ONE THING THAT IS SELDOM MENTIONED IS THAT THE GOVERNMENT WAS "LIVING OFF THE BUBBLE" PROBABALY MORE SO THAN THE MIDDLE CLASS...!
THE RICH WERE LIVING OFF THE BUBBLE...TO BE SURE...
AND ALSO THE UPPER MIDDLE CLASS CONSUMERS...NOW DEFUNCT...
BUT THE VAST SEA OF WORKING CLASS FOLKS...PERHAPS THE BOTTOM 50% HAD LITTLE BENEFIT FROM THE BUBBLE...EXCEPT PERHAPS FROM THE "EXTRA CONSUMPTION" OF THEIR BETTERS...
BUT FEW MENTION THAT THE GOVERNMENT...ON EVERY LEVEL...WAS PERHAPS THE GREATEST BENEFICIARY OF THE BUBBLES...
THE INCOME AND CAPITAL GAINS TAX REVENUES WERE HUGE...AND PROPERTY TAXES ROSE WITH HOME PRICES...
AND OF COURSE THERE WERE SELDOM CAPTIAL LOSSES TO REDUCE TAX REVENUES...UNLIKE TODAY...!
SO THE NOTION THAT THE GOVERNMENT MAY BE "FORCED" TO RAISE TAXES...JUST TO KEEP UNIONIZED GOVERNMENT WORKS SUPPORTED IN THE MANNER THEY WERE ACCUSTOM TO... COULD BE A PROBLEM...
THE UNIONIZATION OF GOVNERNMENT WORKERS WAS THE WORST IDEA EVER...
IT AROSE DURING A PEROID OF MASS PROSPERITY BACK IN THE 60'S...WHEN UNIONS WERE AT THEIR PEAK...
BUT GOVERNMENT WORKERS ARE ESSENTIALLY MONOPOLY SERVICE PROVIDERS...!
HOW MUCH WILL WE PAY TO KEEP POLICE, FIRE AND SCHHOOL TEACHERS ON THE JOB....
SHOULD WE PAY THEM OUT-SIZED PENSIONS AND GOLD PLATED HEALTH CARE...SINCE (BOO HOO) THEY ARE "FOREFEITING" THE EXTRA MONEY THEY "COULD HAVE EARNED" AT PRIVATE PLACES LIKE GM...FORD...AND OTHER BANKRUPT AMERICAN ICONS....!
SEE THE PROBLEM...?
THE ROLE OF THE GOVNERMENT UNIONS IS NOT FULLY BAKED IN THE CAKE YET...
AND THAT CAKE HAS NOT YET HIT THE FAN...
BUT IT WILL...!
