A Rock & A Hard Place
While the American economy, and indeed the world economy, stopped plunging downwards a couple of years ago, we're not out of the woods yet. With so many countries now interconnected by trade and investments, a problem in one place is tough to contain there. That's why Greece has been in the news for quite some time now, as well as Italy, Spain, Portugal and Ireland. We're between a rock and a hard place.
Of course, everyone watches China, especially its growth rate. China is interesting, not only because of the sheer size of its population, but because it has moved away from doctrinaire Communist economic policies toward a much more free economy, while maintaining hard line Communist political rule. They're so free market oriented, they own a good chunk of American debt; so much, that no one quite knows how to deal with China about its cheap labor and artificially low currency (read that as "manipulated"), that is sucking the lifeblood out of American manufacturing and the former good jobs that went along with it. BUT when you owe someone a bundle, it's pretty tough to tell them they're behaving badly. We're between a rock and a hard place.
On the other hand, the so called "Arab world" has been experiencing upheaval in many nations against dictatorial rule and poorly distributed economic opportunities (hm, is there really a difference?). Where all of this is going is anyone's guess, but the "Occupy Wall Street" movement in New York City, also aimed at inequality, has spread to many other parts of the country and indeed, around the world. Maybe, just maybe, people are finally waking up, coming to their senses and making the statement, "We're not going to take it anymore!" Then again, I don't want to get my hopes up. In this country, the wealthy interests are in charge like I have never seen before in my life, and I was born....ah... well, during the presidential term of a president who was in conflict with a general; and no, it wasn't Lincoln and Grant, but Truman and MacArthur. With control of virtually all aspects of the economy, they drive prices up based on speculation, and by pooling HUGE sums in investment groups. Anything you own is literally a drop in the ocean compared to these people. They now blatantly blackmail Americans in television commercials telling us NOT to regulate them, and then threatening, you may lose YOUR job, or they won't give you a job if you're out of work. Don't be surprised if we get more pollutants in the air and water, including more arsenic. Don't laugh, when George W. Bush was elected, one of the first things he did was put a hold on a Clinton administration rule about the amount of arsenic permissible in water. Hey, what's the problem with more arsenic? A little ketchup, and everything tastes great. If you die, oh well, this is about making more money, not anyone's health. We're between a rock and a hard place.
We passed the ball to Obama after, what in my opinion was, the disastrous presidency of George W. Bush, a well-meaning man, but far removed from the capable, but non-flashy, leadership of his father.* While Obama inherited an absolute mess, he has done little to correct the basic problems underlying a system taken over by the interests. Don't get me wrong, many people believe I'm against the rich, I'm not. I'm against excess, and this system has long since passed into the realm of excess. My slogan is, "Success, not excess." I want business people to make money, but this is ridiculous! Let me use this expression again, "don't get me wrong," if Randy were in charge of America, he'd make damned sure he took good care of himself, and that's what's been going on, and the wealthy forces and their supporters continue to tighten the grip on power. It's human nature, in this case called ego, at work. They can't really see how damaging all of this has been to many lives, and I doubt they would care anyway. This is not about helping people, other than themselves, and their super egos. "If" things turn ugly against what's been going on, and they might, all reason will go out the window. That's what can happen in revolutions, as radical forces on the other side get carried away, and "payback" becomes the rule, not the exception. I'm not a fortune-teller, but if something isn't done soon to address the tremendous inequality and excess in America, you may just walk down the street and see anyone remotely wealthy hanging from the lamp posts. Even a couple of people I know who voted for McCain in 2008 are now grumbling about inequality in America.
The forces aligned to keep things as they are, or actually to increase wealthy control over the system, are powerful indeed. The Republicans, or at least many of them, seem to actually believe the economic nonsense they've been spouting for decades, in spite of all the statistics that show a dwindling middle class, a growth in poverty, income disparity not seen for a hundred years, and the fall of America from some of the top perches in the world, including education and manufacturing jobs. It would be comical, if it weren't so serious, but what some Republicans are really saying is, unless you're wealthy, you make too much damned money! They want cuts to all sorts of programs, wages, and benefits for "other Americans," so they can turn around and cut taxes for the wealthiest of the wealthy, AGAIN! They've been doing this for over thirty years, and you see where we are. Tax rates for the wealthy were much higher before that time, and the wealthy got along just fine. On the other hand, many Democrats have been complicit with the take over of America by the wealthy interests, because they want to get campaign contributions from them, not necessarily because they believe this nonsense. It's six of one, and a half dozen of the other. We're between a rock and a hard place.
