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Economic theory, which is basically bullshit, is often coached in mathmatical terms to disguise the fact that it is pure bull. However there are some very simple concepts which make very good common sense, and if one looks at that, instead of how to use current data to justify one’s action politically, one comes up with obvious surprising results.
Labor Demand < Labor Supply
That is why so many people are out of work. Now here are the players.
- Workforce Market
- Corporations
- Commodity Market
- Foreign Investments
- Financial Markets
- Households
- Government
Government is our last option.
So our workforce if we compare the same counting today as was during the Great Depression, is running at 85% capacity. Meaning 15% are unemployed.
Going down the list then,
Corporations are at their best ever. Corporate profit the highest percent of GDP ever.
Financial Markets also are at their best ever. Dow Jones is at record highs.
Commodities are performing well, all indications are of a long term bull market.
Foreign Investment is at an all time high. Never have we had this much outside money.
Real Household Income is declining. We are headed downwards and are currently tied with 1994 as it rose out of the 91 recession, and prior to that, tied with 1984 as we were coming out of the 1982 Recession.
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Bottom line with government out our equation, we have the investment side of our economy all doing spectacularly well, and the household side going down.
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Proof enough that the free market system, or capitalist system does little for the good of any nation, just as little good it did prior to the legislation that became law after the crash of 1929 when Democrats swept the Federal Government.
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Government is the great equalizer. For a fix, government needs to step up and side with We the people (or households), and as a referee would in any sporting event, make the playing field fair.
It can to it in either of two ways. It can impose necessary restrictions upon businesses which increase their demand for labor at the expense of their corporate profits. For example, pass legislation to imprison CEO’s for malfeasance. Only then in order to keep their heads out of hot water, they hire environmentalists, social engineers, accountants, and other highly trained personnel whose prime function is to make sure the company is not doing anything shady.
It can also split the corporations into multiple smaller ones, each now requiring a new president, several new vice presidents, new HR’s, new financial planners, etc and with one fell swoop, increase the demand for labor. This too, comes at the expense of corporate profits, which are currently huge primarily due to economies of scale.
And it can indirectly create demand by raising taxes. When taxes go up on profit- earned, less profit gets earned by design; less “reported” profit, less money handed over in taxes.. Meaning the bulk of that money is now spent being reinvested into the business just so it can’t be taxed. Building projects, higher wages, more R&D gets spent into the economy, This too, comes at the expense of corporate profits on the books.
But that is why higher tax rates are actually the best alternative. Higher tax rates tend to create less taxes, so government still needs to stay small. The revenue collected is lower for the simple reason that if there was absolutely no tax, all the money earned would belong to me. But if more of what I earn goes to you, then I will figure out a legal way to keep more for myself, and report less. So whereas as tax rates go up, total tax revenue comes down; the net effect is that more money goes into our economy thereby creating more demand.
The demand for labor then gradually rises to equal the supply and if it continues on its upward path, yes, yes, so there are more jobs than workers, then competition begins pushing the individual wage rates higher.
Which adds to the increased demand.
Using tax rates works best for now instead of the government interfering with day to day operations of all businesses, it actually creates an environment where each business can operate independently to its own best interest, and as they do, the demand for labor rises even more…..
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Anyone who argues for less government input into the economy is in the wrong century and can’t read economic figures that are plain as day. So how does one interpret the cries for less regulations that are hurting corporate profits? Easily. One realizes that sooner or later corporate profits have no choice but to fall, so our household income can increase. Loss of corporate profits is a “good thing”.
One should mention in the same breath, that labor’s percent of wages is deteriorating all across the world. It is a world wide phenomenon. The answer is simply that deference of all governments over the past decade and a quarter, has been given to those in charge of investment.
Policies favoring Investment must now take a back seat to those which put people back to work, which if done, raise the incomes of all of us… Even those of the 1% , though not as much as they have been lately been accustomed. But everyone still benefits.
Raising taxes is where we need to go.
