I’m conflicted about the collapse of the financial bailout package. On the one hand, I’m losing a lot of money on the stock market and in my 401K. Losing money never made anyone happy. But hey, I’m young (just one year out of college), so my risk tolerance only draws the line at loss of limb or life. On the other hand, I really do think this is in the nation’s collective best long term interests, including my own. Here’s why.
We don’t need our money going toward a bailout of the failing industries of the past. We need it to foster the groundbreaking companies of the future. I’m talking about a New Deal-style investment in carbon-free renewable energy and energy independence. Why waste this $700 billion on companies that royally screwed up, companies that don’t actually create any tangible products I might add? They’re real good at printing paper, sure, but this latest economic collapse shows how successful of a strategy that is. The problem is that when you’re printing your own paper (CDOs, derivatives, etc.), the industry as a whole is effectively able to decide how large of a number they want to write on each piece of paper, regardless of any intrinsic value. And then when the house of cards inevitably comes falling down, hey, they’re all “too big to fail”, so the government has to bail them out! What a great scam.
I’m really hoping that Barack Obama is elected president, because he’s the only major party candidate (i.e. has a shot in hell at getting elected) proposing a massive investment in energy independence. He has a plan to get America off foreign oil in ten years, and along the way we’d significantly reduce our carbon emissions as well. Saving the planet is something we can all agree on. John McCain, on the other hand, is more of the same. His campaign is run by lobbyists. He’s consistently been on the dead wrong side of economic issues (when he understands them anyway), supporting the massive deregulation that got us into all of this mess. He has no real plan for America’s energy independence, only lip service. After eight years of Bush, another four years in the same style with McCain (or God forbid, Sarah Palin) would be an absolute disaster.
America is experiencing a class war of sorts: the massive looting of the lower and middle class by the ultra-wealthy. During Bush’s two terms, the median household income decreased by $2,000, while the ultra-rich got much much richer in comparison to the rest of us. This proposed $700 billion bailout of the ultra-wealthy from the tax revenues of the rest of us would only be the latest and most flagrant attack in the ongoing war. The most amazing thing about the Republican machine over these past decades is how they’ve consistently abused moral/cultural wedge issues (such as abortion, religion, and gay marriage) to distract people into voting against their economic self-interest by the tens of millions. Only people making $250,000 per year and up will save money by voting for a John McCain presidency — that is a really small percentage of the populace.
So say no to the bailout. Let the companies that screwed up to the combined tune of over a trillion dollars crumble as they so richly deserve. And instead of giving them one more cent, put that money to work in renewable energy. Injecting that amount of money will have the same stimulative effect on the economy whether it’s spent on the finance industry or on the green industry, except spending it on the former is rewarding the failures of the past while spending it on the latter is building the path to the future. The correct choice for America’s future is obvious.