February 18, 2011
Reuters is reporting on a ploy to stall the re-regulation of derivatives markets as proposed by the Dodd-Franks financial reform bill. GOP strategists are now asserting that rushed rule-making can’t become a higher priority than economic analysis, so we ought to slow down and (finally) do the sort of analysis that might have prevented the market crash and the resulting recession (if only we hadn’t let Wall Street insiders write their own rules for so long.)
As I discussed earlier this week elsewhere, the provocatively-titled Wall Street Journal article “Study: Strict Derivatives Regulation Could Cost 130,000 Jobs” echoing the “government regulations hurt business” talking-point has been yet again defused — this time by professors John E. Parsons and Antonio S. Mello, who pointed out, “It’s always possible to ignore the system-wide purpose of a regulation and claim it is costly due to the burden it imposes…”
“We have regulations controlling immigration, restricting tobacco and alcohol sales, establishing speed limits, and prohibiting the use of dangerous materials such as lead paint. We embrace regulations about what can’t be in our drinking water, and insuring we have the freedom to practice religion unfettered by the preferences of government agencies…
…laws about everything from voter registration to verifying the safety & efficacy of drugs because we know we can’t simply trust everybody to do the right thing if there’s no referee…
…the GOP has been persuaded to slow down the process of reforming Wall Street’s greedy, self-serving behaviors.”Thomas A. Hayes
We’ve seen what happens on Wall Street without adequate oversight and regulation(s): the markets crashed, foreclosures destroyed home values, the economy went into a tail-spin. As if that wasn’t bad enough, the trickle-down effect is that millions of our friends and neighbors are unemployed at precisely the time when their highest-value asset, their home, has collapsed.
Compare the amount of money we’re talking about to the debt-ceiling or the budget for the entire U.S. Government. On Wall Street, in the derivatives market alone, $600 trillion is in play. That’s why the players, and the Chamber of Commerce, are lobbying so hard to be left alone, and trying to scare us with more jobs lost.
“…there is ‘no upside’ to imposing margin requirements on end users, said David Hirschmann, who heads the U.S. Chamber’s Center for Capital Markets Competitiveness.”Victoria McGrane, from her articleWall Street Journal February 13, 2011
Recovering our standing as the world leader in agriculture and industry, and creating the millions of jobs our country needs, won’t be enough to keep Wall Street greed from ruining our economy. We abandoned a “free market” approach to firefighting, because the profit motive led to really bad outcomes for the people that fire companies were supposed to protect. There are countless examples of systems that operate better in terms of the “common good” when we don’t let snake-oil salesmen operate unfettered in pursuit of their individual profit.
I’ve been pondering whether or not our financial markets can “create prosperity” other than for Wall Street insiders. It’s certainly not what the evidence suggests they’ve done lately; it’s hard to see an “upside” (to borrow David Hirschmann’s term) to heeding those with the most to gain by slowing down reforms when they’ve shown such willingness to abuse the system.
It’s harder still to trust the tired old assertions about government regulations being nothing more than interference that “burdens small business” which can be, and have been, so quickly, thoroughly debunked by simple logic.
This is not Somalia. The citizens of the United States don’t want an end to government; we want a return to the ideal that good government works “for the people” not the fatcats who game the system for profit at the expense of the majority of fair-minded, hard-working people. We want solutions, not sound-bites.
February 10, 2011
The President of the AFL-CIO, Richard Trumka, joined with Gaby Pacheco on an Op-Ed piece in the Wednesday Miami Herald, “DREAM Act – keep trying” intended to reinvigorate the discussion of immigration.
“It is time for President Obama and Congress to take action on meaningful immigration reform, to turn these dreams to reality and to move our country and our economy forward.”
RICHARD TRUMKA AND GABY PACHECO
Who is Gaby Pacheco? Gaby is an “undocumented, DREAM-Act eligible youth” from Miami, risking a fair bit by stepping into the limelight.
Like it or not, immigration is the most powerful force in shaping our culture, and has been for centuries. Trumka and Pacheco have it right, asserting that our immigration “system” will not fix itself. So, what should the role of the department of Immigration & Customs Enforcement (ICE) and the rest of the state and federal agencies dealing with immigration be?
Well, if you believe some, government can’t get anything right, and should just throw in the towel and disband. I’m not one of those. We elect people to work for us in Washington (and in our state governments, too.) The reality is: without government there would be no immigration policy, let alone men and women paid to enforce it; we’d be practicing the model currently used in Somalia. Somalia, where piracy plays a central role in the economy – and thinking people find the means to leave if they possibly can.
It’s misleading for politicians and pundits to talk about reducing the size of government, cutting taxes, cutting the deficit, and lessening “government interference in our lives” while at the same time arguing for more immigration agents, more prisons, building democracies in other nations, and fixing the economy to help the middle class recover from the banking and mortgage crisis that came from deregulating Wall Street. Double talk won’t form a more perfect union, let alone ensure domestic tranquility, ok?
We’ve always believed that the way to make this country great is to ensure that future generations will enjoy a higher standard of living. That won’t happen if they can’t buy homes because they can’t even afford health insurance, while politicians cater to the whims of special interest money funneled to their incredibly expensive campaigns.
I’m not saying every tax dollar is spent wisely – we can’t even account for squandered billions simply “lost” during the abysmal Iraq reconstruction, for instance – but that’s precisely why it’s time to talk about running our government as a whole, and every agency within it, better and more carefully. Planning for the future, financial experts advise, is always about investing strategically and ensuring diversity.
“At a time when business is loudly advocating for importing skilled workers, politicians and corporate CEOs are ignoring the fact that some of our best and brightest are already here, but pushed into an underground economy where they can’t actively participate.”
RICHARD TRUMKA AND GABY PACHECO
If you believe that government should work for us, that our elected officials should work for us, that partnering with business to ensure our economic viability as a nation is a key to a future where our children can thrive and prosper, then it’s time to stop focusing on the messages that divide us.
That’s why I applaud, and stand with, that third-generation Pennsylvania coal miner Richard Trumka, and Gaby Pacheco, a DREAM Act-eligible youth from Florida, as they talk about jobs, the economy, and immigration — which the Congress seems to lack the courage and vision to address. It’s time for our elected leaders to stop playing politics and do what we sent them to do – create real solutions.