Tag Archives: George W. Bush

2008 Bailout of Wall Street

Uncle Sam struggles to bear the burden of Wall Street while distraught President George W. Bush assures Wall Street, not Uncle Sam, that everything will be okay.
Uncle Sam struggles to bear the burden of Wall Street while distraught President George W. Bush assures Wall Street, not Uncle Sam, that everything will be okay.

In the early fall of 2008, America’s financial system nearly collapsed. Some of Wall Street’s biggest corporations had engaged in what President George W. Bush called “irresponsible actions” that caused widespread panic. Eventually, the situation became precarious enough to warrant action by the federal government in the American free-enterprise system. The federal government’s plan was to use $700 billion dollars of taxpayer money to resolve the crisis and bailout Wall Street. President George W. Bush addressed the nation on September 24, 2008 to propose the bailout through a joint congressional bill. The federal government promised that the bailout, while costly to American taxpayers, was essential to the maintenance of the financial system, and that the “irresponsible actions” of Wall Street executives would not be ignored (C-SPAN 2). Many American taxpayers begrudgingly agreed in 2008 that the federal government’s plan to bailout Wall Street was necessary; however, the burden of funding the bailout and empty promises made by the federal government eventually led to a high degree of taxpayer dissatisfaction.

In Daryl Cagle’s humorous depiction of the 2008 bailout, Uncle Sam struggles under the weight of Wall Street. Uncle Sam, a symbol of American taxpayers, is depicted as small and skinny. He holds the entire weight of a fat pig, representative of Wall Street coporations, on his back. The Wall Street pig is dressed in a formal business suit and is accessorized with features of stereotypical Wall Street wealth, such as a large bag of money, a ring, and a cigar. President Bush, representing not only himself but the federal government at large, worriedly screams “Don’t worry! You’re going to be okay!” (Cagle) This is humorous because the President Bush character is much more worried about the rich pig than the burden the pig places on Uncle Sam. This cartoon reflects the American taxpayer sentiment of dissatisfaction about the actions by the federal government and the consequences of the bailout.

The financial crisis of 2008 spurned the need for government action and the bailout. President Bush summarized how the crisis came about in his speech to the American people in the midst of the chaos in 2008. President Bush explained the crisis started when Wall Street lenders, including banks and insurance companies, began giving credit to individuals who could in no way afford the mortgages on the homes they purchased. The good housing market led to a boom in housing construction resulting in a surplus of new homes. This surplus caused the housing market to fall, and many homeowners were stuck with mortgages they could not pay and homes they could not sell. As a result, the institutions that had lent the homeowners the money began to fail. In addition, many of these institutions had invested in mortgage-back securities which are risky investments. According to President Bush, these securities allowed the investors of Wall Street to borrow “huge sums of money, fuel the market for questionable investments, and put our financial system at risk”. He then told Americans that action by the federal government was now vital and explained his administration’s proposal that Congress pass a bill for a bailout funded with $700 billion dollars in taxpayer money (C-SPAN 2). Congress passed H.R. 1424, called the Emergency Economic Stabilization Act of 2008, in early October 2008 (United States).

President Bush placed the blame of the crisis on Wall Street, which satisfied Americans. The unsatisfactory part of the bailout for taxpayers was that they were expected to cover the expenses of Wall Street’s mistake. While many middle class taxpayers opposed having to pay $700 billion dollars to protect what they saw as money-hungry businessmen, President Bush’s many promises made the bailout more easy for taxpayers to understand. For example, in his speech, he promised that there would be consequences for the Wall Street executives responsible for the crisis and that all taxpayer money would be paid back (C-SPAN 2). Regardless, many taxpayers felt that an unfair burden was being placed upon them as reflected in Cagle’s struggling Uncle Sam character. The Los Angeles Times released a poll in late September 2008 that  showed fifty-five percent of Americans opposed the use of taxpayer dollars to fund the bailout (Bensinger). Other Americans showed their dissatisfaction through protest. On September 25, 2008 protestors gathered outside of Wall Street to demonstrate their opposal to the federal government’s plan. AFLCIO president John Sweeney told reporters, “We want our tax dollars used to provide a hand up for the millions of working people who live on Main Street and not a handout to a privileged band of overpaid executives” (Weissner). This statement by Sweeney reflects the sentiment of Cagle’s cartoon. Taxpayers felt that not only were they burdened with the costs of funding the bailout, but also that the federal government was essentially giving the hard earned money of average Americans to the already very wealthy executives of Wall Street.

