Dear Sharra,
The recent Silicon Valley Bank failure elicited an immediate response from the U.S. government. While I agree that the depositors should be made whole (though those who caused and profited off the mess should be held accountable), at the same time there's a larger issue to recognize. Note how our government sends out lifeboats for the wealthy the moment their feet touch the water. But American families have been gasping for air for decades, and no such rescue appears forthcoming.
Like many of our current challenges, it helps to understand the historical sweep that led up to the SVB's collapse. During the height of the Great Depression, in an effort to guard against the possibility of such financial collapse ever happening again, President Roosevelt and the U.S. Congress passed the Glass-Steagall Act. Glass-Steagall effectively separated commercial banking from speculative investment banking, making certain our financial system would remain stable. But greedy forces within the banking sector lobbied President Clinton and his allies to repeal Glass-Steagall, and we have suffered various instances of financial instability ever since.
In the Great Recession of 2008, millions of American families fell into despair. The Dodd-Frank reforms of 2010 were an attempt to correct course, but the banking industry hit back furiously. In 2018 they lobbied both parties in Washington to weaken Dodd-Frank, enabling Silicon Valley Bank and other banks to load up on risky investments. We're seeing the consequences of those actions now.
While the government moved swiftly to protect bank depositors who suffered because of legislative recklessness, it moves its feet very slowly to rescue those who have no property to protect.
Why aren't we rescuing the one in four Americans with medical debt, when we could eradicate that travesty with universal healthcare? Why aren't we rescuing people carrying ridiculous college loans, given that until the 1960's college tuition was practically free throughout the country? It simply isn't right that our government is so quick to bail out Wall Street, while Main Street struggles year after year.
Twelve million children in America go to bed every night hungry. Eighteen million Americans can't afford to fulfill the prescriptions given to them by their doctors. A third of our workers live on less than 15 dollars an hour, unable to afford a place to live.
They need to be rescued too.
We must replace the ill of our unjust economic system with the will of the people. If we can bail out venture capitalists, we can help students drowning in debt and make sure that no one goes without adequate, affordable healthcare.
Together, we will disrupt the status quo. We will turn things around. We will give hope to millions.
Please help make it happen…
With gratitude and love,
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