The Great Bailout of the 21st Century

There is so much going on in the world to write about. So much I truly care about.

Those suffering in Haiti, the continued debate of Same-Sex Equality, Global Warming, and the disgusting comments of you likely know who, but I have been meaning to post this particular blog for a week now, so here it goes.

I picked up a recent copy of Time magazine the other day. The edition featuring Time’s “Person of the Year” – Ben Bernanke. To tell you the truth, I really haven’t put enough research into the Great Bailout, so I thought this would be a good place to start.

Throughout the years, I have often thought of myself as more of an overall moderate liberal. I believe very much in equal treatment of all. In my younger years, I thought everyone should be taxed at an even percentage rate. After studying accounting in college, I quickly realized that the way the tax system is set up – it will always be disproportionate. And as an open lesbian, without the opportunity to marry, taxes are even more unequal. I learned that there are a plethora of “tax deductions”  most of us will never be able to take advantage of, which is a major component of the overall inequality. There is a great deal of separatism in this country. It has always been the way and I doubt that will ever change. (Sorry for sounding pessimistic, that really is not my style).

I also realized, after a few economics courses, that the trickle down theory is a complete lie that wealthy people use to get those extra deductions. From what we have witnessed over the last couple of years, when the few are able to grow outrageously at the expense of the many – they do not pass on their wealth. Instead, they inflate their greedy pockets. Turn on the news, they still are inflating their pockets. Sure, they hand down some money to politicians who continue to give them those tax deductions. It’s a cycle, will it ever end?

Rewind back to 2008, you know when G.W. Bush was the president. Ben Bernanke was the Chairman of the Federal Reserve as appointed by the president. He admittedly missed the warning signs that our country was heading for a deep recession. He missed it until it slapped him and the rest of the world right in the face.

With a quick hand, and with the support of president Bush, they popped out the Emergency Economic Stabilization Act of 2008 giving over $7oo billion in bailout money to those wealthy people. Wait, so Obama was not the first and only president on this path? Nope, it started before he ever took office.

I’ve never been a fan of the bailout. Like most Americans, I have a hard time giving a break to the goons running our banking system. However, after reading the article, and remembering a little from my history class, I knew that if it weren’t for the bailout we likely would be swimming in another great depression.  In 1929, the beginning of the Great Depression, congress did the exact opposite of bailout. They tightened the leash on banks, allowing them to fail, and before anyone knew it people were standing in line for a loaf of bread.

So before we are all so quick to throw President Obama to the wolves, let’s not forget a couple of things, 1) Before Obama took office, Mr. Bush depleted one of the largest surpluses we have had in U.S. history. It may be the largest, but does that really matter? 2) The “bailout” started when the right wingers were in office. 3) Without the bailout we may very well be in a great depression. 4) We have made over $11 billion in interest this year from the bailout money.

I learned from the article in Time magazine that the word “credit” comes from the Latin word for “belief”. I believe things in the U.S. are going pretty well considering all that has happened over the past 10 years. Thank you, President Obama. You have my support. And, maybe if certain people started speaking more positively you would have greater support from the American people as well.

Emergency Economic Stabilization Act of 2008Emergency Economic Stabilization Act of 2008
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3 responses to “The Great Bailout of the 21st Century”

  1. Smileyman says :

    Okay, Kari. Here’s the required comment as mandated by your other half. Where you consider yourself a moderate liberal, I consider myself simply “moderate,” but I do tend to vote slightly more times to the “right” than the “left.” That said, I love maintaining an open mind and do not subscribe to politics compartmentalized by party.
    First, the rich: they are not all bad. Some of the most generous people I know are wealthy. Bill Gates comes to mind as a particular and very public exception to your generality. I review a lot of tax returns and can tell you first hand that the greedy are among us, regardless of how many zeros are on their balance sheet and income statement. So are the altruistic.
    Second, the tax system: What about all those tax deductions that get phased out with increased income??? What about AMT, designed in the 1960’s but never revamped so it is now capturing much of the middle class due to 40 years of inflation? Blame ALL of the politicians. I believe we would probably agree that special interests run Washington – both sides of the isle. Ever watch “Mr. Smith Goes to Washington”? Well, I believe it was a true illustration of politics in the 1940’s and could be replayed every decade from then to now. How about term limits? That could help. Eliminate private campaign funding. That might make a nick too. Personally, I believe a consumption tax systems makes a helluvalot more since than an income tax. You collect on what people consume rather than what they make – likely to be proportionate to earnings and when it’s not, it’s likely going into investment. Further, you catch all the tax dodgers, drug dealers, and unregistered.
    Three, the bailout. You are right. We would have had widespread panic and systematic failure without it. It was poorly applied, but simply the vote of confidence that it provided went a long way. Too bad that here too special interest groups peed in the pool.
    As far as President Barack goes, we will see – but like every president in recent memory, the public will not be satisfied. Are they ever? What ever happened to personal accountability? I think he is a pretty level headed dude with a mountain to climb in front of him. I support him as I support every president. We get to vote on a new one every four years, but should support whoever we have while they are in office.
    Enjoyed the blog.
    Now, back to my anonymous stalking. Love and miss ya babe! You have an awesome spirit.

    • penni4urthoughts says :

      I pretty much agree with everything you wrote here. Not just because I respect your opinion, but because are a sensible person.
      I think most people are uninformed when it comes to taxes and politics, among many other things.
      “Eliminate private campaign funding.” This would be fabulous and if it ever happened, which seems unlikely, it would definitely change the way politicians and corporations behave.

      I know not all wealthy people are bad, and I also know that many non-wealthy people are corrupt. I’m glad you pointed that out.

      Thanks for the insight and for being my personal stalker.
      Love and Miss You Too.

    • Int. says :

      Consumption tax = huge failure
      The majority of taxes come from the wealthy, high income households. By placing consumption tax you allow the high income households to control largely the tax revenues for the U.S. which means they have power over the government. Also even if you come up with some optimistic, naive way to look around that imports are still on the table which is just as painful if not more to the tax revenue.

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