Americans see themselves as part of a free-market economy, but that may be merely an illusion. The Bush Administration’s proposed bailout of the banking sector will spend in one year twice what has been spent on the Iraq war over the previous five years. The big banks lobbied for deregulation which allowed them to earn money through additional means. Hence, the deregulation allowed banks to make money faster. However, no sooner did the investments mechanisms collapse than they went to capitol hill asking for a taxpayer bailout.
The Bush Administration’s TARP proposal will allow the incoming Treasury Secretary to have at his discretion the dispensing of $700B in funds with no accountability to Congress. His use of the money will be above reproach which is exactly the kind of central planning the cold-war era communists were accused of. The difference is in the United States the central planners are corporate communists. If we can nationalize the banking sector, then why not nationalize other sectors such as HMOs and hospitals?
Any solution to this form of economic tyranny will need to arise from a viable third party. Democrats took over congress in 2006 and immediately the corporate donations began flowing to them. The result is they too have been beholden to those same special interests. Only with events driving a meaningful change can a third party arise which will bring about reform from this corporate mindset controlling the government.