“Socialism for the rich”

Posted: 7 December 2010 in Uncategorized
Tags: , , ,

U.S. Sen. Bernie Sanders (I, VT) has questioned the legitimacy of the 21,000 transactions the Fed made during the last three years to bail out large financial institutions, hedge funds, corporations, and wealth individuals in the United States and around the world (including General Electric, JP Morgan Chase, Goldman Sachs, Banco Popular, Sun Trust, Fifth Third Bank, Toyota, Mitsubishi, Christy Mack, and John Paulson).

In a 6 December letter [pdf] to Ben Bernanke, Sanders wrote

As it turns out, while small business owners in the state of Vermont were being turned down for loans, not only did large financial institutions and major corporations receive these ultra-low interest loans, but foreign companies and banks, and some of the wealthiest people in the world also received a major bailout from the Fed. The emergency response appears to any objective observer to have been a clear case of socialism for the rich, and rugged free market capitalism for everyone else.

Perhaps we would do well to slightly modify Marx’s statement in the Communist Manifesto and conclude that the monetary authority of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.

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Comments
  1. [...] town. As Nancy Folbre explains, Bernie Sanders has criticized the operations of the Fed as a “socialism for the rich,” which is precisely how a company town operates. Not only does the company own the stores; [...]

  2. [...] town. As Nancy Folbre explains, Bernie Sanders has criticized the operations of the Fed as a “socialism for the rich,” which is precisely how a company town operates. Not only does the company own the stores; it [...]

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