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Monday, October 04, 2010

Nader and the Tea Party meet

I see Ralph Nader’s old critique (that corporations have taken over both parties) meeting with the Tea Party’s anger.

 

We’re in a situation in which sectors of the economy that are large and politically connected are able to protect themselves in a way individuals cannot.

 

Cheap Debt for Corporations Fails to Spur Economy
By GRAHAM BOWLEY
As many households and small businesses are denied loans, some big corporations are saving, not investing, vast sums they borrowed for next to nothing through a policy meant to help the economy.

 

It’s not really a matter of who messed up and who didn’t. Certainly lots of people overextended themselves on mortgage and consumer debt, and at some level deserve what they are getting. But the same is true of those who run large banks (just to take an easy target). Although many have lost jobs and taken smaller bonuses, the personal suffering is a lot different when your pay goes from $10mm a year to $2mm a year than when you go from $40 an hour to $8 an hour.