13 July 2023
Confidence in banks and the overall U.S. economic system is declining rapidly, with only 26 percent of Americans expressing confidence in banks. This figure dropped by just one percentage point despite recent major bank failures. The repeal of the Glass-Steagall Act in 1999, which allowed banks to engage in high-stakes trading and complex derivatives, contributed to the erosion of trust in the banking system. Family homelessness has also surged across major cities, highlighting the failure of the Bidenomics agenda to deliver prosperity. The inflation storm has left Americans, especially the middle class, struggling with negative real wage growth and a reliance on credit cards in a high-interest-rate environment. Despite the White House’s claims of progress, the nation’s confidence in banks remains dismally low. Restoring the Glass-Steagall Act is crucial to addressing the recurring banking crises and rebuilding trust in the system. The decline in confidence extends beyond banks, with newspapers, television news, big business, and Congress also suffering from low public trust. Without significant reforms, the frequency and severity of future crises will continue to grow, making half-hearted attempts at reform futile.