It seems literally impossible for another Republican to take charge of these types of matters (controlling fraud and abuse). Most of those folks are just too beholding to big business to ever try to reign them in. So, currently that leaves the Democratic party to take up the mantel. I don’t see that as much of a possibility either. Where all this “too big to fail” will end I just don’t know.
I don’t find myself quoting myself very often but when I re-read this post from almost a year ago about how Republicans have been the party of big business in Will Rogers day and are even more so today it got me to thinking. Republicans seem to believe in the innate goodness of our corporations. I don’t know how else you can explain their deregulation fever of the last three decades.
When Ronald Reagan came into office the first thing he did besides firing everyone who belonged to the Air Traffic Controllers Union was to finish up removing almost all regulations from the savings and loan industry. Here is what Wikipedia says about that:
The deregulation of S&Ls in 1980 gave them many of the capabilities of banks, without the same regulations as banks. Savings and loan associations could choose to be under either a state or a federal charter. Immediately after deregulation of the federally chartered thrifts, state-chartered thrifts rushed to become federally chartered, because of the advantages associated with a federal charter. In response, states such as California and Texas changed their regulations to be similar to federal regulations.
Of course we also know that within ten years the S&L industry almost disintegrated with fraud and abuse and it cost us taxpayers billions to bail them out. But that would not be the last time our friends in government showed their belief in the innate goodness of business. Soon after we recovered from the S&L fiasco they went about you guessed it, de-regulating the entire banking sector. Again within a short period of time the banks “too big to fail” cost us about a trillion dollars to clean up their abuse of the mortgage business. After these two meltdowns the Democrats put back a few of the necessary regulation via Dodd/Frank bill but the Republicans fought it tooth and nail. That I just don’t understand. Why do that seem to be totally ignore history, even recent history?
How can these guys in Washington continue to put their total faith in the innate goodness of an unbridled business sector. Profits are approaching all time highs while wages have remained stagnant for the last three decades! Given that fact, how else can you explain how they never seem to see a regulation that they don’t want to eliminate. It seems like they would eventually learn that capitalism depends on brisk and stringent regulations to contain the innate greed, not goodness, that is built into the system.
Before my conservative friends attack me here I want to declare that I believe capitalism is the best system in the world but it only works when it is adequately regulated. To my friends that think I am too critical at times I am really questioning the idea of almost total de-regulation mantra of Republicans. Do they really believe that regulations have no place in our business world? I would really like to know? Their two failed attempts at de-regulating our financial sector seem to say something. Or is that just me?