Continuing disconnect between Corporate profits and Main Street USA
The NEW YORK TIMES chronicles the abyss between Corporate America and average U.S. workers.
How could it be that Wall Street flirts with record highs, yet the U.S. unemployment rate remains stubbornly high?
Well-off people aren't hurting, while average Americans are dealing with the effects of rising gas prices; what effectively was a tax hike at the start of 2013; and now the ripples from sequestration, beginning with Federal workers who will have less in their pockets as a result of furloughs.
Does either the conservative or liberal conventional wisdom really address the disconnect between Wall Street and Main Street?
The disconnect comes from the many Republicans who are supporting tax loopholes for the very rich, while raising taxes on poor and working-class people
We once called this "Reaganhood": Stealing from the very poor and giving it to the very rich.
One silver lining to celebrate: The Sequester is cutting 13% of Pentagon spending, a good first step in the right direction.
Mon, Mar 4, 2013 9:24am
A couple of reasons explain the high stock market.
One. It is the black-hole attracting the world's money. Despite our problems, the USA is still seen as the safest repository to keep one's assets secure. Pension plans, annuities, and retirement investments the world around, would rather be here for safekeeping than in Europe which is maxed out on debt, or China, with its potentially explosive internal unrest.
Two. US Treasury bonds are close to zero percent. Anyone looking for any rate of return almost can't do worse than that in today's stock market.
Three. Business profits are at record-high amounts of the GDP. They are at record in regards to past dollar figures as well. In fact, US Corporate profits could pay-off the entire 16-Trillion-dollar US deficit in as short as 2-and-a-half years, if so applied.
Main Street is different. Technology has created the profits for corporations because essentially technology has required fewer workers to do the jobs previously required. Every time you use a kiosk in a supermarket cash-out; that used to be someone's job. Fewer people are required to make cars and their jobs today are completely different from when Detroit used to reign supreme with lots of unskilled labor.
Back in the Great Depression, farmers were the ones out of work. Farmers got kicked-off the farms as they got sold out from under them and there were no other farms to go to... It took a war, and the war then slid into a post-war government-sponsored economy, heavily invested in the military-industrial complex funded by high taxes on top earners. We thrived, btw.
Interestingly, if you look around the world at who is doing well, and what types of systems they have, nations where government and business work closely together - which have high union participation - which don't have great inequalities of wealth are doing the best. Scandinavia and Germany, in particular, are in the top of the rankings.
There is a reason. They do the opposite of what America did since Republicans took over in 2000. They forego super-high profits, in place of building-up infrastructure....
The reason the American economy is having so much difficulty getting jump-started is very similar to what happened in the Great Depression. In both the 20's and the 00's, laws strengthening the rights of businesses, and weakening the rights of workers created higher percentages of wealth-collecting at the top.....
Those who would normally buy, the bottom 80 percent, now can't... Why? They don't have the money.
Taxing the top is the easiest method to restore the balance....
Mon, Mar 4, 2013 6:45pm
Even better, forget all I said and watch this.... "Wealth Inequality in America"
I knew this before, but I didn't 'know' this.... If you watch, you'll understand.... This drives it home....
Mon, Mar 4, 2013 8:13pm
Kavips: As usual, you're full of horse manure.
Mon, Mar 4, 2013 10:35pm
The only wealth inequality that exists in the world is between those who earn it and those who want to steal it from those who earn it. The fact is, this entire "soak the rich" mentality is what the bible refers to as covetousness.
Tue, Mar 5, 2013 1:22am
Mr. Pizza didn't see the video... There is no way any rational person can make such a statement after watching it. An irrational person perhaps, but no way any rational person could.
lol. and you're wrong about my diet. I've simply been to busy to get away to Europe lately...
Tue, Mar 5, 2013 4:58am
Wrong, Kavips. I DID watch the video. So what? What business is it of yours or mine what the top 1% makes? If you don't think your employer is paying you a fair shake, then go find another employer. It's time to stop all this whining about what the rich make and go get your own!
And don't tell me about "fair share" of taxes. It's time for the government to start living on less just like the rest of us have to do. Stop blaming the rich and start demanding that government stop wasting money on frivolous expenditures like condoms in schools and "free" birth control.
Time to take America back from the Obommunists.
Tue, Mar 5, 2013 8:04am
I agree, it is time to stop blaming the rich, gather the pitchforks and torches, and tar them, feather them, set them on fire, and burn them all out of their castles...
The problem, Mr. Pizza, is not that they got rich fairly, but that they came in the middle of the night, and stole Middle America's assets out from under us while we slept.
The Republicans were the ones who put the barbiturates into our nightly coffees, they were the ones who phoned them after we crashed, and they were the ones who held open the doors for them to come in....
So, you are right. It is time to stop complaining. It is time to return the favor. Let's just take it back, like they took it from us, but since there are many, many more of us; we can do it more quickly.
Obama is the best president the middle-class of our generation has ever had.... it is time Republicans pay for their sins. Thanks, Mr. Pizza, for bringing that up and making it crystal clear.
Tue, Mar 5, 2013 9:49pm
Kavips: You're a DUFUS!
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