Posts Tagged ‘economy’

Naiveté of economic realities is something that seems unfortunately baked into human nature. In America where poor people or people who are just one step above being poor vote against their own better interests for generations.

The “Took Our Jobs” folks who are always ready, willing, and able to point their finger and raise their ire at anyone other than the billionaire capitalist class that is responsible.


“cash rules everything around me”
 is a universally agreed upon law of American life and other first world countries. So what does that mean when for the affluent when applied to income inequality, outsourcing, inflation, and tax cuts?

The people with the least, have the most influence on the lives of others?

Bernays won
in a landslide.

eanda logo

By @anarchyroll

No thing quite says the Republican party of the United States of America like a tax cut.

Did you notice how quickly and easily Congress was able to push through a tax cut for the wealthy? Almost every other piece of legislation (except for military spending increases) that has been attempted to be passed over the past decade has been a textbook example of two-party democratic government not working. If 1980s Dominos Pizza was delivering this tax cut, the oligarchs would get it piping hot and received no discount..

1C9BD3D3-8D10-4D19-970D-4CEA9BC739A5

Every aspect of this Tax Cuts and Jobs Act of 2017 is a big, bright, and bold example of how the rich get richer and the poor get poorer in America. Follow the money is an age old expression. Congressional gridlock shows just how true that is. Because the only bills that have moved quickly through Congress have been military spending increases and this tax cut. The military industrial complex (who own he Democratic Party like violent pimps) and the oligarchs. King Kong ain’t got shit on them.

This bill is less about the Republican Party and more about who they represent and who they work for. Is it half of the American population? Is it a loud minority? A silent majority? Follow the money, who does this tax cut benefit?

Passing legislation has come to a halt in America since the last two years of the George W Bush administration. There was that one big exception, but almost every other bill has been stuck in legislative gridlock hell that is the United States Congress. Healthcare reform, immigration reform, financial regulation, digital privacy protection, et al have moved at painfully slow speeds if at all. Even common sense, bipartisan bills have had a hard time even seeing the light of day on the floor of either house of Congress.

But a tax cut for the wealthiest Americans? A 500 page bill involving one of the largest transfers of wealth in the history of the country? Less than a month is more than enough time. How does that happen? Why does that happen? Is that not why we fled England in the first place? I guess no taxation without representation only applies to taxes going up and not taxes going down, on less than two percent of the population.

Is this a tax cut to benefit people making less than one hundred thousand dollars per year? Less than fifty? Less than thirty?  Many might snicker and say those making so little don’t pay taxes anyway. That is the problem isn’t it? There are vastly more people in the current society who will benefit more in the day to day lives from taxes collected on the wealthy (social safety nets, community services) than by a one time, minor at best, windfall from a tax cut/credit.

The tax bill moved so fast through both houses that they have needed double, if not triple the amount of time to take the bills into conference committees to negotiate and fix the numerous, egregious math and budgeting errors. Drafting and finalizing a compromise bill behind closed doors has taken the place of proper on the floor debate as a result of this Congress moving at lightning speed to pass a bill that no one had time to read, let alone make logical decisions based upon critical thinking.

lead_960

Congress rushed through this bill like a college kid rushing to finish a final paper or cramming at the last-minute for a midterm. There are two key differences there and that is that when a college kid waits until the last-minute to do their deep work it only affects them and their roommates. The legislative branch of the United States of America however, effects just slightly more people than a dormitorium.

Greed and corruption like this used to have the cover of a lack of transparency. In the era of telephones and television and newspapers and radios and telegraphs it was much easier for politicians to say X, do Y, and say the result is Z. The age of the smartphone makes it easier to be shady, but much harder to keep it a secret. The wave of careers being ended by sexual misconduct allegations from Hollywood to Washington is evidence of this.

What is also apparent when held up to the light of day is the fact that this bill is amoral. Ethics, budgets, math do not apply to this trillion dollar wealth transfer. Negotiated in secret, passed before it could be read, full of so many errors that both the House and Senate versions needed to be negotiated so much they were both essentially rewritten. How does the urgency of this compare to the passing of hurricane relief to Puerto Rico?

