The Triangle

Issue date: 4/10/09 Section: Ed-Op

Media Credit: Julie Sell MCT

From the G20 summit held last week in London, we heard of the success and progress fostered by the nations and how their innovative ideas for the global free-market economic system would benefit mankind. For decades, world leaders have peddled the neoliberal notion that less government regulation and non-intervention in the marketplace will result in: more profit, less debt and increased prosperity throughout the world. No matter what the public is told, the truth is it is being duped into believing that a system specifically configured to maximize the profit of the rich can be depended on to improve society as a whole.

What can be learned from the summit is that there is no quick fix to the problems that face the world's great economies. That much is clear. The much more difficult question is how the developed countries will dig themselves out of this financial screw up. This past week, the summit did agree on some things, such as the $1.1 trillion in assisting world economies and markets, with almost half going to increase International Monetary Fund resources. While this sounds like a lot of money, when big businesses don't spend and banks don't lend, the government has to come up with something to stimulate the economy. Often that has meant starting a war. Frankly I would rather see them build a school or repair a road. But in any case, President Obama, Prime Minister Brown and President Sarkozy don't have time to parlay and ponder.

My biggest qualm with the G20 summit was the inability to find a way to get the banks to lend again. It makes me livid to see banks that have been bailed out with billions upon billions of dollars refuse to lend for fear of losing that money. It is this hesitancy that is prolonging our economic situation. The governments, especially the U.S. government, should give the banks an ultimatum: the money needs to be used, so get it out there or we'll take it all back! The summit also didn't make any headway in forgiving the debt that the developing countries owe to the World Trade Organization and IMF. Unfortunately it seems this won't happen any time soon.

Another situation that saddens me is closer to home. When the stimulus package was passed, I heard nothing but complaints from all across the political spectrum. They consistently saw the stimulus as an outrage and wondered why tax-paying Americans should have to pay for Wall Street's problems. They criticized the idea of government "intrusion" and big government spending. Do the pundits and skeptics have an alternative, a better idea or any idea? Unfortunately, I haven't heard anything other than to wait it out and simply let the markets go back to normal. That is ridiculous. The economic situation is a frank and harsh smack into reality for Reaganomics supporters and trickle-down economic proponents. Their ideology of deregulation and limited government oversight is what got us into the situation we are in today.

I think it is as good a time as any to consider dramatic social and economic reforms: a government that encourages a productive economy and not simply more polarization of wealth into the hands of those who can exchange financial power for political power and back again. To some, this may seem like blasphemy, and to extremists, it may even be hailed as "unpatriotic." But in truth, we can't simply analyze this situation in such meager terms. We now live in a globalized world economy. What's good for the world is also what's good for America.



David Scher is a sophomore majoring in nursing. He can be reached at op-ed@thetriangle.org.

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