Tag Archives: Wall Street

Socialized Costs, Private Profits

People understand Corporate profits, people understand greed, people even understand that a lot of costs of business (such as pollution) get socialized, and they have been willing to accept these things as long as everyone kept smiling and passing some money around the table periodically. The Occupy movement, I feel, is the response to a breaking of a social contract between capital and labour, the contract that says” “You may never be rich, but work for the system and help make us richer and you’ll be able to save hard and own some nice things and take care of your family”. The contract has been broken because too many people can’t put food on plates. Too many people sit on the couch each day because the job market has gotten so bad that even the act of applying for one has become too soul-crushing. The contract has been broken because we’re talking about how many more Fire Houses and Schools we can cut, not about how the very companies Americans just pulled out of the fires of their own creation can turn around and give back to their Saviours. The contract was broken when the whole damn country were made Shareholders while companies were failing, but never got a dime of profits when the money started flowing again (I know many banks paid it back, thats not the same thing). This country shrieks “Socialism” and waves its arms panicking in the air at the faintest sign of a social and economic safety net for everyday Americans, but funnily enough its the “Capitalists” socializing now not just the larger costs of business (Pollution, wear and tear on infrastructure, incorrect pricing of non renewable resources) but also the RISKS of doing business. When profits are up, they pocket them. When profits are down they scream that they’re too big to fail and if we don’t save them they’ll take us all with them. Welcome to the America that spawned the Occupy movement.

This new America is one of broken social contracts and a rich elite who have grown so greedy, yet so powerful, that they can sit there, straight-faced, and tell us that what America really needs to do if they want everyone employed is write some big fat checks for the corporations in terms of tax breaks and loopholes in inconvenient environmental laws. You don’t make money by giving money away, especially not when you are giving your money away to the very people who claim they will hire you. Being paid in your own dollars is not considered profit by anyone save the most desperate and tricksey of accountants. You don’t create a healthy economy by allowing the so called “job-creators” to take away your schools. You don’t create a healthy economy by allowing people who are pocketing millions to tell you that all they really need is a few more millions and THEN, suddenly, they’ll start creating jobs. Giving the rich more money doesn’t help the economy. They ALREADY have money. Why would they choose to spend the latest million on jobs when they spent the last million on a new house for themselves? What drives an economy is demand. The rich do not, independently, create large demand, there just aren’t enough of them. Demand is created by people wanting to buy things and by having the means to buy things. The economy will not get fixed for anyone until large numbers of regular people (“The masses”, the 99%, whatever…) have $ in their hands to spend and enough confidence that their job will still be their tomorrow to spend that money rather than horde it against bad times.

Advertisements
Tagged , , , , ,