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.