Bailout Lesson: Capital Crisis Will Wreck Both Parties

The rest of us must fashion new institutions to perform the societal tasks that were purportedly the domain of the now-extinct investment bankers: to gather large amounts of capital for projects of social value - for example, a Marshall-type Plan for the cities, a nationwide infrastructure makeover, and fulfillment of the 70-year old federal commitment to provide truly affordable housing for everyone. And of course, jobs, jobs, jobs.

"We must fashion new institutions to perform the societal tasks that were purportedly the domain of the now-extinct investment bankers."

We have many other uses for that $700 billion - what Barack Obama called "our last bullet," although intending to make it a gift to mega-thieves - for instance, to provide relief to current and future homeowner (and rental) victims of the housing bubble that will take years to fully deflate, as prices (and rents) decrease to levels consistent with wages and other social factors.

In a perverse way, Henry Paulson and his co-conspirators have done the public a great favor. He has told us that, Yes, the federal government can come up with $700-plus billion, in an instant, if the health of the nation demands it. He has expanded the fiscal scope of the domestic political conversation, so that it may encompass projects of transformational size. Never again can the corporate class speak of socially valuable projects being so large as to "break the bank" or the budget. Popular forces are now free to think large, too, without being ridiculed from the corporate Right.

The demise of finance capital's premiere institutions, and the brutal arrogance with which their servants moved to strip the commonweal of every squeezable drop of cash, has alerted vast sectors of the citizenry to the reality of capitalism-in-crisis in ways that no amount of Left agitation could have accomplished.

Technical public "ownership" of previously "private" institutions has been thrust upon us by the capitalists, themselves. But this is merely an opening for the great debates and struggles that must follow. Power does not devolve to "the people" by simple virtue of majority shares in failing institutions or even outright nationalization. And "the people" have no need of institutions that serve no purpose but as creatures of capital.

The second casualty of the current crisis, after the collapse of the financial sector, is surely the twin-party game of musical chairs that served to legitimize the rule of capital. The obscenity of a Democrat-Republican syndicate arrayed against the roaring, raging sentiments of citizens of all self-described political persuasions, cannot be erased from the collective national memory - even if congressional party leaders succeed in whipping their members into line, later this week.

"The second casualty of the current crisis is the twin-party game of musical chairs."

When catastrophe hits, radicals must be ready. Recent events have proven Cynthia McKinney and Rosa Clemente to be amazingly prescient in their belief that the Green Party can be - I emphasize can be - a vehicle for presenting and popularizing a truly transformational program for social change. (See McKinney "The Financial Crisis: Seize the Time!" BAR September 24.) McKinney and Clemente always intended that the Green Party become a nexus for the roiling social currents set in motion by the inexorable decomposition of ruling class institutions. The Democratic and Republican Parties, creatures of capital, are decomposing in full view, as witnessed by the events of this week. Too fragile to weather real political storms, they will not survive the larger, unfolding crisis of capital as twin hegemons. As the crisis deepens, the parties will crack - at a pace dictated by the increasing frequency of convulsions.

When we are confronted with the surreal spectacle of John McCain and Barack Obama attempting to destroy each other even as they rush to deliver nearly a trillion dollars to the same master, while the people scream at both of them to "Stop!" - we know that "change" is coming. But not the kind the Democrats or Republicans anticipate.

BAR executive editor Glen Ford can be contacted at \n Glen.Ford@BlackAgendaReport.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

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