American corporations have a long record of addiction to tax payer money to finance the risky business of building private fortunes for their owners. Whether that be through the tax payer funded Research and Development of the high technology industry through the Pentagon, or the public funds shoveled into the lengthy process of developing medication – which drug companies then sell back to us at outrageous prices – the American corporate sector has found reason after reason to get tax payers to finance the creation of their empires.
Today, with the Almighty Stock Market trembling at the feet of the rocked Holy Financial Industry, the tax payers are being asked again to pull their pockets inside out and let all the contents drop into the barrel of a new form of corporate subsidy. The Bush Administration has proposed a a scheme to rescue these troubled financial, banking and insurance firms from their own self destructive ways. The plan will cost the American tax payers around $700 billion (plus the $600 billion already spent to bail out other financial firms) to buy up all the rotten loans and mortgages doled out over the last 10 years since the relaxation of lending regulations that made these once illegal lending practices the status quo – all in the name of Laissez Faire Capitalism.
Of course, that laissez faire rhetoric is just that: rhetoric. If we existed in a real laissez faire society, like these corporate CEOs and owners claim they want, then these companies would have coming to them what they deserve. Make insanely risky loan after insanely risky loan in the hopes of making loads and loads of cash real quick? When it comes crumbling down, that would be on your head – just as it would be for every average citizen out their if they did the same. But see, we don't operate in a laissez faire capitalism economy, we operate in a state capitalism economy. Therefore, when it comes tumbling down, there are no lessons to be learned, there are – instead – tax payers there to rescue you.
Now, this shouldn't come as a surprise to anybody. It should be no real shock that large corporations will use all their power to push this measure through. See, corporations are in the business of making money. That means, they are not in the business of spending money. So, any time a corporation can get somebody else to pay for something, they will do everything within their power to do so. And, just like since WW2 large corporations have been financed by the American tax payer, right now that means having the American citizenry pay for these risky mistakes. Of course, that same American citizenry would have gained nothing themselves if things had gone well, but that is the nature of this system.
Don't let anybody try to convince you that it is not the American citizenry that will pay for this scheme. Corporations are not about spending money, remember? See, corporations don't pay taxes, either. They may have to file tax returns and write checks to the IRS just like everybody else, but don't be confused. That money they are paying did not come from them, it is just a cost passed on to the consumers – you and me. See, there is no such entity as a corporation, really. There are only people. And people pay taxes, in one form or another.
So, the rhetoric will be that this is good for the average tax payer. And in the immediate, short term future, that is kind of true. Because of this buy out by the American people, everybody who has retirement funds or insurance policies with the financial institutions will still be able to buy an RV and travel the country when they turn 68. And, for now, it will keep our economy operating the way it has been – until the next time corporate America needs to be rescued. And then the next time. And the next time. And this will become the norm.
This move by the Federal government will lay a new precedent. If this is allowed by the American people (which, this will happen whether the American people want it to or not), then we are saying, once again, that it is okay for corporations to do whatever they can, no matter the moral or ethical considerations, to build up private fortunes for their owners. And that if, along the road of this risky business that is fortune building, they happen to make a mistake, the American people are here to have that money stolen from them and put in the pockets of the rich, where it obviously belongs. This will be just one more way in which the American public now, and no doubt in the future, will continue to subsidize corporations in their quest for power and money. All of this abuse just so the American people can just not worry about it. It reminds one of the USA Patriot Act in that way.
Maybe it's about time to start worry about it, American people.
After the stock market collapse of 1929, something became very obvious to the people in power: capitalism doesn't work. So, over the next decade, these rich and powerful men set out to redesign our economy. They, however, once again designed an economy to benefit themselves. This is when our current form of state (read: tax payer) supported capitalism began. Steal from the poor and give to the rich. If this is the biggest economic disaster since the Great Depression, then maybe it is time for the American people to stand up and say to the people in power, “Hey! Your systems do not work, and they do not work for the good of the people!” and set out to design an economy that will work and will work for the good of the people.
An Epilogue
Do not get me wrong. I know that not bailing out these financial institutions will lead to certain economic disaster. I understand that. I know how the system works. However, I also know that this system was designed and implemented by human beings. And I know that what man creates, man can undo, and man can replace. Our economy is simply the construct of people. If we want our economy to be different, then we can make it different. Of course, there will be very powerful people with a lot to lose if this happens, so you have to watch your back for them, but it can be done.
Just think what the $1.3 TRILLION that have been spent on this rescuing of corporations from their own greed could have been spent on that would actually benefit the people of this nation. That is a lot of money. That is a sizable chunk of our national debt -- about one tenth of it -- which is a very large factor in American's recent economic weakness, for one. $1.3 trillion comes out to around $13,000 per tax payer. The average tax payer will never see that much gain out of this rescue. Think of all the time and energy it takes to make $13,000 for each of the 100 million tax payers in this country. For the average American that is 4 months worth of work. If you are going to put that kind of effort into this, why not put that effort into something that you will benefit from, instead of something that will only benefit a very limited class of people?