Lack of follow through on promises by the federal government caused even more dissatisfaction with the bailout. As earlier presented, President Bush promised that the bailout was not a handout to Wall Street but rather a way to save America’s financial system (C-SPAN 2). This perhaps made it easier for some Americans to agree to support the bailout. However, this sentiment changed greatly in the aftermath of the bailout. President Bush relayed to Americans in his 2008 speech that top executives on Wall Street knowingly made risky investments, were responsible for the crisis, and would face consequences for those actions. However, this proved to be an empty promise. The New York Times released an article in 2011 addressing this very issue: “no senior executives have been charged or imprisoned, and a collective government effort has not emerged” (Story). Three years after the bailout, no executives had been criminally prosecuted. In fact, many of the institutions that had received money from the bailout actually gave their top executives large bonuses in 2008. Representatives from these institutions told ABC News that the bonuses were given to executives to entice them to stay on as executives at the institutions (Bernard). This apparent free pass given to Wall Street, in addition to taxpayer money, caused even more dissatisfaction from Americans on the bailout. A joint poll released by CBS and the New York Times five years after the bailout in 2013 showed that over sixty percent of Americans did not support the bailout and over eighty percent felt that Wall Street had not faced harsh enough consequences for its risky actions and investments (Kopicki). This sentiment is reflective of Cagle’s cartoon. Americans truly felt that Wall Street was a greedy and already wealthy group that not only was saved by the federal government at the expense of regular taxpayers, but also faced practically no repercussions for its actions.

As similarly depicted in John Knott’s 1937 cartoon, “How About Sharing The Load”, American taxpayers are depicted struggling to carry what they perceive to be an unfair burden imposed on them by the federal government. In Knott’s cartoon, a figure labeled “taxpayer” struggles to carry a large bundle labeled “expenses of government”. Another man labeled “public jobholder” looks on while smirking because he has a piece of paper in his pocket labeled “income tax exemption” (Knott). This cartoon refers to the nation-wide public dissent from American taxpayers concerning federal tax exemptions for government job holders. While both these depictions reflect strikingly similar sentiments and widespread dissatisfaction from Americans, these two situations in American history have reaped different outcomes. In the case of the 1937 federal income taxes, President Franklin Delano Roosevelt’s sentiments reflected those of the American population; therefore, he was able to use his influence as president to help ensure change in the form of ending the exemptions. In the case of the 2008 bailout, however, President Bush felt that the burden placed upon American taxpayers was not as great as the importance of the financial crisis on Wall Street, so he was able to use his influence as president to perpetuate the passage of the Emergency Economic Stabilization Act of 2008 despite public dissent.

The financial crisis of 2008 was a large source of public dissatisfaction for average Americans in the early 21st century. While some Americans agreed to support the federal government’s plan to use $700 billion dollars of taxpayer money to bailout many Wall Street corporations in 2008 with promises of punishment for Wall Street, the lack of consequences for Wall Street corporations and executives caused many of those to join with their fellow Americans in widespread public dissatisfaction for the bailout. Cartoonists John Knott and Daryl Cagle both reflect public dissent in their respective cartoons by depicting American taxpayers as struggling under a financial burden set upon them by the federal government. Unfortunately, public dissent and frustration did little to reap any kind of change in the 2008 bailout compared to how it did in the 1937 federal tax exemption issue. Despite this recent unfortunate outcome, Americans should still be encouraged to voice their opinions to federal government officials in order to keep the average American spoken for as the 21st century progresses.

Works Cited:

C-SPAN 2. “George Bush Wall Street Bailout.” 24 Sept. 2008, Washington D.C., White House.

Cagle, Daryl. “Wall Street Bailout Pig.” DarylCagle.com, darylcagle.com/2008/09/23/wall-street-bailout-pig/.

United States, Congress, Cong. House, Energy and Commerce; Education and Labor; Ways and Means. “Congress.gov.” Congress.gov, 110ADAD. 110th Congress, bill H.R. 1424, www.congress.gov/bill/110th-congress/house-bill/1424.

