Meltdown & Organizing
On the plane to Sydney to meet up with the Organizer’s Forum delegation, I found myself thinking about the current economic “crisis” in contrast to the Great Depression to which it has been compared. Interesting. Yes, the current collapse of the credit markets has required a financial bailout by the federal government second only to that of the 1930’s when, after 7000 banks had failed without any compensation to depositors, Roosevelt and company restored faith in the banking system. Their solution, the FDIC, is being referred to frequently, though current proposals ought more aptly be compared to the S & L bailout under Reagan when those institutions got to unload all their bad debt on a government agency that then did what it could to recover for the taxpayers what value there remained. Such a proposal is at the base of what is currently under discussion by the White House and Congress.
Most striking about the contrast between the 30’s and now is the experience of working people. Then, between 25 and 30% of the workforce was jobless. Soup kitchens were a staple for millions. Tim Egan’s book on the Dust Bowl recounts that people worked a half a day in return for a basic meal – no cash involved. People really suffered for lack of food and shelter. One wonders, of course, just how far that might be away. Could this financial melt-down, courtesy of Wall Street hustlers and sharks, really lead to a depression, a truly broken economic system?
Some clearly believe so. David Brooks, the conservative commentator, suggested on tonight’s PBS Newshour show, that it was quite likely that even with a successful government intervention as is being discussed it is most likely that the next administration will have to deal with an extended recession. Born of the mistrust of the credit markets, he believes we will see an extended contraction, an ongoing caution among those capable of driving growth in the economy. I wonder how long that could really go on before we begin to see double digit unemployment, before regular folks wind up needing a handout for an extended period.
The interesting political question is, in such circumstances, are we likely to see rising fortunes among organizing efforts among low income people as we did in the 30’s? Will the arbiters of mid-town – those who direct the giving of major philanthropies – take a risk on major support of people’s organizations the way they did during the Civil Rights movement? Since then, with rare exceptions, the risky nature of supporting edgy community organizing has more often than not been avoided. The idea of supporting poor people to build and wield power – arguably a key factor in driving a just response to the current crisis – can be more than a little discomfiting in the Board Room, whether you are Citibank or the Tides Foundation.
The complexities of this current crisis make it likely that the solution will bail out the bad actors and then we will all return to some semi-comfortable equilibrium. But if the powers that be are subjected to the accountability that in some ways only grassroots organizing can produce, we’ve got a much better shot at achieving real reforms, no?