Wednesday, June 13, 2012

A Brief History of why the Economy is in the Crapper Today

Economic change in the USA began when silver certificates were no longer issued and silver was no longer used to make our dimes, quarters, half-dollars and "silver dollars." That was 1965-ish.

Next, the bra-burning women-libbers who demanded equality. They got it, but for a price. Housewives suddenly needed to get part time jobs. Then others began to work full-time. The greedy got wind of this and figured it out: make things more expensive... which led to the need for two people to work instead of one.

Then somebody else came up with the ideas of health-insurance and HMO, and once that got out of control, it was only a matter of time before the "American dream" of owning a home became the target of the greedy... which led to the subprime mortagages and the eventual collapse of the economy. I know that's a bit of a nutshellish stretch, but it pretty well sums it up. The more you make, the more they take. In doing a bit of reading, I found that American households in the mid-50s to mid-60s enjoyed an awesome standard of living. America so beautiful, so bountiful.

Just imagine: back then folks lived in modest but clean houses. Dad worked. Mom was always home. Food, gas and medical care was cheap (no health insurance needed)... Homes actually sold at prices people could easily afford. The majority of credit was a) the mortgage and b) the car loan... and maybe $5 a month for the living room furniture or the TV set. What happened?

The greedy among us took advantage of CHANGE: they were there when the silver was taken out of the money, when the women's libbers were promoting their cause, when somebody thought health insurance might be a good idea... They were there in 1995 to make sure General Motors' electric car project would be killed. That little car could singlehandedly have averted the US economic collapse! (Government thought WAR in Iraq would help the economy. Didn't happen, did it?) If Barack Obama had a time machine, and he went back to save the electric car, GM stock would probably be in the Google range of $300 a share, and I think General Electric would also be doing quite well. But of course, (as I have said time and time again) this is what General Motors WANTED all along: to gouge the consumer by selling HUMMERS and essential petroleum-based auto supplies like OIL and GAS and TIRES.

Most recently, our college students have been economically handicapped with student loan albatrosses they may end up carrying around their necks for the rest of their lives!

Robert Reich | Why the Economy Can’t Get Out of First Gear

Robert Reich, Op-Ed: “We might learn something from history. During the 1920s, income concentrated at the top. By 1928, the top 1 percent was raking in an astounding 23.94 percent of the total (close to the 23.5 percent the top 1 percent got in 2007) according to analyses of tax records by my colleague Emmanuel Saez and Thomas Piketty. At that point the bubble popped and we fell into the Great Depression.”

Jim Hightower | Wall Street’s Mutant Greed Gene Marches On

Jim Hightower, Op-Ed: Some 900 campuses have signed card deals with such outfits as Wells Fargo and Higher One. These high-flying financiers grin from ear to ear as they line their pockets with tens of millions of dollars a year that they siphon from the public fund that was meant to extend America’s educational opportunities to working-class and poor families. Banks get the goldmine, students get shaft.

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