Walking to work recently on Park Ave. in New York City, I noticed a relatively inconspicuous sign for a company on the side of an entrance to the massive building plaza for 345 Park Ave. “Blackstone” in silver letters with a black background is mounted on a stand painted white and the entire sign is displayed in a very unassuming way. Not very unassuming is the fact that Blackstone’s chairman and chief executive Stephen Schwarzman’s personal fortune has risen to above $10 billion and the Blackstone Group has grown to be a $367 billion private equity conglomerate. The Blackstone Group has risen in a specular fashion since 2007 to be a leader in the financial services industry eclipsing rivals such as Goldman Sachs and JP Morgan.
Sharing the same real estate
Also at the same plaza entrance was one of the ever growing army of homeless people that can now be found on Park Ave. camped out ready and eager to accept hand-outs from the bankers and other professionals on their way to work. Loitering homeless people have become a regular feature of Park Ave. and our city in general particularly since the progressively engaged Mayor Bill De Blasio has assumed office. The contrast between the meticulously groomed and stylishly dressed and well paid executives on their way to work at some of the most prestigious firms in the country such as Blackstone and various representatives of the ever more visible local homeless community who never work is disquieting. Seemingly sharing the same real estate, you have to wonder if there is some sort of connection between these two seemingly disparate groups?
Increased homelessness has evolved to be a major crisis in this country with urban centers such as New York, San Francisco and Los Angeles leading the way and many suburbs in this country now also facing similar challenges. Homelessness is a complex issue, with many factors to consider. Many of the homeless are families or single people simply requiring affordable housing due to some sort of economic displacement or by the very high cost of housing. Housing costs have often been driven higher by the fact that many cities have become more desirable places to live for many millenniums and many people of means.
Overall in our country, there is a lack of available and affordable housing for the poor and increasingly for many middle class citizens. In addition, a significant minority of homeless people face drug, alcohol and mental illness that create enough disruptions in their lives to cause a downward spiral so as to land at the level of living on the streets or in a shelter.
We had an increase in the poverty levels in our nation under President Obama
In the final analysis, the primary cause of homelessness is simply too many people living in poverty in this country. Adding to the problem is that the higher levels of homelessness in our country is directly related to the disappointing economic recovery and the lack of economic growth during the last eight years under the Obama Administration. This has resulted in a significant increase in the levels of poverty, a shrinking of the middle class and an overall lowering of the standard of living for the average American during his term.
Big Government assumes monopoly powers in this country
The progression of the role of government in this country has headed towards a dominant responsibility of societal problem solving being assumed increasingly each year by the Federal Government. Nowhere is this truer than in the lives of poorer Americans. Government has created a virtual monopoly in services to people in poverty in this country resulting in an unprecedented level of permanent dependency for these people. Poorer people in this country are dependent for their virtual survival and subsistence including food, housing, education and health care on government programs of one sort or another. The growth of monopoly government power in providing all means of daily survival for the poor and the resulting increase in dependency deprives the poor of their freedom and diminishes opportunities for them to control their destinies and diminishes the probability of many of them ever experiencing upwards social mobility. Permanent poverty may be their fate cemented by Government policies intended to assist them.
The two sides of the Big Government Divide – Independence or dependence
At the opposite end of the spectrum, Blackstone is a beneficiary of a monopoly created for their benefit by government policy of a different type. As a result of the financial crisis, a series of regulations was passed by the Federal Government including the Volcker Rule, Dodd-Frank and capital restrictions on banks and moves to restrict compensation. They have rendered banks such as Goldman Sachs, JP Morgan, Citi, Morgan Stanley, UBS and Deutsche Bank incapable by these government mandates to any longer compete with a virtually unregulated firm such as Blackstone for many lucrative deals that involve taking a relatively higher degree of risk.
The overwhelming growth in power and reach of our Federal Government over the years has resulted in the Government having a growing influence in every aspect of all of our lives no matter an individual citizen’s socio-economic status. For the employees of the other banks listed above there are decreased career opportunities resulting from the often arbitrary workings of an increasing powerful government. Blackstone is the beneficiary of their current position of relative freedom from burdensome government regulation and oversight and are free to be creative, innovative and to generate jobs and prosperity. This freedom to act is their competitive edge and source of their success for now. On the other side of the divide, those in poverty in our country are increasing trapped by the limits to their freedom of choice and opportunity imposed by an environment of increasing domination by government in their lives. As a result, people in poverty face an increasingly challenging future.
The increase in homelessness is a symptom of a much greater issue in our country
The very visible increases in the levels of homelessness is a constant reminder and symbol to all Americans that our country was until the November election moving down the wrong path of increasing the role of big government in all our lives resulting in a myriad of negative consequences for the vast majority our citizens. It is safe to say that the people in poverty are on the wrong side of the Big Government divide and so are the many citizens now hanging on to their middle class status. For now, Blackstone is on the right side of the Big Government divide living for now in relative freedom until one day possibly for a multitude of unforeseen reasons this will no longer be true. Institutions having the financial impact that Blackstone possesses will inevitably become tomorrow’s political victim. Big Government’s incessant drive for additional control over competing centers of power is limitless.
The shifting American political landscape
The American political system operates like a pendulum that moves Left or Right adjusting to the results of the election outcomes for President, Congress plus State and Local offices. In order to move forward and address the challenges that face us, it is important to have a clear understanding of conditions caused by the eight years of the previous Administration. President Obama’s vision of America moved the political pendulum significantly to the left while growing the role and scope of government at an accelerating rate.
What happened in November?
The traditional answer has always been the best answer for America. In the past, when so many citizens sensed that the country was on the wrong path; we have a consistent history of voting into office leaders with an opposing point of view to the incumbent.
Citizens voted for a distinctive change in direction for our country with the election of President Trump. There were enough Americans alarmed about the prospect of a Clinton Presidency that was expected to continue to implement policies based on the liberal agenda to make a significant change in direction happen. Many believed her election would have included an ever more expanding role for the government in the life of our country causing more damage to the very nature of our nation.
As the Trump Agenda plays itself out; the logical decision will be to implement policies with the general objective of limiting the scope of government in as many ways as possible in the lives of all Americans. Increased freedom and liberty for every citizen should be the overriding objective in every policy proposal by our new Administration. We must return to the days of having the power of the individual once again be supreme in our political thinking.
Are you currently independent of or dependent on Big Government?
What side of the Big Government divide do you fall on? Do you still have the ability to exercise an adequate degree of control over your life circumstances or are you becoming increasing dependent and ruled by expansive government institutions for your well-being? Which of these ways of life do you believe will enhance your specific prospects for a better future? Keep this in mind as President Trump fights for our freedom every day and needs our support.
The RightQuestions 