Robert Reich - 'Big Government' Isn't the Problem, Big Money Is
Conservatives love to rail against big government. But the surge of cynicism engulfing the nation isnt about governments size. It flows from a growing perception that government doesnt work for average people but for big business, Wall Street and the very richwho, in effect, have bought it. In a recent Pew poll, 77 percent of respondents said too much power is in the hands of a few rich people and corporations.
That view is understandable. Wall Street got bailed out by taxpayers, but one out of every three homeowners with a mortgage is underwater, caught in the tsunami caused by the Streets excesses. The bailout wasnt conditioned on the banks helping these homeowners, and subsequent help has been meager. The recent settlement of claims against the banks is tiny compared with how much homeowners have lost. Millions of people are losing their homes or simply walking away from mortgage payments they can no longer afford.
Homeowners cant use bankruptcy to reorganize their mortgage loans because the banks have engineered laws to prohibit this. Banks have also made it extremely difficult for young people to use bankruptcy to reorganize their student loans. Yet corporations routinely use bankruptcy to renege on contracts. American Airlines, which is in bankruptcy, plans to fire 13,000 people 16 percent of its workforcewhile cutting back health benefits for current employees. It also intended to terminate its underfunded pension plans, until the government agency charged with picking up the tab screamed so loudly that American backed off and proposed to freeze the plans.
Not a day goes by without Republicans decrying the budget deficit. But its biggest driver is Big Moneys corruption of Washington. One of the federal budgets largest and fastest-growing programs is Medicare, whose costs would be far lower if drug companies reduced their prices. It hasnt happened because Big Pharma wont allow it. Medicares administrative costs are only 3 percent, far below the 10 percent average of private insurers. So it would be logical to tame rising healthcare costs by allowing any family to opt in. That was the idea behind the public option. But health insurers stopped it in its tracks.
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http://www.thenation.com/article/166969/big-government-isnt-problem-big-money