Open Left

Firms like Goldman do serve an important purpose in a capitalist economy (0.00 / 0)

And to do what they do (provide liquidity through trading, finance or help finance business and government activity, offer advisory services), they need to be able to take on risk and gamble with their and other peoples' money, and make a decent profit if they succeed.

The thing is, when that risk, and profit, are disproportionately higher than the benefit that they offer the economy and thus society, when that risk is meaningless because the taxpayers will always bail them out, and when that profit is made via excessive and unfair access to government connections, a firm like Goldman ceases to justify its own existance.

One could, of course, make the libertarian argument of "tough noogies", them's the breaks. But our country wasn't founded on libertarian priciples (sorry, Paulites, but it wasn't, and if you think otherwise, you're crazy). It was founded on liberal policies, that tried to strike a balance between absolute freedom, and the good of society.

None other than the father of the American economy, Alexander Hamilton, said as much, repeatedly (and it's notable that despite serving as the first Treasury secretary and founding the first US national bank and the Bank of NY, and having ample opportunity to do so, he never profited from his government service).

So I ask again, what purpose does a Goldman serve, when it seems to benefit itself way out of proportion to the benefits it bestows onto the society that allows it to exist and function? We don't need to shut it down, but should be limit what it can do, for the good of all? We have the right, and power to do this, legislatively (although of course it would have lots of friends in the judiciary, ready to strike down laws that hurt it, but that's a different issue).

The liberal soul shall be made fat. He who waters shall be watered also himself. (Proverbs 11:25)

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by: kovie @ Wed Jul 15, 2009 at 23:48:41 PM CDT

Goldman Sachs IS government (0.00 / 0)

emocrat said "They're not just connected to guv, they're IN it big time."

fladem sad "They are practically a fourth branch of government"

Peer a little deeper. THEY ARE GOVERNMENT. Think about that. The myth of "a government of, by and for the people" is just that .. a myth. Big business, especially the financial industry (74% of our economy) and especially Goldman Sachs IS OUR GOVERNMENT.

I realize that many of us understand that we are not a democracy, but a government of special interests; that our elected officials do not represent us (at least as long as we tolerate it), but rather the special interests of big business. (All polls show about 75% of all Americans want a public option in health care. Let's see if we get it.)

But I am not sure most Americans understand that, literally, big business IS government.  

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by: tunacan @ Thu Jul 16, 2009 at 10:50:47 AM CDT

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Goldman was behind the Iraq war? (0.00 / 0)

Goldman was behind warrantless wiretaps, torture, indefinite detention, etc.?

I understand and accept that firms like Goldman have hugely disproportionate power over government, especially in matters that relate to the economy, but to suggest that they ARE the government is a bit much, right up there with truthers, Bilderberg/CFR CTs, and how Israel actually controls US foreign policy through AIPAC. It's not that simple.

Powerful, yes, absolutely powerful, um, no.

The liberal soul shall be made fat. He who waters shall be watered also himself. (Proverbs 11:25)

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by: kovie @ Thu Jul 16, 2009 at 15:46:54 PM CDT

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