Crash course to bankruptcy again!
Original post made by Ted Rudow III, MA on May 4, 2012
In the great economic depression of the late 20's and 30's , they had no economic guarantees on wages.The auto business was one of the first places where people cut their spending, because it's a luxury to buy a new car. It was a vicious cycle, a downward spiral that just couldn't stop, and industry kept cutting prices to where people could afford to still buy. This was the deflation. Inflation at home mostly hurts the rich, but it mostly helps the poor, except for those who are on set incomes, like pensions.
That's why the rich are trying to bring about deflation. The very rich, however, profit from the deflation, because their dollars grow in value even though they're doing nothing with them. We're on a crash course to bankruptcy again, but they think they're going to patch it all up instead of curing the disease: which is that they're hanging onto their riches instead of putting them into circulation.
In the past, deflation and depression have frequently led to a vicious circle of nationalism, xenophobia, the disintegration of states, and even war which is happening today. It collapsed!--In total deflation! That's a deflation: It the Dollar, the green Dollar, the Green Pig, is literally inflating right now very rapidly. But I was thinking, well it's inflating, so of course it's going up! But the dollar is definitely inflating and it's got to eventually explode.
Ted Rudow III, MA
on May 4, 2012 at 7:05 pm
A better explanation of whatever this article is trying to say can be had by reading Robert Reich's book "Aftershock" or the new one by Paul Krugman talking about demand in the economy and how growth cannot occur without it.
Inflation is not good, it kills people in fixed incomes, and is not particularly good for working people either, it eats up even more of any salary gains, which is one of the big problems talked about over and over in the divide between the working people and the "1%".
People jump in here and rant about austerity and socialism and all the Republican buzz-words, but there is really no argument for trickle-down supply side anymore except they want it because they get more money.
Until we address demand and put money in the hands of working people we will just sit and languish in this mess, while most of the economic activity and growth will occur outside America.
There is just no better way to tear down America than crippling its middle class in a permanent way that will be with us for decades while we listen to Republicans like Romney complain that the 13% he pays in taxes are still too much.
on May 5, 2012 at 10:26 am
We must create demand.
Rehire immediately the half million public sector (mostly state and local) workers fired under Obama, create more jobs repairing the infrastructure that needs to be repaired sooner or later if we are to remain competitive with emerging countries, rebuild towards a green energy economy with investments in solar at least as large as China.
Demand = jobs = revenue
Return to Clinton era spending levels, Clinton era job creation (23 million jobs vs Bush zero) Clinton era tax rates.
Austerity fails the growth test everywhere. Time to build our way back to a booming economy.
Clinton spending + Clinton tax rates = balanced budget
Proven real world balanced budget solutions, only a decade ago. Do not return to Bush's disastrous economy via Romney's copy and paste of Bush policies.
We can't afford it.