Archive for November, 2010
We are not in a recession. We are not in adjustment. We are not in a depression that is part of the cyclical up turns and down turns in the long range course of a nation’s economy.The article prompts me to postulate that the banksters and mega corporations are strangling the life and wealth out of the American citizen/consumer. We are entering THE NEW REALITY. My friend Steve calls it the NEW NORMAL No middle class. This new reality means McJobs, McWages, and shopping at McWalmart. Without the wages to be consumers the economic process collapses. It has already started with housing as fewer families will now be able to own a home, less will be built which will create a ripple effect across the economy resulting in the loss of more jobs. The glut in housing recuces the value of homes which is probably the biggest investment most Americans will ever make. The spiral will continue downward. Mega corporations no longer have a contract with workers. They don’t even have a sense of partnership with workers. No more pensions. “Let the government subsidize retirement.” No more private employee based health service “Let the government subsidize health care.” Unaffordable housing. “Let the government subsidize it.” What will happen when there is no more tax base from which to extract the capital to subsidize everything? Some people are fearful of the increased role of government. If we are abandoned by private enterprise, what else can fill the resultant vacuum? Some additional capitol will be captured by the government by reducing social security and related benefits and extending retirement age. Once again the citizens will bankroll an evaporating economy with even less spendable income to keep the economic engine running. If a mega corp were to reduce profit somewhat and increase wages it would accomplish two things: It would increase the population of the potential market base and at the same time prevent that market base from evaporating. Don’t they get it? The workers are laying the eggs to be harvested. If you kill the goose for immediate gain, no more eggs will arrive. The present capitalistic atmosphere is leading to the political and economic dictatorship of the “haves” over the “have a little somethings” and the “have nots.” Oh, yeah. How about that $billion a day in Afghanistan?