By Thomas Ferguson (The Washington Spectator) | Reader Supported News
October 22 2011
The year is 1909. The US income distribution is about as lopsided as it is today. J.P. Morgan is fine-tuning a tariff bill by telegraph from his yacht. Morgan and his fellow robber barons have for years reliably tied Congress up in knots whenever anyone proposes regulating trusts, railroad rates, financial speculation, or labor disputes. A notoriously corrupt ring of US senators, the so-called “Millionaires Club,” is on hand to bury in committee any measures that the corporate titans frown upon.
Fast-forward to 2011. Being a millionaire in Congress is nothing special – just about half of all members are one. The legislative process works less operatically, but the result is pretty much the same: legislative gridlock punctuated by occasional blatant special-interest legislation. Banks are rescued; the unemployed are left to their own devices. The housing market is left in free fall, with the bailed-out banks mostly still left to call the tune on foreclosures.
As national income stagnates, financiers submerge financial reforms and derivatives regulation under waves of campaign contributions. Meanwhile, a vast array of interested firms and investors dispatch armies of lobbyists to stymie Congressional action on climate change, block the government from bargaining down prices of drugs paid for by federal health programs, and keep tax increases forever off the national agenda.
We watch the news to see if Congressional stalemates over deficits will lead to a government default that would throw world financial markets into turmoil or force draconian, across-the-board budget cuts at Thanksgiving time. But while we hold our breath, popular discussions about Congress have taken a curious turn. Pundits talk nostalgically about the good old days, when representatives from the two parties regularly played golf together and compromised their differences in the name of the larger national interest. Today such outcomes are said to be impossible. But why, exactly?