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This is in spot 6 tomorrow on the Senate Side. This is the famous bill were the Board did not approve the Governor’s recommendation, and he replaced them, getting the vote he needed.
This bill is solely to allow an Alabama firm to come into Delaware and perform health care and be the exception that never gets licensed, never gets inspected, and never gets a citation. If this wasn’t America, and the building wasn’t in Middletown just under the flight path of Summit Airport, with the tiniest bit of imagination, this could be a concentration camp and we’d never know. A place to take kidnapped school board officials, kidnapped in the dead of night, feed them truth serum then throw their bodies into the Appoquinimink marsh.
it is extremely bizarre, really. The company is legit in Alabama, they own rehabilitation homes down there, but if this were new with no track record, I would almost think it were to become the top secret detention center. Now I’m joking for those who can’t tell the difference, but that joke is brought on by these lines in the bill. … HB 89.
In definitions….
(4) “Health care facility” shall include hospital, nursing home, freestanding birthing center, freestanding surgical center and freestanding emergency center, whether or not licensed or required to be licensed by the State, whether operated for profit or nonprofit and whether privately owned or operated or owned or operated by a unit of State or local government. The term also includes continual care communities and any other nontraditional, long-term care facilities identified by the Department of Health and Social Services or the Delaware Health Care Commission. …………. The term also shall not include any freestanding inpatient rehabilitation hospital.
What? WHat! WHAT?
If this bill passes a freestanding inpatient hospital is not a medical facility…
If it is not a hospital, then what is it…. (here is the fun part…)
c. “Freestanding inpatient rehabilitation hospital” shall mean a facility that satisfies, or is expected by the person who will construct, develop or establish the facility to satisfy, the requirements of 42 C.F.R. § 412.23(b); provided that, if such facility is not paid under the prospective payment system specified in 42 C.F.R. § 412.1(a)(3) within 24 months after accepting its first patient, then it shall not be considered a freestanding inpatient rehabilitation hospital under this section. No freestanding inpatient rehabilitation hospital is subject to the Certificate of Review process, and thus no such hospital shall have any license or authority to operate denied, revoked or restricted on the grounds that a Certificate of Public Review has not been obtained.
This bill allows the Alabama firm to build a facility with no inspections, and if found they are killing patients to feed to other patients, their authority to operate still cannot be denied, revoked or restricted….
Is this wise?
Delaware is being held hostage. The firm is stating that they won’t come unless they can get no inspections and no state agency can shut them down. Quentin Johnson and Jack Markell want the business so much, they are catering to this one companies demands.
Meanwhile all other IRF’s get inspected, injected, detected, neglected, and all kinds of stuff that they gotta do….
So why is Congress held in such Low Esteem? How did this Congress, achieve the record low mark of public esteem, getting the approval of only 7 percent? Why is it that for anything to get done, a big battle has to occur and we either go over the edge to get an agreement, or we get it just as we are about to lose our balance?
Republicans.
This stuff never used to happen. Republicans have been around for a long time. It is just today’s Republicans are a spoiled child. They are the little kid in the restaurant who screams so loudly that everyone is forced to make them the subject of conversation…
It started with Gingrich’s Congress shutting itself down. Bill Clinton won that one because America looked up from their work and went…”Really?” You are shutting down work because you didn’t get your way? Wish I could shut down my work whenever I didn’t get my way. I’d never have to work.”
Today the foolishness continues. Just after Obama’s inauguration the republican caucus announced: there one goal was to make Obama a one term president. They jokingly became the party of “no”. When Obama said our country needs to bail out the auto industry, Republicans said “no.”. When Obama said our health-care system needed a vast overhaul, Republicans said “no.” When Obama said workers were getting hired too slowly and that we needed to do more, the Republicans…. said no…
No matter what Obama tried to do, in order to commit to their prime objective, getting him out, the Republicans fought him tooth and nail. Back when Republicans had the voice of the American people, and were a majority of Congress, they needed 51 votes to pass legislation. Today’s Democrats, who today have the voice of the American People, must have 60 votes to do the same thing. That has to change. It is unfair to citizens living today, that just because they randomly live today instead of 10, 20, 30 years ago, they have to have a congress where nothing gets done unless 60 Senators agree. Every other generation survived on 51 Senators getting together. Our nation is still here for us.
