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 Socialism for DummiesPosted on Sep 22, 2008By Marie Cocco So this is how the “ownership society” works. We own all the bad stuff. It’s been so long since President Bush talked about an “ownership society” that perhaps you’ve forgotten what he meant. Initially, it meant partially privatizing Social Security so that average Americans would fund their own retirement through personal savings and supposedly astute management of their investments. The public recoiled. Notwithstanding Republican presidential candidate John McCain’s continued support for some form of private Social Security accounts, this has about as much chance of clearing Congress as the hapless Washington Nationals have of making the baseball playoffs. That is, no chance. Now Bush’s “ownership society” has morphed into this: Taxpayers are going to own about $700 billion—or a trillion, or more—in bad debts amassed by what were supposed to be the best financial brains in the world. What we will own are potentially worthless assets for which there are currently no private buyers. After more than three decades of being told we can’t afford to keep a modest safety net beneath the people on Main Street, we have thrown the mother of all lifelines to Wall Street. This is the conservative dogma that has constrained our politics for a generation. We’ve been lectured incessantly about costly “entitlements” such as Social Security, Medicare and Medicaid that are supposedly wrecking the federal balance sheet and endangering our collective financial future. How many times have you heard that these programs are “unsustainable” and represent fiscal “time bombs”? I stopped counting about 15 years ago. Advertisement Within weeks, Treasury Department staff members or the apparatchiks attached to some new oversight team are going to be engaged in high-stakes negotiations with businesses over what price the government will pay for their iffy paper. Meanwhile, the same government is prohibited from negotiating with drug companies to get discounts on prescriptions for Medicare patients. Why? Because that would be socialism! Which raises the larger question. If we can socialize the banking industry, why can’t we socialize the health insurance industry? The government is going to shoulder business risks that went bad. But for decades the political system has resisted the common-sense suggestion that the risk of getting sick, which we all face, is best handled when it is spread among the broadest possible pool—that is, taxpayers. Here is where our political judgment has taken us: We allow families to be bankrupted by illness, but we won’t allow financial giants to be bankrupted by greed and incompetence. But there are some arguments that simply should no longer be accepted. One is that working Americans must have their future health and retirement benefits substantially cut while Wall Street gets a newfangled “entitlement” of its own. Another is that we just can’t have all the government we need. The disastrous response to Hurricane Katrina was supposed to put an end to the notion that government is always the problem and never the solution. Since government is now the savior of financial operators, no one should dare suggest it shouldn’t operate for the greater social good. The era of big government is back. Any politician who votes to bail out Wall Street titans while simultaneously telling average Americans to suck it up and tighten their belts should be booted from office. Any politician who claims taxes can continue to be cut in the face of the gargantuan debt we are about to take on should be shown the door. The chatter in the business world is that a “new model” of finance must emerge from the ruins left by the shattering of the old. The same must apply to our politics, too. CommentsAre you a Truthdig member yet? Login now, or register with Truthdig. Add Your Comment |
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By hetzer, September 24, 2008 at 6:17 am Link to this comment
I don’t have much use for socialist bluster and slogans. They just make people even more capitalist stupid than they already are. Socialism simply takes private rackets and puts them under public ownership. The same old human weaknesses will still prevail, and the crooks can’t get away with the same level of theft, especially if we are looking at socialisms - not Socialism.
Report thisBy dan white, September 23, 2008 at 9:57 pm Link to this comment
(Unregistered commenter)
Marie Coco’s article includes many excellent points, but I was distressed to see her resigned to going along with the sermon that anyone must bail out Wall Street or the world will undergo a global financial meltdown. No need to go along with this pronouncement, reluctantly or otherwise. Europe didn’t.
The Bushies asked Europe and Japan to help shoulder the cost of propping up Wall Street, and Europe basically said, “Are you kidding?” If America’s somewhat more sensible partners in capitalism see no need to rush in, why should we, the people?
This crisis may or may not have been pre-planned, but it will certainly be an excuse to leave the next administration in D.C. with even less cash, less credit, and more debt. Yes, add the trillion for Wall Street onto the 3-to-5 trillion that Stiglitz and Bilmes claim the war in Iraq and Afghanistan will cost, and our government, no matter who is running it, will have trouble coming up with funds for health, education, welfare and infrastructure.
Many books over recent years have linked severe and real global poblems to the structure and functioning of our political-economy. (Saving Wall Street is not one of those problems.) One of the most important of those books is the international best-seller, “The Shock Doctrine”, by Naomi Klein. Her book puts to rest any doubt that America has a centrally-planned economy—and you know planned by whom and what’s the plan.
Cruxpuppy’s comment above emphasizes that progressive forces, in other words, we, the people, should have some plans of our own. Milton Friedman advocated specific plans to put into effect when disasters crop up (either natural disasters or elite-made disasters). The forces for equity and democracy need to do the same.
I think the monetary plan Cruxpuppy suggests merits serious investigation by people well trained to analyze such things. It is beyond me, at the moment, but I would like to point out that businesses actually engaged in producing goods and services may not actually need common stocks and all these fancy financial instruments like derivatives to function. Any serious business can borrow money by requesting loans from whatever banking system is available, and by issuing bonds. An honest business should not need to issue stock.
