Lies of Wall Street Bailout; Hunger Hurts U.S. Economy; California Special Elections Cost Millions

Peter Mathews on KTLK AM 1150, the David Cruz Show.(Nov.25, 2013). $1 million election; hunger =$167 billion in lost productivity; bailout won with lies 

Prof. Mathews notes that as budget cuts deepen ($5 billion cut in food stamps alone), wages stagnate, and unemployment remains high, hunger and poverty has increased in the U.S., costing over $167 billion in lost economic productivity and earnings. Mathews suggests raising the minimum wage to a living wage, while compensating small business by lowering their taxes. He also shows that the more than $700 billion taxpayer bailout of Big Corporations and Wall Street did not help small businesses, American workers and homeowners on Main Street. Unlike what Treasury Secretaries Henry Paulson and Larry Summers promised Congress and the American people in order to push through the bailout, around $4 billion was spent to help small homeowners while the bulk of the $700 billion went to the Big Corporations and Wall Street Banks. These Big Banks, instead of lending money out to small businesses and struggling homeowners, used it to make more money in other ways, including parking huge amounts of it in the Federal Reserve and drawing billions of dollars of interest on it. Today, the Big Banks’ excess reserves at the Fed total more than $1.4 trillion! Not only that, many of the Wall Street Banks gave their CEO’s and other top executives millions of dollars in bonuses. Prof. Mathews told the radio audience that two excellent sources of investigative information on this debacle are Matt Taibbi’s Jan. 4, 2013 article in Rolling Stone, “Secrets and Lies of the Bailout”, and the Academy Award winning documentary, “Inside Job”, narrated by Matt Damon. Peter Mathews began his analysis by looking at the huge expense of California Special Elections that are triggered by the middle- of- the term resignation of State Senators like Sen. Bill Emmerson (R-Hemet). The $1.1 million cost of such an election can be avoided if the California Constitution was amended to allow the Governor to appoint a temporary State Senator until the next election, as he does in the case of a U.S. Senator’s death or resignation.  [Listen]  (8 min.)