Friday, May 14, 2010
They Too Will Get Their Pink Slip
For the last few days I have been reading a biography of Trotsky by Robert Service, copyrighted 2009. This is to date the most complete biography of the man who along with a handful of other Russian revolutionaries brought about the Russian Revolution of 1918 that resulted in the Bolshevik take over of Russia.
Revolutions, whether the French model, or the American model that proceeded it, have several things in common. Basically, I think it is safe to say that people become angry with the corruption and/or the repression of their government. Europe had several revolutions in the 19TH century, as workers realized that they, like the French people, could throw off a government that no longer served the majority of the people. The age of the divine right of kings had long passed, and workers in the cities wanted an honest government that represented their interests and met their needs.
The Tea Party movement in the United States should not be ignored. While some will try to demonstrate that it is not solely a grass roots movement, there are several reasons for the middle class to be unhappy with the government in Washington. The financial crisis was man made. You don't have to be a PhD in economics to understand what took place, or for that matter the fact that the Federal Government gave billions of dollars to the big banks in spite of their greed and reckless behavior.
Political movements start out small. They grow because the people in political power chose to ignore them and their grievances. As a result of such thinking, many incumbents will not get reelected in November 2010. This will just be the beginning. The Tea Party may not be the ultimate political vehicle that will bring about change, but it has some points that need to be addressed. I am not a Tea Party member, but I recognize that the politicians in Washington are not addressing the problems that face middle class families with regards their being able to invest their savings and not be cheated with financial products that are rigged to fail.
Unless the bankers and Wall Street are policed properly, that Federal legislation creates a framework for accountability, transparency and enforcement, people and institutions will continue to have their pockets picked by those working in the capital markets who have no ethics and regard everyone as a mark. This culture of greed and excess will not change on its own. Now is the time to bring about strong comprehensive legislation to level the playing field for all investors. Members of Congress that do not or will not see that time is running out will get their pink slips in November.