Congratulations, Elizabeth! That's great news!
I GOT A JOB! I was hired on Sept. 19 by a medical association to be their staff writer covering medical-legal and policy issues. I am so happy I could bust!
Dear Over-50 people,
What is wrong is that the US lacks any industrial policy worth a damn. What is also wrong is that we have banksters running and ruining everything. I have covered a few of the policies that have brought us to this point. Please do not think that because I mention Obama, that I am leaving out bad policies made by Bush and Clinton both. There have been bad decisions made about the economy since the 1970s. In the interest of brevity, I am only covering the last 30 years or so.
What is really sad about the current situation is that quietly, behind the scenes, there are a lot of cheerleaders for 'THE FREE MARKET" who are gently recommending Keynesian economics again. Their problem is how to push that without admitting that they took this country on an adventure through "discredited economics 101" for the third or fourth time. That's right. We tried these same stupid policies in the past and they resulted in Depressions every time. How do I know this? I READ. Which is more than I can say for many politicians.
I mention the movement to Keynes, because beyond the lovely Krugman editorial blaming the mess on the "greedy elite," there have been other signs of a sea change. Sometimes, the direction that the wind will blow can be gauged by what academics are ordering and talking about. There has been an increase in purchases of economics books on Keynes. A group that devotes itself to educating the media is going to cover the fissures in “free trade” policies over the summer. I have discovered that many economists in all walks of life are beginning to buy Keynesian books and talk about how right that he was. This includes the free tradists.
KEYNES WASN'T WRONG AND HE DID NOT ADVOCATE THE HAIR-BRAINED SCHEMES THAT HAVE BEEN FOLLOWED OF LATE.
For those of you who have been brainwashed about Keynes, let me tell you what he believed. He believed that the purpose of government regulation of financial industries was to keep them from going FERAL on the populace. Unlike the idiotic statements made about him by the Von Mises crowd, he did not believe in debt for debt’s sake. Yes, he believed that the careful use of debt could pull a country OUT of a depression (and he was proven CORRECT on that point).
HOWEVER, MUCH LIKE ME, KEYNES WOULD NEVER HAVE APPROVED OF OBAMA’S ENEMA dressed up as a “stimulus package.” Appropriate use of stimulus money is as follows: it focuses the money flows INTO the working and middle classes through JOBS. It doesn’t use too much money because that will cause hyperinflation. It doesn’t direct that money back into government or banking BECAUSE THOSE ARE THE ENTITIES THAT CAUSED THE PROBLEM.
By carefully pushing money into the pockets of the lower and middle classes via a jobs program, an appropriate stimulus package would have begun turning the wheels of demand at the local level across the country. That would have alleviated the tax burden on the employed, kept businesses alive and allowed people to feed, house and clothe their families.
BY GIVING THE MONEY TO THE BANKERS, OBAMA ACTUALLY INCREASED THE LIKELIHOOD OF HYPERINFLATION, decreased tax revenues and increased the problems for both the middle class and lower classes. He caused their money to flow out of them and towards the bankster class. THAT WAS THE ENEMA PART.
What Obama actually did was much like what Bush and his nitwit father did, he transferred wealth from all the other classes to the bankster and uber rich class. They then sent that money offshore. That is why there is no money in the system (more or less).
Keynes argued for keeping money in the system to prevent rapid and turbulent fluctuations of the economy. Keynes was a MACROECONOMIST RATHER THAN A MICRO-ECONOMIST LIKE THE AUSTRIANS.
I strongly recommend, yet again, that those that want to understand the problems read the books that I am going to list. What we have right now are a couple of problems.
One, we have a money shortage problem despite all the money being fed into the Central banks. To understand the problem, begin thinking of money as WATER. If too much water is funneled into one spot, the result is a FLOOD, right? If too much water is funneled out of a water system and into the ocean, there will be water shortages. If all the water is funneled into a giant dam that is controlled by a few landowners, there will be both shortages and water too expensive to farm with.
A working system has water reaching to all the places that need it in a MEASURED MANNER so that everybody can get what they need without wastage and nobody is preventing others from getting access to the water. The water is then turned into vegetables, fish, rice, wheat, cattle flesh and other things that can be sold. Or the water is turned into electricity or becomes a power source itself and then processes grain into flour etc.
THE SAME DYNAMIC HOLDS TRUE OF MONEY. PROBLEMS BEGIN WHEN MONEY IS TOO CONCENTRATED IN TOO FEW HANDS. The system begins to slow down because nobody is USING the money. It is then necessary to begin to divert the money away from those that concentrate it to those that will actually use it. Those that are spending for the necessities and some luxuries will keep the system MOVING.
This is why social spending is not EVIL like everybody has been brainwashed to believe. While it is far better to create JOBS because jobs provide self-esteem as well as food, giving people money to meet their family’s needs will have a POSITIVE effect on the economy.
UNION JOBS ARE GOOD BECAUSE THEY DIVERT MORE OF THE OVER-CONCENTRATED MONEY from those that are hoarding it into the classes immediately above and below the union worker’s pay levels. That stimulates even more sectors of the economy.
WHY IS THE USA SO SCREWED UP?
1. We have killed the hen that laid the golden eggs i.e. manufacturing. Manufacturing is important because it is a convenient way of taking local resources and GETTING MONEY FOR THEM FROM ALL OVER THE WORLD and bringing that money back to the local areas where the manufacturing takes place and spreading it around.
