Both presidential candidates seem to have suddenly become populists with the closing of a few investment banks. We are hearing about the tensions between Main Street and Wall Street and the tax squeeze on the middle class, who also wants to be bailed out.
Now, no doubt folks will suffer as our economy begins a tail spin and I certainly don’t want to come off as insensitive to that in any way. As long as my grades stay up and I don’t have an affair with any of my students, my income is pretty much secure for the next few years, but this news terrifies me when I think of what it could mean for some of my family members. I am not going to go into any of those details because it is their personal business, but the possibilities of a second great depression really make my stomach tighten into knots when i think about what it could do to some of those i love most.
With that said, I’m wondering if this economic crisis may not be ENTIRELY bad for everyone. The logic of these situations usually means that when the economy is squeezed, the poorest class suffers most. Tax payers earn less and pay less. Trickle down economics ideology means that taxes are cut for the point of the socio-economic pyramid, so that the pump of investment will be primed. This also means that social programs are cut back and public entitlement systems start trying everything they can to exclude folks from them.
This is what happens in a recession when times are tough. Now, I wonder what would happen in a true economic meltdown? I am not an economist by ANY stretch of the imagination, but I wonder if it may actually HELP the poorest of the poor, by giving them some company. Wasn’t it the Great Depression that birthed the New Deal? Couldn’t a NewER Deal eventually result from a second crisis, when the government is (hypotheically) forced to face the fact that millions (more) of folks are living in poverty and doing favors for the ultra-rich isn’t going to ever “trickle down” as investment is shipped over seas? Would this result in a truly progressive tax code like exists in Europe? Could this be how we get universal health care and solide retirement benefits? What about more low income housing of better quality?
Of course, a disproportionate number of crips live in extreme poverty and lack housing. If these sweeping changes do start to happen, it is going to be essential that we jump on this opportunity to be sure that universal health care includes choice in how/where long term care is delivered and that new low income housing is accessible and integrated in the community.
I don’t HOPE for a true economic crisis, because it may turn out to be a very dark chapter in history (remember, in the 30s we got FDR’s new deal as the solution to economic crisis, but the Germans got Hitler’s holocaust). However, I wonder if there may be a small kernel of hope amidst the fear, for those who are most marginalized by the systems we have in place right now.
October 1st, 2008 at 2:20 am
A good friend of mine was just theorizing this with me today as well, and we came to the agreement through our discussion that while the idea may be a noble one, it has as much likelyhood of succeeding as communism or trickle down economics. None of the above will work in anything less than a perfect world, because the reality is that there will always be assholes who profit from the misery of others. Unfortunately, it’s part of human nature. I know that this means that I’ve lost much of my idealism, but the reality is that ideal systems, and ideal solutions, will only work in an ideal world.
Along with that, comes the fact that I have both a retirement account and a mortgage, both of which are putting me in a bind already with the motions of the market. My parents would be far worse off - they’re already retired and living off the income and phased withdrawals from a retirement account. If this market really goes into meltdown, a lot of us will be so much worse off than we are now that it’s almost unthinkable.
Still, it’s not a bad thing to fantasize about…
October 4th, 2008 at 2:00 pm
From what I having been hearing from the experts on the “know all news stations” is that by the time this bailout money gets to where it is supposed to be getting, it may be to late to make a difference. At least to late for those already drowning in dept/poverty.
In my opinion this bailout is all politically driven. It seems suspicious to me that this all became a national economic crisis 40 days before the most historical presidential election that we will see in our life time. Then both of the candidates who are both running on a change platform follow right along with the same yes vote as usual. So when do they show us what change is?
Here is a thought for the Wall Street greed machine. You get no bailout money, Washington holds hearings and finds out who profited at the expense of others. When that is determined your bank accounts, homes, and all the toys you have will be seized to bailout your screw up and you get a free pass to jail.
Just one crips opinion.
October 14th, 2008 at 4:59 am
Let’s hope we’ll have an FDR and not a Hitler some January.