Capitalism in Crisis: The Cost of U.S. Corruption

26 09 2008

The ongoing bank driven economic crisis in the U.S., and the proposed $700bn rescue plan clearly demonstrate the cost of corruption. Again I am adopting the definition of corruption used by Transparency International (TI) to suggest that this crisis has corruption at its roots.

Transparency International, one of the largest Anti-Corruption agency in the world, define corruption as, “the abuse of entrusted power for private gain”. and say, ” It hurts everyone whose life, livelihood or happiness depends on the integrity of people in a position of authority.”

As to the cost, the $700bn deal being proposed would cost every man, woman and child in the United States about $2,300. And, the total cost exceeds total lending by the International Monetary Fund since its inception after World War Two. The IMF has loaned $506.7 billion since 1947.

In other words, the U.S. government is proposing a deal that would rob every citizen of the U.S. to reward the corrupt institutions and the corrupt directors of them.

The deal is in trouble today. Let’s hope and pray it does not pass. If it does it will be a clear demonstration that corruption pays and would undermine the credibility of America and the capitalist system as a whole.

These are my opinions, and the figures used come from reporting by Reuters.