Thursday, January 28, 2010
Response to the State of the Union Address
Tuesday, January 26, 2010
Time to Regulate!
Below is something I wrote for a friend to assist in a political science class they (in order to respect anonymity, not to use improper grammar) are taking. It raises my disgust with the greed of the financial industry which is currently allowed to run around like a monkey in a banana factory:
Government regulation is a necessity in the United States of America. Without it, certain groups or individuals would be allowed to take advantage of the nation and its citizens. Leaving elected officials, corporations, or anyone to their own devices would lead to lawlessness and certain danger for the American citizen.
A perfect example of this concept is the financial industry, which includes banks, credit card companies, and Wall Street investment firms. For years, tighter regulations were set on the financial industry in this country. However, deregulation of this industry over the last few decades nearly led to a collapse of the American economy. A taxpayer funded bailout is the only reason that many banks survived. Even this bailout was not regulated much, and the financial industry took advantage of the American taxpayer by spending a large portion of the money on Wall Street CEO bonuses and still have not begun to lend to Americans in need of assistance. Obviously, the greed of Wall Street and the banks has led to nothing but distress for the nation, and heavy government regulation is the only way to help prevent this from ever happening again.
The average American citizen would greatly benefit from tighter regulation of the financial industry. The individuals hurt most by the abuses of power in this industry are the middle class and those living in poverty. Many people are losing their homes because of predatory lending by banks, retirement funds have been drained because of carelessness on Wall Street, credit card companies are raising interest rates and fees during this time of crisis, and banks are not lending to assist those in need. Tighter regulation would ensure that predatory lending would stop, that credit card companies could not charge hidden fees, and that Wall Street could not gamble with investments or taxpayer money. Also, Wall Street could be prevented from using derivatives, which are estimates on an underlying asset that often lead to large losses. These practices are greatly responsible for the current financial crisis in this country, and tighter regulation would help put the economy back on track, and prevent the financial sector from creating a crisis like this again.
The only people that would be hurt by tighter regulation of the financial industry would be the industry itself, as well as very wealthy individuals and corporations who profit off of the industry's current practices. However, they should pay for the grief that they have caused so many in this country. Also, their profits would most likely come out to be about the same, so they do not really have an argument against regulation, other than the the fact that they simply want more at the expense of the average American. Therefore, these regulations would not really hurt anyone all that much, if at all, and should be put in place immediately.
Government regulation of the financial industry is a necessary step in improving America's economy and future. It will help Americans in the greatest need during this economic crisis, and while the financial industry might argue that it will hurt their profits, it will prevent the greed of those on top of the industry from ever harming the nation again.
Sunday, January 24, 2010
Political Courage Test
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