Common Sense — Revisited in the New Millennium

Common Sense

Revisited in the New Millennium

 

An Essay by

Stephen R Cafaro

 

 

 

Synopsis

 

Common Sense – Revisited in the New Millennium is an updated version of Thomas Paine’s seditious document of 1776. The current edition of Common Sense develops comparisons between the social, economic and political injustices of 21^st century America and the circumstances of 1776 which led to the American Revolution.

 

The conclusions indicate America needs another revolution in order for her citizens to, once again, take control of their government.  Modern day Americans are faced with conditions much like our colonial ancestors in that reconciliation with an estranged and corrupted government is no longer possible! America can and must do better!

 

Passages from the Introduction

Many Americans think we have our own version of King George, namely President George Bush. They claim the colonial era king had a ruling style similar to our current president in that they both were too arrogant to negotiate, too powerful to submit, too righteous to change, and too financially beholden to their aristocratic colleagues. The validity of these comparisons is left to each of us to evaluate, but I am convinced of at least one similarity. King George and the British Parliament as well as President Bush and the Congress have done a feeble job of representing Americans.

We have been financially pillaged by a system that rewards greed, manipulation and systematic plunder at the expense of morality, dedication and hard work. The outsourcing of American jobs and the exportation of our industries are testaments to a flawed economic system. The import of foreign goods made possible by free trade agreements has wreaked financial hardship on millions of Americans. These elaborate hoaxes were developed by our large corporations and sponsored by our fickle government!

The political parties are a disgrace. Although they claim to stand for different principles, time has proven this is not the case. The Democrats and Republicans have for some time acquiesced to the deep pockets of the affluent while ignoring the petitions of the citizens. The most consistent dribble coming out of Washington is political spin. Just about all politicians are adept at this art of avoiding responsibility.

Like the American revolutionaries, there is no possibility for reconciliation or compromise. The powers that be will not give up their stranglehold, nor will they negotiate in good faith.  We must seize the government, throw out the officials, rewrite the statute books and, once again, declare our independence from the stifling forces that threaten the future of our great nation. In support of this argument for independence I, like Thomas Paine, will “offer nothing more than simple facts, plain arguments and common sense…..”

 

            Passages from Chapter 1 on Representation

The lack of concern for the welfare of the American people is our greatest problem today. Our government does not care, our elected officials do not care, and the people do not care—at least not enough to do something about their declining condition.  If I had to choose a single contemporary issue to compare with the conditions that led to the American Revolution, it would be the deficiency of representative government at the federal level.

Indeed, it would be wonderful if politicians had to account for their performance as you and I must do!  If we lie on an employment application, immediate dismissal is the punishment. If we fail to perform as we claimed, we are fired. If we take actions which are detrimental to our employer, we suffer the consequence. These are punishments we routinely experience when we violate the employment relationship. However, the politician is largely exempt from these standard admonishments. In a job that bears so heavily on our lives, the elected official is rarely held responsible for his employment obligations to his constituents.

I would like to be generous to our wayward representatives and place the blame for our decline on human error, but I would be naïve. Logic dictates that the severity of our decline points to a planned outcome rather than a myriad of bad decisions. It simply follows there can not be that many dim-witted people in government.

I propose to correct this malfeasance through legislation which defines the responsibilities of elected officials to their constituents. Politicians need to be regulated like accountants, lawyers, real estate agents and a host of other occupations. I suggest politicians be bound by the laws of agency prescribed in many professions that work with the public in matters of fiduciary responsibility and primary representation. The relationship between the electorate and an elected representative should be one of principal and agent.

 

Passages from Chapter 2 on Economic Freedom

Our government, at the behest of our multi-national corporations, was instrumental in the transition when it revised import and tariff regulations to suit the needs of the exodus. These subtle moves essentially paved the way for the mass departure of American industry to foreign countries. At this point, I would like to pose an ironic and provocative question. Is it possible for a country to betray its citizens?

All these changes have occurred because our government has sanctioned them. Without the implicit assurances of the administration, the movement to globalization would be impossible. At face value, any American fifth grader would refuse to accept the same rate of pay as a Chinese coolie, but somehow it becomes acceptable practice to our leaders. It is economic suicide to enter into pacts that are designed to debase our country, but our government representatives have done just that.

