Main Street… you’re on your own
Call me biased. I do work for a financial firm these days and I do hope one day to be part of President-elect Obama’s top 1.5% – i.e. $250,000 or more in household income. But, to tell you the truth, I’m not necessarily against so-called “wealth distribution” through paying for social benefits including education, health care, and retirement benefits. But, what I am against is this class war that politicians, the media, and generally uninformed people have created over the last few months.
Wall Street versus Main Street. Average Americans “victimized” by pencil pushers inside billion dollar houses of cards. It’s absolutely ridiculous and people need to wake up and use some common sense. I’ve spoken enough times on how our financial systems made it possible for more Americans than ever to afford the houses, cars, toys, and clothes they want. Now, some more prudent readers might counter with how the free access to credit indirectly caused our problems and its still Wall Streets fault. After all, they should have known better than to predatorily allow ignorant “Main Streeters” to dine on all the supposed free lunch that they could. How about credit markets allowing businesses – small, medium, and large – to function and provide jobs to “Main Street”? See where I’m going here? Wall Street might make money from Main Street. But, Main Street depends on Wall Street. It’s not about class warfare and it’s not about trying to lay the blame on “greedy pigs”.
But, for all those out there who are looking to try to take something away from “greedy” financial industry workers, try this on for size. “Main Street” in New York is about to find out what it’s like when Wall Street has its mojo taken away. Citigroup, Goldman, and UBS announced layoffs and the decision to cut bonuses. And, guess what? Governor Paterson isn’t jumping for joy. New York is projecting a budget deficit of $12.5 billion dollars in 2009 and 2010 and Governor Paterson doesn’t think that $15 billion is too far away. Guess why? “The state loses $35 million for every 1 percent drop in bonuses.” Not to mention straight up layoffs. Still think Wall Street doesn’t pay its weight? Care about Medicaid, public education, or other local assistance programs?
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Comments
I think you missed the point of this little editorial of mine. I was frustrated over the class war that politicians had been fighting over the credit crisis. I wasn’t saying that Main Street was to blame or that the world would be better off without “normal people.” My argument was that if people really think the world would be better off without finance, credit, and the whole host of other services provided by large financial institutions, they are dead wrong. Not only that, but the idea that “rich people” just sit fat and happy and watch others suffer is not the case at all as it is the “rich” that ultimately shoulder the load for many of the social programs that we all care about.
I think my point is borne out in the fact that it seems that the Obama administration has brought a new sense of cooperation and there’s more of an understanding that Wall Street is just as vital and just as worth saving as those folks out on Main Street to our economy.
Wrong. Wall Street and Main Street are Siamese twins, congenitally joined, and sharing vital organs. If any twin parishes so does the other.