We have seen the level of income and wealth disparity in this country reach unprecedented levels. The reasons for this are numerous. Many of them, as documented by Robert Reich’s book “Aftershock,” have occurred as the direct result of policy decisions that were made regarding tax codes and the deregulation of Wall Street.
Wall Street speculation has had a huge impact on the distribution of wealth. With a constant barrage of new, sophisticated derivatives, high-speed trading algorithms and don’t-try-this-at-home tricks that are only available to those with huge portfolios, they have turned investing into a spectator sport for the rest of us. All the big action and the big money goes to the big guys, while a few percentage points fall through the cracks for everyone else. This is what the players proudly call a free market.
It’s no longer just stocks and bonds. In order to feed this greedy machine’s enormous appetite, new opportunities must be found with ever-higher returns. Things like real estate, home mortgages and now “private equity assets,” which used to be within the reach of ordinary working-class people as a way to enhance their earning power, are being scooped up and dragged into the Wall Street coliseum. We can only sit and watch as these are devoured, their prices driven up beyond the reach of ordinary mortals. Home mortgages are the most recent example. Everyone has seen how this game led to the complete collapse of the world economy, with millions feeling the brunt of it, many of them still recovering. The players, who made this all happen, got off with a slap on the wrist, much as football, baseball, and basketball players get away with their misdeeds.
Now their scouts have eyed another target: farmland. According to a study conducted by the independent policy think tank Oakland Institute entitled “Down on the Farm,” the first years of this century saw an enormous land grab in the developing world: 500 million acres, an area eight times the size of Britain, was bought or leased by speculators. This often occurred at the expense of food security and land rights. When the price of food spiked in 2008, this was a buy signal to investors, screaming out, “Farmland is valuable now and will be even more so in the future.” This, of course, is exactly what they are looking for–a big growth opportunity (no pun intended). Click to continue reading »
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