‘Bail out Main Street, not Wall Street’
Published Oct 23, 2008 9:45 PM
Following excerpts are from a commentary by John Parker from
the International Action Center on the Pacifica radio station KPFK in Los
Angeles on Sept. 25.
Bush told us that we had better accept this 700-billion-dollar handout to
financial giants before we all go under.
Secretary Treasurer Henry Paulson said, “This entire proposal is about
benefiting the American people because today’s fragile financial system
puts their economic well-being at risk.”
Mr. Paulson added that, “Without action, Americans’ personal
savings and the ability of consumers and business to finance spending,
investment and job creation are threatened.”
So he’s saying it’s about our savings and ability to purchase and
the creation of new jobs, given the high unemployment rates we’re
suffering from. Also, what’s been finally acknowledged by the Democrats
and Republicans is the housing crisis, in particular the unprecedented rate of
foreclosures.
So these are the problems that could possibly be helped, they are telling us,
with the 700 billion, at least enough to get us out of hot water.
Well, here’s a thought: Why not solve the crisis of jobs and housing
directly? What would happen if the government invested 700 billion into
housing? This money could be used to provide assistance to at-risk families of
renters and homeowners. To make the point of how much could be done,
let’s go to the extreme and say the government just up and builds new
homes. Through economies of scale and the use of eminent domain to acquire land
(after all, they keep telling us this is an emergency), the government could
build homes at a cost of no more than $100,000 per home. This would mean that 7
million new homes could be built nationwide. Now, the foreclosure filings are
predicted to go up to 2 million nationwide in 2008, so that would well cover
the last few years of foreclosed families.
What would that mean for us here in California? Well, our portion of that
700-billion handout, according to the National Priorities Project, would be 89
billion. Or it could mean 890,000 homes this year in our state alone. That
would about cover the entire foreclosures of last year and the predicted amount
this year. Now magnify that nationwide. Ok, housing crisis solved.
Well, what about jobs? Nationwide we could produce 23 million full-time jobs at
$15 per hour. Think that would put a serious dent in unemployment, and
stimulate the economy? Once again crisis solved.
If the government did take these suggestions and use the 700 billion to
directly create jobs and housing, it would not, however, be able to overcome
capitalism’s fundamental problems that make these crises inevitable. But
it would get us through the immediate crisis and significantly make a dent in
the suffering of working and poor people while, at the same time, building a
path towards full employment and the meeting of people’s basic needs of
survival.
Their solution, however, does nothing to even slightly numb the pain their
crisis has caused and will cause our class. It simply surrenders our future
with blank checks to a ruling class of reckless bankers and brokers
who’ve time and again proven their eager willingness to drive us further
into crisis for the sake of profit, by any means.
So, given how easy it would be to get a handle on this mess, why haven’t
the Democrats or Republicans considered this?
Well, I’m no economist, but I do know a little about conflict of interest
and whose interests are being served here.
The financial publication Bloomberg reported yesterday that Goldman Sachs
Group, Inc., one of the biggest beneficiaries of the $700 billion, plans to buy
assets from financial companies while many banks see limited aid, according to
Bank of America Corp.
Isn’t it curious that Treasury Secretary Henry Paulson was the former
chair and chief executive of the Goldman Sachs Group? However, Paulson is not
just looking out for the interests of one financial institution; he’s
protecting the interests of his class—made up of financial and industrial
monopolies.
Believe me, it’s not us, the working class, they’re trying to save.
Bail out Main Street! Not Wall Street!
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