Posted by: stiltsville | July 25, 2011

Heads I win, tails you lose on sacrifice sharing

Been hearing a lot about that “sacrifice” we all need to be sharing to get our govt debt and spending under control. Hey, I truly wish George W. could have left a budget surplus like his predecessor did, but no such luck, we got tax cuts, recession and a trillion dollar war.

So how we gonna fix it? By taking away grandma’s social security and medicare, of course. Even though these are insurance policies she bought and paid for with payroll deductions. They’re called “entitlements” because you already paid for them…Look at your paycheck, this is not a gift from the pension fairy.

The nutjobs in the psychiatric wing of the republican party simply don’t seem to know what they’re talking about. Corporate profits are at an all-time high. Wall Street and the Fortune 5,000 do not need any further help from anybody. They are doing better than ever.

We have a “consumer economy.” that means about 70% of economic activity is people like you and me and our neighbors buying washing machines and big-screen TVs and cars and blue jeans. The consumer is the foundation of our economy. Unfortunately, wages for the middle class have not risen for thirty years. The economy is not going to improve until wages are heading up and the unemployment rate is unmistakably heading downward.

So, how do you jump start the consumer side of the equation? Easy; jobs, jobs, jobs and more jobs. In 1914, Henry Ford freaked out his business associates by doubling worker’s wages to $5 per day. He did it to create a market able to purchase the cars he was making. Today, instead of jump-starting the economy by giving Joe six-pack a job, Corporate America is hoarding $2 trillion in cash. I guess they are just waiting to create all those promised jobs next Tuesday.

For ten years, the so-called “job creators” have been blessed with the Bush tax cuts. But I have not seen an orgy of job creating going on. Unless you consider China and India, where all the job growth has taken place…

GM, for example, is now selling more cars in China than they are in the USA. Why? Well my guess is that by sending all those manufacturing jobs to China, American industry has been creating a new middle class in China. A middle class that can now begin to afford simple luxuries like a Chevy.

Wall Street has been playing a heads-I-win, tails-you-lose game with wages, employment and profits for long time now. It’s time for Wall Street to man up and share some sacrifice. There are simply not enough grandmothers, poor children and wounded veterans to cover it.

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