America now stands with slow economic growth and high unemployment by historical standards. The Federal Reserve, fearful of deflation over the last couple of years,** pumped money into the economy to keep prices from collapsing, but with so many people unemployed, and so many others taking pay or benefit cuts, higher prices hinder a more robust American economy. The surge in oil and gas prices over the last couple of years, in essentially unregulated markets, has sent the price of everything upwards, too. Even in the best of times food prices fluctuate, as bountiful or poor crops of particular items move prices one way or the other, and this year has been more to the bad side, since some parts of the country had too much rain, while other parts were in extreme drought situations. What these prices should be, I don't know, but I do know, you aren't going to have much say, if any, in the matter, as wealthy investors will move (or have already moved) the prices to where they want them, and they want top, top, top dollar, as greed and the need to try to satisfy those super egos drives the system, but at YOUR expense. We're between a rock and a hard place.
While private employers have made modest moves in hiring over the last couple of years, state and local governments, including schools, have generally been reducing employment, helping to keep the unemployment rate elevated. With investors and companies watching the turmoil overseas, they aren't inclined to put much money into expanding, as they await a more stable situation. A few years ago America led the economic decline, now many developments outside of America's control are driving events.*** Unless leaders worldwide put a clamp on market speculation, especially energy, we are going to continue to see the money flow in disproportional amounts to the wealthy. If you have a 401 K, you've probably noticed all of the ups and downs of the markets reflected in your statements. Remember folks, 401 Ks and the like were touted for all they could do to help make you money, if not outright wealthy, but as the salespeople they are, they didn't tell you that markets, and thus 401 Ks, can lose value too. Buying stocks and bonds or other investments carry risk. That's why investing Social Security money has produced such a heated argument, but the interests want to get a hold of that money too. If they do, LOOK OUT RETIREES!
Huge budget deficits run during the George W. Bush era, put his successor in the predicament of doing essentially nothing about the economic plunge the country was experiencing at that time, or of borrowing more money to try to halt the slide. He chose borrowed money, including tax cuts, although for decades, conservatives have insisted that tax cuts don't cause deficits. The same choice would have confronted Republican John McCain too folks, had he won the last election. So, just like the battle between inflation or deflation and other issues I've mentioned above, we're between a rock and a hard place. To me, the biggest problem has been this conservative (more libertarian) notion of just turning everything loose, cutting government to bare bones, and let the chips fall where they may (although then denying any responsibility for negative consequences), otherwise, to their minds, you don't have freedom, but freedom from excess ego and from want is more important, in my opinion. Success, not excess!
* The elder Bush inherited a shaky economy and HUGE deficits from Ronald Reagan, but negotiated with Democrats in Congress to reduce deficits, including tax increases which went against his campaign pledge not to raise taxes, and helped to set the stage for Bill Clinton's presidency, and later a Republican Congress, to balance the budget and to actually post surpluses. The younger Bush inherited budget surpluses, but ran huge budget deficits thereafter.
** Simply put, deflation means falling prices. A deflationary spiral can be devastating, since people hold back on buying things waiting for prices to go lower. The housing market is a good example. The mess brought about by incredible greed has left housing prices falling. This hurts potential home buyers, since if they buy a home, even at the generally reduced prices of today, their home's value is likely to fall further. It is sort of like the saying about cars being a bad investment, "If you buy a new car, once you drive it off the lot, its value falls."
*** All of the problems are not overseas, since there are these nasty political battles ongoing here in this country, leading to virtual political paralysis.
WORD HISTORY:
Cede-This seems to go back to Indo European "khed," with the meaning "to go, to yield (to someone or something)." This gave Latin "cedere," with the same basic meaning, including "give up land." English borrowed the word in the 1600s, perhaps directly from Latin, or from French
"céder," inherited from its Latin roots.
