This morning on This Week this guy, George Stephanopoulos, asked those sitting ar a table, George Will, Paul Krugman, and economist Nouriel Roubini (aka Dr Doom b/c he prophesied the housing crisis 15 minutes b/f it happened)(and some lady from Business Week I don’t know), if there ought to be established something like the 9/11 Commission to learn from the current economic crisis. Everybody was non-committal to dismissive, Krugman saying sufficient discussions were already taking place. His slightly bashful dismissive was hard to read. Was he smirking about the wasteful, ineffectuality of the 9/11 Commission? Or does he really think there is nothing policy-wise to be learned from the current mess?
Soon enough the conversation veered towards a table response to this very desire to blame someone or something for our current problems. (Who needs a Commission?!) A consensus ar the table quickly emerged to make the point that 300 million people in America (and another 300 million in Europe, Krugman added) were all responsible for going on a “25 year credit spending spree,” saving little and spending beyond our means. Really? That’s the ultimate cause of the biggest global economic crash since the 1930s? We were all just maxing out our credit cards too much?
Now it’s not that I don’t think there shouldn’t be consequences for not paying your debts but didn’t congress already establish what many consider quite harsh, unforgiving bankruptcy laws in 2005? B/f the crash? And I’m not suggesting that people who took on mortgage debts they couldn’t pay shouldn’t be held responsible. But isn’t there a sense of proportion here we’re missing when pointing fingers at millions of working people for receiving 70 billion in subsidies while four or five banks will be lavished w/ up to 2.5 trillion? So why have people gone on a 25 year credit spending spree, anyway? Might it have anything to do w/ the fact that real working class wages have not risen since the 1970s?! (U.S. Bureau of Labor Statistics)
Wouldn’t it be far more accurate to say that this crisis is the result of 25 years of supply side economics that were supposed to trickle down to the rest of us but never did; that this crisis is the result of 25 years of “free market” deregulation and predatory casino capitalism fed consumer pipe dreams and Scroogy anti-labor demagoguery; that this crisis is the result of a 25 year surge in income inequality of staggering numbers not seen since the Gilded Age? (The Height of Inequality)
And wouldn’t it be important that this be said so that we might not repeat this catastrophe again? So that we might not have the same self-serving assholes that led us into this mess continue in their machinations from positions of power? The length and depth of capitalist cyclical downslides were significantly longer and deeper (during the Gilded Age) before the Depression precisely because of the sweeping government interventions and social safety net measures established by the FDR’s New Deal. It wasn’t just a bunch of government bailouts of failed industries. Now in the biggest free-fall since the Great Depression are we going to forget that?!
I’ve read it suggested that this cover-up recovery is b/c the Wall Streeters gave more money to Obama’s campaign, reportedly 10 million plus (CounterPunch), than any other constituency. But Obama amassed the biggest campaign funding war chest in history. Over 700 million or something like that. Why would 10 measly million buy so much influence? Please let this be the media chatter drama of the moment, the left’s unreconstructed doomy fatalism, the last bleats of the Right’s dying free market fundamentalist ideology, and Obama’s careful, patient, measured steps to right the ship of state. B/c this growth model, Wall Streeters hustle a bubble like mad, then go on bonus junkets to the Caribbean, while Main Streeters take it on the chin, chewing on their own pride in austerity and sacrifice, can’t last. Eventually some angry, smart young people will rally a mob to tear the whole thing apart. And it’ll be fun while it lasted for those who hit the jackpot. But there will be hell to pay for the rest of us.
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