Here’s a link about financial reform before the recent bill was passed, along with my commentary.
The first thing to notice is that the author is straightforward about literally wanting the banks to have less money. To be honest, I’m not sure how I feel about that. I mean, how do you democratically and morally take money away from banks in a way that evidence shows does the most good? It’s a hard question. I mean, certainly the idea that too much money = too much control over democracy certainly seems to make sense, both a priori and in looking at the state of this country. A recent conversation with a libertarian friend had him declaring that if government interfered less, businesses would have far less incentive to interfere at all. There are several problems with that, starting with the fact that special interest groups exist in order to ask for benefits even without precedent, and that businesses would always have incentives to buy out senators.
But, if we take that as a philosophical idea, here are my thoughts.
There are many types of freedoms. For example: economic, political and individual freedom. I thought, as a civil libertarian and socialist, I’d come to the conclusion that economic freedom is just different, it can be excluded in a way that the others can’t. Perhaps because money breeds money, because the gap between the rich and the poor is growing, not shrinking, because without money people live on the streets and starve and die or because money has an undue influence on democracy.
But thinking about it now, that’s not how it is. It’s exactly the same as the others. In some cases you need negative freedoms, that is, the freedom to not be taxed to death, to not have to purchase something in particular from some place in particular, just as you need to be able to not be stopped from going where you like and saying what you like. But you also need positive freedoms, like the right to go vote, the positive participation in democracy. In economic terms, that might mean freedom from want, freedom from the fear and undue stress that comes from abject and even not so abject poverty.
Some things I’ve been reading recently have made me rethink my stance on what can be learned from the ever-feared socialist and otherwise repressive governments of the 20th century and their (I argue tenuous) connections to FDR and New Deal-style democracy. What role does economic freedom play? Is it that individual freedoms are great but must be put in the context of society? Is economic freedom fundamentally different? Si Kahn, famous community organizer during the civil rights movement, whose book, Organizing: A Guide for Grassroots Leaders, I think, really said it when he noted that we may very well have learned the wrong lessons from the vast amount of totalitarian oppression and restriction of freedom in the 20th century. We learned that government was scary and bad. What we should have learned was that lots of things are scary and bad (Chomsky and Brandeis would say that big things are scary and bad) and that maybe we should look at what those are exactly and what institutions and resources we have in place at our disposal.
So we know that poverty and death and segregation and concentration camps and lack of security are bad. So we have corporations, who sometimes aid and fund all those things (if you think that I’m exaggerating, look at for-profit prisons), that we can ostensibly control using our money and our free choices. And we have governments, which often do all of those things, that we can supposedly control through the democratic process. We also know that when properly used, both can be forces for good. And what’s really cool about being progressive, and thus following a consequentialist ethic in how we get to a freer, more egalitarian society, is you can say, well great, let’s play these massive, ineradicable forces off against each other. So let’s put in some laws that protect people (like FDIC and the Fed’s emergency funds) but be sure that there are strict regulations (like Glass-Steagal/Volcker or all the regulation that Dick Cheney took away from oil drilling).
Then the corporations have less power and money to screw with democracy and hurt us. Because democracy is good, it’s a positive right we have. And we, the people, are good, and ought not to be hurt. And then when government fails us, as it often does, and we note that democracy is standing in the way of democracy, then we do something else, maybe in the private sector, maybe through community organizing maybe through moving our money from big banks to community ones. Remember that the progressive way is to use things as a means to an end. Everyone, especially libertarians and tea partiers, learned the wrong lessons. Government really can work for us, and the political process is really important. But also, we can force big forces to work for us.
States are not moral agents, people are, and can impose moral standards on powerful institutions.”
– Noam Chomsky
Or something like that.