Of course, everyone watches China, especially its growth rate. China is interesting, not only because of the sheer size of its population, but because it has moved away from doctrinaire Communist economic policies toward a much more free economy, while maintaining hard line Communist political rule. They're so free market oriented, they own a good chunk of American debt; so much, that no one quite knows how to deal with China about its cheap labor and artificially low currency (read that as "manipulated"), that is sucking the lifeblood out of American manufacturing and the former good jobs that went along with it. BUT when you owe someone a bundle, it's pretty tough to tell them they're behaving badly. We're between a rock and a hard place.
On the other hand, the so called "Arab world" has been experiencing upheaval in many nations against dictatorial rule and poorly distributed economic opportunities (hm, is there really a difference?). Where all of this is going is anyone's guess, but the "Occupy Wall Street" movement in New York City, also aimed at inequality, has spread to many other parts of the country and indeed, around the world. Maybe, just maybe, people are finally waking up, coming to their senses and making the statement, "We're not going to take it anymore!" Then again, I don't want to get my hopes up. In this country, the wealthy interests are in charge like I have never seen before in my life, and I was born....ah... well, during the presidential term of a president who was in conflict with a general; and no, it wasn't Lincoln and Grant, but Truman and MacArthur. With control of virtually all aspects of the economy, they drive prices up based on speculation, and by pooling HUGE sums in investment groups. Anything you own is literally a drop in the ocean compared to these people. They now blatantly blackmail Americans in television commercials telling us NOT to regulate them, and then threatening, you may lose YOUR job, or they won't give you a job if you're out of work. Don't be surprised if we get more pollutants in the air and water, including more arsenic. Don't laugh, when George W. Bush was elected, one of the first things he did was put a hold on a Clinton administration rule about the amount of arsenic permissible in water. Hey, what's the problem with more arsenic? A little ketchup, and everything tastes great. If you die, oh well, this is about making more money, not anyone's health. We're between a rock and a hard place.
We passed the ball to Obama after, what in my opinion was, the disastrous presidency of George W. Bush, a well-meaning man, but far removed from the capable, but non-flashy, leadership of his father.* While Obama inherited an absolute mess, he has done little to correct the basic problems underlying a system taken over by the interests. Don't get me wrong, many people believe I'm against the rich, I'm not. I'm against excess, and this system has long since passed into the realm of excess. My slogan is, "Success, not excess." I want business people to make money, but this is ridiculous! Let me use this expression again, "don't get me wrong," if Randy were in charge of America, he'd make damned sure he took good care of himself, and that's what's been going on, and the wealthy forces and their supporters continue to tighten the grip on power. It's human nature, in this case called ego, at work. They can't really see how damaging all of this has been to many lives, and I doubt they would care anyway. This is not about helping people, other than themselves, and their super egos. "If" things turn ugly against what's been going on, and they might, all reason will go out the window. That's what can happen in revolutions, as radical forces on the other side get carried away, and "payback" becomes the rule, not the exception. I'm not a fortune-teller, but if something isn't done soon to address the tremendous inequality and excess in America, you may just walk down the street and see anyone remotely wealthy hanging from the lamp posts. Even a couple of people I know who voted for McCain in 2008 are now grumbling about inequality in America.
The forces aligned to keep things as they are, or actually to increase wealthy control over the system, are powerful indeed. The Republicans, or at least many of them, seem to actually believe the economic nonsense they've been spouting for decades, in spite of all the statistics that show a dwindling middle class, a growth in poverty, income disparity not seen for a hundred years, and the fall of America from some of the top perches in the world, including education and manufacturing jobs. It would be comical, if it weren't so serious, but what some Republicans are really saying is, unless you're wealthy, you make too much damned money! They want cuts to all sorts of programs, wages, and benefits for "other Americans," so they can turn around and cut taxes for the wealthiest of the wealthy, AGAIN! They've been doing this for over thirty years, and you see where we are. Tax rates for the wealthy were much higher before that time, and the wealthy got along just fine. On the other hand, many Democrats have been complicit with the take over of America by the wealthy interests, because they want to get campaign contributions from them, not necessarily because they believe this nonsense. It's six of one, and a half dozen of the other. We're between a rock and a hard place.
