No Longer King of the Mountain
Author: al dussault
Published: November 06, 2010 at 2:26 pm
Where has the middle class gone? Will the Fed ever bring forth a policy that works as well for Main Street as it does for Wall Street? It is as if we have railed against a welfare system for single mothers and disabled adults, but we have no problem financing trillions of dollars to insurance executives and boards of Wall Street corporation.
Can we imagine a world where the government is not frightened by companies that are “too-big-to-fail?” Too big to fail is a new system of corporate giants that are richer that the governments that they operate within.
What does it mean to finance a bank if that bank does not extend credit to homeowners and small businesses? A recent article on the Huffington Post says the following: “The rising tide the Fed ushered in with hopes that it would lift all boats hasn’t materialized. Now, on the verge of another round of asset purchases and other steps in order to further bring down the cost of credit, questions are being raised over just who, exactly, the Fed would help.”
With unemployment still at recession heights it is hard for Americans to understand that we are coming out of the recession, but will do so at the expense of continued hight unemployment. The only way that we can digest such facts it is believe that we are moving to a climate in America where the gap between the rich and the poor seems to be widening. If we start to say the the economy is recovering but we have lost 10 to 17% of the population to abject poverty, perhaps homelessness and no social net to collect the people who are taking the hard falls.., then we are accepting an America that is headed toward a large population living in 3rd world conditions.
Other countries are growing faster than our economy. In part that is the case because other countries did not lose the same dimensions of loss that we did here. We fell from the top, which is a perceived harder fall that when you fall from a lower rung on the ladder. And in cooperation with that fall we are failing to see or to understand that we are not going to come back to where we were. We have permanently lost our footing as king of the mountain.
In a recent news article on the radio, an announcer said this line with not a blink of the proverbial eye. America ranks 29th in the world in verbal skills and 27th in the world in Math skills….These are not statistics that shock us–but I can’t help but wonder why they do not shock us. We assumed for such a long time that we were so much the top of the heap that nothing or no one could bring us down.
It would be a sad realization to come to if we discovered that despite the fact that many of our corporations are too big to fail–America is not too big to fail. Now that may be a shock and awe campaign that neither democrats nor republicans would like to hear.
Left with few solutions, it is difficult to find practical answers to a problem that may inherently have financial advantages to the wealthy corporations that pretend to want a fix, but are content with raking in the trillions in profits lost by the middle class in the last two years.