The Economy Part -7- How do we fix this Night mare? Well first we have to accept some cold hard truths. A- It took 194 years to build that Great Middle Class House of Cards (and about 30 years to destroy it), our infrastructure has been gutted and we have to build a new one which is not going to happen overnight, nor will it probably happen in 5 or 10 years. B- We will never achieve what we had again. We had our chance and we blew it. That era died with a stroke of Pres. Clinton’s pen. ( there’s also Rev. in the Bible so in case your unawares, this didn’t come from me but instead a much higher and wiser authority) C- From here on out we are no longer an industrialized nation-we are now a retail outlet for the industrialized nations – or – we are now a retail economy. D- This is going to take a government that’s more worried about doing right by its country then winning a popularity contest-the current administration and Congress ain’t it. E- A good deal of the “upfront” work has already been done and with time and patience we can get through this. F- We need to deal with both our Economic and Illegal Alien boarder problems. Illegal Aliens hold enough non-farm jobs in this country that if we rounded up all them today, every out of work American would be back to work tomorrow with jobs left over. These people need help but our country is sick and we need to get healthy before we try to save South America, particularly, since we already have our hands full in the Middle East. When we do help them it needs to be in their Country not ours. We also need to address outsourcing. At this point we’ll never put a stop to it, but maybe, we can bring it down to a dull roar. Here’s the big difference between the Reagan part of this recession and now. Reagan had to stop the bleeding, preserve what we had and then restimulate the Economy. Obama and the next President have to completely rebuild our economy and replace what we’ve lost. Now most of the ground work has already been done. It started with breaking the Union stranglehold on jobs and wages which Reagan and Clinton did, all be it the wrong way. This job is still not finished however. I’ll explain in a minute. The next step is to establish a solid foundation with which to build on. This means, businesses like Winco, Walmart, Big 5 and so on will need to continue to establish an ever growing presence, providing and then increasing as growth allows a number of lower paying, entry level jobs, there by stimulating economic growth. This will then create a wage establishment where the prosperity is spread evenly, providing incentive and opportunity across the whole of the working class instead of conglomerating it in one spot, with, increases in pay as a reward for superior work and productivity instead of Union mandate. The resurgence of the locally owned, non-Unionized, Mom and Pop stores under way in America should be encouraged and subsidized. As that infrastructure, grows so grows the nation. In other words stay the course and gut it out. If we do, Jobs will come, wages will rise and everybody will be happy. Now, about money hoarding. A classic example of a rich money hoarder is J. D. Rockefeller founder of Standard Oil. J. D. was the epitome of greed and graft and probably the most shining example of the Marie Antoinette let them eat cake attitude ever in America. As far as I’ve been able to ascertain, the man never gave one penny to charity or did anything nice for anybody ever. He made his money from raping America and then he hoarded every bit of it. On the Forbes top 20 richest people in America, 6 of them are Internet Moguls and make their money in cyber-space. All total 14 corporations are represented. Except for the Casino mogul, each has a World Wide presence with the vast majority of their money being made outside the U.S including the investment firms. Every single person on that list donates a minimum of $5 billion dollars per year(and most far more) of their personal profits – made from the World - to charitable organizations inside the U.S. with the specific purpose of helping Americans less fortunate then themselves. That’s a long way from being a money grubbing J.D. Rockefeller. Next time you drive down the street take a list of the supposed Corporate Money hoarders that are hiding so much money they are stifling the economy and preventing small businesses from being established and growing. Then look for the stores from those companies’ brands in the area where you live. Then ask yourself,” if these Corporations are hoarding all the money making it impossible for anybody else to get ahead or start their own business, where are all these companies’ stores?” THEN, ask yourself, “If all these big corporate conglomerates are making all the money in America & hoarding all the profits, where are all these thriving small cooperate and Mom & Pop businesses I see getting the money to open, operate, provide jobs and turn a profit?” Find yourself stopping and going,” wait a minute….?” Two last points and I’m done with this. I said there’s more work to be down in the area of Unions. There’s 2 bastions left of the old Unionomics way of doing thing. One’s the Longshoreman and one’s the Teamsters. Now the Teamsters are a shell of what they once were and they probably only still exist because of the Longshoreman. WHY? The ILWU won’t off load a ship and put anything on a truck that isn’t driven by a Teamster. Now this should also give you a better Idea just how bad things were when Unions controlled virtually every part of our economy. Try to keep in mind that these guys have been on strike for 3 years because what I’m about to relate to you isn’t enough and they want more. Obama issued an executive order or they would have walked off the job a long time ago. According to “The Oregonian”, our version of the New York Times, LOL, they wish, Tenured Longshoreman get about $95 per hr. cash wage. With their “Cradle to Grave” Health & Sick benefit package, Vacation Package, retirement package and their personal cut of the .40 cents on the dollar Longshoreman surcharge on all goods going in and out of the U.S., they make about $195,000 per year. Now cooperation’s are making money outsourcing but not as much as you might think and that’s why, It takes at least 6 Longshoreman to off load one of those cargo containers you see on ships these days and New York Harbor alone off loads about 250 ships a day. The longshoreman get .40 on the dollar of the cooperate profit per ship, plus $95 per hr. and the rest of their pay package…..and it’s not enough! This really needs to be dealt with and when it does, that number 42% in national Employee costs, it will drop significantly, and probably to tolerable levels. My last point is this; we’ve come full circle in our world of Economics. We started off as a Retail Economy, we changed to an Industrial Economy and now we’ve come back to Retail again. But it doesn’t end there. Inflation virtually didn’t exist in this Country until Labor Unions became legal around 1938. Before that it hovered around 1.5% for as long as they’ve kept track. When Unions came into existence and started to accumulate power, it immediately jumped to 5.5% on average in the ‘40’s. When Reagan took over and Unions were at their peak it was at 16%. When Reagan/Bush/Clinton started in 1981 to collectively break the Unions inflation started steadily dropping to 6% in ’93. Within 3 years of Clinton lowering the final boom on them in ’93, it dropped to about 1.6%. Inflation has never been higher than 4% and has averaged around 1.9% ever since. Today, we are now to the point where it virtually doesn’t exist again. Still think Unions weren’t the root of the problem? Still want to go back to the old ways?
Posted on: Tue, 21 Oct 2014 17:30:35 +0000
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