In 1997, when I was taking Economics in college, I remember hearing about how the American economy was still the richest economy in the world, and how it had long been the envy of the world, the standard by which all others are judged, and left wanting.
The economics professor in that class also praised the work of Alan Grenspan, saying that he was given the ultimate compliment for his work by remaining as the Chairman of the Federal Reserve Board from 1987 until 2006. Basically, what the professor insinuated was that Greenspan had presided over so much economic good times, that no president from either party dared remove him from his position as essentially the Kingpin of the American economy.
Think about that. He served as Chairman from the days of the Reagan administration, throughout the days of the first President Bush, then President Clinton, and most of the two terms for the second President Bush.
After all, he had presided over good economic times during the boom years of the 1980's and 1990's, when the stock market soared, and when America produced a lot of wealth.
Yet, during that time, the living standard for Americans declined. Dramatically.
Also, during that time when "deregulation" was considered the magic cure for all ills, Corporations no longer had to strictly play by the rules, and benefits for workers began their long decline under Reagan, and by the time that Reagan first appointed Greenspan, a lot of damage had been done.
Economic boom times might have been enjoyed by corporations and Wall Street elites, but real salaries and benefits for average Americans were on the decline. Greenspan presided over great times for the rich, who were also enjoying huge tax cuts and incentives, much like corporations did.
Let us remember that this is also the time that the national debt and national deficit skyrocketed completely out of control, underscoring the irresponsibility of the so-called leaders. Hawks against big government, such as Ronald Reagan and George W. Bush saw big government grow during their terms.
When George H. W. Bush was running for the Republican nomination for the White House in 1980, he famously called Reagan's economic proposals "voodoo economics."
Indeed, he was on to something. It created the illusion of wealth, much like his handsome face, nice smile, and flowery wording made Americans feel falsely confident about the state of the country. Reagan assured us that America's best days were still ahead of it.
Maybe. But if that proves to be the case, we certainly cannot thank Reagan and his "voodoo economics" for that.
Fastforward to the 1990's. Clinton, a Democrat who is sometimes referred to as "Republican light" is now in office. His detractors (and there are many) want him out of office no matter what, and some consider him virtually a socialist. In fact, he is quite conservative, and largely continues the same policies of deregulation that has been going on for some time now. The Glass–Steagall Act, he declares, is no longer appropriate.
Clinton presides over good economic times. The biggest economic boom in history, allegedly. Americans feel good about their country. So good, that they feel that they have the luxury of focusing on things that do not matter, such as whether or not Clinton got a blowjob in the Oval Office. Of course, the president not acting nearly as firmly on his promises towards strengthening environmental protection legislation causes hardly a blip on the radar screen. Also, that wages have stagnated, and that most ordinary Americans have not seen much on their end from this supposed economic boom are also stories that are largely ignored.
Enter George W. Bush, who infamously suggested before getting the presidency (note that I did not say winning the election) that we could expect an economic recession. When this happens, may feel that it is a self-fulfilling prophecy. It is the first of many economic hardships that the Bush administration presided over, culminating in the disastrous near collapse of the economy in 2008, largely due to the subprime mortgage scandal which broke just months after Greenspan's departure.Many blame Greenspan's "laissez-faire" economic approach, and deregulation has come back, as many have predicted, to bite working Americans in the butt. Yet, within months of that disaster, many of the same economic practices that got the country, and indeed the world, on the brink of an abyss are once again being practiced.
Suddenly, Americans felt a lot less secure about their country and it's future. After all, it was not just in economic affairs that the Bush administration failed, and miserably at that. For the first time in decades, more Americans felt cynical than hopeful about the country's future at this time. Also, for the first time in well over a century, children not only could not expect to live a better standard of life than their parents, but in fact were expected to not reach the standard of living enjoyed by their parents. And that has come to pass, largely because of the excessive greed of corporations and the ultra-rich. Largely due to deregulation, and the economic practices that have now been in place for decades (since at least the beginning of the Reagan administration, and possibly since the days of Richard Nixon, although it would have been interrupted during the Carter White House years).
And from 1987 until 2006, Greenspan figured very prominently in those economic policies, and the direction that country was heading in.
Frankly, Greenspan did considerable damage to the economy, and of course, he was not alone. The whole economic thinking of our so-called leaders during these times, from Reagan right up through the sitting president right now, all seem to be in favor of catering to the whims of corporations and the wealthiest of Americans. It has been to the detriment of the vast majority of the people of the country.
Yet, nothing happened. He got criticized, true. But that was it. And few people criticized him, at that.
With maybe one notable exception. Bernie Sanders lambasted him, and held him to task for his failure to even take any aspects of the American middle class into consideration.
Below is a video of Sanders putting Greenspan's feet to the fire while Greenspan was still Chairman of the Federal Reserve Board. Listen to what he says, what he accuses Greenspan of doing. What the economic practices in place at the time were already doing, and how things were going to get worse. Keep in mind that this interview took place in 2003, 12 years ago. If we had more men in positions of power like Sanders, perhaps the country would not be in the sorry state that it is in now.
Also, just a side note, Greenspan admitted to wrong thinking later on, after the near economic collapse, and it is included in this video below.
In 2008, Greenspan acknowledged that his economic ideology was fundamentally flawed. Specifically, he said:
"I don't know how significant or permanent it is, but I've been very distressed by that fact...a flaw in the mode that I perceived is the critical functioning structure that defines how the world works, so to speak."
Bernie Beats the Ever Living Hell out of Wall Street Dope Alan Greenspan; A Must Watch by Ring of Fire Staff, June 21, 2015:
No comments:
Post a Comment