Outrage Pays Off

Someone in government finally came to their senses. The executives of AIG are being asked to return millions in compensation. The money should be taken and given to the communities in which AIG operated. That would leave a lasting legacy that might help to overturn the perception of greed that has been burned into people's consciousness. Of course, the government will probably return the money to the pool being dug for the bailout of financial institutions. Which means that its possible positive effect will be negated. I understand why that statement might be questioned, but the government is allocating $700 billion for the bailout, so a few million dollars will not make a major difference to the bailout effort. The construction of a new park or a new wing on a school would probably help a lot more. The government seems to be very resistant to these kind of ideas. It represents the idea of socialism that they seem to be afraid of and that I think we need a lot more of. It would restore faith in government as a caring institution instead of this cold, faceless behemoth that is unresponsive to society's needs. The government seems to have no problem handing out tax breaks for business which they then abuse. I think its time to funnel money directly into people's hands. I don't advocate giving money away with no obligation. I think there should be some sort of education requirement to qualify for government subsidy. I don't want to use the word handout but that is exactly what it would be. The time has come for Americans to admit that everyone deserves an equal shot at a comfortable life, not having to live from paycheck to paycheck. Spreading money out this way would strengthen and widen the middle class, which has always been the backbone of American society. In previous generations, although they may not have been the intellectual leaders of the country, they were the moral leaders, providing stability order and a sense of community security. We need to return to these ideas if America is going to resume its position as a moral arbiter. The world is waiting for our example.

Socialism Is Not A Dirty Word

Nicholas Kristof's column the other day recounted a conversation he had with a woman in Beijing regarding the election of Barack Obama. It summarized the perception that many people abroad have of the United States and the state of our race relations. The point made was that the election of Barack Obama will send a sorely needed signal to many corners of the world that the United States is capable of electing someone besides a white man to its highest office. I am also hoping that it will signal a new era of change in the United States.
The word that has been tossed around on the campaign trail in the last week is Socialism. John McCain has done his desperate best to paint this as a dirty word that Americans should avoid at all costs. Barack Obama has not made such a strong statement, but it is clear that he does not want the word associated with his economic plans. I disagree. Maybe it is wrong of Mr. Obama to use the word Socialism because of the connotations that it stirs in the American mind, but Socialism is something this country needs, and now more than ever. With the gap between rich and poor growing ever wider and the apparent abandonment of moral principles that Wall Street has demonstrated in the pursuit of ever higher bonuses, the trickle down theory of ecnomic redistribution has shown itself to be a flawed idea.
The idea is simple but its effects would be profound. The redistribution of wealth would give the poorest among us added security. It would allow them to secure a better future for their children. Even if money is not given directly to people, it should be allocated to towns and cities on the low end of the economic scale for civic improvements, resulting in better schools and community facilities. There is no reason why millions of people should have to live a tenuous existence while others are paid ridiculous amounts and contribute nothing to the overall welfare of society. It's time for America to fulfill its promise to all its people and show the world that we have the compassion and the courage it takes to shine as an example of equality. I just hope that Mr. Obama can demonstrate the kind of vision it will take to return America to the position of moral leadership that it so easily abandoned in the past 30 years.

Fall of the Maestro

I can't blame Alan Greenspan for doing what he did. He made the assumption, like I did, that the people who invented these unregulated derivatives knew what they were doing and could control the markets they created. Unfortunately, we were both wrong. The people who invented these derivatives and the people who traded in them without fully understanding them had no moral compass and no concern for anything except the generation of a stream of income. This is a perfect example of lack of self respect. If you can act so selfishly and have no concern for the consequences, you have no respect for yourself. Of course, these titans of finance don't care whether they respect themselves. They use can use their millions of dollars as a salve to soothe their hardened consciences. Just look at how the executives of AIG were able to absolve themselves so easily, blaming the regulations for their problems. Their lack of introspective ability is shameful.
That is why I give kudos to Alan Greenspan for being able to publicly admit that his perception regarding the state of derivative markets was incorrect. The man was raised in a different America, when your word was your honor, before we became the largest debtor nation in the world and sold our integrity to the highest bidder. The situation we find ourselves in now is a result of our tendency to give people the benefit of the doubt, to believe that people are basically good inside, when we have really lost our soul. It's no wonder the world has lost its respect for us.