Written by David Starr   

In an opinion piece entitled "In Defense of Demonized Wall Street" by Jason Desena Trennert (Wall Street Journal, 10/22/2015), capital markets are praised as "the greatest economic engine the world has ever known." Capital has revolutionized production as a leading force, but it is labor that is the true economic engine. Abraham Lincoln once said that labor is superior to capital. If it wasn't for labor capital wouldn't exist. Thus, it deserves the higher consideration. Instead of capital markets, labor markets would be a more accurate term.

The economic engine is run by the labor power of the working class in whatever economic sector we're talking about.

Trennert does criticize predatory lending, but it is capital itself that is inherently predatory. Money is worshipped on the altar of Wall Street. The neoliberal phase of capital has produced record profits. But the trickle-down economics originating with Reagan has not alleviated poverty. On a world-wide basis, gross inequality for many still exists while capital accumulation has soared. But only the 1% have really profited from it in a gross imbalance of income disparity.

Trennert, however, praises "modern banking" putting a "serious dent" in the crushing poverty that was once "the norm rather than the exception." I wouldn't say that it has put a CRUSHING dent in poverty. Especially since the Clinton administration, big banking has been a corrupt practice with, e.g, predatory lending. Bringing back Glass-Steagall would help-separating investment banks from commercial banks.

But under capitalist rule, not only will there always be the temptation to use and abuse banking; the latter would continue to be vulnerable to the boom and bust cycles of capitalism. And those within the working class are potential victims. The top percentage of income earners do not go through the depravity that afflicts most during a recession or a depression. These individuals have at least a financial buffer to weather the economic storm.

Trennert mentions Charlie Merrill, co-founder of Merrill Lynch: "His legacy has allowed untold millions of savers to put money in the stock market and retire in comfort." Again, on a world-wide basis, many have indeed put their savings in the stock market and many have gotten burned by it. The 2008 Great Recession is one of the biggest and brutal examples of economic meltdown. While people will continue to put their savings in the stock market, it is the biggest form of gambling in the world.

Trennert writes that Merrill "was the first to understand that the distinction between 'Wall Street' and 'Main Street' was artificial." But both haven't exactly been allies in the production of goods and services. Trennert tries to put across the idea that both are compatible, that "we're all in this together." It appears, however, that the few are more equal than the many.

While Trennert doesn't oppose "common-sense regulations," the latter have been gutted going back to the 1980s. And the wild speculation and a greed-is-good mentality that followed was a major factor leading up to the 2008 recession. (The Bush Jr. administration should take much of the blame with its “ownership society,” i.e., “you’re on your own society.”)

Labor is the economic engine but capital has gotten most of the credit...and the wealth. It's time for labor to get credit, and the wealth from production, that it deserves. To reiterate, if it wasn't for labor, capital would not exist.