Daddy corporations or nanny state?

Published 8:48 am Wednesday, December 22, 2010

Banks assets including mortgages and derivatives — with indeterminate values to keep themselves solvent — have made banks become black holes sucking in stimulus funds. Foreclosing on properties further depresses the real estate values and the community tax base. While poisoning your pension funds derivatives contaminated corporate coffers when chief financial officers found derivatives earned higher returns than sales. We exported the poison to Europe “where governments are now tearing down social safety nets to restore financial stability.” Your nets will follow that we may remain competitive.

Corporations have billions of dollars of retained earnings that they are afraid to invest in a world with surplus capacity. Alternatively corporations seek to replace government services: schools, prisons, the military, etc. They seek profitable opportunities where the public absorbs the risks: guaranteed student loans, etc. How they cry when they are cut out! Corporations purchase assets from states and municipalities with sale-lease back contracts guaranteeing their — cash flows. Should we hope for aid to states and cities? You think?

Propertied interests call “trickle up” economics “trickle down”! They brag “We have the finest health care system in the world”! We have no national health care system and our care ranks near the bottom of developed nations. Over-regulation is not our problem, ineffective regulation, underfunded, bullied and bribed, is.

If corporations are persons they are monumental liars. If our choice is between daddy corporations and a nanny state — I’d prefer the state.

John E. Gibson

Blooming Prairie