When the Banks Own the Congress

Passing on the Risk to the Taxpayer

By RALPH NADER —[print_link] Dateline: March 30, 2010

A society not alert to signs of its own decay, because its ideology is a continuing myth of progress, separates itself from reality and envelops illusion.

One yardstick by which to measure the decay in our country’s political, economic, and cultural life, is the answer to this question: Do the forces of power, which have demonstrably failed, become stronger after their widely perceived damage is common knowledge?

Economic decay is all around. Poverty, unemployment, foreclosures, job export, consumer debt, pension attrition, and crumbling infrastructure are well documented. The self-destruction of the Wall Street financial giants, with their looting and draining of trillions of other people’s money, have been headlines for two years. During and after their gigantic taxpayer bailouts from Washington, DC, the banks, et al, are still the most powerful force in determining the nature of proposed corrective legislation.

“The banks own this place,” says Senator Richard Durbin (D-IL), evoking the opinion of many members of a supine Congress ready to pass weak consumer and investor protection legislation while leaving dominant fewer and larger banks.

Who hasn’t felt the ripoffs and one-sided fine print of the credit card industry? A reform bill finally has passed after years of delay, again weak and incomplete. Shameless over their gouges, the companies have their attorneys already at work to design around the law’s modest strictures.

The drug and health insurance industry, swarming with thousands of lobbyists, got pretty much what they wanted in the new health law. Insurers got millions of new customers subsidized by hundreds of billions of taxpayer dollars with very little regulation. The drug companies got their dream—no reimportation of cheaper identical drugs, no authority for Uncle Sam to bargain for discount prices, and a very profitable extension of monopoly patent protection for biologic drugs against cheaper, generic drug competition.

For all their gouges, for all their exclusions, their denial of claims and restrictions of benefits, for all their horrendous price increases, the two industries have come out stronger than ever politically and economically. Small wonder their stocks are rising even in a recession.

The junk food processing industry—on the defensive lately due to some excellent documentaries and exposes—are still the most influential of powers on Capitol Hill when it becomes to delaying for years a decent food safety bill, using tax dollars to pump fat, sugar and salt into the stomachs of our children, and fighting adequate inspections. Over seven thousand lives are lost due to contaminated food yearly in the US and many millions of illnesses.

The oil, gas, coal and nuclear power companies are fleecing consumers and taxpayers, depleting and imperiling the environment, yet they continue to block rational energy legislation in Congress to replace carbon and uranium with energy efficiency technology and renewables.

Still, even now after years of cost over-runs and lack of permanent storage for radioactive wastes, the nuclear industry has President Obama, and George W. Bush before him, pushing for many tens of billions of dollars in taxpayer loan guarantees for new nukes. Wall Street won’t finance such a risky technology without you, the taxpayers, guaranteeing against any accident or default.

Both Democrats and Republicans are passing on these outrageous financial and safety risks to taxpayers.

Congress, which receives the brunt of this corporate lobbying—the carrot of money and the stick of financing incumbent challengers—is more of an obstacle to change than ever. In the past after major failures of industry and commerce, there was a higher likelihood of Congressional action. Recall, the Wall Street and banking collapse in the early 1930s. Congress and Franklin Delano Roosevelt produced legislation that saved the banks, peoples’ savings and regulated the stock markets.

From the time of my book, Unsafe at Any Speed’s publication in late November 1965, it took just nine months to federally regulate the powerful auto industry for safety and fuel efficiency.

Contrast the two-year delay after the Bear Stearns collapse and still no reform legislation, and what is pending is weak.

Yet the entrenched members of Congress, responsible for this astonishing gridlock, are almost impossible to dislodge even though polls have Congress at its lowest repute ever. It is a place where the majority is terrified of the corporations and the minority can block even the most anemic legislative efforts with archaic rules, especially in the Senate.

Culturally, the canaries in the coal mine are the children. Childhood has been commercialized by the giant marketers reaching them hour by hour with junk food, violent programming, video games and bad medicine. The result—record obesity, child diabetes and other ailments.

While the companies undermine parental authority, they laugh all the way to the bank, using our public airwaves, among other media, for their lucre. They can be called electronic child molesters.

We published a book in 1996 called Children First!: A Parent’s Guide to Fighting Corporate Predators in the Media. This book is an understatement of the problem compared to the worsening of child manipulation today.

In a 24/7 entertained society frenetic with sound bites, Blackberries, iPods, text messages and emails, there is a deep need for reflection and introspection. We have to discuss face to face in living rooms, school auditoriums, village squares and town meetings what is happening to us and our diminishing democratic processes by the pressures and controls of the insatiable corporate state.

And what needs to be done from the home to the public arenas and marketplaces with old and new superior models, new accountabilities and new thinking.

For our history has shown that whenever the people get more engaged and more serious, they live better on all fronts.

Only the Super-Rich Can Save Us!, a novel.