Wall Street Gets the Goldmine & We Get the Shaft

April 23, 2010 at 1:49 pm (Uncategorized) (, , , , , , , , , , , , , , , , , )

In spite of my best efforts, America’s casino economy hums-along in its happy, fraudulent, and bonus-filled way. Meanwhile, the needs of the real economy and the hundreds of millions of citizens it supports are as ignored by the Washington crowd as coal mine safety.

Our wise “leaders” in business, media, and government grasp at every straw, twisting statistics to fit the “prosperity is just around the corner” scenario they need to keep us from rising-up & demanding the rotten system really be changed. For instance, they blew their trumpets loudly to announce that, Heaven be praised!, 162,000 jobs were created in March. So the economy is on the mend and Wall Street can go back to handing-out bonuses. Sounds good… but whoa wait a minute!, it turns out that at least 150,000 jobs must be created every month just to absorb new people coming into the workforce (like all those eager young people and immigrants). Well, ok, that leaves 18,000 jobs to chip-away (for 361 years!) at that nasty 6.5 million “long-term unemployed” number. But, oh my gosh! 88,000 of those 162,000 jobs were temporary work, such as working on the U.S. Census. The truth is that real job growth is still going in reverse.

And that does not even address the fact that America’s jobs increasingly lack wages & accompanying benefits that allow workers to share in their nation’s prosperity. Livable pay, health insurance, retirement, and vacations are all things taken mostly for granted by our Capitalist elite, Socialist Europe, and in the “mixed-economy” days of post-Great Depression-pre-Ronald Reagan America. But they are vanishing quickly in this country. The only real solution I can see is a turn to Socialism or at least a return to its milder cousin, the “mixed-economy” of the 1930’s-1970’s, wherein government’s main job was to make sure the playing-field is kept level by keeping a tight rein on big-business and helping the common citizen to flourish.

Back in November, when this blog had almost no readership, I posted the essay, Bring Back the Red Menace!” Now, I wish to re-print it, with apologies to those who would debate finer distinctions between “Socialism” (an intermediate step between Capitalism and Communism) and “Communism” (the ultimate destination in the flight from Capitalism), I use the terms interchangeably.

Bring Back the Red Menace!

We Americans are brought-up to believe that genuine, vigorous competition is the life-blood of our great system. Vying against one-another for victory, with the winner taking all the spoils and the loser conceding any claim is what makes social Darwinism tick. And so it is drilled into our red, white, and blue brains from cradle to grave until it becomes second-nature to believe that non-winners deserve to have nothing. Gaining or losing it all motivates us to try our best. Striving against a rival makes us strong!

Who would deny that in the 1970’s, our domestic auto makers had become bloated, complacent, and inefficient. They were insensitive to and exploitative of their customers; building increasingly lower-quality and higher-priced products designed for “planned obsolescence.” They were improved by stiff competition from foreign car companies that gave customers an alternative. Likewise, the United States Postal Service was improved when other carriers appeared. I could fill pages with examples of industries and organizations that were increasingly out-of-touch with their market, all of which were raised-up by vying against tough, strong, viable opponents.

That lack of competition is exactly why a monopoly does not function well. There is no rival to keep said monopoly under control so sooner or later hubris, greed, and decadence set-in (note that this is why government regulation is used to control these tendencies in monopolies). In modern American, Reagan-Bush-Clinton-Obama-nomics, monopoly is a diseased thing that must be cured through competition. If the schools, the airlines, or the electric company can’t face the challenge, then that’s too bad because it’s sink or swim for everyone (except for banks and Wall Street tycoons).

And now I come to my point. And here I am relieved to know that no one actually reads this blog, so I will not be hounded by threats and cat-calls for the assertion I’m about to make: The worst thing that happened to the average American citizen in the past 100 years was the collapse of the Communistic Soviet Union. Why? Simply because we now have no competitor to which we can turn when we are abused by the monopoly known as American Capitalism. And so that monopoly becomes increasingly abusive of its captive customers.

Apparently, I am the only one to notice that there was only one span of time when conditions consistently improved for American workers and citizens: the years from 1920 until the mid-1980’s while the Soviet Union existed and, in the minds of America’s leaders, there was real danger of a (cue-up the scary music) Communistic revolution in America.

Before that window of time, laissez faire Capitalism was firmly in the saddle and there was very little progress in the treatment of the vast majority of the population. Things didn’t really begin to improve until the Great Depression of the 1930’s caused a large percentage of Americans to start considering the alternative economics of Communism/Socialism/Populism (all close cousins). This scared the bejesus out of our political and business rulers who then reluctantly agreed to allow a little of the wealth to be spread around. And for the next 50 years, more and more wealth got spread in America so that the people were kept happy and non-Communist.* Overall, things kept getting better all the time for Americans across the board: the old, the young, all races, both genders. The poverty level crept down a little at a time and literacy rates kept going up.

Then in the late 1980’s, the Union of Soviet Socialist Republics fell-apart under the weight of its leaders’ corruption and greed. The threat by the Communist menace was over. Sure there were still a few other Communist nations around, but none of them posed a real threat to Capitalism. American Capitalism boasted of being the only superpower remaining on earth. And, immediately, (actually it had started a few years earlier when the Soviet collapse could be seen on the horizon) American Capitalism no longer had to try to keep our hearts and minds. The tide turned against the average American. And it’s been downhill for us ever since.

So today we Americans are seemingly stuck with a bloated, uncaring, inefficient, corrupt, wasteful, unfair, and unresponsive system that is typical of any monopoly. But we are not stuck! Having no competition allows Capitalism to dismiss the needs of the citizens. There is only one solution: We must pick-up the threat of Communist revolution off the ash heap of history and, at the very least, pretend to be considering it as a replacement for Capitalism. That will scare the elite into once again being willing to share some of our nation’s prosperity.

* And contrary to what neo-conservative ideology teaches, in spite of having to share prosperity with the bottom 95% of the nation, there was still plenty of money for the upper 5% to stay very, very, very, rich.

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