where the disconnect is

The news is full of people telling us how the downturn is going to be worse and the Obama recovery plan is not going to work. They are saying there is a disconnect between the plan and the reality.
The disconnect exists because the top tier of the economy, people who collected the big bonuses and extravagant salary and benefit packages of large corporations, have become accustomed to government handouts while making sure that there are no handouts to anyone who actually needs one. When the government gives to banks and corporations, it is supporting the market economy. When it gives to working people, the middle class, or to the poor that is Socialism.
Here is how the bailout has worked so far: every dime that the Government has given to banks and corporations to spur the economy is still in the pocket it went into. Owners and CEO’s and people in a position to control this windfall are accustomed to entitlement, and they are not going to let go of any of it to restart lending or create jobs or invest in recovery. They are going to put it in their treasure room as a hedge against harder times. This is their reality. This is what caused hard times in the first place, people who had legitimate or fraudulent (or that new hybrid) access to our invested retirement and savings and home equity pulling it out of circulation and socking it away, freezing it for themselves as their security in the coming apocalypse. We all know that greed is a sin, so they will surely be Left Behind, protected by their money when a few of us have been taken in the rapture and the rest have been swept away by turbulence.
That is why, to get lending and investment flowing again, we will have to raise taxes on the wealthy owners and operators of banks and corporations. They will never re-invest the wealth they have bled off, and there will never be any more wealth to bleed off unless we force re-investment by taxing and government spending.

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