Subscribe to Breaking NewsRuby-Sachs: Everybody Knows
This morning the song, Everybody Knows by Leonard Cohen has been running through my head – one line in particular, really: “The poor stay poor and the rich get rich, that’s how it goes, everybody knows.”
When Obama was elected the vast social networks that came together throughout the country were all counting on a change in what “everybody knows.” The team of rivals seemed to make sense at the time – after all, it was historically proven to work wonders. But since the Geitner plan has been released, I’m not so sure.
Many liberal economists are pointing out how buying up bad assets takes tax dollars and throws them at big corporations in order to subsidize the kinds of practices that got us all in trouble in the first place. The fear of “too big to fail” leads us to permit banks to continue to write bad assets down in their books as good, worthy assets. We need to them to lend, so why not keep them trucking along as usual?
But there are other alternatives.
Both Robert Kuttner and Dean Baker – respected economic thinkers – argue for a plan with more accountability and less chance of payouts in the short term to certain economic players.
The point is not that we need Geitner ousted or Kuttner elevated. We need to make sure Obama does not have the opportunity to follow the Geitner plan.
Social mobilization got Obama elected in the first place. It’s clear the country can get it’s act together when there is enough at stake.
Well, your tax dollars are about to go straight into the pockets of certain hedge fund managers. Organize. Call your representative. Give Obama the political capital he needs to get things done in a way that benefits all of us, not just those with lobbyists well placed in Washington.
Randy: What the hell are you talking about?
The “pie” is the GDP, and the GDP gets larger or smaller every year. (Currently, it’s getting smaller, which is what a “recession” is.)
If you think economics is a zero-sum game, you know absolutely nothing about the subject.
Kari, I’m beginning to think that Ruby-Sachs did not pay attention in either her undergrad courses or law school.
I’m wondering who pays Ruby-Sachs salary? Are you paid by someone that has money or someone that is poor? I’m all for business owners doing well. Keeps people employed and keeps all of us earning wages.
Actually, economics is a zero sum game, most of the time. There is no “grow the pie” scenario except during those odd times when we invent something revolutionary like the Internet(s), or “credit default swaps”. Even if “grow the pie” did work, we live on a fixed-size planet, so it’s inherently infeasible.
Can you provide some evidence that my tax dollars will go to ‘certain hedge fund managers’?
There is no such thing as a hedge fund that is ‘too big to fail’; by definition, hedge funds are small companies. I’m surprised that you as a lawyer wouldn’t know that.
Why do you are if the rich people get richer as long as everyone is doing better? Economics is not a zero sum gain. The key is to grow the entire pie instead of dividing up the existing one. Or, to mix my metaphores: a rising tide lifts all boats.
Your call to cheap class envy politics is disheartening.