Recession Proof & Reparations — Richard Bakare
For Generation Z the word Recession must elicit the same response as Groundhog Day. All this recent talk about dour economic head winds has me frustrated at the repetition of mistakes and government inaction to introduce policies that could strengthen our safety nets when slow downs arrive. The pundits break things down into the same economic theories and geo-political indicators on when and why we are in a recession. I am going to put on my amateur economist and policy wonk hat and present a Rashomon perspective on this tired cycle of ups and downs. The blame for the repetitiveness of this economic roller coaster is rooted in the idea that capitalism be completely unfettered and everyone for themselves environment.
Unrestrained Western Style Capitalism is presented as seen the King Kong in the economic jungle of possibilities. Communism is the Godzilla nemesis to this apex predator. Everything in between looks like a Mad Max style dystopian future. These stark contrasting views lack nuance and any respect for the human experience. Real life does not fit neatly into classroom economic theory or political policy. Pro-capitalists tend to look through rose-colored glasses at all of the potential prosperity, while overlooking the inequalities baked into their approach. They show you the Taj Mahal du jour of what endless growth can bring, making sure their cameras never glimpse the suffering in the shadows.
I like simple approaches. As Leonardo da Vinci said, “Simplicity is the ultimate sophistication.” My recommendations and ideas are grounded by my naivety and that position has the benefit of an outsiders perspective. There is a whole practice of Citizen Science and how a fresh perspective is key to solving problems that have long perplexed or lost priority from experts. When it comes to financial policy and strategy we have been lead by the architects of fuckery who gave us housing derivatives, cash equivalents, SPACS, trickle down economics, and all other complex financial instruments they cannot explain to their grandparents. So I make no apologies for not being lettered enough to share my simple ideas below.
Stabilize Wall Street — eliminate short term speculative behaviors. Day trading, payday loans, shorting stocks, complex instruments. Move to an annual earnings reporting timeline. Incentivize gains from holding stock for 5 or more years but implement a unrealized gain tax to prevent the wealthy from hiding assets away forever.
Stabilize Federal Holdings — pay down debts, slash defense spending, eliminate all corporate tax incentives (except for green initiatives), shift tax burden to the rich, impose strict criminal penalties for money laundering or over seas stashing of assets and tax evasion.
Stabilize Main Street — increase rewards for savings investments, cap executive pay to 10x lowest employee pay, introduce portable national healthcare funded by employers, introduce a 5–10 year tax holiday on all wellness and education spending.
Reparations — deliver a reparations plan for all historically marginalized groups by government racists policies and colonial subjugation. Free education, no income tax, 0% home loans, strict hate crimes enforcement, automatic voter registration, identity and reconciliation department.
That’s it, that is all. This was not an ant-capitalist rant or a socialist manifesto. I am simply longing for a balanced approach to economic problems that prioritizes the real human needs identified in Maslow’s Hierarchy. Growth is great but no one benefits when the distribution of those gains is skewed to an immoral level. We should be celebrating collectively solving childhood hunger and housing crises not a billionaire’s yacht. This perspective on economic design places our values in the forefront and money and of itself in the background.
Originally published at https://dogfish-jellyfish-dcmw.squarespace.com on September 13, 2022.
