The American people are angry. They are angry that they are being forced to live through the worst recession in our lifetimes -- with sky-high unemployment, with millions of people losing their homes and their life savings. They are angry that they will not have a decent retirement, that they can't afford to send their children to college, that they can't afford health insurance and that, in some cases, they can't even buy the food they need to adequately feed their families.
They are angry because they know that this recession was not caused by the middle class and working families of this country. It was not caused by the teachers, firefighters and police officers and their unions who are under attack all over the country. It was not caused by c onstruction workers, factory workers, nurses or childcare workers.
This recession was caused by the greed, recklessness, and illegal behavior on Wall Street. And, what makes people furious is that Wall Street still has not learned its lessons. Instead of investing in the job-creating productive economy providing affordable loans to small and medium-size businesses, the CEOs of the largest financial institutions in this country have created the largest gambling casino in the history of the world.
Four years ago, after spending billions of dollars to successfully fight for the deregulation of Wall Street, the CEOs of the big banks -- JPMorgan Chase, Bank of America, Goldman Sachs and the others -- went on a losing streak. The enormous bets they made on worthless, complex, and exotic financial instruments went bad, and they stuck the American people with the bill.
Wall Street received the largest taxpayer bailout in the history of the world. But it was not just the $700 billion that Congress approved through the TARP program. As a result of an independent audit that I requested in the Dodd-Frank bill by the non-partisan Government Accountability Office, we now know that the Federal Reserve provided a jaw-dropping $16 trillion in virtually zero-interest loans to every major financial institution in this country, large corporations, foreign central banks throughout the world, and some of the wealthiest people in this country.
And, instead of using this money to provide affordable loans to small businesses, instead of putting this money back into the job-creating productive economy, what have they done? They have gone back to their days of running the largest gambling casino in the world. In other words, they have learned nothing.
The American people are angry because they see the great middle class of this country collapsing, poverty increasing and the gap between the very rich and everyone else grow wider. They are angry because they see this great country, which so many of our veterans fought for and died for, becoming an oligarchy -- a nation where our economic and political life are controlled by a handful of billionaire families.
Today, the six heirs to the Wal-Mart fortune own more wealth than the bottom 30 percent.
Today, the top 1 percent own 40 percent of all wealth, while the bottom 60 percent owns less than 2 percent. Incredibly, the bottom 40 percent of all Americans own just 0.3 percent of the wealth of the country.
According to a new study from the Federal Reserve, median net worth for middle class families dropped by nearly 40 percent from 2007 to 2010. That's the equivalent of wiping out 18 years of savings for the average middle class family.
The distribution of income is even worse. If you can believe it, the last study on this subject showed that in 2010, 93 percent of all new income created from the previous year went to the top one percent, while the bottom 99 percent of people had the privilege of enjoying the remaining 7 percent. In other words, the rich are getting much richer while almost everyone else is falling behind.
Not only is this inequality of wealth and income morally grotesque, it is bad economic policy. If working families are deeply in debt, and have little or no income to spend on goods and services, how can we expand the economy and create the millions of jobs we desperately need? There is a limit as to how many yachts, mansions, limos and fancy jewelry the super-rich can buy. We need to put income into the hands of working families.
A lot of my friends in the Senate talk a whole lot about our $15.8 trillion national debt and our $1.3 trillion deficit. In fact, deficit reduction is a very serious issue and will be one of the major issues of this campaign. Unfortunately, many of my colleagues forget to discuss how we got into this deficit situation in the first place, and how we went from a healthy surplus under President Clinton to record-breaking deficits under Bush.
When we talk about the
national debt and the deficit, let us never forget that the current deficit was
primarily caused by Bush's unpaid-for wars in
Despite the causes of the deficit, our Republican (and some Democratic) friends have decided that the best way forward toward deficit reduction is to cut Social Security, Medicare, Medicaid, education, food stamps and virtually every other programs of importance to low and moderate income families. We must not allow that to happen.