Wall Street Takes Welfare It Begrudges to Ordinary Americans

By Mimi Abramovitz, Women's eNews. Posted September 25, 2008.

Today we sit and watch as the high-rolling gamblers and critics of "big government" take welfare. These are many of the same people who thought it was just fine to deprive millions of women of critical resources and let them fend for themselves.

Even before the catastrophic news out of Wall Street in recent days, women have been worried about their economic security.

Last March a Gallup poll found that in the past two years more women than men said that they worry about the economy (64 percent versus 57 percent). The same holds for health care, crime, the environment, drug use, unemployment, hunger and homelessness.

More men are employed by Wall Street and more men have money invested there. That means the male anxiety meter is probably much higher now that they risk losing their jobs, pensions, portfolios and homes. But women's worries have probably shot up even more.

Women are likely to lead in the economic-anxiety gap because distressing economic events fall harder on people with less. "I don't play the stock market, but it does affect us. It affects me personally. It affects the little guy," a female dispatch supervisor of a limo company that serves investment bank employees recently told the New York Times.

The same holds for all the secretaries and housekeepers who keep investment houses clean and running.

Decades of Lost Ground

But what makes the bailout of the fat tomcats so galling is that women at the bottom of the economic ladder have lost ground during the last 30 years, with very few seeming to notice or care.

From F.D.R.'s New Deal in the 1930s to L.B.J.'s Great Society in the 1970s, the expansion of government programs for the middle class and the poor -- Social Security, Medicare, Medicaid, food stamps, public assistance, as well as health and social services -- provided a modest economic backup for women who predominate among recipients.

Great Depression leaders who saw government as the solution to that economic crisis bailed out banks in exchange for tighter regulations to curb speculation. But they also created cash-assistance programs that increased women's purchasing power and protected them against economic hardship.

Those programs redistributed income downward and expanded the capacity of the federal government to kick-start the economy while cushioning consumers and workers from the vagaries of the market.

Beginning with President Carter in the mid 1970s, our leaders changed their tune, blaming economic woes on "big government." Successive administrations relaxed the rules on financial markets and cut funding for the safety net.

Benefits Didn't Trickle Down

Advocates of "less government" promised that benefits would "trickle down" to the rest of us. Instead their laissez-faire strategy weakened government benefits, one of the three interlocking pillars of economic support counted on by thousands of women from all walks of life.

The Congressional Budget Office recently reported that government spending for domestic discretionary programs fell from a high of 4.8 percent of national output, or gross domestic product, in 1978 to 3.4 percent in 2007. That equals billions of dollars in cuts. Except for rising health care costs, spending on entitlement programs -- such as Social Security, unemployment insurance and public assistance -- also fell from 8.5 percent of the gross domestic product in 1983 to 7 percent in 2007.

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