Today’s Republicans are the problem. The Democrats have done everything they can to meet halfway. The problem is, that is not good enough for today’s Republicans who subscribe to the philosophy, it is my way or the highway….
Take a look at today’s fiscal cliff. Obama started with $’1.6 Trillion in new revenue. He went down to $1.2 Trillion. The Republicans started with $0 new revenue… In a caucus vote last week, Boehners offer of at least $.8 trillion, was voted down. They would only accept $0
So let’s just say it: Republicans Are The Problem……
Wow, talk about a comment rescue… I was browsing around Steve’s Delaware Libertarian, and for some unknown reason clicked on a story and then hit the comments, and didn’t read the short ones but instead went right to the long one.
And….
I got an unadulterated story of what happened that night.
From Andrew Groff: c/o Delaware Libertarian.
Great debate tonight.
Here’s the scoop from the podium: Once again, a room full of people who already had their minds made up and the rest party minions. I opened kind of weak and scary. I made sure to tar Carney and Carper with NDAA and PA and PA2 and how they are killing the bill of rights, but I didn’t say enough about who I was so I had to find ways to work that in the rest of the night.
I definitely see me writing a position paper on Israel and Iran in my future as I got into a heated discussion over whether we should *give Israel $3.2billion in arms a year (hey, if they want to buy it, I say go for it, but we are not in a position to give free rides right now)… (that was an after-debate attender wanting to have a go with me. I told him I prefer to keep the middle east in sand, not glass).
Kevin Wade thought we imported a lot of our oil from the middle east. Some oilman he is!... we get less than 5%. Also, America is a net exporter of oil. That’s right, we ship our oil to other countries. Drill baby drill my tush.
I killed the whole jobs discussion when I told the crowd – never trust a politician who says he’s gonna create jobs and not say how; that they are full of BS. Shut it right down. Carper was reading his notes on Glass/Steagall and why it won’t work if re enacted – written by a bankster lobbyist, of course!
Wade should have just stayed at home. He just can’t get prepared enough in time to be effective. His vocal coach is messing up a good guy and turning him into….I don’t know, but he’s a decent guy and is not getting good advice.
If it was just Carper and Wade it would have been a horribly boring evening. We would have had a better time outside. 😉 Kovich and Carney were complete wastes of time tonight when it comes to debating – (guys you need to do better than faux-slick sound bites) I know Tom is better than this performance, I never met Carney before; he was an hour late and was incoherent with beltway gibberish (we’re not interested in who you had lunch with; I guess he was picking up a big check).
Pires and I diverged on a number of issues. Phew! I now know how we differ on some policy issues and his attitude about the voters is not demonstrably friendly. I don’t think he’s going to fly in NCCo. He’s got some great points but I think people forget them when he goes on a tirade on Carper. Better him than me.
I think I shocked the crowd with the material I got from the Delaware Sierra Club about our polluted aquifers. I’m told, some people were very upset about that revelation. Still it’s very hard to distill these issues down to a 60sec response. I think I closed pretty well and I had a lot of people talking to me at the end of the evening. I will need to post a lot more essays on my web site as well as here.
The best part is that many people didn’t know what to expect from me and I think I shocked/surprised and even impressed some. It kinda makes it all worthwhile. Tomorrow I can go back to being depressed about how bad things are, but tonight I’ll bask in the knowledge that at least some people listened and understood. Thanks to all who came out and those who couldn’t make it but were thinking of me.
The next debate is September 24 in the Lincoln, Ellendale-Milford area. I hope to see you there!
Awesome: some GPS directions for the next meeting would be appreciated….
