The corruption behind the crash of 2008
The crashes of 1929 and 2008 share similar origins: a lack of appropriate oversight and regulation. Irresponsible banking practices, bad investments and rampant stock market speculation preceded the 1929 crash. The resulting panic collapsed the economy, with unemployment peaking at more than a quarter of the population. Similarly, the crash of 2008 came about due to real estate speculation, and apparently foolish lending and borrowing, spiking foreclosures between 2008 and 2010.
Banks forced millions from their homes, and jobs became scarce in the resulting downturn. With Covid-19, a similar economic situation holds today, especially for those just entering the job market.
Such economic crises have been devastating. In their wake, we have tried drafting legislation to prevent recurrence. However, even after 2008, proposed protections have been blocked or rendered ineffective by the banking industry’s immense influence in Washington, D.C. To ensure a stable and healthy economy, we must enact campaign finance reforms to reduce the power of the banking lobby.