In an interview with Wolf Blitzer, Bernie Sanders describes a much needed effort to reign in the big banks who are walking all over us. As pointed out by Bernie Sanders, the 6 largest financial institutions (ie, big banks) own more than half of all mortgages in this country, two-thirds of all credit cards, and assets of $9 trillion dollars, which is equivalent to two-thirds of the entire Gross Domestic Product (GDP) of the United States.
What does this mean for you and me? Well, for starters, it means the privileged class in this country is accumulating massive amounts of wealth at the expense of everyday citizens by squeezing them with increased ATM and other bank fees, hikes on their credit card interest rates, and predatory lending practices that led to the housing crisis we are still recovering from. To make matters worse, these privileged members of society are using their enormous wealth and power to influence our elected officials to enact a variety of legislation that perpetuates the status quo of income inequality. By doing so, the GOP is effectively allowing a select few at the top to achieve prosperity at the expense of the rest of us, who are doing our best to keep our heads above water and make ends meet.
As explained by Bernie Sanders, when the big banks engaged in this immoral behavior in the past, a Republican president, Teddy Roosevelt, put an end to it by preventing the big banks from gaining even more wealth and power by breaking them up. Legislation was introduced to protect the public from this immoral behavior, which served the purpose of stopping powerful special interests from colluding with one another and exploiting the rest of us.
Look at how far the Republican Party has moved to the right since then. Ever since Ronald Reagan was elected president in the early 1980’s we have witnessed a GOP gone wild, and every successful public protection policy put in place to prevent harm caused by the big banks was repealed via the use of the “burdensome regulations” frame. The GOP cleverly made it appear as if enacting public protections (ie, regulations) were somehow causing the very problems these protections were trying to prevent. As a result, people are more inclined to support GOP efforts in expanding the size and power of the big banks, while firmly believing that they are helping to solve our problems.
This language of “burdensome regulations” has been repeated so often by our elected representatives, media personalities, and other newscasters that it simply rolls off the tongue of those who have been exposed to it whenever discussing any attempt to enact public protection policies. The unfortunate reality is that the instant gut reaction many people feel when simply hearing the word regulations is enough to activate this frame, which leads one to believe action is needed to stop regulations from being imposed on us. In order to avoid this trap of adopting a self-defeating view on a particular issue, we should stop using the term regulations, and start calling them what they are, public protections that seek to prevent people, both real and imaginary (ie, corporations) from causing the rest of us harm.
According to Bernie Sanders, “we need to re-regulate the big banks”, or re-enact the Glass Steagall (public protection) Act in order to prevent the Wall Street Casino from crashing our economy again. As an added slap in the face to the American taxpayer, Jamie Dimon, CEO of JP Morgan Chase (one of the 6 big banks) is currently serving on the Board of the New York Federal Reserve, which is responsible for protecting the people from the immoral actions of the big banks. Just as we did in the past, Bernie Sanders is planning on introducing legislation next week to break up the big banks, and put an end to the “fox guarding the hen house” situation of putting Jamie Dimon in charge of stopping the immoral behavior of the big banks.