Smith Reveals Least of Problems At Goldman Sachs

     Greg Smith recently raised hackles at Goldman Sachs with his very public resignation and critique.  While Smith brings up major problems with the culture of the firm, he does not touch on the how the Goldman culture affects the rest of us.  Smith describes two internal cultural themes that led him to his resignation.  In his opinion, a prevailing attitude at Goldman Sachs says that how much money they make from each customer is more important than how much money they make for each customer.  Smith also says that Goldman promotes management based on how much money they make on deals, rather than their ideas or management skills.  While these aspects of culture may be bad for Goldman Sachs the firm, it is another Goldman cultural norm that is dangerous for the United States as a country.  The Goldman culture supports the idea that Goldman has both the need and the authority to manipulate the United States government.

    

     Many large companies in America lobby the government, but Goldman Sachs makes other company's efforts look amateurish.  Goldman donates to campaigns and gives big.  According to the Center for Responsive Politics, the firm donated over $3 million to various candidates, with Mitt Romney and Barack Obama being the largest recipients.  Goldman CEO Lloyd Blankfein and other employees also gave Barack Obama a combined $1 million for his campaign.  Goldman Sachs also peppers the government with former employees.  Other companies have former employees in government, but none seem to be able to get into the White House the way Goldman can.  Bush famously had Henry Paulson as his Secretary of the Treasury.  In the Obama administration, Chief of Staff Rahm Emmanuel, Commodity Futures Trading Commission head Gary Gensler, TARP administrator Mark Patterson and National Economic Council Director Larry Summers all got a paycheck from Goldman at one time or another.  Goldman also rewards government officials with lucrative jobs.  CBS News  reported in 2010 that there were at least four dozen people that went back and forth between positions with various governments and Goldman. 

   I could jump on the bandwagon about the evil culture at Goldman Sachs.  Goldman is definitely the king of crony capitalism.  However, Goldman only takes advantage of a system created by Politicians to enhance government officials' power and privilege.  As a Conscious Conservative, I believe the people to be held accountable is those same Politicians.  We need to make a Goldman Sachs campaign contribution as toxic as the assets from which Goldman made a fortune.