The tax cut of 2017 that has been instituted by the Republican party has been called the Tax Cuts and Jobs Act of 2017 by some and the #TaxScamBill by others. Terms of endearment or damnation depending on which side of the political aisle and socioeconomic spectrum one falls on. What are facts and not opinions however are that this bill was so rushed it wasn’t read or proofread by the people who wrote it. That there were so many earmarks in there in such short order that many proved to be illegible when held up to the light of day or a camera

This tax cut is like putting your coat down at a bar, turning your back for a minute, then turning back to find someone going through the pockets and them playing dumb about it. They know what they’re doing, but are hoping to use ignorance as a guise for willful immorality.

 

 

eanda logo

By @anarchyroll

America’s identity is its middle class. What makes America different than every other country that has come before it? The economic middle class
..guns, and obesity.

For real tho, it’s the middle class. We invented it. Before the United States of America there was no middle class. There was rich and there was poor.

What the middle class literally is, as well as what it metaphorically represents are both why people immigrate from all over the world, not just from the third world, to be in America. A country with an economic ladder for all people who work hard as opposed to caste systems? That concept is worth risking life and limb to millions of people each year. Legally and illegally people want into America.

Freedom/democracy is great too, but what good is freedom if you’re poor? What good is living if you live under literal oppression or economic oppression where there is only the super rich and the super poor? America, the land of opportunity; where ordinary people can simply work hard and be rewarded monetarily in a manner that enables not just animalistic survival, but also comfort, upward social mobility, and land ownership.

The socioeconomic middle class is Americana. Baseball, apple pie, barbecues, two week vacations, two car garage homes with a white picket fence. The images created by those words are the America middle class; the great reward for all born or adopted citizens who buy into the concept of American exceptionalism by giving their blood, sweat, and tears to a job for the middle two quarters of their life.

Without a middle class, America has no true identity. Freedom? Democracy? Those both existed before America. Flags? Bald eagles? Sports? White people oppressing minorities? Those all existed before America too believe it or not.
pew11

There is a saying; Don’t tell me about the labor pains just show me the baby.

One can look at that chart and say there are still plenty of people in the middle class. One can point to the people who have improved their income status over the past ten to forty years. Both are valid points. There is still a middle class in America and people have moved economically upward out of the middle.

Want another valid point? Both democratic and republican presidential candidates are dedicating equal time to talk about the erosion of the middle class. In this polarized political era, for both sides, to completely agree on a non national security/terrorism issue?

How can the erosion of the middle class be immune from political party polarization? Sure they’ll disagree on how to fix it, but to be in complete agreement of the present moment problem? Sounds like what happens when a person reaches a midlife crisis. And a midlife crisis is nothing more than an identity crisis.

The erosion of the middle class is America’s identity crisis.

Are we a caste system? Are we an oligarchy? Are we a republic? Can our economic and political systems ACTUALLY co exist? Should we just buy a sports car?

The real questions always start with Who/What/When/Where/Why and How?

Who; has benefited from the erosion of the middle class?
What; exactly has been happening over the past thirty years to lead to this erosion?
When; was the middle class the most robust?
Where; specifically did the wealth lost by the middle class go?
Why; was the middle class so vibrant at its peak?
How; can the economic principles of then be adapted to modern time?

If one asks these questions, and does a few basic Google searches, the answers become pretty obvious pretty fast. But the answers to these questions don’t actually require searching the internet do they? Deep down inside, we all already know what’s been happening. We know where the middle classes’ money has gone. We know whose benefiting from the loss of the middle class. We would like to tell ourselves we don’t know why because we want to see and believe the best in people.

Have you heard the phrase, the rich get richer and the poor get poorer?

How about; All is fair in love and war.

