Thursday, November 09, 2006

Another Useless Blog About Politics

US elections are over. The Democrats seem to have taken both the House and the Senate. The party extremists exalt or are in despair. We the people have spoken, things must change, but what must change seems to be somewhat in question. Financial Markets and Republicans think the major problem was the war. Democrats think it was that Americans are tired of corruption. No one seems to think that things are not going well in America and that Joe Citizen is tired of an “America by, for and of the corporation.”

As long as our institutions hide their heads in the sand and continually talk about things that are not that important. We need to accept that we are poor and getting poorer every day. Sure we may have a million dollar house but our public debt is spiraling out of control. The debt numbers published talk about 7 trillion dollars but the Treasury, using standardized worldwide accounting standards says that this number is 47 trillion.

Joe Citizen is poorer. While some Americans have significantly increased their take home most American workers have seen real wages fall significantly. The additional benefit costs are the greatest example of reverse income distribution in modern history. We are taking from the poor to pay more for insurance companies and Healthcare corporations profits.

Free trade activities supported by the government officials because they receive huge payoffs from the corporations do several things. First the say the goods cost less in other countries. This is a fallacy. The actual Cost of Producing Goods is not reflected in the price companies pay for those goods. The ancillary costs of “protecting American interests” are paid for by the US Tax Payer. I do not know how many US citizen own land in China, I do not. How much would the world oil demand decrease if goods for all parts of the world were produced closer to where they are consumed?

Unemployment data is false. How can I be so bold to say that government supplied information is false. What does the government care about the number of unemployed? It is all about perception. Our politicians must make Joe Citizen think he is ok or that his problems are his and not because of mismanagement by the government. Let’s just say that labor markets are like any other market, simple supply and demand. There are two things that shout loudly that the unemployment figures are at least 50% understated. They are diminishing wages, too much supply of labor for too few jobs, and unnecessary requirements to get employment. This is when a company asks for a degree in accounting to run the warehouse or uses a credit check for a non financial employee to determine the desirability of the employee. As long as these and other factors exists there is rampant unemployment.

Why talk about this stuff? Am I anti-American? Go America, we are #1! I love my country but I feel we must look at where we are, without the spin, without the blinders, become skeptical and force our elected representatives to do our bidding.

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