Bensinger | Times Staff Writer, Ken. “Masses Aren’t Buying Bailout.” Los Angeles Times, Los Angeles Times, 26 Sept. 2008, articles.latimes.com/2008/sep/26/business/fi-voxpop26.

Weisnerr, Christian. “Labor Leaders Decry Bailout.” National Post, 26 Sept. 2008, www-lexisnexis-com.ezproxy.lib.utexas.edu/hottopics/lnacademic/p. A10.

Story, Gretchen Morgenson and Louise. “In Financial Crisis, No Prosecutions of Top Figures.”The New York Times, The New York Times, 14 Apr. 2011,   www.nytimes.com/2011/04/14/business/14prosecute.html.

Bernard, Stephen, and Business Writer. “Bailed-out Banks Gave Millions in Exec Bonuses, NY AG Report Shows.” ABC News, ABC News Network, abcnews.go.com/Business/story?id=8214818&page=1.

Kopicki, Allison. “Five Years Later, Poll Finds Disapproval of Bailout.” The New York Times, The New York Times, 26 Sept. 2013, economix.blogs.nytimes.com/2013/09/26/five-years-later-poll-finds-disapproval-of-bailout/.

Knott, John. “How About Sharing The Load?” Dallas Morning News 10 April 1937, sec 2: 2. Print.

The Texas Miracle

Rick perry dressed as Jesus appears to walk on water. He is actually being held up by people below the water with education cuts, uninsured, and minimum-wage workers  on their shirts.
Cartoonist John Cole mocks Rick Perry’s attempts to keep Texas afloat.

 

            The Texas Miracle, by John Cole is a political cartoon mocking Texas Governor Rick Perry for his comments on the well being of Texas and his presidential candidacy. It shows a man wearing a white robe and sandals with the word Perry on his robe. He appears to be walking on water, but directly under the surface are children and men holding him up. The people underneath Perry have “education cuts”, “uninsured”, and “Minimum wage workers” written on their shirts (Cole). The cartoon implies that Gov. Perry is not performing any miracles; he is both physically and metaphorically stepping on the groups of people underneath him. The Texas Miracle is similar to the John Knott cartoon, We’ve Survived Other Bad Storms, in that the subjects in the people depicted are in water, and this water is oppressing them. The “storm” that Knott used as an analogy for The Great Depression could also be parallel to the flood that Noah and his family escaped in the bible. However in The Texas Miracle the population was unable to escape the flood because of an ignorant deity.

The accompanying editorial, Walking on Water talks about Perry’s recent presidential candidacy, and why he appeals to the “mad-as-heck right-wing base”. The authors also talk about the not-so-miraculous Texas miracle (Editorial Team). The miracle that Perry claims to have caused is just Texas continuing to profit off of a new way to drill for oil called fracking, which harvests the oil through horizontal fractures and drilling (Krauss). The editorial also comments on how well the housing district is doing, again emphasizing that this was not Perry’s doing, “Much of what Perry lays claim to is not the result of his governance, but existed well before he took office.”

You may recognize the Phrase “Texas miracle” from President George W. Bush’s two thousand presidential campaign and his “No child Left Behind” education reform act (Leung). The act was plan to make teachers accountable for their students’ grades, and required standardized testing for all students, while attempting to lower drop out rates in Houston especially. The program had great success in the first year but it was too good to be true. A vice principal at Sharpstown High School, found there were no drop-outs in the two thousand one two thousand two school year, when in fact there were four hundred and sixty two drop outs. The system had made a code for when a student dropped out it was programmed as a transfer or other acceptable reasons, so the miracle was just a lie. Just like Bush, Perry took advantage of the natural strength of Texas and used it for his own benefit. “According to The American Statesman, almost half of the state’s job growth came in the education, health care, and government sectors”, but when the state was faced with a twenty seven million dollar deficit Perry took four billion from K-12 schools. Already suffering as one of the least educated states, Perry stepped on education so that Texas would have less debt, and Texas suffered for it.

