Wednesday, September 01, 2010

Who's Economy?

All parties arguing "the economy" disagree in great measure. How could these experts be at such odds? It is my theory that there is not "an economy" but at least three economies in a macro sense.

There is the investor class most interested in their wealth and building wealth. Great fun and exciting. Creates a great sense of superiority.

There is the middle class which has no wealth but lives pay check to pay check. There is always a sense of fear that someone might get sick or a job might be lost.

And finally, there is the poor who have little to nothing and must depend on outside forces for support and livelihood. Generally, the government tries to offer support.

The dreams of each economy is very different.

The wealthy wish to increase their wealth and to do so means the middle class needs to spend what money they have (or monthly paychecks) to purchase the products the wealthy business communities want to produce and sell.

Those in the middle class are looking for bargains. They are now forced to shop at big box stores. They have lost the ability to increase re-finance their homes. They no longer have "promised money against their homes". In fact, their homes are in jeopardy. They are trying to save anything they can to prepare for the future.

The poor are still poor.

The wealth of America is now described as Global. This means that the wealthy class can now pull wealth from the middle class of other countries. This seems to work for their business, especially if the business is moved out of America; however, this means they do not need the middle class of America to work for them because they now have China and Vietnam to manufacture for them.

The government is now desperately needed to support the poor and the falling middle class. The wealthy class hates having their money (taxes) used to support those who do not think ahead enough to build wealth.

The problem is no taxes are coming in because the middle class and of course the poor have little to be taxed. Lack of taxes means the middle class and especially the poor now become desperate. Remember, Reagan cut entitlements by expelling the mentally ill out of the government institutions to the streets . Good for the government but terrible for those now on the streets.

The wealthy argue that to tax them is to slow "the economy". Who's economy?

The fact is that over years, aided by lobbyists, the wealth of American has been migrating toward the very rich. With this migration the engine of moving money in all three economies has slowed dramatically. The wealthy now need the middle class to SPEND. Unfortunately they do not have the wealth to increase the flow of wealth to the truly wealthy. Over 90% of America's wealth is in the hands of 5% of Americans.

Meanwhile, the truly wealthy have written off the poor. They are invisible. They are the poor stupid citizens that are raping the federal budget through entitlements.

The arguments are that federal jobs cost too much in comparison to the private sector. If you compare the top job federally to the private sector (President of the United States to the CEO of Exxon). 400K to ????) not even close.

The wealthy in the private sector do not share well with the worker bees. Hence the movement of jobs to Vietnam.

Lastly, the trickle down theory cannot be documented by anyone I know. When the wealthy are given more wealth, they keep it, share it with their wealthy friends, complain about the unions for trying to build job security, hardly wealth.

So, the wealthy class wants a Republican sweep this fall. Will this get the middle class to start spending again (with no money).

Advocates for the middle class are characterized as big government lovers who are slowing the economy of the wealthy who will "share the wealth" if the could only get more money through tax cuts. There is no evidence of this.

The poor will continue to be poor. The middle class is afraid they will slip into the poor category. The progressive left is concerned but written off by the wealthy class.

The wealthy class wants to privatize all social services as if the middle class and the poor had any money left over to "invest wisely" in these necessities. But why should the wealthy class care about the middle class let alone the poor.

Conclusion, the wealthy have played the game so well they now have most of America's wealth. They are so good, they have convinced a large percentage of the middle class that they wealthy need more wealth before than can hire. Whose roll is it to redistribute this wealth? The wealthy hate this term because it is their wealth that needs to be redistributed.

However, if the wealth resides entirely at the top level as it is now, then educational equality, medical equality will continue to decrease to the point that the social system will deteriorate into a cast system that will offer no opportunity of the middle class let alone the port to transcend.