The financial services maket has become a tool of the elites for sucking even more money from the rest of us and making it disappear—or, better yet, putting it under their own legal control. This global financial system is being challenged all over the world, and Americans certainly do not need to accept it, either.
It is way past time to start thinking and planning. The rich have a plan. The rest of us need one, too. Class warfare? Call it whatever you want. The rich fired the first shot a long time ago, and they’ve been firing ever since.
Report thisBy Marc Schlee, September 23, 2008 at 5:18 pm Link to this comment
(Unregistered commenter)
Long Live the International Socialist Revolution !
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
Report thisBy KDelphi, September 23, 2008 at 12:52 pm Link to this comment
The problem with giving rebates to taxpayers, to pay mortgages, is that, the uS govt has always been so focused on “home ownership” (its just another part of the “ownership society”), that most people who have recently bought a house, (esp. if they have subprime mortgages ), once they are done with all hte homeonwer tax deductions, dont generally pay any taxes.
Now, local and property taxes are another matter altogether. And, they are not really related to where you live. In some parts of the midwest (for the price of the house, which is , of course, lower)they pay alot more in property taxes some places in more expensive areas, comparatively speaking. Plus, in states that are broke, you pay extra for garbage pickup, water bill (separate from utility bil), wire and tree upkeep. etc.
They are just getting desperate for revenue.
Report thisBy Xntrk, September 23, 2008 at 12:24 pm Link to this comment
(Unregistered commenter)
Marie Cocco has the same problem as Eugene Robinson. Let’s say it all together: The bailout is FASCISM!”
You cannot discuss reality while using the wrong words. How do you achieve clarity of thought?
The “Birds and The Bees” result in teenage pregnancy, not sex education.
Calling ownership of the government, and all business, by the wealthy is not “Socialism”. It is FASCISM!
I knew we were becoming an ignorant society. I wasn’t aware the process is so far along.
Report thisBy nick, September 23, 2008 at 12:00 pm Link to this comment
(Unregistered commenter)
My Bailout Plan:
The federal government takes the 800 billion dollar bailout fund and divides it evenly amongst the individuals who filed income tax returns for 2007.
Your individual debt repayment stimulus credit would be reserved in an account held by the US Treasury and come along with the following
restrictions:
1) It must be used to repay a legal debt secured by a note and
incurred prior to September 11, 2008.
2) The debt can be one you personally owe, or a debt owed by any
other citizen or US corporation.
3) The full amount of the credit must be consumed by debt repayment.
There would also be brief listing of priority debts that should be repaid first including past due mortgage amounts, student loans, child support, and back taxes. Some kind of incentive would flow to you if you repay a “priority debt.”
The individual accounting for the plan would require a brief section of the 2008 federal income tax instruction booklet- hopefully with comprehensive forms included. Among other things the booklet would include forms for recording the amount of each payment or partial payment to be made from your individual account along with the name and address of the intended receiver, and a copy of the note memorializing the debt.
Individuals not owing any debts (or less debt than their allotted
credit) can decide whose debts to repay and would also receive an incentive for repaying “priority debts.”
That is all.
Report thisBy hetzer, September 23, 2008 at 11:14 am Link to this comment
Tax their income, their rackets, and their overall wealth. Use the revenue for infrastructure and services. They have no right to anything because they are thieves who have stolen 90%.
Report thisBy psickmind fraud, September 23, 2008 at 10:32 am Link to this comment
Why don’t we just give every household that paid taxes last year about $7000 AND enact the legislation for mortgages to be lowered? People could pay their credit card debt and mortgages, the economy gets a big boost, and the bad paper ain’t so bad.
Then let’s put the execs and directors of the financial institutions in pillories and stone them, and I don’t mean get ‘em high.
Report thisBy Purple Girl, September 23, 2008 at 10:14 am Link to this comment
Let’s get the record Straight.. The so called ‘Conservatives’ are actually very Liberal about how they spend Our money. What they are conservative about is our personal lives and taking any steps to Secure our nations economy.
Report thisIt is a Travesty to claim Republicans are for Small Gov’t… Esp when you look at how many Private Profitters are on OUR payroll! If they are a Contractors, They are Working and getting paid by US!So they must be added into the overall evaluation!
Moving From the Private Banking contract with the Oxymoronic ‘Federal Reserve’ to today, how many Corps hide behind our Gov’t Bodies Facade?
What is the Role of Gov’t, to coordinate the Collectives resources and needs, Thus Energy, opportunities for employment,Defense, Food/Water/Air Supply and health Care are the Responsilbity of ANY governing Body- Other wise they are dead weight overhead!
Corps have become the 20th Century version of Monarchies, They hate the True Free Market and despise Human Freedoms and Rights- Basically what they have Proven over the last 30 yrs!
