UP@NIGHT

So, you think of yourself as an honest soul.  You understand that stealing property or money is wrong.  You wouldn’t do it.  You wouldn’t want your kids or friends to do it.  It’s unthinkable.   But I have a proposition for you.

Here is a button.   All you have to do is press it and $100,000 will be transferred from Goldman Sachs, BP–or any other giant corporation whose resources are larger than most countries–into your bank account.   Nobody will ever know.  It’s a magic button.  Well, not really magic.  Some geek has wired it in a fashion so that money can be transferred to your account without anyone being able to trace it–in the tradition of how derivatives were traded.

Just think of how much money Goldman Sachs and its executives made in the last few years as the Market tanked, while you probably lost money in your hard-earned retirement account.   Not only did you recently lose money, but if you had invested $1,000 dollars eleven years ago in the Dow, that’s just about what it would be worth today, $1,000 (less if inflation is factored in).  But you know, and I know, how much money these guys have made trading your money and my money.  But that’s capitalism, you say.  It’s the way the game is played.

But would you push the button?  Would you be tempted to do it?  Or perhaps a better question: how many of your fellow Americans do you think would be tempted?  A lot, right?  (Or an even better question, how many more would push it today than ten or twenty years ago?)

The recent Melt Down on Wall Street, and the ensuing profits made by big trading firms and banks, have been corrosive in ways that we may not fully understand for years.   You’ve got Tea Baggers screaming about Washington, but the revelations about how Wall Street operates have buried themselves deep in our collective subconscious.  Real damage has been done.  Yes, we knew that there was big money out there and that big money corrupts.  (Before the present Melt Down, there was Enron and assorted other travesties.)   Yet “knowing” is one thing.  Seeing it in front of your eyes day after day, year after year, undermines confidence that the system is anything close to fair.  Yes, Obama has attempted to tame Wall Street with new regulations.  They will do some good.  Yet as long as we continue to see different rules of the game for a small strata of society, which is indeed what we have seen, our belief in the benefits of capitalism will be undermined by a gnawing sense that it is corrupting us, our children, our society.  From a sanctified economic system, it will become what we have to put up with, sort of like the Roman emperors in Imperial Rome.  It won’t go away anytime soon but we aren’t going to feel good about it.

There was a time in American business when many people believed that a handshake was as good as a contract, or so I am told.  People kept their word.  It now seems that handshakes still function in this manner for a small elite segment of corporate America that makes deals for unimaginable sums.  The rest of us can’t depend on them when we deal with companies.  (How about a handshake between you and your medical insurance company to guarantee your coverage?  Any takers?)   The middle class will need more and more contracts and lawyers to protect them in an economy in which money has gone wild.  And they will have relatively less money to hire these lawyers.

No doubt there are problems with the way government functions.  But anyone who thinks that this is the major source of the declining confidence in how our society works really needs to look at Wall Street with suitable eyewear.   The business of America is no longer doing business but being given the business.

Yes, well, I know, it’s all very confusing.  Red states are supposed to be Republican states and Blue ones Democratic.  But McCain and his surrogates are running around suggesting that Obama is a socialist, which is of course just a kinder and gentler word for communist or Red.  In any case, socialist/communist, what difference does it make if McCain feels that he can use the epithet to help him defeat Obama.  Here is McCain’s latest campaign “strategy” as reported in today’s Los Angeles Times.

By Bob Drogin and Mark Z. Barabak, Los Angeles Times Staff Writers
October 19, 2008
CONCORD, N.C. — John McCain sharpened his attack on presidential rival Barack Obama’s economic proposals Saturday, accusing the Democrat of seeking to turn the United States into a socialist country and convert the IRS into a giant “welfare agency” that would dole out cash at Washington’s discretion….McCain, delivering a national radio address before setting out for stops Saturday in North Carolina and Virginia, said Obama’s approach sounded “a lot like socialism.”

McCain’s claim is patently absurd.  Increasing income taxes on Americans making over 250,000 a year–by making their rates equivalent to what they were during the Clinton presidency–and lowering taxes on the middle class, doesn’t exactly sound like socialism to most Americans. And of course it’s not.  As a matter of fact, only the most die-hard, right-wing ideologue, one who is opposed to progressive taxes, social security, medicare, etc, would be likely to make such an outrageous claim and actually believe it.  So we have couple of choices here: McCain is an extreme right-wing ideologue OR he is lying and knows it.

Given the history of Red-baiting in this country, and the number of lives it destroyed, this is dangerous territory.  Further, McCain is playing with fire on another front.  He can’t directly raise the issue of race.  But he can try to make Obama appear foreign and  unamerican (you know, he “pals around with terrorists,” according to Palin).  Here is a recent attempt from Palin to play the all-American card:

We believe that the best of America is in these small towns that we get to visit, and in these wonderful little pockets of what I call the real America, being here with all of you hard working very patriotic, um, very, um, pro-America areas of this great nation. This is where we find the kindness and the goodness and the courage of everyday Americans. Sara Palin, October 16, 2008

Now the really big guns have been brought out.  Not only is Obama from the wrong part of the country–raised in Hawaii and schooled in big cities, so he is not really pro-American–but he may also be a socialist.  If you know anything about actual socialism/communism, this is too silly to be believed.   And it is even beyond silly, if that’s possible, since a conservative Republican administration has just semi-nationalized part of the banking industry.  Nationalization is a lot closer to socialism than modest changes in our tax rates.  (Marx would have a good laugh over this one, while he is turning over in his grave.)  But one doesn’t have to be a pundit to figure out what is really being said here.  Obama is not one of us, that is, don’t forget white America that he is black.

It’s time for McCain to feel a little shame.