As he prepares to accept the Democratic presidential nomination, Barack Obama's allies in organized labor are worried that he is becoming too friendly with Wall Street types such as former Treasury Secretary and current Citigroup, Inc. (NYSE: C) senior executive Robert Rubin.
According to Bloomberg News, a recent presentation by Richard Trumka of the AFL-CIO argued that unfettered global traded and inadequate government regulation resulted in lost manufacturing jobs. "It will do us little good if, when the next Democrat moves into the White House, Wall Street takes command of our country's economic policy," Bloomberg quotes Trumka's presentation as saying. The story adds that there is no doubt that Trumka is taking a shot at Rubin.
Trumka is unapologetic. The AFL-CIO already is flexing its political muscle and began looking at candidates for cabinet posts including the Treasury and Energy Departments along with the Federal Reserve. Obama's advisors deny that Rubin or anyone else has any particular sway over his economic policies. But there definitely is a tilt toward the center going on.
Obama, who backs union goals such as reopening NAFTA and universal health care, recently raised a few eyebrows when he seemed to accept the notion that he can't pay for these programs only through the capital gains tax. Last week, two Obama advisers wrote in the Wall Street Journal that the Illinois senator would only consider raising capital gains taxes from 15% to 20% instead of as high as 28%. That's no cause for celebration for investors, but the prospect of an Obama presidency is no reason to panic, either.
This weekend, the New York Times chronicled the battle between Obama and John McCain for the hearts and minds of businesses both large and small. Corporate types are not enthusiastic backers of McCain but are backing him since their favored candidate Mitt Romney got out of the race. Obama, though, does have his share of backers in the corporate world including Google Inc. (NASDAQ: GOOG) Chief Executive Eric Schmidt. Warren Buffett has also advised him.
Organized labor knows that Obama needs their support. They are going to hold the Illinois senator's feet to the fire to make sure that he doesn't forget them even as he tries to make new friends at the boardroom level. It will be a tricky balance to maintain through the general election.
Reader Comments (Page 1 of 1)
8-18-2008 @ 8:28PM
mauriciolopezsr said...
The unions sent the jobs overseas with their unreasonable demands; they thought they had the companies by the balls; now they can't get the jobs back here!!! They a lot for very little and on top of that they use the Worker's compensation insurance as a "PINATA" from which they can make millions with bogus claims; that end up in the hands of the Drug Lords as their members spend all their evil earned money in drugs!!
Don't blame Bush or Mc Caine and certainly there is NOTHING Obama can do to get the jobs back!!
Only a comprehensive labor /management/tributary reform will bring those jobs back!
8-18-2008 @ 8:56PM
spidermanofrp said...
Labor union or not, Obama could not be trusted
8-18-2008 @ 8:56PM
ringgetramos said...
Labor union or not, Obama Can't be trusted
8-18-2008 @ 10:56PM
Walt said...
So he'll only raise capital gains tax 5%. And corporate tax, he'll only raise 10%. And upper wageearners, only more 5%. And FUTA tax cap, only a 6% raise for over $100k. Hey, just like the article says, no reason to panic. Unless you have a mortgage or kids in college or something unusual like that.
8-19-2008 @ 7:07AM
obrikat said...
The unions have made the american people nervous for many years. Now Obama is makeing then nervous. What goes around comes around.Look out if he gets elected we will all be nervous.
8-19-2008 @ 8:08AM
charles adams said...
Union workers are lazy and stand around in groups acting to be busy working. All union workers want is job security to fullfill thier needs to work slow for alot of dough.
8-19-2008 @ 9:08AM
Jerry said...
No one in government can be trusted anymore. They have all been brain washed. They all give the impression that they fight each other but while behind closed doors they make deals to take our tax dallars to line their pockets and give freely to other countries. Not a one of them can be tructed to work for the citizens. I vote for Warren Buffet. The only honest citizen lieft in the USA.
8-19-2008 @ 7:34PM
winslow said...
An article written over 25 years ago stated that in America's future, the wealth that was created in a company would be shared with all of the company's workers and employees would become partial owners. Presently, I see CEO's making millions per year but it doesn't appear to have trickled down according to this thesis.
8-30-2008 @ 7:44PM
from Texas said...
This guy beat Hilary, because Organized Crime and Unions are backing him. Think about it, or continue being sheep. He has a group backing him that DOES NOT use the net, and NEVER gives money to polictical anything. Really he is Mafia and Union to the core, if he has a core.
9-07-2008 @ 5:20PM
RON said...
I HOPE WHO EVER WINS THE ELECTION THEY RAISE THE TAXES ON ANYONE OR ANY COMPANY MAKING OVER 200000 DOLLARS A YEAR TO 35% AND TO 50% if you make 300000 A YEAR. PEOPLE JUST DON'T NEED THAT KIND OF MONEY TO LIVE A GOOD LIFE.