Saturday, May 08, 2010

Actually, That Would Be The Wilson Administration

Christopher Caldwell argues in the Weekly Standard that neither political party is serious about financial reform. And he wonders why.

Caldwell appears to adopt the explanation offered by Simon Johnson and James Kwak, two men of the left, in their book 13 Bankers. Johnson and Kwak contend that the U.S. has become a kind of oligarchy, characterized by tight links between the business elite and the political elite. The business elite consists of the giants of the financial industry.

Johnson and Kwak argue that the bankers gained control of the levers of power during the Clinton administration. They call it a "historical curiosity" that "this shift happened within a Democratic administration, headed by a president elected largely because of middle-class economic insecurity."

He shows that, of the 20 zip codes that pour the most money into the political system, all but one give the majority of it to the Democrats.