'Top 1% damaging the 99% severely'
Mon Oct 24, 2011 10:59AM
Interview with Columnist, The Hill Newspaper:, Brent Budowsky.
The top one percent of the world financial pyramid is protecting the one percent and they are causing major damage to the 99 percent in the US, in Europe and in fact around the world, a US columnist says.
European leaders have met in another bid to solve the persistent Euro zone debt crisis, a crisis that has defied solutions so far. But is the EU united on the kinds of solutions it requires? It seems not.
France and Germany have different views over exactly what to do in dealing with another Greek bailout. There has been widespread criticism that the European Union has been too slow in realizing the gravity of the crisis.
But EU leaders might feel the heat as there have been more protests in the continent against banks and the financial system as unemployment rises and austerity cuts are affecting more and more average people.
Press TV has conducted an interview with Columnist, The Hill Newspaper:, Brent Budowsky to further open up the issue.
The following is a rush transcription of the interview:
Press TV: In the past few years, European leaders have been trying to bail out their economies. But their attempts have never succeeded, at least so far. Why?
Budowsky: Well, let's put that in the context of the Occupy Wall Street movement here and around the world, which I was and remain a strong supporter of. The one percent at the top of the financial pyramid is protecting the one percent and they are causing major damage to the 99 percent in the US, in Europe and in fact around the world.
The reason they are fallen behind in Europe, as we remain behind in the US, is that, they are fallen behind from things needed to be done, I would put it this way for now;
First: The package itself needs to be in a range of at least 1.5 trillion dollars/Euro in Europe.
Second: The package and conduct around the package, must not keep repeating the mistakes of causing more joblessness, more unemployment, more poverty, more hunger and more economic slowness.
Third: The bankers themselves are being bailout yet again, in this Greece bailout alone, the real number is that over 50 percent of the total money has been the taxpayer's money used to payout bond holders which is either banks, Wall Street firms and European firms or pension fund that are run by banks and Wall Street firms.
Real quick, for every one percent of growth in the US GDP, and the ten years deficit is cut by 3 trillion dollars. One percent cut by 3 trillion. If you cut unemployment, and increase growth by two percent, you cut the deficit over ten years in the US alone, by 6 trillion. In the US growth by 2%, you cut the deficit by 10 trillion over ten years.
The problems we have, if you slow the economy, you are going to be increasing the deficit, because you are increasing unemployment, you are increasing joblessness, you are slowing the economy down. So having marginal cuts will hurt the economy and bail outs that are not enough and they are wrong in principal.
If it is done in a way that creates joblessness, and creates misery, and brings the economy down, you are just raising the debt problem and you are raising the deficit problem dramatically, and not solving the problem, you are actually making the problem worse.
You either bailout, which has to be done, but we need an economic growth package that stimulate the economy, and make its grow, and we need to stop subsidizing bankers' salaries, and bankers compensations for taking money away from the 99 percent. If they don't get that right they never get this right, and right now they have not gotten it right.
Press TV: Okay, Mr. Budowsky, do you agree with what Mr. Shakespeare has said, and if there is new thinking, that you are agreeing with, where do you see that is coming from, what will it take to bring about this new way of thinking?
Budowsky: I generally do agree, I think they need dramatically new thinking. Here is the problem politically. Number one President Obama is more conservative than most Democratic Presidents. And In Europe, in Germany, in France, in Britain and in Italy which is the problem is worst even worse than Greece, they are all conservatives.
They come from conservative parties, they have conservative mind sets, and they fall into conservative traps, which is austerity, and cutting and slowing growth, and a policy bias that is extremely in favor of the one percent of the wealthiest, and the one percent that the bankers represent.
I repeat the point I made earlier, the new thinking we need, is a bridge money that is sufficient to prevent the crisis from getting worse for the banks, but equally important, more important, profoundly important, we have to stop strangling the economy of the Europe and the US with conservative fiscal policy and conservative monetary policy that drives people out of work, destroys wages, in both cuts, and benefits of healthcare to workers.
Because when you destroy the economic growth, and when you destroy jobs, you solve nothing, you only make the problem worse, and you only delaying the financial Armageddon into the future, and the future is now.
So the new thinking we need, that we are not getting, because of all those conservative governments, and the truthfully, on the Democrats, conservatism of some Democrats, including Obama, is we have to put the priority number one, on creating jobs and increasing growth, and building economic strength and the worst thing that could be done, is what is being done right now, which is destroying the economic strength and making cuts that are hostile to average voters, average consumers, and letting banks get away with the policies of greed.
So while they are being bailed out again, and again and again, by the 99 percent, the 99 percent not only paying for the bailouts, but they are being killed by the banks and are being hurt by the governments that are far too conservative and far too unwilling and hostile to stimulating the economy.
You got to create jobs, and get economies growing, although I think it is a mirage, and it is a debt trap.