Financial Regulation: Lobbyists Help End Oversight

Over the 1990s, the financial services sectors spent millions on campaign contributions, and many times that amount lobbying Washington, for two very valuable things:

one, freedom from oversight regulation, that might make it possible for regulators to recognize when the industry had taken on too much risk;
two, a guarantee that when the inevitable bubbles burst, the government would clean up the mess.

The industry got both.

Throughout the 2000s, as the bubble grew, they made billions in profits from the "innovations" they brought to Wall Street. And when bubble burst, the government bailed Wall Street out. Main Street was devastated by this game, with millions losing their homes, and many more losing much their retirement savings. Yet Wall Street had its best year ever last year, paying more in bonuses than it ever had.

Washington's response

To this day, Washington has not changed the rules that produced the collapse. Why? Because Republicans and Democrats alike are too busy begging the Wall Street billionaires for campaign contributions. Who has time to regulate when there are fancy fundraisers to attend?

Ending lobbyists' grip

Lobbyists have this power to sell policy to this highest bidder because they have become the key source of campaign funds for Members of Congress. They will continue to have this power so long as we make Congressmen dependent upon them.

One simple idea would radically change all this. Give every voter a $50 democracy voucher to spend on whatever candidate he or she wishes. And make it so candidates can only get these vouchers if they limit themselves to small dollar contributions.

Special interest money = special interest Congress.

Our money = Our Congress.