The Economy

Pretty broad topic. I know, but indeed noteworthy in these trying times. However, since the bailout more and more of the slimy details of what got us into this mess in the first place are coming out. Alan Greenspan, former chairman of the Federal Reserve for 18 years, said in the New York Times that deregulation of the housing loan industry could have caused the problem and that his own idea of free market capitolism has been shaken.

Duh! You mean that if the government doesn't regulate industry then they will do whatever they can to maximize their own profit?

Obviously the "the invisibile hand" theory has failed. Supply and demand were not enough to keep us from an economic crisis. Yet, I still hear people talking about the importance of deregulation and of a supply side tax policy, which benefits the rich.

People say, "Joan, who stimulates the economy? Rich people. They start businesses, hire people, and they invest. That is what the country needs to jumpstart the economy."

To this I would argue that, isn't that what we have been doing for the last eight years? It seems to have failed. Not only that, when taxes are cut for the rich it doesn't always benefit everyone. The money recieved via tax cuts is private currancy. No one has any say in how it is used. So, who is to say that the dollars from this "upper class tax cut" will go to hiring more workers or investment in public goods?

As a product of the middle class I can personally atest to the failure of the tax policy that was put forth by George W. Bush and the Republican Congress. I have personally witnessed the struggle to make ends meat as well trying to provide the lifestyle that my family was used to during the 1990's. Of course the lifestyle was the first thing to go in place of groceries and the mortgage.

To this day my parents work extremely hard so that I can get a college education and eventually go to law school. It is not easy, on them or on me. I have to work part-time to support myself on a paycheck to paycheck basis. They cannot afford all of my expenses (rent, gas, groceries, utilities), plus tuition and books. Financial aid does nothing, apparently my parents are too rich for that.

I didn't want to turn my blog on the economy as a personal rant about the financial aid system or the cost of living, I simply want to point out the differences that one family experienced over the course of the Bush Administration and their sheep-like adherence to supply side economics.

In all, this type of policy has been pretty bad for the United States as a whole. Still people are reluctant to accept a new tax policy. Many people in this nation continue to vote against their own self interest on the basis of religion or political socialization. It is a disturbing trend. However, I feel that change is in the air.