As I mentioned earlier, government officials are not stupid in spite of what one may think. Self interest is the clear incentive for many economic decisions and too often, these decisions are in conflict with the general welfare of the country. Given our present state of economic hardship and the potential for financial collapse, is it any wonder that less than 10% of Americans approve of the congress?  And so I repeat my question! Is it possible for a country to betray her citizens? And I answer! Yes, the President and Congress in collaboration with America’s unrestrained capitalists have committed treason against the citizens of the United States. They have undermined our social, political and economic standards and threaten our existence as a sovereign country.

Residually, we have only the memories of a great society to remind us of how far we have fallen. Of course, there is the price tag for our indifference which will memorialize our deterioration for generations to come. The unpaid debt of an empire that lost its way will be the curse of America’s unborn. The false promise of globalism will be a testament to the gullibility of mankind who failed to recognize how pervasive unbridled greed can be. Ultimately, individual freedom will go the way of economic freedom!

The economic system which America has embraced is at the heart of our social, economic and political problems. Just as water is necessary to life, it can also be an instrument of death when consumed in excess. The same is true of capitalism, whose precepts energize basic human motivations such as self interest, personal achievement and innovation. Unlimited water intake results in drowning in much the same way as unrestrained capitalism leads to the destruction of the country! It is axiomatic that anything in excess is detrimental to well being!

 

Passages from Chapter 3 on Capitalism and Nationalism

Nationalism and patriotism, which should share common objectives, have become contradictory ideas.  Patriotism is confined to agreeing with government wars, saluting when the national anthem is played, or rooting for American athletes at the Olympics; whereas nationalism is a dirty word.  Instead of taking comfort in our country’s legitimate objectives and achievements, the propaganda spewing from our government lead us to believe that our national interests are best served by the nebulous concept of globalism.

Today, anyone placing a phone call to a large American company will probably wind up speaking to a foreigner with an annoying accent. As for the promise of new and rewarding jobs for Americans, it died in 2001 with the bursting of the dot com bubble.  It appears the surviving technology firms favor the low wage countries of the world. But, take heart! We have access to the informational advances that permit us to “google” anyone or anything while sitting idly at home wondering how we will make the next house payment.

Another detrimental factor to the American worker has been the proliferation of illegal immigrants. The deluge of uncounted millions of illegal workers has put extreme downward pressure on wages in the United States. Jobs in the construction trades and service sectors that used to pay a living wage now pay slightly above the minimum wage.  Our government and businesses are content to exploit this group as a source of cheap labor. In doing so, they have battered the standard of living of tens of millions of Americans, while failing to give the illegal immigrants a path to a realistic livelihood. Illegal they are, but inhuman, they are not!

We must refuse to be the fools of the corporate and wealth elitist that have placed us on the path to devastation. The idea of outsourcing jobs to foreigners, who produce goods which are imported into the United States to be consumed and paid for by Americans, is self-destructive.  If we continue to accept this crippled concept of economics, then we are either stupid, naïve or lazy and deserve the miserable future that awaits us!

 

Chapter 4 on Making a Difference

            The vast majority of Americans know instinctively that the country is on the wrong track. We understand that America is drifting in every imaginable way. We all feel the financial pinch, the political instability, the social irresponsibility and the moral degradation; but we stand by mutely accepting the demise of America. Silence is passive acceptance of the wayward policies that have created our present circumstance. In the face of this great wall of silence, our government in their corrupt alliance with business is encouraged to continue with the looting of America!

What stops us from seizing the initiative? When millions lose their jobs as a result of a flawed trade agreement, why is there not a massive march on Washington, DC? When we are led into a war by lies and duplicity, why don’t we hold the traitors accountable for their treachery and treason? When our savings and national wealth is eroded by the reprehensible practices of the Federal Reserve, why do we accept the logic of “too big to fail”? When our immigration laws are ignored so as business can have access to cheap labor, why don’t Americans become infuriated? When we elect a new congress to deal with these injustices, why do we accept their inaction?

It’s time to eliminate private banks.

