I have written before on James Fallows who has been advancing the view that corporate money is poisoning the US by poisoning its politics. Now he is joined by Lawrence Lessig:
What is surprising -- indeed, terrifying, given what it says about this democracy -- is what happened after the collapse. That even after the worst financial crises in 80 years, and even after the lions share of responsibility for that crisis had been linked to finance laissez faire, and even after the dean of finance laissez faire, the great Alan Greenspan, expressly confessed that it was wrong, and that he "made a mistake," nothing changed. A president elected with the spirit of Louis Brandeis ("[We have to stop] Wall Street from taking enormous risks with 'other people's money'"), who promised to "take up that fight" "to change the way Washington works," ("for far too long, through both Democratic and Republican administrations, Washington has allowed Wall Street to use lobbyists and campaign contributions to rig the system and get its way, no matter what it costs ordinary Americans"), and who was handed a crisis (read: opportunity) and a supermajority in Congress to make real change, did nothing about this root to our financial collapse. The "financial reform bill" is the reason the English language invented the scare quote: As every financial analyst not dependent upon the corruption that is Wall Street has screamed since the bill was passed, financial reform changed nothing. We are more at risk of a major financial collapse today than we were a decade ago. And the absolutely obscene bonuses of an industry that pays twice its pretax profits in salaries are even more secure today.Lessig has a new book out, on ending the corruption of politics and the rule of money. I am putting it on my 'to be read sooner rather than later' list.
How could this possibly be? Never in the history of this nation have the agents of financial collapse so effectively avoided a regulatory response to that collapse. How is it that now they have not only avoided reform, but have effectively cemented their Ponzi scheme into the core of American law?
The protesters #occupy(ing)WallSt are looking for answers to that question. They should look no further than the dollar bills that they are taping to their mouths. The root to this pathology is not hard to see. The cure is not hard to imagine. The difficult task -- and at times, it seems, impossibly difficult task -- is to imagine how that cure might be brought about.
The arrest of hundreds of tired and unwashed kids, denied the freedom of a bullhorn, and the right to protest on public streets, may well be the first real green-shoots of this, the American spring. And if nurtured right, it could well begin real change.
One short piece worth reading right away: Alex Pareene's proposal to reboot the economy by debt forgiveness for the 99%:
So my immodest proposal is simply this: Individuals and households in the bottom 99 percent who owe debt to any large financial institution that received federal government support during and after the 2008 crisis should see their debt forgiven. That would certainly stimulate the economy, as most people would suddenly find themselves with a great deal more money to spend on iPads (and food, and clothing, and housing, and healthcare). The debt can be forgiven by decree or if the government really wants to it can step in to pay it itself; I don’t much care either way. (Though it’d be nice to see it just wiped off the books, to enrage the banks.)David Graeber's book is also on my 'to be read sooner rather than later' list.
Let’s wipe the debt of the 99 percent off the books, tell the financial sector to eat it, and get on with our lives.
I’m by no means the first person to come up with this demand. David Graeber, author of “Debt: The First 5,000 Years,” proposed the idea on “Democracy Now” last month.