I have been giving a lot of thought to the current economic situation. Years before it occurred, I predicted this outcome. I'm not a prophet or a psychic; I pay attention. The signs were there, and anyone with insight could see that we couldn't continue to exploit the poor indefinitely. Why? Because once large corporate interests have exhausted people experiencing poverty, they need to shift their focus to the middle class and start taking advantage of them so that investors can continue to see increases in their stock values. And when the middle class is drained? Well, here we are in the worst depression since the 1930s.
Depression. The "D word." You can use financial terms like deflation if you want, but no matter how you phrase it, people's money isn't stretching as far as it did just a few years ago when the number of people in the US who couldn't afford healthcare reached 40 million, that should have been an early warning. When individuals started working two jobs because they couldn't get enough hours at their primary job, that should have raised alarms. Our education system, which has fallen to one of the worst rankings among industrialized countries, should have been treated as a serious red flag. People are losing their homes and facing choices between eating and affording medication, and in everyone's vocabulary, that signifies depression.
How did we go from the prosperity of the 1990s to our current situation? A significant factor was the policies of Conservative hero Ronald Reagan, who deregulated banks and nearly every industry requiring regulation. If banks are too important to fail, they must be highly regulated with strong government oversight or nationalized altogether. If taxpayers are expected to bail out these banks or any other business, we should have a say in how they operate and share in their profits. Additionally, why are bank CEOs paying themselves millions despite their poor decision-making that led to the bank's failure in the first place?
America can overcome this challenge. However, the approach we take is important. Here are some ideas that can help restore the kind of idealism that the Founding Fathers had when they established our nation, while also supporting economic recovery.
What if banks used the money from the bailout to lend to us instead of spending it on bonuses or acquiring other banks? The situation might be different if they didn't treat taxpayers who helped them like suckers to be exploited. They must remember that their existence depends on the money we lent them to stay afloat. How much longer could the economy continue its downward spiral if banks chose to lend money back to the people who supported them in the first place at reasonable rates? How many new small businesses could be created if borrowing were accessible at low interest rates?
Imagine the billions of dollars generated by eliminating the Corporate Tax. Although this tax was originally intended to stimulate economic growth, it hasn't worked as well as hoped. States often use tax relief to attract large businesses to relocate, but this approach tends to backfire. Companies frequently bring in high-paying white-collar jobs from other areas, while the more lucrative technical positions are moved overseas. As a result, residents are left with only low-paying jobs. Ultimately, taxpayers cover the loss of state revenue through increased property taxes. This tax break is rooted in the flawed principles of "trickle-down economics."
What if businesses and individuals that prospered by creating this disastrous situation gave something back? Imagine if they pledged to support the charities (beyond the token amounts they donate to benefit from tax breaks), caring for the people they left homeless and out of work. We could change the face of capitalism if we, as consumers, paid enough attention to patronize only those companies that are giving back and shun those that aren't.
Want to fix Social Security? Who doesn't? Remember when Bush wanted us to invest in the stock market instead? Wow... could you imagine the mess our retirees would be in if they had succeeded in doing away with SSI? Tax everyone equally based on what they make. Right now, people must only pay SSI tax on the first 100K they make. If someone makes 24 million dollars a year, they are only required to pay taxes on the first 100k. The ideological paradigm for this tax break originates with the mean-spirited Conservative idea that maybe the wrong person might benefit from Social Security, and "Why should I pay for someone else's care just because I am filthy rich?" Yes, Social Security is in trouble, and this is why. Conservative values speak powerfully of "patriotism." So, let's require rich people to be patriotic and do their share for their country and compatriots.
What if doctors and dentists remembered why they became doctors in the first place and started dedicating 1/10th of their efforts to helping those who needed healthcare but couldn't afford it? And I mean PREVENTIVE CARE, and not emergency care when someone's health has crashed from lack of insurance or simply yanking teeth.
And what about medical schools? Traditionally, the poor have gotten health and dental care from the schools. It is supposed to be a win-win situation, where students get guinea pigs... uh.., I mean patients and the patients get the care they can't afford. But today, it is different. You are expected to pay for that student care. The schools are cashing in because they know that the poor are so desperate for care that they will choose not to eat or pay rent to get care at a discount. What if the taxpayers supporting these schools said they didn't want any of their taxes to support schools that didn't treat low-income people? What if those endowments stopped coming until the schools began to once again, provide a public service?
What if grocery stores and their stockholders took a break from trying to make as much money as possible and prioritized profit-making second to helping the patrons who once helped them meet quarterly goals but can no longer afford to feed their families? Many restaurants are lowering prices or asking customers to pay only what they can during the bad economy to help out their patrons... why aren't supermarkets?
Imagine landlords and management companies turning their backs, for once, on the "market value" to help American families keep roofs over their heads. Remember, if there is anyone who is blameless for what is occurring today, it is the renter who ignored the temptation to purchase a home they couldn't afford. What if we patronized management companies that are doing their share only and remembered the ones that didn't afterward?
Remember: In the US, we vote with our money. One dollar = one vote, which explains why the rich have so much influence in government. Let's use our money in the same way. Let's look for companies trying to do the right thing and give them our money. Let's not give it to companies trying to do "business as usual" while the rest are trying to survive this economy.
You might laugh as you read this, thinking that only a dreamer or idealist could solve our problems. But if you aren't laughing, then maybe you believe, as I do, that reverence for our brothers and sisters isn't idealistic but simply a matter of decency and patriotism.
Support them if you are fortunate enough to be part of a Union. Work for them when needed. Attend meetings and spread the word to your Union brothers and sisters.
And lastly, for all that is holy: VOTE. It may be rigged against us, but if we don't rise to demand what is ours, then voting is all we have.