Just like healthcare, the cost of higher education has increased beyond the reach of those who must pay for the critical services. It’s hard to pinpoint why the cost of higher education continues to escalate far in excess of normal inflation. But, a break from the never ending increases is a welcome event to millions of struggling students and their families.

The recent decision by the Federal government to eliminate the middle man from student lending programs may prove to be historic. The logic for this policy shift is simple. For years, student loan programs were run, supported, funded and insured by the government, but the banks were the official lending institution. It was a pretty sweet deal for the bankers who pulled in lucrative profits, but had little risk exposure. Essentially, the money brokers raked in profits from the majority of students who paid their loans, but passed off the deadbeats to the government under a cozy arrangement.

It does not take a genius to recognize the immediate cost savings that result from the government cutting out the banks. No middle man translates to lower interest rates which lead to lower payments which results in greater affordability which means fewer defaults which makes more money available for more students. It’s a win-win situation for the students, our government and our economy. The only apparent losers are the banks who have lost their exclusive access to the education money pit.

Why has this monumental hole not been closed earlier? It seems financial institutions have a long history of making money with other people’s money while passing off the risk of doing business to the government. As a result of this comfy situation, the government has enacted guarantees such as the FDIC to protect depositors and the economy from the frequent missteps of the middleman brokers.

Today, the government produces dollars for the banks at interest rates close to zero. The banks then pass the money off to consumers who are forced to pay interest rates of 5 to 25 percent for the privilege of borrowing the money from the middle man. The banks make immense profits until they inevitably get greedy. And when these banks screw up and threaten the viability of our entire economy, the government feels obligated to save them with trillions of free dollars because they have become “too big to fail”.

It seems our government can eliminate the entire private banking system. Hopefully, the government takeover of the student loan program is a first step in abolishing this archaic scheme. It does not make economic sense for our government to produce, distribute and guarantee dollars for banks that have so frequently failed the American people and endangered our way of life.

More “free money” from your out of touch government!

The latest government give-a-way is the Cash for Clunker Appliance program recently announced by the Obama Administration. The freebie comes in the form of a 20% rebate on select energy efficient appliances. There promises to be a rush for the government gratuity which means get in line right away if you wish to get some of the 300 million dollars available. Following on the heels of the Automobile Cash for Clunkers Program, one might begin to wonder why the Feds insist on stimulating the economy by subsidizing consumption.

The official answer claims personal consumption is necessary to restart America’s stalled economic engine. The logic states that once people begin consuming again, then jobs and renewed prosperity will automatically follow. This reasoning might work if the USA was still a prominent manufacturer of automobiles and appliances. Unfortunately, the USA has fallen behind other countries in the production of autos and appliances. For instance, the USA has dropped to third place in the production of autos, behind first place Japan and second place China. The picture is far more dismal for the production of appliances. Ironically, our country is perpetuating our present crisis with their unsound agenda.

Because of our diminishing manufacturing capability, the greater effect of consumption incentive programs winds up stimulating the economies of foreign countries that generate the majority of products Americans use. As a result, the Clunkers boondoggle increases our National Debt, enlarges our Trade Deficit and amplifies our personal debt while utterly failing to increase employment opportunities in the US. It either represents economic policy gone wild or a carefully executed scheme of those who embrace the nebulous cause of globalism.

If the Clunkers programs applied to American made products only, then increased employment would follow. Subsequently, people would have more money for legitimate consumption and the stage would be set for increased prosperity. As it stands, anticipate there will be still another stimulus with more government sponsored hand-outs. And one day, when government’s flawed policies renders the dollar worthless, we will all learn that there is no free ride. Hopefully, Americans will then understand they must produce in order to consume.

Contradictory national priorities are a paradox for the political activist

The outcry from Republicans and their affiliate populist group, the Tea Party, is almost deafening. Their outrage over the recent passage of healthcare reform is in many ways justified. Here is still another government program that will, no doubt, wind up costing the consumer more while enriching a relatively few corporations and wealthy people. The concerns of creeping socialism and the loss of individual rights is a genuine concern. But, in order to get a proper perspective, it is important to compare this recent legislation to other actions that have impacted our lives.

