By Joshua Holland, AlterNet. Posted November 17, 2009.
Wall Street's raking in massive profits and paying its execs and traders record bonuses, thanks in part to government cash. What about ordinary Americans?
Working Americans continue to suffer from the worst financial crash since the Great Depression, and Washington has so far offered up only band-aids to help them out -- extended unemployment benefits, small stimulus checks and deeply flawed mortgage relief programs that have done little to stem the tide of foreclosures.
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But while caution’s prevailed in Washington when it comes to bailing out “Main Street,” Wall Street’s enjoyed a degree of socialism that would make Hugo Chavez blush. The Obama administration has essentially continued Bush’s policy of loading up dump trucks with tax dollars at the Treasury and dropping them on the banks with little oversight and next to no strings attached.
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There are competing explanations for Democrats’ habitual timidity when they have an opportunity to govern. Take your pick: internal party politics -- skewed Rightwards by the influence of the Blue Dogs -- the Dems’ reliance on fat campaign contributions from Wall Street; an institutional fear of “those constant accusations of socialism”; the organizing skills of their conservative opponents or the fact that the White House policy apparatus is packed with Clinton administration vets, former Wall Streeters and other adherents to classical economic orthodoxy.
Whatever the case, the moves they’ve made to offer relief to ordinary working families haven’t been as bold as their interventions in the financial sector. Not only did many economists view the stimulus package as too small relative to the depth of our economic malaise, but a good chunk of the funds went for tax cuts, and for long-term investments, like “green energy” subsidies, which have limited bang for the buck in terms of generating jobs over the short haul.
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But will the kind of bold and direct approaches progressive economists are calling for be “on the table”? If the history of the first 11 months of the Obama administration is a guide, they won’t; expect something built largely around business-friendly tax-credits for employers who add jobs (which, to be clear, can be quite beneficial as part of a broader recovery strategy but has limited bang as a stand-alone approach).
If that proves to be the case, Americans will face more protracted economic pain and the Democrats’ cautious approach will come with a price next Fall, and perhaps in the Fall of 2012. Propping up the banks alone isn’t enough; people vote on the economy they and their neighbors live in, not on abstractions like how many dollars banks are lending or the share price of Goldman Sachs.
It’s a kind of tragic irony: believing that they always have to hew to an artificially manufactured “center” to get elected, Democratic leaders risk electoral disaster by taking aggressive and direct interventions to boost the “Main Street” economy “off the table” --the very moves that would have a tangible impact on communities devastated by the down-turn over the short-term.
More at:
http://www.alternet.org/politics/143952/why_won%27t_obama_give_you_a_job