Al Mascitti had a brilliant moment on his show (although his detractors may gleefully point out it was because he was quoting someone else)… But he read a story, where a Walker supporter, an ex postal worker whose union had been shot through with holes and was once the shell of its former protective strength, was solidly behind Walker because his sister in law, who was a teacher, had gotten free dental work done. This man didn’t think that was fair. HE had to pay for his dental work, because his private insurance wouldn’t cover it, but she, had state insurance, and got it for free.
He supported Scott Walker, even as he was receiving his pink slip from one of Scott Walker’s cuts.
As I listened to that story, I couldn’t help but think sadly of a lost opportunity. For here we had a person ripe for conversion to understanding that when you are a slave, caving in to your master’s whims doesn’t get you what you want… after all, why should it cost him more; he could just replace you. Instead, when you cave in, the master sees is as proof he should have done it a lot earlier. “Look! They ARE willing to work for less just to have a job. Wow! I’ve been pissing money away, all these years. You know what? I’ll get it back next time; we can even make it lower; just look at how they are groveling now……”
No, rebelling; walking away and winning, is the strategy that gets what you want.
As an employer, I can tell you, nothing bothers one more than a call that says everyone didn’t show up for work that day. Suddenly all plans, all budgets, all future compensation, is in limbo. The longer it goes on, that limbo puts one into double jeopardy. “What do you mean you can’t come in! Yeah, I know you have issues but look, so do I.. Hey, if I give you $20 cash, can you change your plans for me? Seriously, I’m desperate; look, I’ll even make it $25. Can’t you help a brother out?”
Yep, strike.
When a company loses $1 million a day, because they didn’t want to pay $30 a day more, well, suddenly that $30 dollars a day doesn’t seem as important to put in the owners pocket as it once did.
So with that poor postal worker who misguidedly finds himself serving Walker, a lost opportunity occurred; someone should have slipped in and turned that resentment into action…
“You know, you are right. It IS not fair. Screw it! Exactly. If we can do it for public sector employees like school teachers who are underpaid, overworked, and struggle to live day by day on their limited budget, then there is no reason in hell, that a for-profit corporation, flush with cash, who has all this extra money they can waste and throw away on election commercials no one looks at, should also not be able to give free dental care to all their employees. Just one commercial, could fund free dental for all it’s employees for 5 years! These corporations have tons and tons of free money, just sitting in rooms, doing nothing; why not pay for everyone to have free dental care. You know! It makes more sense the more you think about it; that instead of cutting back the public sector’s health benefits to make things more equal, we should instead be legislating the private sector to give more, making it required to give MORE benefits to their employees, thereby, putting us ALL closer in balance when it comes to having insurance that covers our every need.”
If you remember, insurances used to all be equal at one time. Corporate insurance plans had free dental care too. So instead of cutting back on the public sector, let’s choose to add more benefits on the backs of the private sector. After all, fair is fair. Shouldn’t corporations also pay their fair share?
Seriously, there is no reason every individual can’t have free health care… This is a great country. We have the capacity of just going to the doctor without getting billed, getting a prescription without getting billed, and then having that money we’ve been wasting on medical needs, to spend on other things we really need…. We can afford this. Easily.
Just strike until they cave in and we get it…. Don’t work. Make them understand by their looking over their books, that they lose more by us not working than they will lose by paying for us to get our own free dental work done….
WE can do this for everybody. So why aren’t we, Unions? That is the question that never seems to get asked. That lost opportunity is why frustrated people whose lives since Bush-2000 have turned to hell, are gathering on the wrong side. At least in their eyes, that other side, is doing “something” to make things more equal….
But stop for a second and think this one through. If you are intent on making things equal, doesn’t it make more sense to make things equal by making both sides have more, instead of by forcing both sides towards each getting less?
You see, we need more unions; not less.
People have written much about this…. My words would add nothing.
But, I am intrigued by the forces as to why this happened… Face, reality. People don’t do things that are really stupid on purpose….
