Where I Live

There has been a lot of news about all the volatility with the global economy. You have the Europeans and Japanese injecting huge amounts of liquidity into their heavily traded money markets to help shore up confidence. We have seen enormous bailout of some Wall Street titans. It seems that the US government is merely reacting to the situation as it is now. What about a little proactive intervention before things reach this point? What about oversight and regulation?

I know that a very popular position for the past 25 years has been a move towards deregulation. My question is, if we remove regulation and oversight, then who is minding the store? It seems that many in government believe that the free market can self regulate. In my opinion, this cannot be further from the truth. Everyone from the individual to the largest of corporations are looking out for their best interest. In the case of unregulated companies, this means that they are free to do what they will to reap the greatest profits. The current situation is a direct result of convoluted and unrestrained corporations doing what they are designed to do, make a profit. Their immediate goal is not restrained by the possible future consequences.

Many believe that the American consumer has the power to influence the actions of these corporations by witholding the powerful consumer spending power. This has definitely been something the American public has viewed as an “ace in the hole” or the ultimate check on corporate actions on everything from environmental policy to economic policy. Voting and spending are really the only two tools Americans have in influencing corporate policy. I think these bailouts  represent a weakening of the consumer spending power. It is akin to giving free reign to companies to do what they like without worrying about how consumer spending reacts.

Now the government is asking for $700 billion with no strings nor conditions to bailout the remaining titans? Whose interests do these bailouts really protect? There will be NO direct benefit to Americans. The “straw man” or “red herring” of preventing a recession is a tragic farce. Government reports and President Bush himself concurred that we were already in a recession earlier this year. Bernake and Paulson are arguing for the $700 billion for the corporations that have already made billions during the boom. Some of these corporations might have done well not to have given out millions in bonuses to bloated CEOs and board members and instead reinvested it to assure their own financial well being. Maybe they could have kept the servicing rights on thousands of bad mortgage loans to help them keep a strong position. There is no need for corporate America to worry about losing money due to foreclosures, if this latest bailout goes through, the taxpayers will be picking up the check again.

Right now it is important that you let your voice be heard on this issue. Letters may be too slow, but I encourage you to e-mail your members of Congress and the Senate and let your voice be heard. Each icon below is linked to their respective homepages where your elected officials’ e-mails and phone numbers can be found.

Once you have made your voice heard on this immediate issue, do something to make your voice heard in the future before it gets this dire. Register to vote! If you are an eligible American voter and you do not exercise your right and responsibility you are taking away your own power. Many states require you register at least 30 days prior to an election so time is growing very short. You can click HERE to download the voter registration form; it will be customized for the state you live in and provide the address to mail it to.

Trackback URI | Comments RSS