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February 03, 2009

Comments

John

The stimulus plan isn't going to help, because nobody has defined the problem. It's not the consumer's fault. If you include corporate costs passed on to us, we're all paying somewhere between sixty and eighty percent of our income in taxes. That means that our only means of survival, for the most part, is credit. So, of course, the big banks have been restricting credit--even though their reserve requirements are zero and interest rates nearly so, meaning that they can generate infinite credit on their say-so with no risk--presumably so that nobody will ask how much they've leveraged in derivatives.

So the problem isn't that we're all trying to save--remember that, just last summer, we were all being told that we should be saving at LEAST ten percent of our income, and nobody predicted the end of civilization at such a suggestion. No, the problem is that money is being vacuumed out of the country in the form of taxes, trade deficits, and bank tantrums.

The government caused this problem. They helped corporations offshore jobs. They raised the taxes. They jumped on every bandwagon to inflate the housing and energy markets. And they're perfectly happy (because the bank lobbyists donate well) with letting the banks do whatever they like, rather than revoking their charters for endangering the country. Big government got us into this mess, so I'd really like to meet the genius who honestly thinks that more government is going to get us out!

We need to get away from the idea of money as a commodity, in this country, and start manufacturing and developing new technologies. We need the tax cuts for offshore jobs to go away. And we need to hassle the banks for large-scale policy, rather than the counterproductive bean-counting that Chuck Schumer seems to enjoy that's only going to increase costs more.

After all, the reason that we haven't seen a really bad downturn since World War II is because the war spurred our industry and the destruction in Europe made them dependent on our products. We can't exactly go bomb Dresden again, so we'll have to find a better way to turn the trade deficit around.

Giving us each a couple hundred dollars to spend at Wal-Mart isn't going to do that. Propping up the housing or stock markets certainly won't. Cutting taxes significantly and funding public research (like the NASA of the old days) just might.

Err...Sorry this ran a bit long, but I'm tired of our being blamed for stalling the economy when every single link in the chain besides the consumers and retailers are owned and operated by the banks, who are doing everything they can to make life difficult.

Paula

Have you looked at CSEA local 830's website. There is an interesting column from the President regarding Suozzi's press conference. I thought news 12 would be interested in another version.
Thanks,
a faithful viewer

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