Amazing as it seems the stimulus package implemented by the current administration meant to boost the ailing economy and shore up the financial sector isn't even two months old. It's barely a month old, but it's meant to jump start an economy which took years to fail. We were in a recession for a year before the previous administration finally acknowledged it. Yet here we are watching a new administration grapple with unprecedented circumstances.
While they work day and night to solve our national dilemma we fret, stress and worry. We are forced to move from houses to small houses, from small houses to apartments, from apartments to motel rooms from motel rooms to being permanent house guests and for some of us there is nowhere to go. We move from working part time at our full time jobs , to being laid off, to working jobs which pay less, to working multiple jobs if we're lucky and finally to being jobless. We go from being able to pay bills to not knowing which bills we can partially pay or put off, to being completely in over our heads with no way out.
Most of us simply don't have the financial resources to last two months without a job let alone to last the amount of time it takes to job hunt in a state like California with a 10% unemployment rate. For most of us job loss simply isn't a situation which can be easily dealt with. In turbulent financial times it may feel like death.
We hear stories of billionaires unable to deal with life after losing 80% of their worth in the markets. But there are plenty of people bringing home between $40,000 - $80,000 a year who have lost the same amount of their worth all over the country. There are no million dollar cushions for them. They're lucky if there's $5,000 left for them and that probably won't last long.
When we were told after certain financial institutions engaged in other risky practices like handing out loans to unqualified people and credit default swaps most of us were upset. When we heard the figures could go into the hundreds of billions we were angered knowing this would leave us with a higher deficit than we already had knowing it would take years to pay off.
But when we heard companies who got these bailout funds were spending hundreds of thousands on lavish company retreats our blood really started to boil. When we heard they were giving out huge bonuses we were incensed. It happened once and we were assured the problem would be dealt with.
By the time of the second revelation of corporate bonuses being doled out on government money we had already been assured once that practice would be halted. By that time that company was approximately 80% government owned. Of course when we talk government owned and government money what we are really talking about is taxpayer money and ownership. The money is funds we put in. All money being printed up by the Fed for stimulus purposes is money for which we will all be on the hook should any of the companies default.
If a cut in monetary supply doesn't serve to effectively stem inflation as a result of the currency injected into the economy it's the middleclass and the poor who will be slammed. For us it isn't merely adjusting to a new lifestyle, but figuring out how we will even feed ourselves. There is much reason to be anxious and afraid.
That said the problem has only been in the hands of this administration for a matter of months and they have barely had time to do anything about it. That's reality and there isn't any precedence for this as the markets and our financial systems are drastically different than they were during the time of the great depression. The government has made some smart moves and some not so smart moves with regards to its handing of the crisis. They need to tighten up.
When it comes to using our money for millions in annual bonuses paid to people who helped wreck their company and thus our economy we expect better. With regards to the legality of contractual breaches as a result of a government forced cut or heavy tax on bonuses to curb the practice, this is an emergency. The balance of ownership has changed hands and it's in the hands of taxpayers. We bailed them out to save our economy to save ourselves as a country, as neighbors and as individuals. In the process we saved an American institution whose financial tentacles were so broad if it failed our very economy could collapse.
This was not to support their goal of seeing a new luxury sports car in the drive, yacht or summer home. They should show gratitude. After saying they would curb the practice of excessive bonuses the government on both sides of the isle and in two of the three branches of government dropped the ball the last time. This time lawmakers need to get it together and mean what they say. It has barely been two months in office for the new administration and Americans want clarity to see what's coming and steady hands to point the right direction. Two months isn't long enough to say someone elected to a four year term failed and a new administration needs all the support possible to get this right which for all of us right now they have to.
To read about my inspiration for this article go to www.lawsuitagainstuconn.com.
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