America now stands with slow economic growth and high unemployment by historical standards. The Federal Reserve, fearful of deflation over the last couple of years,** pumped money into the economy to keep prices from collapsing, but with so many people unemployed, and so many others taking pay or benefit cuts, higher prices hinder a more robust American economy. The surge in oil and gas prices over the last couple of years, in essentially unregulated markets, has sent the price of everything upwards, too. Even in the best of times food prices fluctuate, as bountiful or poor crops of particular items move prices one way or the other, and this year has been more to the bad side, since some parts of the country had too much rain, while other parts were in extreme drought situations. What these prices should be, I don't know, but I do know, you aren't going to have much say, if any, in the matter, as wealthy investors will move (or have already moved) the prices to where they want them, and they want top, top, top dollar, as greed and the need to try to satisfy those super egos drives the system, but at YOUR expense. We're between a rock and a hard place.
While private employers have made modest moves in hiring over the last couple of years, state and local governments, including schools, have generally been reducing employment, helping to keep the unemployment rate elevated. With investors and companies watching the turmoil overseas, they aren't inclined to put much money into expanding, as they await a more stable situation. A few years ago America led the economic decline, now many developments outside of America's control are driving events.*** Unless leaders worldwide put a clamp on market speculation, especially energy, we are going to continue to see the money flow in disproportional amounts to the wealthy. If you have a 401 K, you've probably noticed all of the ups and downs of the markets reflected in your statements. Remember folks, 401 Ks and the like were touted for all they could do to help make you money, if not outright wealthy, but as the salespeople they are, they didn't tell you that markets, and thus 401 Ks, can lose value too. Buying stocks and bonds or other investments carry risk. That's why investing Social Security money has produced such a heated argument, but the interests want to get a hold of that money too. If they do, LOOK OUT RETIREES!
Huge budget deficits run during the George W. Bush era, put his successor in the predicament of doing essentially nothing about the economic plunge the country was experiencing at that time, or of borrowing more money to try to halt the slide. He chose borrowed money, including tax cuts, although for decades, conservatives have insisted that tax cuts don't cause deficits. The same choice would have confronted Republican John McCain too folks, had he won the last election. So, just like the battle between inflation or deflation and other issues I've mentioned above, we're between a rock and a hard place. To me, the biggest problem has been this conservative (more libertarian) notion of just turning everything loose, cutting government to bare bones, and let the chips fall where they may (although then denying any responsibility for negative consequences), otherwise, to their minds, you don't have freedom, but freedom from excess ego and from want is more important, in my opinion. Success, not excess!
* The elder Bush inherited a shaky economy and HUGE deficits from Ronald Reagan, but negotiated with Democrats in Congress to reduce deficits, including tax increases which went against his campaign pledge not to raise taxes, and helped to set the stage for Bill Clinton's presidency, and later a Republican Congress, to balance the budget and to actually post surpluses. The younger Bush inherited budget surpluses, but ran huge budget deficits thereafter.
** Simply put, deflation means falling prices. A deflationary spiral can be devastating, since people hold back on buying things waiting for prices to go lower. The housing market is a good example. The mess brought about by incredible greed has left housing prices falling. This hurts potential home buyers, since if they buy a home, even at the generally reduced prices of today, their home's value is likely to fall further. It is sort of like the saying about cars being a bad investment, "If you buy a new car, once you drive it off the lot, its value falls."
*** All of the problems are not overseas, since there are these nasty political battles ongoing here in this country, leading to virtual political paralysis.
WORD HISTORY:
Cede-This seems to go back to Indo European "khed," with the meaning "to go, to yield (to someone or something)." This gave Latin "cedere," with the same basic meaning, including "give up land." English borrowed the word in the 1600s, perhaps directly from Latin, or from French
"céder," inherited from its Latin roots.
Labels: business interests, conservatives, Democrats, English, etymology, free markets, government regulation, Latin, Republicans, the wealthy
posted by Randy at 1:55 PM
2 Comments:
'Success, not excess,' I like it! You are right about other countries, I just heard on CNN about the stock market being down today because of Italy. I doubt many of us realize how tied we are to other countries now.
Gee, I dont know what to say. You have put like all of my beliefs into one column.Well done!
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