The trickle down theory does not and has not worked. It is time to give the money to the people and not big corporations and the “used to be" giants of Wall Street. We have seen all kinds of moves on the part of Wall Street backed government officials to bailout toxic debt and the flailing stock market. If you do not have a degree in advanced economics, most of what these officials are doing and saying sound like gibberish. In fact, it is gibberish!
World-wide bailouts are not working. They were destined to failure from their inception. The Bush refrain that we must “give it time to work" is a ploy to keep the public from discovering the real truth. The economy is broke, something is very wrong. Laissez-faire economic theory from the 18th Century is not going to work. The early assumption of capitalism was that if left unfettered and not regulated, business could grow and prosper and all would benefit. To an extent, that was correct. There is no doubt that the early greatness of early Western capitalism made many millionaires and it did help create a middle class. Of course, this was done on the shoulders of third world nations as their resources were plundered and the working class that suffered innumerable abuses. Fortunately, these abuses and monopolies were exposed and the plethora of worker protection, child labor, occupational safety and ant-trust laws presumably corrected such abuses.
Then came the emergence of Reagan economics and the move to de-regulation let loose the ugly Wall Street beast. Under the guise of free trade, globalization became the mantra of corporate giants and conservative economic gurus. Business boomed, jobs moved overseas, third world workers worked for pennies a day and all was well in the profit column. The issue is basic, capitalism is based upon the notion that consumers will endlessly consume and keep the wheels of business rolling. If they do not consume, ad campaigns are created to “convince" consumers that they “need" the new gadgets, gizmos and widgets if they are to keep their jobs and to claim the right to be called American. And, if all else fails, which it did, you entice, induce, cajole and scam the consumer to go deeper into debt to keep companies in the black.
All of this implies a contract between business and consumer. The contract says that business will produce quality goods at a fair price and allow credit at reasonable rates. The consumer agrees to be paid a fair wage for its work, borrow to keep the money flowing, pay its bills and consume happily ever after. This “contract has now been broken" by the huge corporations and the finance industry. The products are inferior. Workers are not paid a fair wage. Loans are made at ridiculous rates. Consumers have been hoodwinked by massive and aggressive “buy this product’ campaigns that leaves one's head spinning. Business has lost the trust and faith of the consumer.
Government has also broken its contract with its people. It has allowed industry to prey upon unsuspecting, naive and gullible consumers. It has allowed industry to steal from the poor and middle class in order to increase its wealth beyond all imagination. It has left business unchecked and unregulated and given it free reign to do as it wills to accumulate riches that have only benefited the few at the expense of all. This system has now collapsed and all but the business and government understand this. Government has ‘given’ billions to the tycoons of industry because they are not making enough money. And, they cannot understand why the system is still failing. Our good money is being thrown into a corporate black hole from whence it will never emerge.
Based upon the TED spread, look it up on Google, this index that should be around 0.5 is now approaching 5.0. The TED Spread is the difference between what banks pay to borrow from each other for 3 months and what the Treasury pays. This is where credit is locked into a virtual traffic jam. What is the solution? Stop wasting our money bailing out banks and business and put the money in the hands of the consumer. With that money we will pay our bills, pay our mortgages, save, invest and consume. That is how you get the money going again and build confidence. In the meantime, regulate those that broke their trust, reduce mortgage and credit card interest rates and produce 21st Century products that will save and not enslave our planet, us and our children!
Mr. Harris was born in Massachusetts. He attended The American University in Washington, D. C. and received his degree in Political Science. His graduate work was done at the University of Northern Colorado and Howard University. He spent several years working for local and regional and state government agencies. He worked on a White House Task Force and served as Rural Policy Coordinator at the FRCouncil of New England.
Mr. Harris is co-author of the novel WAKING GOD and is a nationally syndicated / featured writer for The American Chronicle. His second novel, A MAINE CHRISTMAS CAROL was released by Cambridge Books, his third book, JESUS TAUGHT IT, TOO: THE EARLY ROOTS OF THE LAW OF ATTRACTION (Avatar Publication). He is author of the book, RAPING LOUISIANA: A DIARY OF DECEIT and his two most recent self-growth titles, the “MESSAGES" series were just released by Avatar. See his book titles at http://dickens111.tripod.com/theliteraryworksofphilipharris