Wednesday, November 03, 2010

The Dumbing of America is true!

Whew! This mid-term election is finally over... and what a sad event it was!

Seems the main complaint is the economy - and who we should blame. Our elected politicians,are the obvious choice... whomelse?

Of course, just ask any capitalist and she will tell you that it isn't the politicians who control the economy, it is big business, free enterprise, distribution of wealth, production of goods & services, the consumption of those goods... and of course, jobs.

In other words, it is the "private sector". Politicians have little influence beyond their highly controversial role in regulating business practices - and then, only those which become obvious to the public and don't jeopardize their chances for reelection.

So last night the great unwashed dumped Democrats out of the House and installed brand new shiny Tea Party Republicans with orders to change things, improve the economy, create jobs and "do not negotiate"! Well, sorry folks, but it just don't work that way!

I suspect we will be faced with two more years of congressional stagnation and frustration. Thank goodness Obama passed his most important and memorable legislation in the last year because nothing will get done in the next.

Of course, we all want the economy to get better, but it took ten years back in the thirties. Unfortunately, we have a "catch 22" situation which will tax our patience to unravel:

* The economy won't improve until people start buying stuff, spending their money on anything and everything to get the money wheel spinning. Seventy percent of our prosperity is consumer based. Our government (both parties) tried to do that with stimulus funding - and it was working... slowly. The economy has improved some - like 3%.

* IF companies have enough demand for their products, they will then, and NOT before then, start to hire workers, that is, if they can't get cheaper products to sell from China or India.

The problem is that unemployed workers will have to spend money they don't have to create sufficient demand to enable their being rehired! If the government doesn't continue priming the pump, we will never recover and America will become a 3rd world nation.

It also doesn't help that less than ten percent of Americans control most of the money available to jump-start the economy... and they ain't spending -- its in a can buried in the backyard! They don't need to spend, they already have everything.

It's odd to me that Americans don't seem to understand this.

1 comment:

Dennis Pleau said...

Al, I'm washed, I take at least one and sometimes two showers a day and I'm still a tea partier!