One of the great economic anomalies of our time is the notion that
the consumer spending is 80% of the economy; yet policy makers are
doing everything in their power to reduce these very same consumers
to poverty.
Go figure!
Greenspan has worked against wage inflation for decades.
Non-union, low wage private sector labor abounds.
Those with jobs are encouraged to take on debt, through credit cards
and home refis.
While defined benefit pensions are all but history now; even as 401ks
are stagnating; or even going down--DESPITE LARGE WORKER
CONTRIBUTIONS!
And, social services have been cut back to the bone, causing many
consumers to literally fall out of the cash economy.
Health care is being cut off, or priced out of the market for most, while Americans "pay triple" for Big Pharma's products.
Ultra-low interest rates have created a real estate bubble that has
boosted rents; while consumer wages have stagnated.
And, the list goes on and on and on.
BUT, HAVE WE FINALLY KILLED THE PROVERBIAL CONSUMER GOOSE THAT LAYS
THE GOLDEN GDP EGG?
Of course! And, we are seeing it everyday now.
SOME KIND OF "RE-DISTRIBUTION" OF WEALTH AND INCOME FROM THE VERY
RICH TO THE POOR AND WORKING CLASSES IS ALL BUT REQUIRED TO MAINTAIN
THE CONSUMER ECONOMY AS WE HAVE KNOW IT SINCE THE 1950's.
AND SOON!
IF THE RICH "STONEWALL" AGAIN, AS THEY SURELY WILL.
AND IF SOME "FAIRNESS" IS NOT ACHIEVED IN THE NEXT FEW YEARS, YOU CAN
BET THAT WALL STREET AND THE ECONOMY WILL EXPERIENCE A TERRIFING
DOWNWARD SPIRAL, NOT UNLIKE THE 1930's. INDEED THAT COULD BE WHAT'S
HAPPENING RIGHT NOW IN THE ECONOMY.
AND REMEMBER, THE LAST TIME THE ECONOMY AND INCOMES WERE THIS FAR OUT
OF WHACK WAS? ......THE 1930's!
Concidence? Not likely.....
The odd thing is that the "rich and powerful" know all of
this,....still, they are saying nothing about it.
And, the general public, ie, The Coalition of the Stupid, that
support Dubya on his popular "wedge issues" have no idea that they
are willingly participating in their own economic downfall!
Today's NYT has a review of Pete Peterson's lastest
DOOMSDAY BOOK wherein all of this is explained in detail. Yet
Again.....
The only pratical "solution" to this problem seems to be to leave the
US, and move to "some country" where the people are still cohesive
enough to think rationally about their state of affairs.
But what about the "language barrier?" Some of us are too old to
start learning another language! Like "Canadian" for example! A
Hobson's Choice to be sure! Ehhh...?
