Two Americas: 12 Facts That Show That Those Who Are Too Big To Fail Are Thriving On The Bailout Money That Our Politicians Gave Them Even As The Economic Suffering Of Ordinary Americans Continues To Deepen
Most Americans have a deep aversion to the phrase “redistribution of wealth”, and rightly so. On a fundamental level, it is just not right to take the money that one man has worked so hard to earn and “redistribute” it to someone else. In the political realm, the phrase “a redistribution of wealth” is usually a reference to our ballooning social programs, but what most Americans don’t realize is that one of the biggest redistributions of wealth in world history took place during the Wall Street bailouts of a couple years ago. Trillions of dollars of our money and of money that belongs to future generations was redistributed to the Wall Street bankers. The Wall Street bankers did not earn this money and they did not deserve this money. We were told that if Wall Street did not get this money that the global economy would collapse and that there would be martial law in the streets. We were promised that this money would “fix” Wall Street and then the prosperity would “trickle down” to Main Street. So did this happen? Of course not.
What ended up happening is that Wall Street hoarded all of this cash. Lending to individuals and small businesses actually decreased. The Federal Reserve started handing out gigantic piles of nearly interest-free money which many of these big Wall Street banks immediately loaned back to the U.S. government at a significantly higher rate of interest.
Talk about easy money.
Now the big Wall Street banks and the ultra-wealthy are swimming in cash and sales of luxury goods in the United States are absolutely skyrocketing. Meanwhile, millions of “ordinary” Americans continue to slip into poverty.
So is the answer to all of this just to “tax the rich” and redistribute the wealth again by giving more handouts to the poor?
Of course not.
The American people don’t need more handouts.
What the American people desperately need are some good jobs.
But Wall Street is hoarding the cash they got during the bailouts.