Thu, Jun

The New Mercantilism and the Destruction of Hope: Whither We Goeth?


CORRUPTION WATCH-Where are we going? Do we want to go there? If not, how do we not go there? Few know where the country is headed, but a lot of people are certain that they don’t want to go there. However, they have no idea how to change direction. 

The Destruction of Hope.
What does a people do when hope has been destroyed? Obama rode into office on a high crest of hope, made all the more significant in light of the economic crash a few months earlier. Since the Crash of 2008 happened after eight years of Bush, everyone blamed Bush, and thus, they were certain that Obama, being a Democrat, would follow the opposite economic policies from Bush.

People did not realize that both the Iraq War Profiteering and the economic Crash of 2008 were bipartisan. Bush did not abolish Glass-Steagall nor did Bush legitimize credit default swaps (CDWs), but he certainly sounded no alarm of the impending disaster. Once Glass-Steagall had been repealed, Senator Byron Dorgan (D-ND) correctly forecasted how events would play out. In a true show of bipartisanship, everyone ignored him. Thus, it is not as if no one knew. It’s just that no one cared.

So when the worldwide crash hit in 2008, the nation turned to the Democrats under the naive belief that the GOP alone had been responsible. When Obama assumed office, he then trashed the hope of the middle class for a better future. With the help of little Timmy Geithner as Secretary of the Treasury, he installed a reactionary pro-Wall Street economic policy from which the nation has yet to recover.

Psychologically, hope places control outside one’s self. It is a form of “trust in the universe” that difficult times will turn into good times, that good jobs will return, that sleepless nights of anguish over financial problems will cease. Instead, under the Obama-Geithner regime, people’s lives became worse. Meanwhile Main Street heard that Wall Street was being given trillions of dollars by Obama, yet there was no money to save the average guy’s home from foreclosure. Instead, everyone in the Obama Administration fretted that some millionaires might lose their financial shirts if their credit default swaps crashed. Obama-Geithner closed their eyes to the swelling ranks of the homeless.

The Rise of the Politics of Revenge.

Looking back, one can see why the Politics of Revenge became the dominant theme. After years of trusting in promises that the economy would improve, the reverse was occurring. After someone has invaded your home, stolen your TV and killed the kids’ puppy, you want revenge. If one candidate promises to get back all your stuff while another candidate champions the people who you believe are the thugs, who gets your vote? (We shall pause while the Dems try to figure this out.) 

What Happens when the Criminal is the Government? 

But what if the champion avenger is himself the thug? There is a significant difference from the gangsters of the 1930s and what is occurring today. 

“I got nothing against the honest cop on the beat. You just have them transferred someplace where they can't do you any harm. But don't ever talk to me about the honor of police captains or judges. If they couldn't be bought, they wouldn't have the job.” -- Al Capone 

When the criminals are on the outside as they were in the 1930s, we had a different situation than we have today where the criminals are the government. There is no Elliot Ness to come to rescue the citizens of Los Angeles. Here, the City Council itself is the criminal doling out billions of our tax dollars to its developer buddies. On the national level, there is no police force to deal with the emerging business alliance between Putin and Trump. As Trump keeps reminding us, no conflict of interest laws apply to the President. Most Americans are totally bewildered as to what Trump means by this statement, but they are certain that his friendship with Putin is a good thing. After all, Putin is a predator who takes what he wants, like Crimea, and runs the government like his personal business empire. 

Businesses Employ the Governments. 

People fail to realize that governments no longer set the parameters within which a society functions; rather, governments have become the employees of businesses. People have not yet grasped the significance of businesses being the employers of the city councilmembers, of the judges, of everyone in government. In Los Angeles, laws are passed to give developers whatever they want, and if there is a law which says that a developer cannot have something, business employs a host of judges to ignore the law. In Los Angeles courts, Facts and Fiction are Fungible, and the magic which transforms one into the other is money. 

This type of societal organization is a new form of mercantilism, razed from the dead like some Hollywood horror movie. Mercantilism’s heyday was from the 1500s to 1700s. Its official end came with Adam Smith’s publication of Wealth of Nations in 1776. Somewhere between 1999 and 2016, it rose from the grave to become our New Economics and our new form of government. 

It does not matter whither we are going or whether we even want to go there. The New Mercantilism has arrived -- whether you like it or not.


(Richard Lee Abrams is a Los Angeles attorney. He can be reached at: [email protected]. Abrams views are his own and do not necessarily reflect the views of CityWatch.) Edited for CityWatch by Linda Abrams.



Get The News In Your Email Inbox Mondays & Thursdays