Consumer or Citizen

 

The Keynesian economic model which held sway in Western capitalist societies in the middle of the twentieth century has long since given way to neoliberalism, a policy and a philosophy which is a reworking of the laissez faire economies of the early industrial revolution. No wonder that we live in a new Gilded Age, the culmination of increasing economic inequality and degradation of publicly subsidized social services for everyone but the rich. Neoliberalism, a term which has meant many things in theory over the last one hundred years, has come to mean in fact laissez faire economics for the poor and middle class, and corporate welfare for the wealthy.

 

The result has been the takeover of the economy by short-sighted financial interests among the largest banks, and the takeover of politics and public policy making by those same banks and international corporations which owe allegiance to their executives and their shareholders instead of to any one national or local community. Consumers bear a great deal of the responsibility for this state of affairs, while citizens can change it.

American corporate flag
A protester at the second presidential inauguration of George W. Bush in Washington, D.C., in January 2005 holds up Adbusters’ Corporate American Flag. Photo by Jonathan McIntosh.

Consumers are passive; citizens are active. Consumers are inattentive to politics; citizens pay attention to what’s going on in government. Consumers struggle to get by and blame themselves when they cannot; citizens understand larger forces are arrayed against their interests and demand an equal place at the table. Consumers look at the wealthy and see people who helped themselves; citizens know how wealth creates wealth and privilege looks out for its own. Consumers feel helpless to change the course of society; citizens band together because they realize their power is in their numbers.

2018 Women's March in Missoula, Montana 179
A sign at the January 2018 Women’s March in Missoula, Montana. Photo by Montanasuffragettes.

 

The neoliberal philosophy of the past forty years has stripped people of their view of themselves as citizens with rights, duties, and responsibilities in society and replaced it with the lumpish, passive recognition of themselves as consumers, replaceable parts in the economic machine. Meanwhile, neoliberals have sold the consuming masses on the idea that unions and publicly funded healthcare and education are bad policies, but tax cuts for the wealthy and for corporations are good because of some nebulous trickling down that’s supposed to happen. Mission accomplished!

Taking action to change neoliberal policies on the environment, on economic inequality, and on the accountability of corporations, banks, and politicians is going to have start with a change in attitude among the populace from consumers to citizens. It starts with getting the money out of politics, and that starts with overturning the Supreme Court’s 2010 Citizens United decision, which equated money with speech. What greater symbol for the neoliberal outlook can there be than “money talks”? The second most important step toward change would diminish the power of the big banks by reinstating the Depression era Glass-Steagall Act, separating commercial and investment banking. The third step would end government subsidies for the fossil fuel industry and divest from it entirely. All easier said than done, of course, and only the first few of many steps to curtail the undue influence of the rich and powerful over society, but once consumers get up off their couches and walk down as citizens to their voting places they will be taking the steps necessary to change a system that works only for a privileged few, and not for them.
— Vita

 

Casino Banking

 

The passage of the 1933 Glass-Steagall Act separated commercial banking from investment banking, and for 75 years there were no enormous financial meltdowns in the United States originating from the banking sector of the economy. In 1999, the Gramm-Leach-Bliley Act repealed the main provisions of Glass-Steagall and, in the view of critics of the repeal, the countdown to financial meltdown began, culminating in the Great Recession which began in 2008. The meltdown, like the Great Depression which gave birth to Glass-Steagall, had worldwide repercussions, but in the aftermath there have been only watered down reforms of the banking industry in the US such as the Dodd-Frank Act, and no high level banking executives have gone to jail, been taken to court, or even been indicted. It’s only a matter of time therefore before a similar financial crisis strikes the US, particularly since the new presidential administration is talking about dismantling Dodd-Frank.

 

Depression-stock-market-crash-1929
Crowd gathering on Wall Street after the stock market crash on October 25, 1929.
Like other European nations, Iceland was swallowed up in the 2008 financial crisis. Like the United States, it had its own unruly banking sector contributing to the crisis – casino banks, in the sense that they used the money from depositors in their commercial operations to gamble on dubious investments, always passing along losses to customers while reaping the profits mostly for themselves. As in casinos, the house rarely loses, and in the case of casino banks when it appears they might lose the government will be there to bail them out. That’s the deal banks have come to count on, particularly if they are “too big to fail.” Unlike other European nations and definitely unlike the United States, Iceland allowed its casino banks to fail and then vigorously investigated and prosecuted the casino bankers responsible. In Iceland, 26 top bankers have gone to jail since 2008, and moreover their economy has rebounded robustly. In the US, 0 top bankers are wearing orange jumpsuits as a consequence of causing the 2008 financial meltdown, and the economy has limped slowly toward recovery ever since.

 

It’s interesting to note that the 2016 Republican Party platform included a plank about reinstating Glass-Steagall. Wall Streeters were alarmed at first, but then everyone realized it was merely politics as usual and that the incoming Republican administration and Congress had no intention of taking the idea seriously. They have been proven correct. Democrats make rumbling noises occasionally about reinstating Glass-Steagall, but even if they had the will, they don’t have the votes. It’s all just politics at this point, since Wall Street money has long since turned heads in both major parties.


“Let them eat cake!”

There is only one party in the United States, the Property Party … and it has two right wings: Republican and Democrat. Republicans are a bit stupider, more rigid, more doctrinaire in their laissez-faire capitalism than the Democrats, who are cuter, prettier, a bit more corrupt – until recently … and more willing than the Republicans to make small adjustments when the poor, the black, the anti-imperialists get out of hand. But, essentially, there is no difference between the two parties.

― Gore Vidal, from his 1975 essay “The State of the Union”.

Social reforms wrought from identity politics are all to the good, but as always in our culture the primary fixation should be on the money. Martin Luther King, Jr., understood this when he traveled to Memphis, Tennessee, in 1968 to speak to striking African-American sanitation workers. Without work and the personal dignity that comes from a living wage, people cannot begin to address their social situation and have the energy to improve their lot within society as a whole. For the poor and the middle class it all starts with money, and for the rich it ends there as well. The oligarchic elite take advantage of social issues like gay marriage to divide and distract the majority while they continue to concentrate wealth and power in their own hands. There are two financial reforms which would go a long way toward stemming the rising power of the corporate oligarchy and restoring power to the majority of Americans: reinstatement of Glass-Steagall or something very much like it, and the legislative or constitutional rescission of the Supreme Court’s Citizens United decision of 2010.
― Vita