Economic Crisis: The U.S. Political Leadership Has Failed

by Richard C. Cook

Global Research, September 12, 2007
As the 2007 economic collapse picks up speed, it’s time to take a hard look at the performance of the U.S. national political leadership in meeting some of their most fundamental responsibilities. It’s time to face the fact of serious failure over the last quarter century.

During this time, the leaders of both political parties and of major institutions such as the Federal Reserve have presided over the abandonment of some of the most solemn obligations of constitutional government. They have done this in order to embrace an agenda favorable mainly to the financial, corporate, and government elites.

On January 20, 1981, a full generation ago, President Ronald Reagan said in his first inaugural address, “Government is not a solution to our problem, government is the problem.”

Reagan was both right and wrong.

The problem the U.S. was facing then was the collapse of the nation’s manufacturing base through a recession that happened when the Federal Reserve raised interest rates to over the twenty percent level. It did so almost a decade after President Richard Nixon removed the gold peg for the dollar, leading to the inflation of the 1970s when our currency flooded world markets through the oil trade.

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