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Remembering Shay’s Rebellion

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If as a nation we are unable to remember Shay’s Rebellion; this article will help  us remember the importance of historian, Santayana’s writing, “ those who can’t remember the past are condemned to repeat it” This is most appropriate today when we revisit the events of Shay’s rebellion and how it speaks to concerned Americans. For surely our elected politicians have either forgotten these prophetic words, and/or have failed their American history courses. Or simply, no longer care about the financial, mental, or physical health of the common American. Their actions seem to confirm they have abandoned us with pleasure. And, as a nation today we are repeating this unfortunate politico/economic situation.

For those politicians who have forgotten Shay’s Rebellion which took place in 1786 in the immediate time following our nation’s independence. The genesis of this rebellion was the result of poor economic conditions that resulted in Americans unable to service their debt, losing their property, and the levying of punitive taxes by the government. Once again, the common American was forced to pay for a crime they did not commit. These poor actions by our government at that time created an economic failure that victimized many of our citizens, by creating a class of economic cripples from a once productive and patriotic population. Many of the victims of Shay’s Rebellion were American serviceman who risked their lives in the War of Independence, for the purpose of life, liberty, and pursuit of happiness. This historical event clearly speaks to us today in these disturbing economic times. Confirming, the real purpose of the common American is that of paying unfair taxes and being feed as cannon fodder for all of our relentless wars.

The cause of this economic debacle our nation is currently experiencing can be attributed to the arrogance and greed of our elected politicians, appointed office holders, and corporations. In regards to arrogance, it was just a mere few years ago that Mr. Bernanke went on record to claim, “That while the economy would continue to suffer from occasional setbacks, the days of really severe recessions, let alone worldwide depression, were behind us.” Is this truly the best candidate for this position? Ironically, Bernanke is supposed to be an expert on the Great Depression. Maybe he is much better at creating them then preventing them.

As was the case of Shay’s Rebellion; the citizens first looked to government for leadership to correct the economic hardships they were facing, which they had no control over, and did not create. That past incident is not unlike today in our leaderless society which has not addressed the needs of the common American. In a sad, though not an unexpected response from Washington, Bernanke will response to the depression by going on a ‘Charm Offensive” to “correct” the damage. Maybe our academic institutions should start requiring all economic majors to take charm classes instead of basic economic 101.

Like in the days of Shay’s Rebellion, our nation today is unable to create enough jobs for Americans to live a financially solvent life. As our economy failed as the result of Wall Street greed, lack of government oversight, ineptness and overall lack of leadership that supports lack of corporate and government responsibility. A policy that allows credit card companies to increase interest rates and fees at will, while bailing out the lenders, with bonuses attached-hefty reward for failure. Now who is the less responsibility party here, the common American who is unable to find employment in this “land of Opportunity”, and thus unable to service their debt out of no fault of their own. Or the corporate lenders who are allowed by our elected officials to charge usurious interest rates, and still fail to make money, only to be bailed out by the taxpayer who is unable to pay and  realizes no benefit from his tax dollars. Regretfully the common American who is no longer in a position to service their debt, out of no fault of their own is labeled a “ruthless Defaulter.”  On the other hand, the greedy and ruthless lenders are rewarded by our politicians with bailouts, bonuses, and the support of the usurious lending policies they impose.  All financed by the middle class taxpayer, and approved by our elected officials. Just like in Shay’s Rebellions, Americans sought help from our government, only to realize the country lacked the leadership to solve the problem.

The record will speak for itself; in 2004 credit card companies posted a combined profit of $30 billion, earned by usurious interest rates, tripling late fees between 1994-2004, imposing confusing multiple interest rates, tripling  the over the limit fees, and charging you on debt already paid, to name a few. We can thank our Supreme Court and our elected politicians for this allowing this abuse of the common American to continue. For these companies can only get away with this behavior as long as it is legal- and it is legal, thanks to our political and legal system.

It is also quite ironic that strong consumer spending which is needed to pull us out of this depression is being stifled by lack of jobs, high taxes, and abusive interest rates. As long as these condition exist, and Washington is blind to the needs of the common American whom is denied secure jobs, forbearance and bail outs, and some form of safety net. Our economy will never truly recovery, and the boom bust cycle will prove to be more frequent and deep

In the meantime, Washington will send its best elites to charm school as a means to “solve” the problem. And, be oblivious to the past as long as they have the taxpayer to bail them out. May the memory of Shay and Santayana be forever in the minds of the common American- for our politicians have forgotten those decades ago?

Dr. Richard Cirulli is a professor of Economics and Business; Business Consultant; and hosts a weekly talk show, The American Condition, that deals with current economic issues. He can be reached at profcirulli@optonline.net

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