The Financial “Crisis” Produces An Unwelcome Shift In Power

by Melissa Clouthier | January 26, 2009 11:15 am

The Davos summit is going on–you know the place where self-important celebs fly in on their private jets and lecture the little people about incandescent light bulbs. In past years, the important people had the luxury of talking about such silliness. Now, the economic situation is serious and the maneuvering at this summit has huge implications for you and me.

Here’s what’s happening via the International Herald Tribune[1]:

Politicians, not corporate titans, are poised to be the big draw this year, echoing the broader power shift away from the free market as one government after another tries to prop up its sinking economy.

This time, the prototype of the jet-setting “Davos Man” may well be Gordon Brown, the dour British prime minister, who spent last week staving off another round of bank failures in London.

And with much of the financial system in Britain and the United States edging toward a possible government takeover, the 2009 agenda at Davos, “Shaping the Post-Crisis World,” seems to have concentrated minds on the here-and-now more than past themes like climate change and globalization.

“The pendulum has swung and power has moved back to governments,” said Klaus Schwab, the German-born economics professor who founded the World Economic Forum in 1971 and has been its impresario ever since. “This is the biggest economic crisis since Davos began.”

I have written before both here and for Pajama’s Media[2] that global warming and dealing with climate change is a luxury. That is, when everything is going relatively well, those in power need to create a crisis of some sort in order to feel useful. Climate Change is an indulgence both financially and emotionally. It distracts from real, existential issues before us–like the Iranians sending a ship full of bombs to Hamas[3] on inauguration day.

So banks teeter on collapse! Debt is at unprecedented levels![4] The government wants to help! The sky is falling[5]! Only problem is that the millions they want to spend to get us out of the mess is not going to help. The stimulus package will stimulate nothing besides funding leftist groups like Acorn[6] that Obama intends to pay off[7].

But really, this panic[8] is about seizing control. While the U.S. isn’t bankrupt[9], it does need to right the ship. Not that Congress[10] or the unions[11] or even bailed out banks[12] (this link will get your blood boiling) are acting like any change is necessary.

Essentially, the government wants to take tax payer dollars and give it to companies who have been irresponsible. And businesses have lost any sense of pride and are lining up with hands out. But more than that, the ones getting pay-offs are the ones who have bought influence before. So money is being taken from those who have little influence and given to those who do.

There has been a shift in power, alright. Since money equals power, power is now concentrated in the hands of government. Individuals and businesses with little in the way of influence get nothing. Big companies who can afford to buy favor grovel before their new masters. You and I sit on the sidelines, helplessly.

Obama is turning out to be different alright. He’s even more consumed with consolidating power[13] and wielding it to make the little guy submit. But that’s okay, right? He’s a Democrat and a liberal so he’s only doing what is necessary.

Cross-posted at[14]

  1. International Herald Tribune:
  2. Pajama’s Media:
  3. like the Iranians sending a ship full of bombs to Hamas:
  4. Debt is at unprecedented levels!:
  5. The sky is falling:
  6. funding leftist groups like Acorn:
  7. pay off:
  8. panic:
  9. isn’t bankrupt:
  10. Congress:
  11. unions:
  12. bailed out banks:
  13. consolidating power:

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