Texas’ population was been growing more rapidly than any other state from nineteen ninety to two thousand eleven this is in part due to the oil boom, but Perry found a way to make this benefit him (Plumer). Perry brags that Texas has a low unemployment rate but in fact at the time it was just a tenth lower than the national average, and the majority of those workers are working for minimum wage, which means that they have little or no insurance from their job (Meyerson). To add onto that Perry Doesn’t would prefer the states control of minimum wage and opposes the increase of minimum wage, claiming to be protecting the small businesses (Selby). At this time Texas was also the most uninsured state in the country, with twenty six percent of the population uninsured, Rick Perry still resisted universal healthcare. Perry said “They did not want a large government program forcing everyone to purchase insurance”, which may be the case, but this works well with Perry’s views on minimum wage and his refusal to increase the Medicaid (Benen). You see if Texans make less than four thousand five hundred dollars a year they can apply for Medicaid, but if they make less than eleven thousand six hundred dollars a year they are too poor to buy insurance for themselves (Damico). This is called the Medicaid expansion gap, and Rick Perry walked all over the people in this gap just to make the state more profitable.

A few parallels can be made between The Texas miracle and We’ve Survived Other Bad Storms, the major one being the water. In both cartoons the water is rising, because Rick Perry has no intention of changing his policies and will continue to take money from education. The water is also rising on the two business men while they converse in the storm, which was also brought on by the government’s inflation during the twenties. We’ve Survived Other Bad Storms could also have a religious aspect to it, where Herbert Hoover, who was blamed for The Great Depression, could be seen as an ignorant deity. As he told the public over and over that the depression would pass, doing little or nothing to help the floundering public, while the floodwaters continue to rise leaving the population without an ark. In both cartoons the public is the victim of the governments poor choices and both cartoonists depict their suffering through water.

The Texas Miracle by John Cole is mocking Rick Perry’s foolish attempts to take credit for the relative low amount of debt that Texas is in. The cartoon and editorial both ridicule him for refusing to help those beneath him, calling him a lone star blustering bible thumper. The Texas Miracle illustrates just how unlike Jesus Rick Perry truly is, and what lengths he is willing to go to in order to make a profit for the great state of Texas.

Works Cited

Benen, Steve. “Perry Boasts about Texas’ Uninsured Rate.” MSNBC. NBCUniversal News Group, 13 Feb. 2015. Web. 30 Nov. 2016.

Cole, John. “John Cole Cartoons » Walking on Water.” John Cole Cartoons » Walking on Water. The Time Tribune, 18 Aug. 2011. Web. 30 Nov. 2016.

Damico, Oct 19 2016 | Rachel Garfield and Anthony. “The Coverage Gap: Uninsured Poor Adults in States That Do Not Expand Medicaid.” Kaiser Family Foundation – Health Policy Research, Analysis, Polling, Facts, Data and Journalism. WordPress.com, 19 Oct. 2016. Web. 30 Nov. 2016.

Editorial Team. “John Cole Cartoons » Walking on Water.” John Cole Cartoons » Walking on Water. The Times Tribune, 18 Aug. 2011. Web. 30 Nov. 2016.

Krauss, Clifford. “Shale Boom in Texas Could Increase U.S. Oil Output.” The New York Times. The New York Times, 27 May 2011. Web. 30 Nov. 2016.

Leung, Rebecca. “The ‘Texas Miracle'” CBSNews. CBS Interactive, 6 Jan. 2004. Web. 30 Nov. 2016.

Meyerson, Harold. “The Sad Facts behind Rick Perry’s Texas Miracle.” The Washington Post. WP Company, 16 Aug. 2011. Web. 30 Nov. 2016.

New World Encyclopedia. “Texas.” Texas – New World Encyclopedia. New World Encyclopedia, 20 Nov. 2015. Web. 30 Nov. 2016.

Pallardy, Richard. “Rick Perry.” Encyclopedia Britannica Online. Encyclopedia Britannica, 9 Nov. 2015. Web. 30 Nov. 2016.

Plumer, Brian. “Breaking down Rick Perry’s ‘Texas Miracle'” The Washington Post. WP Company, 15 Aug. 2011. Web. 30 Nov. 2016.

Selby, W. Gardner. “In 2014, Rick Perry Saying He Opposes Federal Government Setting Minimum Wage.” @politifact. Politifact.com, 30 May 2014. Web. 30 Nov. 2016.