What Do The Tea Party and OWS Have In Common with Iceland?
By Caren Z. Turner
To some extent, the “Occupy” and “Tea Party” movements stem from the same route cause – a systemic diseased relationship with money. Our economic institutions and governmental systems have different strains of the disease, but disease nonetheless. The Occupy Movement seems to have developed as a response to Wall Street and the 1% hoarding it, possibly disregarding the rules of the game in order to acquire it. The Tea Party sprung up as a response to governmental spending of that which they don’t have. Both Tea Party Republicans and the Occupy folks probably agree that bailing out the largest banks in the nation is the wrong course of action.
This is all quite relevant now as Morgan Stanley Smith Barney’s value may have shriveled by 30%. Bank of America Corp. has told U.S. regulators that it is willing to retreat from some parts of the country if its financial problems deepen, according to people familiar with the situation. Finally, President Obama and the US Congress are having an encore performance of the debt ceiling dance. The House of Representatives is scheduled to vote on Wednesday.
We, as a nation can only crystal ball what would have, could have, and might have happened, if we did not bail out our nation’s banks. However, the Washington Post today provides some insight into how the story might have ended a bit differently. It also provides us with some guidance regarding how we may consider our economic choices a bit differently than we have in the past. Enter Iceland!
Iceland is the “demonstration project” the US should study carefully. As noted in the Post, “Iceland did what the United States chose not to do — allow its biggest banks to fail and force foreign creditors to take a hike. It did what troubled European nations saddled with massive debts and tethered by the euro cannot do — allow its currency to remain weak, causing inflation but making its exports more desirable and its prices more attractive to tourists”.
While the Icelandic krona lost more than half its value against other currencies, the government was kicked out of office; the nation with over 99 percent literacy rates is quickly on the mend. Far more quickly than its counterparts in Italy, Greece and yes, even the US.
“Iceland’s journey from financial ruin to fledgling recovery is a case study in roads not taken and choices not made by other countries faced with economic calamity in recent years”.
Having recently returned from a wonderful (and bargain basement priced) trip to Iceland, I can tell you first hand that the streets ARE brimming with thriving restaurants, tourists and Blue Lagoon expeditions.
Maybe the US should take a look at our Viking founders for some economic lessons too? What do you think??
Turner GPA is a leading D.C.-based national lobbying and government affairs firm dedicated to delivering cutting edge policy advocacy for the manufacturing, defense, aerospace, health and energy industries. Members of our professional policy team can be reached at (202) 466-2511. We are also on the Web at www.turnergpa.com.
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