Ever Notice...

Ever Notice….

Ever Notice that ‘Free Market Principles’ are something inflicted upon the poor and
middle class, and that the upper, moneyed classes are exempt?

While the economy slows, it isn’t those who are making the most that see a like reduction in their income, instead, many in the rank and file pay the complete price of losing their jobs. While we see our housing wealth shrink as the bubble deflates, the federal, state, and local governments cut services that we all depend on, and furlough state workers, again, asking them to bear the cost of the ‘Free Market’.

Meanwhile, the financial institutions, those at the heart of the economic problems, are able to go to the government and get money to stay afloat, instead of being subject to market principles which would force them into Chapter 11 or 7 bankruptcy filings. Notice how this saves high paying jobs – can’t have the leaders whose policies created the problem actually be held accountable. Sure, their bonuses may be reduced, but let’s face the truth here: Financial Services do not produce anything, so the incomes of these people come out of the surplus of the economy created by others. Their jobs should not be sacrosanct: They could be cut free to produce something useful, to the benefit of all!

Even the scrutiny levied on the Auto Industry bears this out: Although the companies in Detroit have made some bad decisions, the real problem they face is a huge downturn in demand brought about by the failure of the Financial Sector. But, we wouldn’t want to pass on a chance to drub the autoworkers for asking for a reasonable salary or health care or a modest pension: No! The Market Applies! Your business is down; many of you must sit idle with no pay!

Meanwhile, we learn that Wall Street bonuses are down 36% - which is better than it
appears, since the financial sector’s employment has been cut 44%! The cuts again have come in the lower level workers, those who did the day to day work, but were not responsible for formulating policy. The ‘Market’ applies to them, but not the leaders.

In his response to the emerging problems last fall Henry Paulson showed himself to be an unapologetic kleptocrat, intent, it appears, on shielding his friends in the Finance Industry from anything that resembles Market Principles, stealing from the Treasury (thus the American People) to keep them employed.

With the elections, I had hope that with a new administration we would get a better leader at Treasury, perhaps someone who actually believed in the Market and would work to enforce its principles, no matter on who they fell. But, after Timothy Geitner’s plan unveiling yesterday, I can only conclude that he is beholden to Wall Street, and, if not unapologetic, still a kleptocrat.

This makes me think of the form of the Golden Rule to which these men adhere:

“They That Have The Gold Make The Rules”

I thought that the promise of Democracy was that this form could be overturned and replaced with our preferred form: “Do Unto Others…”

What are we (the people) of America doing wrong? What do we need to do to enforce fairness from top to bottom, and spread the affliction (and the rewards) of “The Market” evenly?