For example, the award of trillions of dollars of taxpayers’ money to subsidize the errors of America’s financial institutions was far less scrutinized than healthcare. Sure, there was some debate and concern about the immense bailout, but it measured as a minor quake on the Richter scale when compared to the violent earth shaking reaction that preceded and follows the controversial healthcare law. And just what can be more socialistic and anti-capitalistic than the expenditure of a nation’s resources for the benefit of a handful of inept and failed businesses?

And what of the contentious Jobs and Growth Tax Reconciliation Act of 2003 whereby tax relief was supposedly granted to the general population? The end result of fewer jobs, lost wages, skyrocketing National Debt and the housing crisis speaks volumes of the social inequities contained in this aristocratic legislation. Where was the public indignation when the tax burden was shifted from the rich to the middle and working classes thereby further increasing the level of income and wealth inequality? Where the public outrage as the National Debt grows to unsustainable levels creating an immense obligation for generations of unborn Americans? The cries for economic and social justice pale when compared to the current healthcare controversy.

What are the social, economic and political priorities of our nation? It appears people are most radical when they are asked to share basic living accommodations with their fellow Americans. At the same time, these same people become reluctant to rail against the far more detrimental aristocratic practices that have created an economic dependence on a relatively few wealthy elitists.

Are we so brain washed by the political spin of the Democrats and Republicans that we are unable to decipher what truly works for America and her citizens? Have we inadvertently surrendered the independence and liberty we all seek to defend to a hidden power that already controls us through its influence on our political officials? It is good the populist rebellion is now in place and is being heard. Hopefully, we will begin to understand who or what we should rebel against before it is too late!

Will the USA have inflation, deflation or economic stagnation?

How is it possible that our government can create trillions of dollars and not cause strong inflationary pressures on the economy? Moreover, how can some officials claim that our country may come under severe deflation in spite of the immense amount of new money manufactured by the FED? The US economy is undergoing some strange gyrations that are unfamiliar to most observers and, subsequently, it appears there is a wide divergence of opinion as to the direction of our country.

Inflation comes as a result of putting too much money into the economy. In essence, it is the consequence of too much money chasing too few goods. No one can question there has been a massive injection of dollars, but there is negligible inflation according to our government. One reason for this anomaly may be the fact that few of these newly minted dollars are reaching the consumer. Most of the money has gone to failing financial institutions and was largely used to pay their old debts which insured the viability of wealthy investors. Therefore, there is no new economic activity that can spike inflation rates. Suffice it to say the average taxpayer will pay a hefty price for their compulsory participation in this scheme to save the wealthy from their poor investment decisions.

Deflation is the effect of too few dollars chasing too many goods. In this situation, prices decline due to an oversupply of goods in the market place. The housing crisis is an excellent example of deflation in the US economy. There is a case for declining prices in other areas as well. For instance, productive capacity in the USA and the world continues to increase even as wages decrease and jobs are eliminated. In other words, more products are being created, but there is a reduced capacity to purchase the increased supply. This is a recipe for massive deflation if the trend persists.

At the core of the inflation-deflation argument is the worker/consumer who has been left out of the current economic equation. Inflation or deflation will come proportional to the ability of the average person to participate in the economy. Deny too many people a job or a living wage in an environment of increased productivity and deflation is the logical conclusion. Alternatively, inflation will inevitably develop in a full employment economy when the Fed is loose with its money making policy.

Our inept leaders are charged with the responsibility of determining our nation’s economic future. Is it any wonder the USA finds itself in the current dilemma? Our future will continue to be clouded until those in control understand economic policy must be made to benefit all Americans and not just a handful of wealthy elitists.

