Okay, so maybe I get to put my Economics degree to use here and run a little riff on the sub-prime mortgage fiasco and it’s doppelganger, the US debt fiasco. But I digress.
Okay, very often in Economics, as in sailing, it’s the terminology that can be the barricade to understanding. I’ll try to keep this simple.
The sub-prime debt problem is based, at least in great part, on the problem of responsibility for one’s actions. The current corrupt administration often uses phrases like this, but in practice hands out “Medals of Freedom” to some of the most unsuccessful, incompetent and and ineffective people to ever "serve" in government. (Heck of a job, Brownie!) All that "sub-prime" means, is that these weren't nade to the most credit worthy people in the world. That's it. In the 80's a lot of people thought Michael Milken was selling complete crap because of the label "Junk bonds". All it really meant was that there were a few not perfect, but not crap, issues with the companies involved.
What happened in sub-prime is that the mortgage brokers and banks selling loans generally sold them within a few days of making them. Get it? You, the loan offer gets paid your fee, usually one month's payment on the loan, and then the loan goes away. No risk. Big upside. I remember getting to college in 1977, and hearing a guy in the dorm reading from a student handbook, "Okay, so the police and campus security have to provide 24 hour written notice to enter our dorm rooms. Why shouldn't I IMMEDIATELY start dealing drugs?""
All upside, no risk.
Right, so the Right wing in the US has taken it as gospel that all taxes are bad, lowering them is good and raising them is bad. But they're getting around it by borrowing. The kind of chuckleheads who try to balance their budgets by putting it on credit cards and paying just the minimum are headed for a lot of pain.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Want to make sure you get my point.
Why is it so difficult for people to see this? ZERO pain for borrowing. HUGE political cost to pay for raising taxes. But George and Dick know that the bill comes due after their watch. They're leaving it to my younger readers, our children and grandchildren. And they're getting away with it.
A little math here- $9 trillion deficit
300 million Americans
That's $30,000 for every man, woman and child.
With 5% bonds, good for 20 years, that's $800 a month for a family of 4. Almost $10,000 a year. Median household income is around $48,000 a year. So 20 cents out of every dollar an average American earns will need to go to pay for George W. Bush's absurd policies, illegal war and absurd, ideological, corrupt and ineffective rule of 8 years. Then you start at zero to pay for everything else! Glad we haven't raised taxes? Just wait.
How. Stupid. Can. A. Nation's. Citizens. Be?
It's sure as hell enough to start thinking this whole democracy thing might not be up to it's billing.
6 comments:
Our founding fathers were pretty suspicious of democracy and wanted real decision making power in the hands of the elite, or at least land-owning and successful.
Not very populist, but perhaps efficient and at least mildly resistant to pandering.
Scary scary scary.
Yeh, democracy hasn't always lived up to it's billing. But it's not democracy that's getting us into trouble, it's deregulated and everyman-for-himself-mentality capitalism. And, Jeff, no matter how simple ya keep it, it's all garbelee-goo to me. Ya had me, ya lost me. But then I never memorized my multiplication tables...hell I can't even spell...
But I know one true thing about money. People seem to want it at all costs. And I know this second true thing too - folks have been brainwashed by pop culture/ media/the advertisement industry, who prey on insecure masses, convincing them they need a lot of stuff. Why are drug manufacturers allowed to spend millions on TV ads?, for chrissake!!!!!!!! Now I just gotta have lipitor, like my neighbor Sally, or I'll just die!
And while I'm at it, this political system, with all it's warts, hogs, and worse, is what we've got to work with. Of course, some brave, super-charged, savvy, and financed private citizens take matters into their own hands to impact change and do good. But for those who don't, or can't, getting involved in our political system, in my humble opinion, is a good thing.
Grassroots political activism has and can affect change and render positive outcomes. The more quality individuals getting involved the better the whole (no, I'm not naive, just optimistic and following my fathers sage advice). To stay steadfast cynical, negative, and apathetic to the 'system' has gotten us where we are now. What do you think the Republican think tanks, Christian Law schools, and fundamentalist Churches have been doing for the last 20-30-40- years? They've been 'getting involved', active, and stirring up their grassroots, ya'll!!!!
Every time I attend a local Democrat meeting I'm the sole person under 70 years of age! Even within this local, tiny group, there is such a range; from radical leftists, and some who, while claiming empathy for the less advantaged, complain bitterly about their ocean front property taxes.
But it is something other then lamenting the anti-sixties that we currently live in. Yeh, there's swarmy Donkeys right along with nasty Elephants mucking around in DC. But those Donkeys just need a good swift kick in the ass, and some more new ones.
My party's only as good as it's parts and what we do with them, I says. So, let's stomp on those elites and dance...
Right on Bill.
America has been selling false dreams. Capitalism is running unchecked by our democratic system. Democracy is an experiment, and testy.
So, do we living in capitalism have more government regulations? In doing that tie it more closely to democracy? How can we see the state not as a "them" but as an "us"?
Death to individualism!
Strengthen the family?
Our country went to sears, and just went crazy. The little bush bought everything his heart desired.
Shit.
Nat;
Come and spend some time in Central America as you consider the benefits of oligarchy!
Jeff and Bill...(This observation also migth be from my time spent in 3rd world venues) Reform, whether the extreme of revolution, or simple tax structure change, only comes when there is a perception that the "masses" have nothing to lose in the reform. Unfortunately, I think that because there are enough people who sense that the American economy is a bubble, that might burst if probed too deeply, that there is no outcry. Everyone sort of knows, but refuses to acknowledge your very clear and correct economics lesson.
It is also mildly spooky that your arguments here remind me of "conservatives" arguments against the democratic tendency to "use other people's money". The party that preached that ( and still preaches it when you are not talking about bailing out S&L thieves, etc) has either pulled the biggest fast one in history, or simply "forgot".
Anecdote...Here in Guatemala, the press is waking up ( I am grateful... as they are covering my back in dealings wiht corrupt judge) but they broke a story last week where the Congressmen who did not get re-elected voted themselves (in a classic late night session) the right to indemnization and other payroll benefits that had been created specifically to help the minimum wage earners who are capriciously laid off. They blew the whistle, then dug and found security video footage to disprove the white wash when the congressmen ...to a person!!...denied voting for the bill!
Where is the press who should be blowing the whistle in the U.S.? counting their Tax savings? Does General Electric still own NBC?
Should you run for Prez, jeff...I will vote again.
I guess it is worth mentioning that my criticism of democracy was tongue in cheek.
Instead, I am reminded of Jefferson's constant ideal of the well-educated citizen-farmer as the backbone of the American experiment.
The Founding Fathers anticipated political lies, they put impeachment proceedings right in Article I of the constitution.
We consider it such a "break down" of our system were we to impeach. I think our system works best when we stick it to thugs.
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