Bailing out the Rich Again

September 22, 2008

As The Worker goes to press, the Bush administration is negotiating with Congress to authorize the federal government to spend $700 billion to bailout big bankers and other capitalists who are defaulting on their debts due to the financial crisis.

The proposed $700 billion follows on the heels of a number of other bailouts recently pledged by the Federal government, including $25 billion for mortgage finance companies Fannie Mae and Freddie Mac, $29 billion for Bear Stearns together with JPMorgan Chase, and $85 billion for the insurance giant American International Group.

The bailouts mean that the government is, once again, using billions and billions of dollars taken out of the paychecks of the workers to underwrite the investments and profits of the Wall Street bankers.

The price tag for the bailouts mentioned above amounts to more than 12 times the total federal budget for public education. And while the government already spends hundreds of billions of dollars guarantying the profits of the capitalists (through the militarization of the economy, through interest on the debt, through research and development grants, through infrastructure investments in industry,etc.), it keeps slashing essential public services such as public education, income-support programs for the poor, public housing, etc.

In other words, the capitalist class is relying on its political power and government to protect its profits while shifting an ever-greater burden of misery and hardship onto the people.