"Govenments' Not The Solution, It's The Problem." Really?

Business Productivity & Profits Grow, Wages Don't

Real Life vs. The Sound-Bite
--In the past 30 years, most Americans have not had a raise above the inflation rate; but have accumulated a consumer debt equal to their yearly income in order to feel like they did.  During this same time, the finance industry, that created and benefited from these conditions, has quadrupled in size, helped send $6,000,000,000,000 of US wealth to other countries via "free-trade," and still has millions convinced that they know what's best for us.  "Governments' not the solution, ...governments the problem," ...right?

Reagan Revolution: The Pendulum Swings
--I believe that was true 30 years ago.  At the time we did have too much regulation in this country, but the pendulum has swung.   Manufacturing employment has dropped from 22% to 16% while finance jobs have increased four fold.  Finance is now our most "vibrant" industry.  This is great for that relatively tiny segment of workers, but it is bad for the rest of us.  Producing massive amounts of innovative "financial products" on speculation destabilizes the economy for the rest of us.  So much so, we were told, that we had to help them out with trillions of our tax dollars because they were, "Too big to fail."

Americans still legitimize the ideology of market absolutism.
Perhaps because we have been complicit through our direct investments or pension fund.  At any rate, this coupled with politicians' campaign funds coming from the finance industry, and politicians' reluctance to hurt the only vibrant industry (finance) left in the US, has led to a unique situation never before seen in the US.

In America's past there would always be robust, imaginative regulations placed on the finance industry because the US citizens demanded it.  For example, various social movements started in response to the injustices of the Congress in the 1890's, or, "Millionaires Club" as it was known.  Eventually these movements became the financial regulations that were being enforced until just 30 years ago, the last of which disappeared just prior to our present financial crisis.  Of course it took the Great Depression for many of these financial regulations to actually be implemented.


Time to wake up, regain some moral vigor and power of resistance before a pandemonium and another unstopped pendulum swing in reverse.  Pendulums are destructive, virtue is in the middle.

Sincerely,
Lawrence Feriozzi