2. Selling us on the stupid idea that we could substitute good paying union manufacturing jobs for SERVICE JOBS was such a lie that I cannot begin to say enough about it. Not only do service jobs not provide enough money to stimulate the local economies sufficiently, they don’t produce product that can be sold elsewhere to bring in a mixture of currencies and hence more money into the US system. Furthermore, idiots like Gates and the other high tech self-absorbed types, have sent the high paying jobs out of the country or imported programmers that they pay less. This practice has totally precluded the opportunity to use programming and other tech jobs to replace the high paying manufacturing jobs that were lost.
3. Now, while we were busy being told that cheap goods were our reward for letting manufacturing be destroyed and gutting the unions, we were compounding our problems. The money that was paid for these goods wasn’t much of an offset for the tax revenues from workers and businesses that we lost. That revenue put a strain on the national and local economies across the country as well as forcing governments across the country to find new ways to get money to provide services. They raised taxes or enacted new ones on people who were already having problems due to wage stagnation and reduced job opportunities.
4. Then, as if we could not be any dumber, we began to reduce the taxes on the very people who were benefitting the most from beggaring the rest of us by stealing jobs, closing factories and NOT PAYING LOCAL TAXES ON THEIR FACTORIES OR WAGES. Both the wage savings and the higher profits from the cheap goods were going into the pockets of the executives via salary increases and bonuses. THAT’S RIGHT, THERE WAS A TRANSFER OF WEALTH FROM YOU TO THEM.
5. We were sold on the entire “trickle down” idea which the people selling it and the banksters knew was utter poppycock. Nothing has been trickling down since Reagan. Nothing. Everything has been trickling up. Furthermore, because of the way that these people structure their income, they weren’t being taxed that heavily to begin with.
6. Reducing tax on the very groups that were making all the money from this gigantic wealth transfer was stupid to say the least, but worse, it expedited monetary flight from the country. That further reduced the money in the system and put it in the pockets of banksters offshore where they bet against the US by financing more manufacturing overseas creating more opportunities for jobs to be lost.
7. Then, there were agencies in the US government that were actually profitable. Those were privatized taking more revenue out of the government and displacing that burden onto the citizens not at the COST OF THE SERVICES, but at an additional profit. The beauty of buying a government service is that it is mandated in many cases and a monopoly so the buyer could easily raise the rates and recoup his/her investment. However, this added to the burden of the citizens already suffering from wage stagnation and increased taxes to replace the funding already stolen by the monied classes.
8. Finally, as if there were enough stupidity to go around, the rich classes and, in particular the Foliage Family, had been stealthily buying up weapons companies for decades. They owned a bunch of them under the CARLYLE name. Their stockholders are all members of Congress and the rich folks financing the destruction of our way of life. They were well-positioned to profit from a war.
9. That’s why they started all these wars. That money goes directly into their pockets. It also doesn’t go back into the system here to lift the burden on the average person. Instead, it drains it more and more. This latest stupid law that permits them to wage war anywhere in the world will make this country obsolete and get us bombed.
I COULD GO ON, BUT I WON’T. The fact is that this is a very brief analysis of the current situation that hits all the high notes except for the bankster debacle. I might cover that next time. In the meantime, Alan, and others that want to understand the problems…really understand them, let me supply some books and links.
1. Free Trade Doesn’t Work: What should replace it and why by Ian Fletcher
2. Perfectly Legal by David Cay Johnston a wonderfully readable book about the current tax system and what’s wrong with it and the assumptions that people now perceive as correct
3. Free Lunch by David Cay Johnston How the really wealthy benefit from the government revenue system WITHOUT paying into it themselves.
4. The Great American Jobs Scam by Greg Le Roy about how companies get their taxes reduced by promising jobs and then don’t honor their agreements.
IF YOU WANT TO TALK TO ME, try the email at the darkcabal. Tell them that you want to get in touch with NAI
[...] Elizabeth Zima, of Calistoga, Calif., for one, has been out of work since she lost her job as a health care writer in 2008 and has already blown through her retirement savings. [...]
[...] thе poignancy thаt Sipprelle’s out οf work interview subjects саn.Elizabeth Zima, οf Calistoga, Calif., fοr one, hаѕ bееn out οf work іn view [...]
My boyfriend and I are 99ers and homeless. We were laid off in August 2008. We are living in our car. Family has turned its back on us and friends help when they can. I'm physically, mentality and emotionally exhausted! Don't know how much longer we can sleep in our car.
I am so sorry for what you are going through. There can be nothing as frustrating as being downsized. The stress of not having money coming in can be unbelievable. We watched 20,000 other people lose their jobs at the same company over a 20 year period before my husband was laid off. The company first changed health insurance, then cut back vacation length and carry over into the next year. Then it canceled standard retirement plans and went to 401K's. Meanwhile it hired temporaries to maximize profits. Following that, my husband was told by his new boss that two people coming out of college could be hired for what he was earning. He had 25 years of continuous education totaling more than 100 classes in his field, in addition to his two degrees. We were later told that the same boss was wondering where the computer programmer went. I guess because it wasn't in the job title, the boss didn't know that my husband did that for them on the side, in addition to understanding how to make, run and explain how to use their products. I truly can't see how a company can operate well when so few are left that have accumulated knowledge of the products for going forward. It seems to be done to maximize short-term profits at the expense of long-term corporate viability.
In the end, though, it has all worked together for our good. We moved to a less expensive area and we have time to improve our home. The stress under which the remaining employees work becomes greater every year as they do the jobs of more and more people. I pray that good things will come about for you that weren't possible before.K. Rostad
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