Sociology Talk

Gandalf Grey · Guest

Regulation is Not a Bad Word

By Cenk Uygur

Created Jul 16 2008 - 9:32am

When I was growing up as a young Republican dork, I was told that
"regulation" was a bad word. Sensible people were for less government
regulation. Socialists were for more government regulation because they
liked big government controlling the markets and your life. And most of all
they loved red tape that inhibited business.

And to this day, I still shudder when I hear the word "regulation." It
sounds so nasty and socialist. That's the power of brainwashing.

Here's the only problem -- it turns out you totally and completely need
regulation. Without government regulation, the excesses of the market go
unchecked and we constantly have financial meltdowns. Kind of like ... now.

Of course, the right answer is balance. Too much government regulation does
slow down business and get to a point where it inhibits growth. Too little
regulation means there is no one to watch over the excessive risks that
corporations take for short-term profit and we have economic collapses that
are then dumped on the American taxpayer.

Complete deregulation is an intellectually indefensible position. It is also
the current Republican platform. We have been trained, and yes even
brainwashed, into believing that the government is a bad thing and the less
you have of it, the better. That is until of course your house is burning
down, then all of a sudden government help -- in the form of the fire
department -- seems like a pretty good idea.

The reason we have government is because it serves a role that we need in
society. Police, fire department, public education, common defense and
financial regulation of the markets. If you don't have a check on insider
trading, the rich get richer and the average guy gets screwed. So, you need
the cops of Wall Street. But this isn't just the Securities and Exchange
Commission. It is every regulatory agency that watches over the financial
industry to protect the interests of all of us.

Even Adam Smith realized the need for government regulation. And it is a
perverse situation we find ourselves in that I even have to make the case
for such fundamental and obvious points. But yet, here is the campaign for
one of the major party candidates for president hiring as their top economic
adviser the man who embodies this bloodlust for limitless deregulation. This
is probably the one person who best represents all that is wrong with
radical deregulation. His name is Phil Gramm.

If you liked Enron, you'll love Phil Gramm. And you'll also love his wife,
who helped to deregulate the energy industry which Enron took advantage of,
before they collapsed -- and then got paid millions for it from... Enron!

The Gramm family has been deregulating America at a furious pace and getting
paid handsomely in the forms of legal bribes from the likes of Enron and
Swiss Bank (let alone the millions contributed to Phil Gramm's campaigns
through all of the top banks throughout the decades). David Corn has a must
read article about this financial merry-go-round that you can look at here
[1]. Everyone gets paid and then when they run out of money, they stick us
with the bill.

Unless you're a highly paid executive in the financial industry, you'd have
to be crazy or ignorant to repeat the mantra of deregulation at this point
in our history. We have deregulated to the bone and we now see the
consequences. Bear Stearns, Enron, Fannie Mae, Freddy Mac, Indy Mac and the
list threatens to grow to 150 other banks [2]. Now is not the time for
deregulation.

Democrats must insist on further regulation if they are going to agree to
bailing out all these companies and institutions. No more free rides on our
dime. Republicans claim to care about your taxpayer dollars and then they
shovel it over to their corporate friends. There's nothing wrong with
corporations. I'm a die hard capitalist. But in capitalism corporations need
the help of the government in regulating a balanced playing field so no one
abuses the system. That kind of regulation doesn't hurt corporations, it
helps them.

You know what hurts corporations -- laissez faire economics with unlimited
deregulation. Enron lobbied for deregulation -- and then it cost them their
company. Phil Gramm's Swiss Bank wanted deregulation and then they lost $37
billion in the ensuing financial meltdown. Be careful what you ask for, you
just might get it.

Finally, the idea of putting Phil Gramm, and his acolyte John McCain, in the
Oval Office to reek destruction on our economy again is a frightening
thought. Imagine the damage they could do with four more years. If you like
the economic meltdown we're in the middle of, then you'll love the McCain
presidency. These guys are the financial equivalent of the neocons. They are
financial radicals who have taken over the system. The idea of putting them
back in charge is absolutely unthinkable.

It is the job of the press to let the public know what the realities are.
Enron didn't happen out of nowhere. Bear Stearns didn't go down for no
reason. There were real reasons behind the downfall of these companies and
the meltdown of the markets. There were real actions taken by real people
that led to this disaster. One of the primary culprits was Phil Gramm. If
the American people knew that, they might not be so ready to put his pupil
in the Oval Office. In fact, they'd be crazy to do that. But if they don't
know that because the press never told them ...

--
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"A little patience and we shall see the reign of witches pass over, their
spells dissolve, and the people recovering their true sight, restore their
government to its true principles. It is true that in the meantime we are
suffering deeply in spirit,
and incurring the horrors of a war and long oppressions of enormous public
debt. But if the game runs sometimes against us at home we must have
patience till luck turns, and then we shall have an opportunity of winning
back the principles we have lost, for this is a game where principles are at
stake."
-Thomas Jefferson

znuybv · Guest

On Jul 17, 11:09 am, "Gandalf Grey" <valino...@gmail.com> wrote:

znuybv · Guest

On Jul 17, 11:04 am, Bill <b...@yahoo.com> wrote: