by Howard Zinn

This current financial crisis is a major way-station on the way to the collapse of the American empire. The first important sign was 9/11, with the most heavily-armed nation in the world shown to be vulnerable to a handful of hijackers.

And now, another sign: both major parties rushing to get an agreement to spend $700bn of taxpayers' money to pour down the drain of huge financial institutions which are notable for two characteristics: incompetence and greed.

There is a much better solution to the current financial crisis. But it requires discarding what has been conventional "wisdom" for too long: that government intervention in the economy ("big government") must be avoided like the plague, because the "free market" will guide the economy towards growth and justice.

Let's face a historical truth: we have never had a "free market", we have always had government intervention in the economy, and indeed that intervention has been welcomed by the captains of finance and industry. They had no quarrel with "big government" when it served their needs.

It started way back, when the founding fathers met in Philadelphia in 1787 to draft the constitution. The first big bail-out was the decision of the new government to redeem for full value the almost worthless bonds held by speculators. And this role of big government, supporting the interests of the business classes, continued all through the nation's history.

The rationale for taking $700bn from the taxpayers to subsidise huge financial institutions is that somehow that wealth will trickle down to the people who need it. This has never worked.

The alternative is simple and powerful. Take that huge sum of money and give it directly to the people who need it. Let the government declare a moratorium on foreclosures and give aid to homeowners to help them pay off their mortgages. Create a federal jobs programme to guarantee work to people who want and need jobs and for whom "the free market" has not come through.

We have a historic and successful precedent. Roosevelt's New Deal put millions of people to work, rebuilding the nation's infrastructure, and, defying the cries of "socialism", established social security. That can be carried further, with "health security" - free health care - for all.

All that will take more than $700bn. But the money is there. In the $600bn for the military budget, once we decide we will no longer be a war-making nation. And in the swollen bank accounts of the super-rich, by taxing vigorously both their income and their wealth.

When the cry goes up, whether from Republicans or Democrats, that this must not be done because it is "big government", the citizenry should just laugh. And then agitate and organise on behalf of what the Declaration of Independence promised: that it is the responsibility of government to ensure the equal right of all to "life, liberty, and the pursuit of happiness".

Only such a bold approach can save the nation - not as an empire, but as a democracy.

http://www.commondreams.org/view/2008/10/02-2

I have to say this your Hitler looking pic has alway turn me away from what you say. But this is a plan that worked before and I like it. And we don't really need to be fighting their war for them.

madman, this Senate plan is a porked up bribery of Senators with 1.7 trillion in earmarks above the 700 billion.

who's dumber than dumb?

Congress assumes there is 700 billion floating around to spend like frenzied hyenas.

Wait til the House gets done making it their own.

Barry won't want the White House after that.

They will prespend his budget fantasies and leave him holding the crying towel.

But we get the bill.

What's wrong with that picture?

Oh I never judge a book by its cover Mark. I never judge anyone by their avatar pic. Howard Zinns idea would be far far more productive than handing a trillion over to the same guys who made this mess with no penalties and no oversight I cannot understand how the senate could pass it. Its madness and both party leaders are for it, Pallin and Bush. We are doomed

I think if Bush had any balls. He would get them to leave off that pork. And whoever wanted those arrows should have there name on it so the people would know who's adding the crap on it. This is just as bad as the bankers.

the only pork Bush understands is the type that fills the pockets of his big business supporters.

I totally agree that the money can be spent a better way. The question i ask is why spend it at all? Most of that money is going to be printed, which in turn means lowering the value of the dollar, which leads to inflation tax. If the money is never spend, people will be able to keep what they would have contributed, and no one gets a bogus tax.

I also agree that america needs to relook at our foreign policy. We need one of nonintervention. This would save trillions. Too bad no one running for next term believes this...

One big argument to this is; doesn't big government kinda contradict "Independence"?

Thats a damn fine start, follow that up with a rescinding of all the horrible sovereignty killing international agreements, such as NATO, WTO, IMF, NAFTA... these all have to go. Another thing we need to do is remove the Cancer of our intelligence agencies, who have stopped gathering intelligence as much as they have become a covert infiltration and provacatuering organization.

Here's another idea, why not legalize all drugs and just slap a luxury tax stamp on them? Can you imagine the farms and drug war money you'd save just by legalizing weed?