Here a quick solution and one that honors our free market- let these Financial insitutions fail, and We keep what we have and tear up our Credit Card Bills! they went Under, thus we no Longer Owe them. Let the Loan sharks they swindled for their front money figure out how to get their money back from these High Stakes Rollers! WE NEVER CO SIGNED THE “MARKER”!
By Hammo, September 23, 2008 at 8:12 am Link to this comment
For just seven easy payments of $1 billion each, you can take advantage of this special opportunity. But you must act now! To find out more, see the article:
Wall Street’s special offer – but you must act now!
Sept. 23, 2008
AmericanChronicle.com
http://americanchronicle.com/articles/75216
Report thisBy KDelphi, September 23, 2008 at 6:53 am Link to this comment
I think that Sen. Sanders idea of a surtax on the upper 1% is , a necessary, but not sufficient, measure.
Who else could we tax?
I would make the income limits lower, though. Ex: if you make $150,000 a year, you are in the upper 95th Quintile—only 5% of US workers make more than you.
But, taxing earned income should not really be the solution.(Where an income comes from should matter. Extremely excessive salaries are, in my opinion, never justified) We need to HEAVILY tax, capital gains, stock trading, (esp. the neo-con forms), and make AIG recall its $30 b inassets from China and Saudi Arabia, etc. After they pay off some of their debts, what’s left of their assets and salaries should be divided up to pay back intl. mkts. They should NOT be let off of their debts to us or intl. mkts.
I still remember Ken Lay saying, (ie. selling off his assets) “With a lifestyle like this, its not easy to just give it up”. TUFF! Alot of people are not living liek they are used to. What, should we
keep” these crooks in “the style to which they have become accounstomed”, after they robbed the US in wartime.
The CEO of Delphi here (no, I never worked there), when they filed bankruptcy, and the union (weak ass clowns caved) called for “across the board” salary/wage cuts. The CEO (who was leaving with $150 milion), said “I know you are all angry and thrashing out. So I wil ignore that suggestion”.
Who the hell do these peopel think they are? Most of them are exactly like you and me and got lucky. Obviously they have no great “
Report thisbusines skill”.
By hetzer, September 23, 2008 at 6:08 am Link to this comment
The crooks will only waste anything they steal. The stick up won’t work. Americans blame this mess on the Republicans by a 2 to 1 margin. Hearts and minds gave up smoking. They can give up crookism too.
Report thisBy troublesum, September 23, 2008 at 5:44 am Link to this comment
Lobbyists for the big bankers are trying to defeat Dodd’s alternative bailout proposal that bankruptcy judges may be allowed to lower mortgage rates for home owners, according to thinkprogress.org. If democrats cave on these issues there will be no point in voting in November. Just turn what’s left of the country over to Wall Street.
Report thisBy Da Bronx, September 23, 2008 at 5:41 am Link to this comment
(Unregistered commenter)
The truth is we are not talking about “true socialims” and no country on earth practices a complete “socialism.”
We socialize some things (like losses) and capitalize other things (like profits)
as for the “ownership society” it would seem to me we “own” nothing. we rent from the Federal, State and Local landlords who charge us property taxes and practice a “socialist” style emenant domaine which allows governmental entities to take property from private citizens and give it to other private citizens on the basis of who will pay the most rent (taxes) for the property in question.
Oh, yeah, before I forget, there are Many “conservatives” (including me) opposed to any form of “bailout”(corporate or individual) there are many “liberals” pushing for one.
Report thisBy cruxpuppy, September 23, 2008 at 4:50 am Link to this comment
Why is it that progressive thinkers ostensibly speaking for the interests of the people can never see the elephant in the room, namely, the privatized monetary system called The Federal Reserve, which is only nominally “federal”.
Of course this crisis is the result of unregulated speculation, and yes, the Wall Street hustlers are greedy and so forth, but who empowered them, who extended the credit that has now become a rope around the tax payers neck?
The private money monopoly. It’s an insider’s game, it is the root cause of crony capitalism.
So, there is an alternative to this bail out, but you can’t see it unless you realize that the “money power” is a public trust, a power assigned under the Constitution to the Congress, not to a group of privileged insiders.
Goggle “American Monetary Institute” and have a look at the American Monetary Act, a piece of legislation that represents a true alternative to the corrupt privatized system that has ruled in this country from day one!
Report thisBy KDelphi, September 23, 2008 at 12:33 am Link to this comment
Socialist Democracies work pretty well, in the EU—especially in the Scandanavian countries. They have a great social safety net (so, if you lose your job, yo dont lose your health care, end up in te street. etc)
Everyone in the uS says the taxes would be too high, but look what we’re paying now—alot for nothing. Polls show over and over that neither EU or Canadians would ever want to go back to privitized social services (although some do buy private plans)
But, then, they care about each other, as a people. I wonder how we coudl do that.
sp-usa.org
wsws.org
cp-usa.org
Report thisBy hetzer, September 22, 2008 at 9:20 pm Link to this comment
Socialisms may not bring heaven to earth, but they sure send a lot of crooks to hell. Democracy and equality get rid of the advantages that crooks use to lie and bully the rest of us.
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