While Americans can be divided into many subgroups, the economic downturn has produced the most salient division of the current time: the “Exposed American” and the “Insulated American.”

The Exposed Americans are those for whom this downturn will matter most: either they will lose their jobs, and/or material possessions (such as a house), or they will be retirees forced to “un-retire” as a result of the devastation of their 401K accounts. Some of these Americans have always been financially vulnerable, but for many this is uncharted territory. Anger and fear are rampant, but perhaps the most uncomfortable reality for this group is the essence of America’s financial troubles: their trust in the common understanding of the American story has been shattered–by the ineptitude, corruption and appalling lack vision demonstrated by our ostensible leaders in government and finance. Until their faith is restored, no reversal of our economic fortunes is likely.

Which bring us to the Insulated Americans. These are Americans with financial resources that allow them to weather virtually any turndown in our economy. They are the titans of industry, celebrities, members of family dynasties, etc., for whom the most “heart-rending” choices they will be forced to make are firing the maid, scaling back on charitable contributions, selling the vacation home or hiding their conspicuous consumption in order to “blend in.”

So what’s the rub? The sub-set of Insulated Americans who matter the most: our politicians.

According to the the nonpartisan Center for Responsive Politics, “U.S. senators had a median net worth of approximately $1.7 million in 2006, the most recent year for which their financial data is available, and 58 percent of the Senate’s members could be considered millionaires. In the House of Representatives, the median net worth was about $675,000, with 44 percent of members having net worths estimated to be at least $1 million.”

Even more telling: “Before the American economy showed signs last year of slowing down, lawmakers had enjoyed an extraordinary run in their personal investments and other finances. Members of Congress, who are now paid about $169,000 annually, saw their net worths soar 84 percent from 2004 to 2006, on average.”

Apart from envy, why does this matter? Here’s why: every critical decision that will be made regarding the economy will be made by Insulated Americans whose assets are substantial enough to keep them from being unduly affected by whatever folly they foist on the rest of us.

No matter what kind of stupidity, short-term thinking, political correctness, or corruption emanates from the Oval Office or halls of Congress, our political ruling class will never want for all the necessities and most of the luxuries life affords– even if the rest of America is standing on bread lines or living in tent cities.

If that doesn’t scare the bejeezus out of you, you’re in a coma.

The sad reality is that the term “citizen government” has become an oxymoron. Our political class has never been more removed from the average American and their interests. Washington D.C. is the “Emerald City” and the “Wizards of Oz” can pontificate with the kind of assuredness that comes from knowing most Americans won’t pull aside the curtain and expose the huckstering opportunists hiding within.

In a radio interview late last year, I suggested forming an organization with the acronym “G.R.O.I.N.”–as in “Get Rid Of Incumbents Now.” Obviously such a concept was too late for the 2008 election, but Americans now have until 2010 to decide–whether they’re feeling more Insulated or more Exposed. Perhaps we should concentrate on electing Exposed Americans to office: nothing concentrates the mind like having a direct stake in the decisions one makes.

We already know how Insulated Americans run things–right into the ground.

Ground their feet will never touch.

atahlert@comcast.net

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