The Great Recession

The bottom of the economy is any ones guess, but for the average American it doesn't matter, they are already suffering. Unemployment is rising almost at the rate of inflation, the disparity of wealth is the greatest since the summer of 1929, and the Republicans are eager to give tax cuts to the wealthiest of Americans, at a time when social services are at their greatest demand. What is clear is that the laissez-faire economics the Republicans have touted for, well, ever, is not working, and truthfully never have. The problem of the economy is rather simple, the base of the economy as in peoples earning power and spending power is been quietly eroded for the past 8 years as the wealth of the nation has been redistributed to the top at every increasing rates. Globalization has eroded our production capacity and has ushered in a global working class, for the third world it means greater opportunities and benefits, for the established 1st world the direct competition with the pay of the third world has greatly reduced their standard of living. A nations wealth is dependent entirely upon the strength of the working and middle classes ability to earn excess spending income. Income now stagnated at the very top of the economic higharchy. Hoovernomics should have been laid to rest long ago, but its recent incarnation with Reaganomics (recession of 1991) and Bushanomics (2001 & current) show that when wealth collects at the top it refuses to circulate choking off the means of economic growth. With the credit crisis worsening and the nation's people unable to get the capital to invest in either purchases or their own business the economy will most certainly collapse under the hoarding carried out by the banks and the wealthies in society. As taxpayers we just gave 1 trillion in free credit to the wealthiest, yet they have chosen to horde that generous sum as well. We have no choice any longer, the nation needs a new deal, the nuclear option must be made. It is certainly regrettable that raw capitalism has failed, but to prevent the fall of the American system all together we no longer have any choice, the banks must be made to lend. We must nationalize the banks. Capitalism itself will fail if we refuse to act, we must replace the feet of capitalism in order to save the body. Iceland has recently been forced to nationalize and Britain is currently in the process. America will face a depression unless the the money is forced to flow to the bottom, confidence must be restored. America must be restored.