Epistemological violence in America

The financial services industry, composed primarily of banking, insurance, investment and brokerage firms, is the single largest world industry in the world in terms of earning. Including such behemoth companies as Citigroup, Bank of America, JP Morgan Chase, AIG, and Wells Fargo, this industry accounts for more than 20% of the S&P 500 (the 500 most-widely held stocks), which is valued in excess of $10 trillion. To put such a staggering figure into perspective, Citigroup alone saw revenues in excess of $108 billion in 2004. Financial services are a flagship sector of the global economy because of their omnipresence: anyone with a mutual fund, credit card, or even a checking account is a paying customer. Every ATM usage fee, every cent of interest charged, and every commission fee resulting from traded stock fuels the industry.
These are halcyon days for those that control the financial services industry. They enjoy a federal government packed with corporate lackeys and/or former executives dedicated to maximizing corporate profits. They benefit from the absurd tax breaks granted to corporations in the past four years and the efforts to privatize just about everything. The Republican plan to gut Social Security would have only further increased the immense profits made on Wall Street (I say would have because their plan for private accounts is dead in the water).
Of course, the nature of the industry (and capitalism in general) requires constant expansion and its enormous size necessitates many unknown thousands of employees. I work for a company that sits on the periphery of the industry but still reaps handsome profits. While not involved directly in any financial service, this company prepares the individual acquire and maintain various licenses and designations need to do such business. A major part of this cycle is the production of countless entry-level bankers and insurance agents all seeking to get their slice of the $10 trillion pie. Some are recent grads, armed with degrees in finance or accounting, that have been recruited and hired by the biggest and best (not in terms of reputability but in earnings potential) firms. To use a sports analogy, these are the blue chips, the first-round draft picks. They will likely enjoy six-figure incomes in the near future, move their way up the proverbial ladder and milk this cash cow until it dries up. Then there are those older individuals that either worked previously in another industry or are currently involved in financial services and seek to increase their income. To continue the sports analogy, these are the late-round draft picks. They are of decent value to their companies and look at the industry as a solid foundation on which to stake their livelihoods. These folks will make decent money, put their kids through college, and retire in middle-class comfort. Then there are the derelicts, those that have failed in their past endeavors and find themselves in the stage of life where the collective weight of debt, responsibility, sheer bad luck or a combination thereof threatens to crush them. (The sports analogy starts to dissolve here…the closest comparisons are walk-ons or journeymen veterans.) This class of workers, which is, if not the majority, certainly a plurality in the industry, views the financial services as the last chance to make their fortune and have some kind of future financial stability. They will finally be able to cash in and reach their American dream. For them, the industry is a cross between a casino and a church. It is, in short, the answer to their prayers.
Luckily, the enterprising people that control the industry have provided a few easy solutions for those hoping to salvage themselves. Several companies including World Financial Group and Primerica, which is owned by Citigroup, are operations where the employees pay a fee to join the company, build their own client base from friends and acquaintances, and then hire their own underlings and create their own sub-company. In any other business, this would be called what it is – a pyramid scheme. Instead, Citigroup uses Primerica (referred to by many as “the Amway of financial services”) to pad its already ridiculous profits through predatory lending and cult-like practices (Click here for more info on Primerica). The promise of making big money and owning your own business (all for the low introductory rate of $199!) are too much for many folks in vulnerable positions to pass by. Once, in a conversation with a World Financial Group employee I was told that he and several of his friends were making six-figures and working only part-time. Apparently, the money was so good that he chose to come out of retirement to make some extra cash. And if you believe that, I’ve got some great beachfront property I’d like you to look at…