Always they think they are doing the right thing…
So how could Koman do such a miscalculation? They obviously counted their support based on a wrong set of cookies…
For some reason, they assumed the Conservatives were a majority… THEY ARE A MINORITY RANGING AROUND 17 PERCENT OF AMERICA’S POPULATION…..
Anyone who talks to people, knows this….
People have opinions. People like to keep their opinions private to strangers. When a stranger asks them something private, say for example in a poll, they give the answer they think the stranger wants to hear….
Unless of course they are selling something… We call people who sell stuff, extroverts….
Had the heads of Koman just asked on their Facebook status, if cutting breast cancer research funding for Planned Parenthood was a good idea, they would have figured out very early, before going public, this was a BIG mistake…
Americans LOVE Planned Parenthood… But because of the bullying backlash that comes from Conservative Thugs, they judiciously don’t admit it.
I thought it would be an interesting exercise to pour over this weekends news and pull out any blatant falsehoods being offered to anyone with a microphone, by the outdated, obsolete, and obstinate Republican Party… Some Democrats comments showed up as well.
Republicans objected because, according to Sen. Michael Enzi, R-Wyo., they were not given time to review the specific language of the proposals beforehand.
Wrong! They were given 48 more hours than Democrats ever received when Republican controlled both houses.
Senate Minority Leader Mitch McConnell, R-Ky., said Democrats are “intent on passing this health care bill that the American people oppose.
Wrong! The only people opposing this plan are insurance executives… They amount to 0.006% of the population… That means that 99.994% of America supports updating Health Care to a better plan….
H.R. Congressman Bob Latta, says #3962 will cost taxpayers over $1.3 trillion dollars over the next ten years, including $729.5 billion in new taxes on small businesses, penalties assessed to individuals who cannot afford health coverage, and penalties assessed to employers who cannot afford to provide coverage that meet federal bureaucrats’ standards.
Wrong! It will not cost taxpayers a penny. It will save America $500 billion dollars over what Americans would have spent on health care without this reform… American CAN NOT AFFORD TO WASTE another $500 Billion that we currently overpay for taking care of our bodies….
H.R. 3962 creates a government-run insurance program that could cause as many as 114 million Americans to lose their current coverage.
Under the insurance plans that passed the House and now under debate in the Senate, almost all Americans will receive health care coverage at a cost far less than they are paying now, and will have more conditions covered than they currently do… Under this plan NO AMERICAN WILL LOSE THEIR COVERAGE. But it would be nice if all Republicans did so they would understand just what the rest of America as lived through since 2000.
The government-run insurance plan will be administered by a newly-created Health Care Commissioner and a “Health Benefits Advisory Committee” who will have the ultimate say in your health care decisions- NOT you or even your doctors .”
Wrong! Instead of those Insurance executives primarily worried about whether to buy their 8th or 9th beach front house property, you and your doctor WILL MAKE the appropriate decision regarding your healthcare… The whole purpose of this bill is to bring back the power to doctors and patients regarding their own healthcare, and to take that determination entirely away from the insurance executives who have royally screwed up the once great United States health care system since the year 2000.
. As Congress moves forward with the larger comprehensive health care debate, we should consider the benefits and flexibility of state-based reform.”
Wrong! This plan is only in place to give Health Insurance Companies the ability to keep the monopolies they have in state… The only way to bust those monopolies that steal roughly $500 billion of our national inheritance, is to establish a national plan that drops costs 50% over what state’s could ever offer… Do you want to pay 50% more and get 50% less? Insurance Executives and Republicans want you to pay more so they can buy that extra house….
This Health Care Bill will put the American people and our Children and their Children in bad DEBT!!!
This Health Care Bill saves America money. When you go into debt sometimes you have to work to get more money. The rich have money… Tax them like we used to, (they prospered then) and we won’t go into debt…. Tax them fairly, and all will be well…
Oops… looks like I found my quota on just one site.
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