President Obama signs healthcare legislation

President Obama is scheduled to sign the monumental healthcare bill today. After a year of vigorous debate by the Democrats and Republicans, one might think the public is informed on the issue. Unfortunately, neither side has been forthcoming and the majority of people are confused by the rhetoric of both sides. The innuendo, spin and outright lies have left Americans in the dark.
As this is being written, there is no new light to shed on this mysterious legislation. The supposed motive of universal healthcare is admirable for an advanced nation like the USA. There are over 47 million Americans who do not have insurance and subsequently burden the system with gratis emergency room visits and unpaid hospital stays. It is widely accepted that these unpaid bills are passed on to those with medical coverage in the form of increased insurance and medical costs. Subsequently, bringing the uninsured into a managed care organization seems to make financial and moral sense.
The opposing argument suggests the American economy and those with insurance will be further harmed by the legislation. They claim that the onslaught of the newly insured would seriously curtail the ability of everyone to get reasonable healthcare. In addition, there is an issue of a reduction of benefits to the existing millions covered under Medicare or Medicaid. There are assertions that senior care might be regulated by so called death squads. Finally, there is the concern genuine reform has not been addressed and medical costs will continue to escalate in the future.
As always, the American people are denied access to the intent of the new legislation and the true motivations of both parties. The hopeful among us look for the redeeming features of an ambiguous plan. The skeptics remain wary watching for the telltale signs of corruption and the inevitable payoffs to the corporate giants who control America. And through it all, few can deny the American political system is hopelessly lost in a quagmire of self-interest. America can and must do better!

Where have all the jobs gone?

The national unemployment rate is 9.7% with a caveat that the adjusted rate is closer to 17%. The unemployment rate in lee County, Florida is 17% and the rate adjusted for underemployment and discouraged applicants is closer to 25%. The Fort Myers-Cape Coral area recently won the dubious distinction of having the highest unemployment rate in the nation. The federal government is finally officially recognizing the crisis and has enacted a hopelessly inadequate jobs stimulus package of 18 billion dollars. Unfortunately, nothing of substance will result from the late and insufficient action!

One must first recognize the nature of unemployment in the USA if there is to be a realistic solution. Our political and business leaders have ignored the genesis of our current problem for far too long. Through their inaction, they may have created permanent structural unemployment in our country. The consequences of free trade and illegal immigration have debilitated our economy and produced the high unemployment rates we are currently experiencing.

Since 1976, the USA has had a horrific string of uninterrupted trade deficits which has cost our economy over 7.2 trillion dollars. During the same period, tens of millions of jobs were lost to foreign manufacturers who have the clear advantage of a penny labor force, hardly any labor laws and very few environmental concerns. None the less, our leaders continue to expand the losing trade relationships by incentivizing American producers to shift their production to foreign countries. It makes no financial sense for the vast majority of Americans, but it is obviously quite profitable for our multi-national corporations and our corrupted congress. It appears we are intent on committing national economic suicide, for a profit.

The issue of illegal immigration is another financial nail in the coffin of the USA economy. Both parties have railed against the illegals, but neither party has done anything to enforce existing laws. The undocumented worker is willing and able to work for lower pay and subsequently has caused the loss of work for millions of American citizens. In addition, the scale of wages in related career fields has fallen due to the increased competition for the available jobs. Essentially, our government leaders at the request of their corporate sponsors have artificially inflated the labor force resulting in an oversupply of workers. Businesses love this situation because lower wages generally means higher profits.

The solution to the present day economic crisis is clear. The USA needs good paying work. The living wage jobs are immediately available if our leaders do the right thing for America. Repealing the free trade agreements and enforcing the immigration laws would result in a revitalized economy with increased opportunities for every American citizen. It’s time we all be concerned with the future of our country!

What is the future of health care reform in the USA?

The issue of universal healthcare in the USA has been debated for close to a year by our representatives in Congress. You might think there would be some clarity to the arguments by this time, but the constant flurry of spin, innuendo, lies and outright nonsense has left the American people in the wonderland of the confused. Today, on the eve of a critical vote for healthcare, the polls indicate Americans are just about equally divided on this monumental topic. Congress has failed to show meaningful leadership!

It’s unfortunate because there are significant problems hidden behind the debates. Healthcare costs have raced out of control for over 20 years. In fact, the radical increases have fractured the budgets of the majority of our countrymen. Efforts to understand the anomaly have been frustrated and relief from the staggering costs has been elusive. Add to this disparity the fact that over 46 million people are uninsured and the need for reform becomes painfully apparent.

