On the blog
War On You, Pam Martens offers an assessment of the problem facing President Obama and her submission
“Our Economy Is Going to Keep Tanking Until We Stop Shoveling Billions to Rich People” is accurate. I applaud the expertise she brings to this issue.
While she is addressing the problem of allowing money to be concentrated in the hands of the rich, I want to throw in my two cents worth.
The middle class is the engine of our economy and the rich supplies the ‘fuel’ to keep it going. We need each other to make this thing work.
We also need an incentive for companies to hire more people and pay a higher wage instead of allowing them to stash their earnings in foreign banks to avoid taxes.
Likewise, if the rich had an incentive to work with the government to help the poor and disadvantaged there would not be such a overwhelming burden on the government to do it by itself.
The benefit of living in a capitalist economy is that people can become rich. I would not disparage anyone from using this system to better themselves and their families unless they do it illegally or unethically. Ethics unfortunately is the one aspect of this system that is the most perplexing. Which is why we need regulation.
Regulation is one of those necessary evils in a free-market economy only because there will always be dishonesty surrounding the game of making more money. And nothing grabs the attention of money makers quicker than financial incentives.
As the gap between the haves and have-nots widens we can only sit helplessly by and watch it happen. It is a very frustrating and debilitating feeling. People are losing their homes, their jobs, their hope for their families.
We know we cannot simply rely on the rich to just give their money away to help close this gap. We have seen too much money go to the rich as a means of re-starting the economy. It obviously is not working. The banks hang on to it instead of loaning it out to help people save their homes.
My sister-in-law works in a mortgage lenders office that has an excessive amount of foreclosed homes. Her problem is not unique. Buyers come to her every day hoping to take advantage of depressed prices but the bank refuses to sell at less than what is owed on them. This situation does nothing for the economy or the banking system. The homes sit there empty, the banks continue to lose money on them. If the government continues to give banks bailout money they have no incentive to get these homes off of their books. This is an untenable situation.
The banks need to understand that if the economy does not get on its feet all the money they are holding will be worthless.
This is a crisis situation and the banks and mortgage lenders need to loose this round, taxpayers have already lost all they possibly can.