Category: politics

What’s good for Wall Street and huge corporations isn’t good enough for us plebes. From the HuffPo:

Former Treasury Secretary Hank Paulson once said: “And let me emphasize, any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator – and one who is not honoring his obligations.”

The head of the Mortgage Bankers Association, John Courson, played up the moral argument against walking away, telling the Wall Street Journal last month: “What about the message they will send to their family and their kids and their friends?

But corporations and businesses don’t play by those rules. Like CalPERS’s McKinley said, “You come to a point where you write it off or stay in the game. If you want to stay in you got to put in more capital. We reached our limit on that. It was not a prudent thing to put more money into it.

“You get to a point where you can’t keep throwing good money after bad,” he said. “These are illiquid investments. You gotta fish or cut bait.”

As for homeowners walking away en masse — perhaps lenders’ biggest housing-related fear — McKinley added: “We’re hopeful that won’t happen.”

I just love how that works.

In any case, Wednesday is going to be interesting. What’s sad is that at this point, I’m so jaded that I’m pretty sure that whatever comes out of Steve Jobs’ mouth is going to be far more important and world-changing than what comes out of Obama’s mouth.

Its the question that I ask every time tax season comes around. Well, actually, its what I ask every time I look at my paycheck and figure out just how badly I’ve been raped this time. I don’t like dwelling on it, because, as I’m sure everyone else who’s the not filthy rich CEO of a bank or other parasitic institution, the thought of how much I pay, and how little I get back, just gets my rage on.

While the apparent amount of taxes I pay doesn’t seem as much as some people, it is quite a bit. I’m not going to get into the details, but there’s quite a bit of money that gets flushed down the toilet of government. In theory, taxes are a vital part of a society. Tax money keeps government running. Taxes fund social goods like public schools, public roads, public transportation, infrastructure and the like. It even puts food on my table, since my paycheck comes from a taxpayer-funded NIH grant, so I can add public health to my list. So, given my own list of all the good things that my taxes help pay for, how could I possibly be pissed about having to pay?

The answer’s quite simple: most of my tax money doesn’t go to the public good. In fact, the public good the always the first thing to get cut when government funding gets lean. No, the reason why I’m pissed is because most of my taxes are wasted on bullshit. Even before the financial collapse, your know, the one brought about by Wall Street’s immense and insatiable greed, most of our tax money didn’t go towards the public good. The vast majority of the federal budget goes towards the military. No, that’s not right. Most of that money goes towards the military-industrial complex, which is basically Lockheed, Newport News Shipyard and the like. I wouldn’t even really be that upset, if not for the fact that these corporations charge insane amounts of money, but can barely deliver. Navy and Coast Guard ships are late and so below standards that ships are being rejected. Soldiers fighting in Iraq and Afghanistan have been chronically short of all sorts of supplies since the start of both wars. There are no sci-fi weapons for fuck’s sake!

The point is, for all the money that gets flushed down the Pentagon toilet every year for the past few decades, there is very little to show for it. Aging equipment, shortages, massively over-budget (and aften underperforming) new projects all beg the question: why is there no oversight? Now combine the chronic irresponsibility of the military budget and combine it with two horribly managed wars, in which $9 billion (with a B) in cash simply drove out of the Federal Reserve Bank in New York, flew to Iraq and disappeared.

What. The. Fuck.

Now combine that with the financial meltdown, the state of American healthcare and the state of American infrastructure. The fact of the matter is that Congress allowed the financial services market to become too large, while allowing specific institutions to become to large. Congress keeps dumping more and more money on these thieves, who caused all their own problems by hurting us and who, instead of using that money to help us, are predictably, helping themselves. This is of course at the expense of virtually everything else. Hell, the government could give every single person in the US a billion dollars (with a B) and it would be cheaper than what’s going on now.

So, what do we do about it?

Unfortunately, not much. Congress is in charge of tax law, and they’ve proved themselves to be quite resistant to any reforms that help we the people over we the super rich bankers who pay for your fucking campaigns. We could do like Larry Lessig and try to change Congress, but that’s much easier said than done. You could always refuse to pay your taxes, but that tends to not end well. There’s another option, but I’ll not speak of it, since only right wing shitbags get to talk about violent insurrection against the government without getting in trouble, so I’ll avoid it.