On the other side of the debate is a solid block of legislators who believe that the present proposal is full of hidden agendas which will ultimately result in higher and more uncontrollable costs. This group claims corruptive influences in the form of special favors has tainted the legislation. They have injected fears of lost benefits and restricted medical access for those presently insured. They have raised concerns among the elderly about planned death initiatives. They have effectively presented a case against reform.

No one misses the fact that the proponents and opponents of healthcare are divided by party affiliation. For the diligent observer, one can easily surmise how this succinct division can occur. Our representatives are so beholden to their respective parties that their only allegiance is to the position adopted by the Democrats or Republicans? If so, what is the fate of the representative government? What happens to our country when an issue is not resolved in the interest of the greater good, but rather on the basis of political affiliation?

This scenario is not new to American politics. The concept of divide and conquer has been successfully used by both the Republicans and Democrats to split and confuse the masses. In turn, the electorate has shown their disdain by fleeing the two parties and choosing to become Independent. Unfortunately, this gesture of contempt is unproductive. If our leadership is poor, they must be replaced. If the two parties are in collusion, they must be destroyed. Representative government is dead and only the fanatical intervention of an aroused citizenry can restore a responsive leadership!

The economic case for paying a minimum wage

A living wage should not be confused with a minimum wage. The Federal minimum wage is now set at $7.25 per hour. If you’re one of the millions of Americans that hold a minimum wage job, you would earn approximately $1,256 a month or $15,068 a year. It is impossible to survive in the USA on a minimum wage job.

The minimum wage should be replaced with a living wage. Every American, with some exceptions, who works a full time job, should be able to make an income sufficient to adequately feed, house and care for a family. The social benefits would be immense. With everyone making a living wage, there would be additional consumption, less crime, increased innovation and new opportunities. In addition, the federal, state and local government would be relieved of the burden of subsidizing underpaid laborers with food stamps, housing allowances, medical assistance, earned income credits and a host of other programs designed to permit lowly paid Americans to live at a subsistence level.

The many employees caught in the trap of minimum wages and the degrading need to obtain government handouts would have a new sense of fulfillment which is the very essence of the American dream. Once businesses are no longer dependent on the government to support their employees, they will be forced to develop a new business plan in order to properly pay their employees. This will not be a simple task, but it has been done in the past and it is very doable now.

Obviously, there will be a groundswell of opposition from business. Once again, they will have to be self-sufficient and will have to learn how to become independent of the government crutch that has insured their profitability. In order to keep good, productive and healthy employees, businesses will have to provide a living wage. No doubt, businesses will fight back with fears of economic stagnation, declining income and possible bankruptcy. For some, this scenario will become a reality. But for those who are able to adjust, their success will be a tribute to American spirit of self- reliance and autonomy which made our country great.

Millions of businesses in the USA already pay a living wage or better to their employees. They understand that in order to attract and keep good help, it is their obligation to meet basic financial standards. It hasn’t always been this way. The struggle for equitable wages has been a battle for generations of Americans. The task may be daunting, but it quite possible.

In January of 1914, Henry Ford made history when he voluntarily doubled the wages of his employees to $5 a day. He was berated by many of his colleagues, but he had a higher goal. Ford ascertained that his generosity would pay off in the form of loyal employees who would now be capable of buying his automobiles. Ford was right and he went on to become a leading industrialist of his age.

Too big to fail – the failure of free market capitalism!

The subject of “too big to fail” has been beat to death by the media. But as our economy continues to struggle to find some sense of balance, it is important to understand the root of our current malaise. Some decades back, the USA with the approval of American business decided that our country was not competitive in the world economy. Under the banner of “free trade”, the USA encouraged the export of jobs, factories and industries to foreign countries. The USA began the slow, destructive path from a producing nation to a consumption economy. We were forced to refocus our considerable resource to other alternatives where American ingenuity would again prevail.

Some may recall the promise of a new information economy where the USA would lead the world with an enhanced computer technology that would recast the way business is conducted. Sure enough, the technology did develop, but the USA cannot lay claim to being an insightful leader in this growing and innovative field. To the contrary, many American businesses had elected to export our knowledge base to foreign engineers, architects, accountants and other professionals whose cost effectiveness outweighed their American counterparts. Americans were left with immense computing power which is largely used to play a never ending array of complex games. We can readily socially connect with lost classmates and old friends, but we can’t find a living wage job that provides an outlet for our latent creativity. Once again, we were instructed not to worry as “free trade” and “market forces” would provide for our nation’s future.

