers of all politicians in the last 20 years. (H/T Neil Simpson)

Excerpt: (with links removed)

In fact, the Sunlight Foundation, a nonpartisan watchdog group that tracks lobbyist spending and influence in both parties, found that President Obama has received more money from Bank of America than any other candidate dating back to 1991.An examination of the numbers shows that Obama took in $421,242 in campaign contributions in 2008 from Bank of America’s executives, PACs and employees, which exceeded its prior record contribution of $329,761 to President George W. Bush in 2004.

According to the Center for Responsive Politics, Wall Street firms also contributed more to Obama’s 2008 campaign than they gave to Republican nominee John McCain.

“The securities and investment industry is Obama’s second largest source of bundlers, after lawyers, at least 56 individuals have raised at least $8.9 million for his campaign,” Massie Ritsch wrote in a Sept. 18, 2008 entry on the Center for Responsive Politics’s OpenSecrets blog.

By the end of Barack Obama’s 2008 campaign, executives and others connected with Wall Street firms, such as Goldman Sachs, Bank of America, Citigroup, UBS AG, JPMorgan Chase, and Morgan Stanley, poured nearly $15.8 million into his coffers.

[...]Wall Street’s generosity to Obama didn’t end with his 2008 campaign either. Wall Street donors contributed $4.8 million to underwrite Obama’s inauguration, according to a Jan. 15, 2009 Reuters report.So far Wall Street has raised $7.2 million in the current electoral cycle for President Obama, according to the Center for Responsive Politics. Obama’s 2012 Wall Street bundlers include people like Jon Corzine, former Goldman Sachs CEO and former New Jersey governor; Azita Raji, a former investment banker for JP Morgan; and Charles Myers, an executive with the investment bank Evercore Partners.

It should be no surprise to anyone that Barack Obama voted for the $700 billion Wall Street bailout in 2008. He also supported extending the bailout powers of the federal government in 2010. Those are the facts.

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