So in the end, I pay taxes because I have to. I don’t know what to about this problem, but I don’t care to have the FBI come and blow up my house and kill my family, nor do I want to go underground. Both of those seem worse than my current situation, but the question remains how to make real reform and make the government work for we the people. Congress and Obama have shown that they’re not going to go anything for us unless they have to. I’m going to make more noise, but that’s not going to be enough.

I’ve been thinking about the economic stimulus and its ugly cousin, the Wall Street bailout for a long time now, and what it means for us, both as participants living in an economy that we have little control over and as citizens of a democracy that we, at least in theory, have ultimate control over. Rather than get into the stimulus bill itself, which I find inscrutable and insanely long, I’m more interested in the people and thought that brought it about.

The idea behind Congress is that most people either don’t have the time or the expertise to run the government. Back in the late Eighteenth Century, most people, the commoners, plebeians or the mob, simply didn’t have anywhere near the education or experience required to participate in fundamental functions of government. From a more practical perspective, a complex society simply couldn’t function if everyone had to be involved in every decision of the government. Direct democracy, which today takes the form of popular voting, town hall meetings and caucuses, is a very time-consuming process. It takes a lot of work to be an active participant in direct democracy, if only to make informed choices when going to vote twice a year. Imagine the amount of research done for learning the ballot measures for the average major election year, and multiply that by every day.

Congress (and state legislatures, and local boards and the like) has to deal with extremely complex issues as a matter of course. Society would simply grind to a halt if everyone had to deal with all those issues. Infrastructure would break down, science would stop, the power would go out, and so on. Thus, we hire people to go to Washington to deal with that. They’re supposed to go to Washington to represent the people who live near them and to fight for their interests.

Of course, the reality is quite different from my overly simplistic summary. Yes, we live in a representative democracy, but we are far from represented in Washington. People always complain about the obvious disconnect between what the country wants and what comes out of Congress. The bailout and the stimulus are the most recent and egregious examples. The American public was overwhelmingly opposed to bailing out Wall Street and put an incredible amount of pressure of Congress not to pass the bill. It makes perfect sense that the public would feel this way since we’ve been spoon fed the idea that in a free market capitalist system those who can’t keep their competitive edge, fail. Yet somehow that idea is being pushed aside in favor of a system that keeps failing and uncompetitive financial institutions from being revealed as the broken and unsustainable institutions they truly are. However, despite this fact Congress passed the bailout overwhelmingly, with virtually no restrictions on how the money was to be spent. The stimulus is a similar situation, but the public is in favor of a package that creates and protects jobs, public health and forces banks, especially ones that received bailout money, to resume lending. What we got was a gift to corporations, but very little protection or economic help to workers or homeowners.

We assume that government is corrupt, and with good reason. The question is why? We have the power to remove people who we don’t like. If a congressman sucks, we kick them out and stick in someone better, right? Well, no. The majority of congressional seats are considered safe. Those people are so secure in their seats that they’re highly unlikely to be unseated by an opponent, even one from the same party. The power of incumbency is one of the strongest forces in American politics. One of the reasons for this tends to be the lack of credible opponents. Take my representative, who happens to be the speaker of the House, Nancy Pelosi. By all accounts, people in San Francisco think that she’s been doing a rather shitty job of leading House Democrats to fulfill the promises that swept them back into power. She (and Harry Reid) caved to the Bush Administration time and time again, even when the public was clearly against Bush. Even after Obama’s massive victory, Congress still bent to Bush’s will all through the lame duck session. Does Congress do these things because the members are hideously corrupt, or because they are so weak-willed that they simply lack the ability to stand up to the worst president in US history, who has already been repudiated by the public? Sadly, no. The true answer is as simple as it is depressing. Congress acts the way it does because we the people are not their constituents. Congress does not represent we the people, it represents those who pay them. Of course there are members who truly try to do their jobs for the betterment of we the people, but as a body, we the people are just the chumps who pull levers every two years.

Despite the public anger towards Congress, the same people tend to keep getting elected. Why? Despite the massive corruption in the political system, no reforms are demanded by we the people to force our representatives to represent our interests over those who prey on us. Congress falls over itself to grant a wonderful socialist paradise to Wall Street, but balks at keeping middle class families in their homes, even though to rescue the economy, bailing out the middle and working class while leashing Wall Street is the guaranteed path to success.