Pitchforks and Torches

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

I miss Max Sawicky. But he’s back temporarily this week, and today’s sermon is about the origins of bubbles and other economic catastrophes.  Is fundamental irrationality the wellspring of financial chaos?  Nope:

What’s missing from the meliorist framework of my fellow bloggers is the concept of Power. We’re getting progressivism when we need populism.

….Let’s recapitulate. Big finance (‘BF’) systematically dismantles regulation of its activities. BF takes taxpayer money and lobbies against the interests of taxpayers. BF shovels money to politicians. BF offers the sunny side of the revolving door to high-level officials in public agencies. BF provides a haven for its minions to make one-way/heads-I-win-tails-you-lose bets with other peoples’ money. BF alumni construct new policies, in the wake of the meltdown, to make new one-way bets, with taxpayer money. BF luminaries walk away from this debacle with personal fortunes intact, if not larger, as well as high public office, followed by further personal enrichment. Even the former chief economist of the IMF thinks that government policy has been captured by the bad guys.

I won’t pretend to have settled views about whether the financial industry owns the United States government lock stock and barrel or merely has a controlling interest.  It’s at least the latter, and after the events of the past year it wouldn’t take much to convince me of the former.  But whichever it is, I agree that irrationality just isn’t a key factor in what happened — at least, no more than it normally is for any kind of organized human activity.  At every step of the way during the Bush-era bubble, virtually everything that financial actors did was either (a) outright fraudulent or (b) cold-bloodedly rational in the short run even if it was disastrous for the rest of us in the long run.  Where are the pitchforks and torches when you need them?

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest