The River

Monday, September 29, 2008

Good questions

About the $700 billion looting bill

Joe Bageant:

What if we took the bail-out money and paid off every college loan, every credit card, every pending foreclosure and every mortgage in arrears, and every unpaid hospital bill? Wouldn't that free up a lot of income to stimulate our economy, 70% of which is based on Americans consuming good, services and commodities? Wouldn't it be better to have the money circulating, stimulating the U.S. economy than stashed in overseas as accounts? If Bush's little $250 rebate propped up the national economy for a couple of months, wouldn't distributing the $700 billion push the economy into the stratosphere? What if we used it to pay down the national debt? Wouldn't the American dollar reverse its plunge? At the very least for the first time in 80 years Americans would actually owe the debt to themselves, not the unseen financial lords.

Things will not change until the concentration of wealth in this country (and really, the world) is more evenly distributed. The rich, just don't buy things. The people who do buy things, have no money. Until this changes, the value of real estate will continue to decline, and institutions will continue to fail. It really doesn't matter how much money the Fed throws into the markets.
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