One thing I like about Barney Frank is his candor. But this raised my eyebrows a little. Barney Franks says he is in favor of inequality?
Representative Barney Frank has proposed in a series of meetings with business groups a “grand bargain” with corporate America: Democrats would agree to reduce regulations and support free-trade deals in exchange for businesses agreeing to greater wage increases and job benefits for workers.
Frank, the Newton Democrat who is in line to chair the House Financial Services Committee, has struck a conciliatory posture with financial-industry leaders in recent years. But since the morning after Election Day, he has moved quickly to lay out an ambitious plan to try to end the political stalemate between Republicans and Democrats on broad economic issues.
“What I want to do is break that deadlock,” Frank said in an interview. “A lot of policies that the business community wants us to adopt for growth are now blocked. On the other hand, the business community is successfully blocking the minimum wage [increase] and created a very anti union attitude in the Congress.”
Frank proposes that if businesses support a minimum wage increase and provide protection for workers adversely affected by trade treaties, Democrats would be more willing to ease regulations and approve free-trade deals. Frank also would support changes to immigration rules favored by businesses, and noted that allowing more immigrants would put needed funds into the Social Security system.
Frank casts his proposal as a way for capitalists to quell some of the populist fervor that was expressed in last week’s election, when many Democrats vowed to crack down on companies moving jobs overseas.
“I’m a capitalist, and that means I’m for inequality,” Frank told Boston business leaders on the morning after Election Day, in a speech about his grand bargain. “But you reach a point where you get more inequality than is healthy, and I believe we’re at that point.
“What we want to do is to look at public policies that’ll get some bigger share of the increased wealth into wages, and in return you’ll see Democrats as internationalists. . .. I really urge the business community to join us.”
I think I understand what he meant. I’m a capitalist too. I wouldn’t use this particular talking point, though. If Frank can get better wages and benefits for American workers and fight off the assault on labor unions, then I guess he might be justified in making compromises.
Barney Frank always keeps the debate interesting.
