Tag Archives: Tim Geithner

A Poverty of Possibilities among the Rich

photo of money - Creative Commons

With an Ivy League education, and years of association with some of the brightest people in Washington, D.C., Tim Geithner is still unable to think of any alternative to what happened in 2008.  He missed one of the lessons of It’s A Wonderful Life, which is that people’s money/labor is theirs, and that the bank is a place where collective wealth exists, and can be used for collective good.  In other words, the achievement of the James Stewart character in the film is to show the viewer how to live without banks and bankers, whose interests have little to do with Bedford Falls.  Geithner has convinced himself, in a grand gesture of rationalization, that no alternative existed, and still does not.

It’s like the power grid. You have to make sure the lights stay on, because if the lights go out, then you face the damage like what you saw in the Great Depression or It’s a Wonderful Life. More people lose their jobs, more people lose their businesses, lose their homes, their savings, and they’re devastated. There is not way to avoid those outcomes or protect people against those outcomes, unless you keep the lights on. That requires doing things that are terribly unfair and look deeply offensive. It looks like you are rewarding the arsonist or protecting people from their mistakes, but there is no alternative.
— Geithner in The Wall Street Journal‘s Money Issue (June 2014)

Slavoj Žižek indicates the same problem is at work with Thomas Piketty’s new book on capitalism. The capitalists don’t know how to do without capitalism.  They are incapable of Hegelian negation.  “[Piketty] accepts, as a good Keynesian, that capitalism is ultimately the only game in town; all alternatives ended up in fiasco, so we have to keep it.”

What’s worse about Geithner is that he knew what he did looked “like the opposite of what makes sense.”  It’s a Wonderful Life, on a most superficial reading, shows neighbors rescuing a neighbor, friends helping friends, townspeople pulling together for a person in trouble.  Those are alternatives that do not make sense to readers of The Wall Street Journal and to Tim Geithner. They cannot leave important financial decisions up to common people who cannot comprehend why anyone would say it’s utterly plausible to do what is “terribly unfair.”