Class War has been the new Cold War for about thirty years, which wouldn’t ya know, is about how long the Cold War has been over, and is how long the middle class has been eroding.

eanda logoajclogo2

by @anarchyroll
7/26/2014

If you don’t know who Warren Buffett is, all you need to know is that he’s the greatest living investor in the history of the American stock market(s). In the world of finance he’s the Michael Jordan, Muhammad Ali, Wayne Gretzky, and Babe Ruth. He is the man and has nothing resembling an equal.

Warren Buffett has also become the conscience of the finance sector the American economy.

This is evidenced by his refusal to put his wealth of wealth into commercial securities and derivatives. Whereas all other big banks, hedge funds, and trading houses can’t get enough of either.

In a recent issues of TIME magazine, Buffett called all commercial securities “weapons of mass destruction.”

Commercial mortgage-backed securities (CMBS) and derivatives were two primary instruments in the 2008 global economic meltdown, the worst economic collapse since The Great Depression.

Warren Buffett invests the old-fashioned way, when investing was investing. CMBS and derivatives are the tools that have turned Wall Street into a casino on steroids. CMBS and derivatives are the dice, the global economy is the table, the chips that big banks and hedge funds are playing with are the liquid assets of the global economy. Are the craps and gambling metaphors coming across clearly enough?

After all of the pain and devastation that derivatives trading has done to the global economy, there is certainly a strong case to be made that they should be done away with completely. But in the spirit of baby steps and pragmatism, how about we start with at least putting some kind, any kind of regulation on derivatives trading?

If commercial securities and derivatives aren’t good enough for the greatest living investor in America, perhaps it is best that we all steer clear of them. If someone with literally billions of dollars to burn doesn’t want to touch them, why would any person dependent on a robust 401k to be able to retire at 65 want their limited assets intertwined with the same investment instruments that collapsed the global economy barely a half decade ago?

 

eanda logoajclogo2

by @anarchyroll
7/14/2014

Wages have not kept up with inflation or the consumer price index for over thirty years. That is what is meant when you hear people talk about wage stagnation.

As long as wages remain stagnant compared to how much stuff costs there will never be a fully robust economic recovery.

Wage stagnation is why there is currently an all time record high of income inequality in America.

This is why you don’t need a degree in economics to understand why all debates over economic issues in America are made to seem overly complicated on purpose. Because if people were paid more for their time and effort, they could buy more things. But wouldn’t those things then be more expensive? Yes, but people would be making more money. It would be a cycle, kind of like the cycle our economy is on now but less vicious and soul crushing for the generationally poor.

You’ve heard about class warfare between the 1% of earners who possess more wealth than the other 99% of earners in the country, right? That is the heart of the Occupy Wall Street movements and protests. Why is there such a gap in income equality? Why is there class warfare? Why is there a sentiment that the “game” that is the US economy is rigged and the American Dream is dead? The underlying cause/answer is wage stagnation.

Wage stagnation is not an accident, it has been done very much on purpose for almost half a century. The haves don’t want to pay the have-nots an honest salary for their honest work and have been allowed to get away with it. The 1% could make the choice to pay their workers more. But other than it being the right thing to do, why? After all, paying the masses a living wage would mean less one-percenters could afford private yachts, jets, and islands.

Wage stagnation is tied directly to the rise in consumer debt (people use credit to pay for necessities they don’t have the money to have because they don’t get paid enough), student loan debt (parents and students need to take loans because they don’t get paid enough to pay for college tuition), and mortgage debt (not being paid enough to afford a home). Being able to afford a home is the center piece of the American Dream. To afford property, not simply to achieve financial prosperity as many would have you believe.

Until wage stagnation is addressed and done away with, very little else matters in terms of turning around America’s economy for 99% of the population. To deny this is to deny reality, or be apart of the minority of the population that is benefiting from the system as it is currently constructed. There is no gray area or in between.

A living wage is the only humane solution to this problem. But traditionally, humanity and the American economy don’t always go hand in hand. The fierce resistance to paying a living wage in America is only the most recent example.