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Profile: Larry Summers
Larry Summers was a participant or observer in the following events:
Congress approves legislation which repeals the Glass-Steagall Act of 1933, greatly reducing regulation of Wall Street and clearing the way for the cross-ownership of banks, securities firms and insurers. The measure is approved in the Senate by a vote of 90 to 8 and in the House by 362 to 57. President Bill Clinton will sign the Gramm-Leach-Bliley Act into law on November 12th, 1999. [Library of Congress, 3/27/2009] The New York Times reports that passage of the bill elicits optimism that the measure will enhance American competitiveness and ensure American dominance in the global financial marketplace, as well as concerns that deregulation will lead to a future financial meltdown. The Times further notes that experts predict the new law will result in a wave of large financial mergers.
Optimism over Passage of the Measure - Treasury Secretary Lawrence H. Summers praises the legislation, declaring that the law “will better enable American companies to compete in the new economy.” Among others praising passage of the measure:
Senator Phil Gramm (R-TX), sponsor of the bill, says: “We have a new century coming, and we have an opportunity to dominate that century the same way we dominated this century. Glass-Steagall, in the midst of the Great Depression, came at a time when the thinking was that the government was the answer. In this era of economic prosperity, we have decided that freedom is the answer.”
Rep Jim Leach (R-IA) remarks: “This is a historic day. The landscape for delivery of financial services will now surely shift.”
Senator Charles E. Schumer (D-NY) says, “There are many reasons for this bill, but first and foremost is to ensure that US financial firms remain competitive.”
Senator Bob Kerrey (D-NE) says, “The concerns that we will have a meltdown like 1929 are dramatically overblown.”
Warnings over Implications of the Measure - The measure provokes warnings from a handful of dissenters that “the deregulation of Wall Street would someday wreak havoc on the nation’s financial system,” according to the Times. Among the dissenters are:
Senator Byron L. Dorgan (D-ND), who says: “I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010;”
Representative Maxine Waters (D-CA), who remarks that the bill is “mean-spirited in the way it had tried to undermine the Community Reinvestment Act;”
Senator Paul Wellstone (D-MN), who says: “Glass-Steagall was intended to protect our financial system by insulating commercial banking from other forms of risk. It was one of several stabilizers designed to keep a similar tragedy from recurring. Now Congress is about to repeal that economic stabilizer without putting any comparable safeguard in its place.” [New York Times, 11/5/1999]
Entity Tags: Clinton administration, Byron L. Dorgan, Barney Frank, Bob Kerrey, Charles Schumer, William Jefferson (“Bill”) Clinton, US Congress, Jim Leach, Phil Gramm, Gramm-Leach-Bliley Act, Larry Summers, Paul Wellstone, Maxine Waters, Glass-Steagall Act
Timeline Tags: Global Economic Crises
According to Time magazine, “The US was all set to join a global crackdown on criminal and terrorist money havens [in early 2001]. Thirty industrial nations were ready to tighten the screws on offshore financial centers like Liechtenstein and Antigua, whose banks have the potential to hide and often help launder billions of dollars for drug cartels, global crime syndicates—and groups like Osama bin Laden’s al-Qaeda organization. Then the Bush administration took office.”
[Time, 10/15/2001] After pressure from the powerful banking lobby, the Treasury Department under Paul O’Neill halts US cooperation with these international efforts begun in 2000 by the Clinton administration. Clinton had created a Foreign Terrorist Asset Tracking Center in his last budget, but under O’Neill no funding for the center is provided and the tracking of terrorist financing slows down. Spurred by the 9/11, attacks, the center will finally get started three days after 9/11 (see October 2000-September 14, 2001). [Foreign Affairs, 7/2001; Time, 10/15/2001] Counterterrorism “tsar” Richard Clarke will later claim that efforts to track al-Qaeda’s finances began to make significant headway in 2000, after Treasury Secretary Robert Rubin stepped down and was replaced by Larry Summers. But, Clarke will claim, “When the Bush administration came into office, I wanted to raise the profile of our efforts to combat terrorist financing, but found little interest. The new President’s economic advisor, Larry Lindsey, had long argued for weakening US anti-money laundering laws in a way that would undercut international standards. The new Secretary of the Treasury, Paul O’Neill, was lukewarm at best toward the multilateral effort to ‘name and shame’ foreign money laundering havens, and allowed the process to shut down before the status of Saudi Arabian cooperation was ever assessed.” [Clarke, 2004, pp. 195-196]
The cover of Jamieson and Cappella’s ‘Echo Chamber.’ [Source: Barnes and Noble (.com)]Kathleen Hall Jamieson and Joseph N. Cappella, authors of the media study Echo Chamber: Rush Limbaugh and the Conservative Media Establishment, find that conservative radio host Rush Limbaugh excels at using what they call “insider language” for his listeners “that both embeds definitional assumptions hospitable to his conservative philosophy and makes it difficult for those who embrace the language to speak about Democrats and the presumed Democratic ideology without attacking them.” They cite three examples from Limbaugh’s June 2005 newsletter which contains the following statements:
“Democrats are the enemy.”
“When she first ran for her Senate seat, Hillary Rodham Clinton told citizens of the Empire State [New York] that she had been endorsed by environmental wacko-groups because… in her words, ‘I’ve stood for clean air.’”
After Harvard president Lawrence Summers commented on the intrinsic differences between the sexes, Limbaugh wrote, “Led by foaming-at-the-mouth feminists, the liberal elite experienced a mass politically correct tantrum.”
