The Muse Minefield

December 29, 2010

A tale of two economies

“I’m sick and tired of people going to congress in Washington D.C. and making a living out of it while we starve to death.”

Those words were spoken by a resident of Newton Iowa during a segment of CBS’s 60 Minutes titled “Anger in the Land,” which aired on October 31, just days before the 2010 mid-term elections. The words were simple yet as savage as a sledgehammer striking at the foundation of the frustration shared by citizens across the land.

Newton is one of the small towns in America that has been decimated during the Great Recession. The 60 Minutes segment was devoted to capturing the mood in the country just before the elections that would be taking place in the midst of unrelenting economic hardship. A CBS/New York Times poll was cited that revealed that 80 percent of the people polled said they want most incumbents out of Congress regardless of whether that incumbent is a Democrat or Republican.

Though understandable, much can be said about the unsophisticated and suicidal aspects of this sentiment, which speaks to just how deep in the dark the majority of Americans are as it regards the jigsaw puzzle that is governance in this country. But in fairness to those of us who are languishing in the darkness, it’s extremely difficult to connect the pieces when we’re disconnected from the process. Note this exchange that took place during the 60 Minutes segment:

“What’s surprised you the most about this recession?” correspondent Scott Pelley asked business owner David McNeer.

“I think the depth of it, and the length of it. I think what surprised me the most about this one is it doesn’t wanna end,” he replied.

“You know, the economists say that the recession’s over,” Pelley pointed out.

“Really? They should come to Newton, Iowa,” McNeer replied.

But of course they won’t be coming to Newton because the people in Newton really don’t matter. They are no more a part of the economic recovery process that truly matters than they are a part of the political empowerment process that truly matters. And that goes for the majority of us living in America.

Robert Reich, former secretary of Labor under President Clinton, put it this way in a recent article:

There are two American economies. One is on the mend. The other is still coming apart.

The one that’s mending is America’s Big Money economy. It’s composed of Wall Street traders, big investors, and top professionals and corporate executives.

But there’s another American economy, and it’s not on the mend. Call it the Average Worker economy.

Simply put: There’s the American economy that matters to the folks that matter in Washington D.C. That’s the economy that’s composed of those that have the wealth and power to shape policy to their advantage. They are the ones that, for example, rule Wall Street and were able to contribute 15 million dollars to presidential candidate Barack Obama’s campaign and have the monetary muscle to lobby against any meaningful legislation to regulate the Wall Street investment banks “whose missteps caused a global financial crisis and economic slowdown two years ago,” as pointed out in an article that appeared in Bloomberg.com the other day. These are the people responsible for the economic catastrophe that has produced the suffering that is taking place in Newton IA and throughout the country and the world. 

Then there’s the Average Worker economy. The majority of us are plugged into the one that doesn’t really matter. Well, at least at the moment that’s the case. I’ll simply close with the ominous warning that Mr. Reich issued at the end of his article:

“…if nothing changes in the Average Worker economy, there will be hell to pay.”

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