Reinventing America’s Economy
We’ve been hearing a lot lately of the need to reinvent our economy. Our financial system is so broken that we can’t prevent it from melting down multiple times in each century. This essay investigates some areas where we can greatly improve our world by reinventing America’s financial structure.
We start with a short investigation of exactly what is causing this recurring nightmare that plunges so many of us into poverty every few decades. Without a firm understanding of the causes of the disaster, there’s no way to fix it. There is no way for me to say this without sounding like I’m politically biased but this is a fact obvious to anyone paying attention. The Conservatives around the world are directly responsible for this disaster just like they were for the last Republican Great Depression.
During the depression of the 1930s, we, the people put numerous safeguards in place to protect us from another disaster. We put many rules in place to control greed in our financial markets. We passed laws to prevent businesses from getting too big to fail. If these safeguards were still followed, today, we would not have this disaster. It’s as plain and simple as that. The people forcing through the failed policies around the world are all chanting “Free Market, Free Market”. Well, the greedy Free Market is what we’re looking at having to bail out. The banks are too big to let fail, so here we are, again, bailing them out.
And, here we are, again, bailing out the autmobile industry. We stopped enforcing the Sherman Antitrust Act which saves us from having businesses too big to fail. The last monopoly to get cleaned up was Ma Bell. Since that time, the Free Market Advocates have been getting their way and stripping us all of the safeguards our grandparents put in place to save us.
We’ve already addressed two of the major causes of this disaster, 1) Too Big to Fail Businesses, and 2) Lack of or refusal to enforce safeguards to control the greedy. The third leg of this stool is The Federal Reserve.
Unknown to most people, the Federal Reserve is niether federal nor does it have any reserves. Like “The Clean Air Act” or “The Healthy Forest Act”, the name is only there to confuse the unsuspecting and the gullible. This is a privately owned bank that we have put in charge of managing our country’s money supply. As I said, there are no reserves, so the Federal Reserve controls the money by providing credit.
America didn’t always have a Federal Reserve. It wasa created as a national bank to help control the flow of credit. However, it has been privatized and is now a for-profit bank with stockholders. Their responsibility is now to the stockholders, not to America, and many of the stockholders aren’t even American. Not only is the Federal Reserve a for-profit bank, but all the banks and gambling houses (aka investment houses) are now for-profit. This means that they make decision, not based on what’s best for America, but what’s best in the short term for their shareholders and their CEOs.
Now we know what three of the major causes of this disaster are, so let’s look at how to clean them up for good. Obviously we can’t rely on just safeguards, because our grandchildren will abandon our safeguards just like we abandoned the safeguards our grandparent put in place. We have to fundamentally change the structure of our economy.
#1. Too Big to Fail: Since we can’t rely on our politicians to enforce the safeguards against Too Big Businesses, we need to create an agency to monitor monopolies. We also need to put laws in place that let competetors initiate monopoly investigations against monopolistic competetors in the hopes of splitting them up.
#2. Free Market Greed and Foolishness: Fannie Mae and Freddy Mac were both initially government lending institutions. They have since been privatized. As it alwasy happens when government functions are sold to the greedy, they get out of hand and end up, well, like Fannie Mae and Freddy Mac. Greed should be frowned upon, not rewarded. If greedy politicians want to privatize our government services, they should be unable to vote on any legislation in which they have received any money or gifts, either directly or via Political Action Comittees. Furthremore, any privatization must require a 2/3 vote in both the House and Senate.
Big business currently owns our government. There’s no simpler way to put it. It costs $20,000 per day for a politician to run for office because of the billions of dollars that are spent by greedy big businesses to buy our representatives. We need to take the money out of politics. We need immediate finance reform that prevents anyone from spending personal money on elections. This means all elections must be federally funded.It’s the only way to get the greedy businesses out of our government. Furthermore, we need to revise many of our corporate laws and remove the rights of personhood from our corporations. Corporations do not need and should not have the right of free speech. Corporations should not be allowed to own or invest in other businesses and corporations, all corporations should have “serving the public interest” as their fundamental purpose, and corporations should have a maximum life span after which they are shut down and sold off.
#3. Corrupt Banking Industry: First, federalize the Federal Reserve. Our nation’s credit should not be managed by greed and profit. For that matter, buy back Freddie Mac and Fannie Mae and run them as the services they were intended to be. Secondly, every state should have a state-owned and state-run bank that provides credit for the people and businesses of the state.
There are, of course, many more things that need immediate attention, but these three are, in my opinion, three of the biggest issues facing us today.