And so the USA had arrived at its new position as a global leader which entailed continual consumption using a currency that was the envy of the world. For a while, everything seemed to work quite well. Americans went on a buying spree gobbling up inexpensive foreign products using dollars to pay for their endless appetite. Foreign countries gladly supplied the products in exchange for the coveted dollar. It appeared that American capitalism had developed a new paradigm as a super power.
American financiers became the new productive mode. They developed innovative and exotic monetary products which were used to drain the world of their excess dollars. Mortgages, credit cards, school loans, car loans and every other instrument of American debt were presented to the world for their consumption. The financial geniuses even provided guarantees of profitability in the form of insurance policies. And then the inevitable collapse came as the American consumer defaulted on their obligations. They simply did not make enough money to support their spendthrift habits. The disease spread to the banks infecting the American economy before contaminating the world.

The banks and their wealthy allies were “bailed out” by a taxpayer injection of trillions of dollars effectively aborting the concept of “free markets”. It appears a temporary reprieve as the economy totters for lack of direction. Mixed signals betray the confusion that prevails. Wall Street responds with optimistic growth while Main Street struggles to stay in their homes. The ill-conceived theory of consumption without production has been firmly crushed. There is no free ride- America must go back to work and begin producing for her own needs if we are to have a viable economy.

Let’s sue the banks for their hypocritical approach to the housing crisis

Many homeowners anxious to keep their homes have enrolled in various government sponsored programs aimed at permitting financially distressed people to remain in their home. The Home Owner Preserving Equity program (HOPE) was one of the earlier government initiatives that proved to be inadequate. Very few people were able to get relief with HOPE because it failed to properly identify the nature of the problem. The government, under the Obama administration rolled out the Home Affordability Modification Program (HAMP) which did successfully identify the dilemma. Unfortunately, HAMP has a dismal record of achievement. Few residents have gotten the relief necessary to keep their homes. Instead of a revised mortgage, millions of applicants have become frustrated with the tactics of banks and loan servicers who have made a complete mockery of the theoretical rescue package.

The horror stories are abundant but the details of the nefarious scheme are remarkably similar. The tale of a distressed applicant enrolled in HAMP for over a year speaks of the uncaring and frivolous attitude of the bank handling her application. She lost one of two full time jobs and had her hours cut back in her second job. This mother of three promptly notified Wachovia Bank of her difficulty. Wachovia responded with requests for various documents, a complete review of her financial situation and the promise of relief if she satisfactorily completed a three month trial period. The woman sent in the required payments and responded promptly to additional requests for documents. At the end of the trial period, she was notified by Wachovia that there would be another trial period. Once again, she faithfully adhered to trial period only to be disappointed. At the last moment, she was notified her loan now was owned by Wells Fargo.

Wells Fargo started the process over again requesting documents and placing the dejected woman in another trial program. Recently, she completed the trial and was placed in a fourth trial period. To date, she has sent in 14 copies of near identical documentation, made 38 phone calls, had required home counseling, written 3 hardship letters and has been visited by a bank representative. She continues to respond to this idiotic procedure. She really wants to keep her home.

This is not a lone instance nor is Wells Fargo the only screwed up bank. Bank of America, Citi Bank and many other organizations have been accused of comparable devious tactics. These institutions lack either a heart or a brain and should be reprimanded for their complete lack of ethics. They have an obligation to be forthcoming with the financially impaired homeowners. Banks should promptly resolve the issues rather than holding distressed residents on a whimsical string with their veiled inferences of a successful outcome. It is all the more appalling that these same banks received billions of dollars of bailout funds to rescue them from their financial blunders.

Some homeowners have combined in an effort to sue the banks for their reprehensible behavior. If anyone is interested in joining a similar law suit, please respond to this article and perhaps you can hold the banks accountable for the misery they continue to inflict. People need to be able to go on with their lives without the phony promise of something that will never happen!