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I've been pondering the ramifications of recent events on the psyche of the American people and I believe the fallout could manifest in unpredictable and dramatic ways.
Throughout our short history as a country there has been a generalized distrust of government and big business. This slow simmering resentment reflects our almost innate understanding that these institutions do not hold our individual well being in high regard, that if you 'follow the money' you find an intrinsic level of systemic waste, fraud and corruption. However, through the generations as our standard of living has risen, and the ruling class has at least made an attempt to conceal the most egregious examples of their abuses of power, we have collectively turned a blind eye and diligently paid our taxes with a sigh of exasperation.
But what now? In broad daylight we are witnessing the blatant plundering of our future. We see billions of bailout money going to institutions who hand out enormous bonuses, throw lavish junkets, buy private jets... and they won't even tell us exactly who got the money. We see the biggest thief in history still sitting in a lavish penthouse instead of in prison. Our retirement funds are dwindling along with the value of our homes. Our most prosperous state is bankrupt. The inevitable derivatives time bomb, the credit card bubble, the commercial real estate bubble all loom on the not so distant horizon. As a remedy the government offers a 'stimulus' package that is largely an ideological wish list and massive pork payoffs. Cabinet nominees don't 'know' they're supposed to pay taxes. Obviously the list goes on and on.
Shortly after the collapse of the Soviet Union I had the opportunity to live in Eastern Europe for a year. I saw firsthand the result of people living under the rule of a government for generations that was blatantly corrupt. There was absolutely no respect for any official authority, only bitter, vitriolic hatred. Absolutely every effort by every individual was made to circumvent taxes and government regulations. The black market still flourished. Organized crime had more authority than the state. Acts of larceny small and great were rampant.
As marginal as it was, we did have a certain naive trust in the government. Is that evaporating? What will replace it? Once trust is lost, it is very difficult to regain. Are we in the calm before the storm? What happens in 4-6 months when the first big wave of the millions of recently unemployed find their allotted unemployment insurance has run out. When people start to get hungry, how angry will they get and where will it be directed? What incentive will there be to follow any rule of law when those with the real money and power live beyond consequences. After squandering any semblance they had of moral authority, how will the government enforce any sort of morality on the desperate?
I'll admit, perhaps due to my cynical nature, I lean more towards the doomer sentiment than I do the rosy outlook portrayed by the mainstream media of some miraculous turnaround in a handful of quarters (based on what fundamentals I ask?). Regardless, just looking at the raw data from many different measures of economic viability both nationally and internationally, I can't help feeling like we've already hit the iceberg and we're in that brief but civilized time when it still seems abstract...the ship is barely listing, the lights are still on. We are still in the daze of consumerism and mass media that has kept the American spirit so docile and tractable for so long. I would be very surprised indeed, albeit happy and relieved, if on this 5th day of February in one year's time, we are not living in a very different country.
Throughout our short history as a country there has been a generalized distrust of government and big business. This slow simmering resentment reflects our almost innate understanding that these institutions do not hold our individual well being in high regard, that if you 'follow the money' you find an intrinsic level of systemic waste, fraud and corruption. However, through the generations as our standard of living has risen, and the ruling class has at least made an attempt to conceal the most egregious examples of their abuses of power, we have collectively turned a blind eye and diligently paid our taxes with a sigh of exasperation.
But what now? In broad daylight we are witnessing the blatant plundering of our future. We see billions of bailout money going to institutions who hand out enormous bonuses, throw lavish junkets, buy private jets... and they won't even tell us exactly who got the money. We see the biggest thief in history still sitting in a lavish penthouse instead of in prison. Our retirement funds are dwindling along with the value of our homes. Our most prosperous state is bankrupt. The inevitable derivatives time bomb, the credit card bubble, the commercial real estate bubble all loom on the not so distant horizon. As a remedy the government offers a 'stimulus' package that is largely an ideological wish list and massive pork payoffs. Cabinet nominees don't 'know' they're supposed to pay taxes. Obviously the list goes on and on.
Shortly after the collapse of the Soviet Union I had the opportunity to live in Eastern Europe for a year. I saw firsthand the result of people living under the rule of a government for generations that was blatantly corrupt. There was absolutely no respect for any official authority, only bitter, vitriolic hatred. Absolutely every effort by every individual was made to circumvent taxes and government regulations. The black market still flourished. Organized crime had more authority than the state. Acts of larceny small and great were rampant.
As marginal as it was, we did have a certain naive trust in the government. Is that evaporating? What will replace it? Once trust is lost, it is very difficult to regain. Are we in the calm before the storm? What happens in 4-6 months when the first big wave of the millions of recently unemployed find their allotted unemployment insurance has run out. When people start to get hungry, how angry will they get and where will it be directed? What incentive will there be to follow any rule of law when those with the real money and power live beyond consequences. After squandering any semblance they had of moral authority, how will the government enforce any sort of morality on the desperate?
I'll admit, perhaps due to my cynical nature, I lean more towards the doomer sentiment than I do the rosy outlook portrayed by the mainstream media of some miraculous turnaround in a handful of quarters (based on what fundamentals I ask?). Regardless, just looking at the raw data from many different measures of economic viability both nationally and internationally, I can't help feeling like we've already hit the iceberg and we're in that brief but civilized time when it still seems abstract...the ship is barely listing, the lights are still on. We are still in the daze of consumerism and mass media that has kept the American spirit so docile and tractable for so long. I would be very surprised indeed, albeit happy and relieved, if on this 5th day of February in one year's time, we are not living in a very different country.
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