This writers past commentaries about how wealth has been transferred from the middle class to the wealthy and the problems it has caused has been well documented. It has also been pointed out how wealth has manipulated the stock market, the price of oil, the economy and our elected officials. Wealth has given us the monopoly of the Wall Street Banks who were responsible for the great financial meltdown of 2008. Wealth has also kept those Wall Street Banks from paying the price for their greed.
Now we find out that Warren Buffett comes to the rescue of Bank of America who's stock price has declined over 50%. Mr. Buffett has bought into Bank of America stock to the tune of $5 billion according to the report out of the Associated Press. Buffett according to the report said he considers the bank a strong, well led company. Mr. Buffett has enough wealth to manipulate a stocks price and in the first day of trade after the purchase the stock was up and Buffett had a paper profit of $357 million. Pretty good return even for Buffett, but his goal is long term so just think of what he will make when he decides to sell. Bank of America is one of the 6 Wall Street Banks mentioned above.
No one should get their nose out of joint because some people are wealthy. But when 1% of the most wealthy own 90% of all stocks and bonds and 6 of the largest Wall Street Banks have assets that equal 60% of the nations GDP, one can easily see how they can manipulate almost anything and they usually do. We are told that corporate America is sitting on $2 trillion of profit made just this year, Bank of America had cash and cash equivalent of $402 billion at the end of the second quarter. To top it off it is the wealthy who demand and receive tax breaks, tax loopholes and tax incentives from our elected officials who receive their campaign cash from wealthy donors and their lobby.
The common good of our nation and its people has been pushed aside by wealth and the greed it creates. The middle class quality of life and opportunity has been eroded by this transfer of wealth and the failure of our political leaders to stand up to the wealthy monopoly. Third world countries have no middle class and no power. Corporate America moves its operations to those third world countries for its cheap labor. Does any one think they pay their executives third world wages. They are really not American companies any more nor do they respect the American worker.
Warren Buffett pointed out in an earlier interview that corporate America pays on average approximately 15% in income taxes while the average family pays between 20 and 25% in income taxes. He said the wealthy should be taxed more, but what is he doing about it. The wealthy who say they despise big government are the ones looking for the handouts from big government. If the wealthy used their wealth to enhance the economy, create jobs, support the middle class, take care of their workers, big government would not be so big.
In fact government does have a role in life for our nation and its people. That is the essence of
Democracy. We see it at work after major disasters when people have no one else to look to. A democratic government has its roots in the common good of its people.
Once upon a time the U.S. had leaders who broke up monopolies in favor of the common good. Once upon a time we also had elected officials who served the public good instead of serving the wealthy and their lobby who are only looking out for their own special interest. It is the wealthy who now hold the upper hand. It can easily been seen by those elected officials who now openly flaunt their bidding.
Wealth has its place, but democracy is about government by the people and for the people. The type of wealth being flaunted today is not the American democracy we knew yesterday, or is it a positive force for making a stronger middle class. And that really says it all.
