Sometimes I think my head is going to explode. Every get that way? It sometimes happens over stupid shit, like earlier this week when the MS Office install stopped working on my two-year-old PC, and Bill Gates’ automated tech support tried to trick me into buying a subscription to Office 365 rather than just reinstalling my Office 2016 once-and-done version. Hate when that happens, don’t you?
That’s not what really made my head explode this week. The true culprit was our ridiculous political culture – you know, the one that whines incessantly about how expensive Medicare For All will be (i.e. trillions of dollars less than what we’re spending now) but then turns around and drops two trillion dollars on saving Trump’s political bacon (they wanted to spend six trillion). Suddenly, all this money appeared out of nowhere.
And like the financial crisis, Congress’s piece is just the down payment. As David Dayen explained on Majority Report this past week, the $425 billion fund managed by Steve Mnuchin (the foreclosure king) will serve as initial capital in a Federal Reserve program that will direct more than ten times that amount towards select businesses – big banks, etc. – in the form of low-interest credit. Dayen refers to it as a money cannon, and he’s not wrong. There will be oversight in the form of an inspector general and an oversight board, but the review will be after the fact. It’s deja vu, all over again.
Sure, presumably every worker/taxpayer in America will get some kind of check. But the point is the bailout – the prole checks are just for window dressing. The bishops of austerity in the Senate are already whining about expanded unemployment benefits being too generous to people who are not working, as if there’s some moral hazard in paying people not to spread the Coronavirus. I’m not hearing them complain about trillions in public money being dropped on private enterprise, which will turn around and enrich themselves rather than use it for productive purposes, like hiring people. I’ve heard some vague hand-waving about the American people having a stake in the beneficiary industries, but this isn’t going to happen. Like the Wall Street and Detroit bailouts, there are very few strings attached to this money.
If we hand trillions of dollars out to private companies, we should own those companies. If we own those companies, we should put their workers in charge of managing them. If capitalism requires the government to resuscitate it every ten or so years with massive injections of socialism, we should start to rethink our system and, perhaps, pursue a vision of society that doesn’t entail crash-and-burn collapses every time something goes wrong … a vision that would emphasize social cohesion and a more robust approach to preparedness, involving – I don’t know – an exponentially larger number of, say, ICU beds, respirators, freaking PPE, for when the next plague comes strolling along.
We determine what’s possible. It’s just a question of political will.
luv u,
jp
The irony, of course, is astounding. When it faced crisis in the early 1950s, Germany’s creditors – including Greece –