Jamieson and Cappella write: “Identifying terms such as ‘foaming-at-the-mouth feminists,’ ‘liberal elite,’ ‘enemy,’ and ‘environmental wacko-groups’ both create an insider language and distance those who adopt the labels from those labeled. One of the ways Limbaugh’s supporters telegraph their identification with him is by adopting his language.”
Identifying Nicknames - They cite the 1995 statement of freshman House Representative Barbara Cubin (R-WY), who proudly proclaimed of her fellow female Republicans, “There’s not a femi-Nazi among us,” using one of Limbaugh’s favorite terms for feminists. “Listeners say ‘Ditto’ or ‘megadittoes’ to telegraph their enthusiasm for Limbaugh, his latest argument, or his show in general,” they write. Limbaugh refers to himself as “the MahaRushie” with “talent on loan from God.” Callers often refer to Limbaugh as “my hero.” Denigrating nicknames for Limbaugh’s targets of derision work to bring listeners into the fold: the new listener must labor to identify the people termed (and thusly become part of the Limbaugh community): “Clintonistas” (supporters of Bill and/or Hillary Clinton), “Sheets” (Senator Robert Byrd, D-WV), who in his youth wore ‘sheets’ as a Ku Klux Klan member), “the Swimmer” (Senator Edward Kennedy, D-MA, in reference to his involvement in the 1969 Chappaquiddick incident), “Puffster” (former Senator Tom Daschle, D-SD), “the Breck Girl” (former Senator John Edwards, D-NC), and “Ashley Wilkes” (retired General Wesley Clark, in a reference to what Limbaugh called “the wimpy, pathetic Gone with the Wind character”). Some of the nicknames are physically derogatory: Senator Patrick Leahy (D-VT) became “Senator Leaky, a.k.a. Senator Depends,” and former House Minority Leader Richard Gephardt (D-MO) became “‘Little Dick’ Gephardt.” Such use of “insider” nicknames indicates an identification between the listener and Limbaugh, and an affiliation with the Limbaugh community of supporters.
Redefining and Relabeling - Limbaugh routinely redefines and relabels his political enemies in the most derogatory terms. Pro-choice supporters are termed “pro-aborts,” and Democrats are supported by “beggar-based constituencies.” As noted above, feminists are “femi-Nazis” (though Jamieson and Cappella note that Limbaugh has used the term less often since it became a topic of criticism in the mainstream media).
Gender Identification - One of Limbaugh’s strongest attacks is on gender roles. In Limbaugh’s continuum, Democratic women are, the authors write, “either sexualized manipulators or unattractive man haters.” A 1994 Clinton tribute to women’s accomplishments became, in Limbaugh’s words, “Biddies’ Night Out.” Other times, Democratic women become “babes,” as in “Congressbabe Jane Harman.” (On his Web site, Limbaugh often shows Speaker of the House Nancy Pelosi (D-CA)‘s head affixed to the body of a Miss America contender.) The authors note, “Neither label invites the audience to take these leaders seriously.” Women with whom he disagrees, such as liberal blogger Arianna Huffington, are “screeching,” and others are “broads,” “lesbians,” or “femi-Nazis.” The National Organization for Women (NOW) becomes, in Limbaugh’s vocabulary, the NAGS. Attacks and innuendo about women’s sexuality are frequently used by Limbaugh: during the Clinton administration, for example, Limbaugh often implied that Hillary Clinton and then-Attorney General Janet Reno were closeted lesbians. On the other hand, Democratic men are routinely portrayed as “two-inchers,” derogatory references to their physical attributes and sexual capabilities (as with the Gephardt nickname above). Jamieson and Cappella note that “Limbaugh’s attempts at gender-based humor are of the locker room variety,” noting several references to California Lieutenant Governor Cruz Bustamante as a Democrat whose name translates into “large breasts,” and referring to pop singer Madonna’s 2004 endorsement of General Wesley Clark for president by saying she had “opened herself” to Clark. In 2004, he said that Democratic presidential contender John Kerry, married to wealthy heiress Teresa Heinz-Kerry, “does his fundraising every night when he goes to bed.” (The authors write, “Why the vulgarity in this message does not alienate the churchgoing conservatives in his audience is a question for which we have no ready answer.”)
Impact - Far from merely giving a laundry list of Limbaugh’s derogatory and offensive characterizations, Jamieson and Cappella note how Limbaugh and the conservative media “wrap their audiences in a conversation built on words and phrases that embody conservatism’s ideological assumptions,” using “naming and ridicule to marginalize those named as part of an out-group,” and using “coherent, emotion-evoking, dismissive language” to denigrate and dismiss the liberals he routinely attacks. “Because language does our thinking for us,” they write, “this process constructs not only a vocabulary but also a knowledge base for the audience. That language and the view of the world carried by it are presumed by loyal conservatives and alien to the nonconservative audience. These interpretations of people and events also reinforce Limbaugh’s defense of conservatism and its proponents.” [Washington Post, 2/15/1995; Jamieson and Cappella, 2008, pp. 184-190]
Entity Tags: Richard Gephardt, Robert C. Byrd, Wesley Clark, Tom Daschle, Teresa Heinz-Kerry, William Jefferson (“Bill”) Clinton, National Organization for Women, Nancy Pelosi, Rush Limbaugh, Larry Summers, Madonna, Edward M. (“Ted”) Kennedy, Cruz Bustamante, Arianna Huffington, Barbara Cubin, Hillary Clinton, Patrick J. Leahy, Janet Reno, John Kerry, John Edwards, Joseph N. Cappella, Jane Harman, Kathleen Hall Jamieson
Timeline Tags: Domestic Propaganda
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