The Daring Depravity of the Times

Nobel laureate economist Paul Krugman wrote that the 2008 Financial Crisis “brought the world economy to the brink of collapse and cost millions of innocent Americans their jobs and/or houses.” Krugman explained public outrage was justified because “we’re running a system of lemon socialism, in which losses are public but gains are private.” The government bailed out big banks with taxpayer money (aka welfare for the rich.)

President Obama capitalized on the public outrage. Obama called out the “fat cat bankers on Wall Street,” and their “greed and irresponsibility,” that “caused the problem.” However, when the CEO’s of the banks threatened to fund a Republican in the next election, Obama’s tone shifted. Suddenly, Obama said the greedy bankers were actually “very savvy businessmen.” President Obama didn’t “begrudge” the $17 million bonus to JPMorgan Chase CEO Jamie Dimon or the $9 million bonus to Goldman Sachs CEO Lloyd Blankfein. Meanwhile, 10 million Americans lost their homes. Eight million Americans lost their jobs.

Obama’s response to the 2008 Financial Crisis followed James Madison’s principle of governance. Madison said, “Our government ought to… protect the minority of the opulent against the majority.” After all, “The Senate ought to come from, & represent, the Wealth of the nation.” The Big Beautiful Law signed by Trump was another confirmation of Madison’s principle. The Economic Policy Institute wrote, “policymakers cut programs designed to help low-income workers, those who cannot work, and their families access [to] health care to fund tax breaks that,” benefit the wealthy ruling class.

Tax cuts for the rich (that stole benefits from poor families) were the rule, not the exception. The Institute on Taxation and Economic Policy wrote, “From 2001 through 2018,” tax cuts under Bush, Obama, and Trump all went “to the richest 1 percent.” Newsweek reported that Biden’s “Build Back Better plan cuts taxes for the rich [and] burdens working Americans with new taxes.” Democrats and Republicans have worked hard for decades to protect the minority of the opulent against the majority.

The Congressional Budget Office (CBO) said the Big Beautiful Law would “add over $3.9 trillion to the national debt.” However, policymakers are not concerned about this, since taxpayers pay the government’s debts. The Financial Times reported that the beautiful law slashes “healthcare spending by more than $1.1 trillion.” It increases “the number of people without health insurance by 11.8 million,” and robs millions of Americans of their food stamps.

Yet, the Wall Street Journal said it was “a big win” for corporations (big oil and gas), private equity managers, private schools, and weapon manufacturers. The New York Times said, “It’s Robin Hood in reverse.” Republicans took “hundreds of billions from the poor to give it to the rich.” This was the role of the government established by James Madison— the rich rob the poor. Later in life, Madison lamented, “The daring depravity of the times. The stockjobbers will become the pretorian band of the Government, at once its tool and its tyrant.”

Anton Porcari

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