iOS app Android app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Jim Worth

Jim Worth

Posted: October 18, 2010 10:01 AM

Redistribution of wealth during the 1920's was devastating for America in the 30's

In the Golden Age a small portion of American businessmen controlled a great portion of America's wealth.

That disproportionate balance of ownership led to high unemployment, tremendous loss of personal property, farms, and businesses, and long humiliating soup and bread lines -- the Great Depression.

Described in the first paragraph of "Our Electorate: America's Greatest Challenge!" the current redistribution of wealth is one of the eight critical challenges this country now faces.

That same imbalance that destroyed the U.S. economy in the 30's exists today.

If we allow the wealthy to usurp hard-working American's buying power, the country will continue to slide deeper into poverty. A declining middle-class will push us back into recession.

There was great news, however, just two weeks ago. The recession has ended -- in June of 2009!

The National Bureau of Economic Research reported that the deepest recession in 80 years ended after just 18 difficult months for millions of Americans. Everything has gotten better.

Better for whom?

Surely, not for those who have been unable to find employment, especially those called the 99ers -- unemployed who have exhausted their 99 weeks of benefits.

Not for the small business owners who have lost their businesses or continue to struggle, many barely hanging on.

Nor has it improved for the homeowners who have lost their homes in record numbers; and millions more who are underwater.

It has only ended for corporations and the wealthiest Americans.

September 2008 marked the end of the panic of cataclysmic failure of the financial world; the day Paulson, Bush and a complicit Congress passed the Toxic Asset Relief Program. It did stave off a global economic collapse but also ended up being a redistribution of taxpayer money--billions of American dollars laundered through the Treasury to save financial institutions and their investors.

The recession ended for Wall Street on March 10th of 2009, the day after the Dow hit the bottom at 6,547. Less than a month earlier Congress passed The American Recovery and Reinvestment Act. It was supposed to stimulate the entire economy and prevent America from slipping into another catastrophic Depression.

Instead, though preventing another Depression, the uneven distribution of the stimulus monies failed to stimulate the economy on the basal level but breathed new life into the speculative markets and they were again off and running despite the pain still being felt by most of the American people -- the recession continues on Main Street.

The markets have become another vehicle to steal money from the poor and transfer it to the rich. This Robin Hoodesque reversal has been methodically increasing for the last 30 years.

Recent legislation--new government regulations -- have become little more than ways to launder taxpayer money.

Both health care and FinReg fell far short of their potential as major legislation. Through compromise and omission Congress continues to allow the duplicitous funneling of taxpayer dollars to big corporate entities, wealthy executives, and investors.

Congress' failures include the lack of a competitive "public option" in the health care bill handing millions of new clients to insurance companies at taxpayer's expense. Similarly the taxpayer will eat it from the failure of FinReg to return to Glass-Steagall type protection allowing predatory banksters to continue their questionable practices and line their pockets.

Congressional patsies failed the American people, missing opportunities to fairly realign and correct the excesses of big financial and healthcare institutions.

Where is the outrage? Where are the Tea Partiers on this important issue?

CEO's in good times made 40 to 45 times the average pay of their employees. CEO's now make 400 times their minions -- some even taking 500 times.

The rich are stealing from the poor with the help of the Republicans and we're letting them do it!

Where is the outrage?

The electorate is poised to return Republicans to Congress. That would be an incredible mistake which will ultimately bring America down. If America's to survive we must reverse the unsustainable transfer of wealth that destroyed the economy in the 30's.

The reversal must begin now! It starts at the top by letting the top two marginal tax rates expire thus correcting some of the damage the Bush Tax Cuts caused.

Continued redistribution of wealth to big corporations and the wealthy from the middle-class and hard-working lower income families will kill this country.

This is one of America's Challenges! A 'smart' and informed electorate could prevent another Depression!

 
 
 

Follow Jim Worth on Twitter: www.twitter.com/authorofmystery