DISQUS

tahut · 1 year ago

Interesting that the government sees a need to give its citizens "stimulus checks" just to keep the economy floating until "a rescue ship arrives on the scene". Of course they, the government, is not the rescue ship for the people anymore. They're the liferaft for the large financial institutions that can't be allowed to collapse. The real problem that no one wants to confront is the economy itself. And from what I've seen, its torpedoed itself, taking on more water than it can pump out, and is slowly making its way to a shoal to beach itself and die.

What I find strange is no one has yet admitted that the real cause of the current economic problems is a result of employee wages remaining flat for the last eight to ten years while the business profits have been soaring. If that were not the case, then why are the stimulus checks necessary to pump money into the system?

From all indications, people have been "dipping" into the home equity as if it were a saving account to meet their financial needs. And with the price of homes rising as they did for the last eight years, money invested in a home appreciated more than if it were held in a saving account. Could explain why we have such low performance record in personal savings. No need to go into credit card debt cause its part of the same problem ... need for extra cash to meet expenses that a normal paycheck could not.

What really scares the business community is a President and Congress actively pursuing legislation to remedy the shortfall in employee wages and benefits at business's expense. They may even bring back the dreaded unions that business has all but drove into extinction. While many people have their objections to them, unions did keep business in check with workers needs and payscales for both union and non-union were close in order to keep a trained and qualified workforce.

In short, if trickle-down economics, which the republicans are so fond of, worked in practice as the theory implies, (the economic-political argument that the increases in the wealth of the rich are good for the poor because some of such additional wealth will eventually trickle down to the middle class and to the poor), we wouldn't been seeing this economic meltdown today. Seems the theory evaporated somewhere between the top and the bottom and we find ourselves in an economic morass of our own making.