We have a new version of an old phrase coming from the right side of the coin, its called trickle down economics, the bastion of Republican reform. But, Reaganomics 101 and the world economical and political picture don’t seem to be on the same page. It's more like tinkle down economics. The middle class got pee'd on. Thats where the Mexican word phrase "peons" came from.
Someone rewrote the book. Mr. Greed. In the US we did get a little lazy and the world stepped up their game. We are not the only players anymore.
The Republicans continually offer trickle down economics as a way of re-development in this country. Fine if you look at the economy and carefully at the middle class of that era. It’s simply not the same world. We are very much in competition with ourselves. We trained the world to do better and now they do it better than us.
Let me best explain this a different way. When you were born if you are middle age or older, your world consisted of a circle perhaps in a diameter equal to a days march. Those events occurring outside that diameter rarely had an effect on you. In todays economy and literally the world this is not true anymore in the United States.
The food you eat, the clothes you wear, the gas you buy, the computers and TV's you use, the watch you wear, your shoes, the drywall in your home, the nails and screws that hold your house together, the parts in the car you drive or the car itself, all came from some other part of the world. All by companies that have US names and foreign workers. In a Reagan world the US companies would get the breaks and funds only to be used by the foreign workers.
THE GREAT ORATOR
He died a few years back. I feel some Republicans haven't heard the news yet as they constantly talk about him. Easier to talk about him and get applause than come up with some strong answers for tough questions.
They quote former President Reagan so we will assume they are of the same thinking and skill set of the late President. Not so. They are of the partisan thinking set, a distorted idea that says, we rise due to others failures. They wish us to think their ideas and ideals are rooted in success.
It's psychologically pacifying to quote a better time and era and the mind is happy again, so they think. And that’s why these buffoons in Washington are always quoting Reagan. Truth is they don't have answers for today. They are firing blanks, big blanks. Hey, in case you didn't know it he's not alive and neither are the conditions the same nor the talent he had for picking good writers and appointments.
These full time shysters and goniffs know the buzzwords and clichés ad nauseam. "The Party of Reagan", "The Eleventh Commandment" "Tear down this wall, Mr. Gorbachev". 'They believe in quoting the Great Communicator so we will assume the brilliance of the man and his financial moves trickled down to who is referencing Reagan and it will work again in the same fashion.
TRICKLE OR TINKLE
History repeats itself, but only when the circumstance is the same. When the circumstance changes, sometimes the outcomes are different. That’s why in football they usually do not run the same play two times in a row unless you are Tampa Bay and that’s why they are 3-12. ( see Einstein definition of insanity)
Trickle down economy works when you have a path to trickle. That path was also known as the Middle class, virtually non-existent today. Destroyed by the American corporate greed, personal greed, and union greed, political greed, greed in general is to blame. Everybody got greedy. So, today without a middle class, “Trickle down Economics” refers to living on the ground floor of a two-story out-house. More like “Tinkle Down Economics”.
There inherently is the problem, the trickle will go to the investors and the importers. The stockholders are who the corporations are beholding to. The middle class kept that money in the states. You got paid, you went out to eat, you bought shoes and clothing, you went to the dry cleaner, you got your teeth cleaned, you went on vacation, you played golf, you owned a small boat, you went fishing, you could afford the car wash, you had a full freezer, TV’s all over the house and you were happy. You spent money here that was turned over again by the dry cleaner and the car wash people who spent it on others here. The key word is here. The same dollar got used many times.
Millions of Americans watched their jobs go overseas and their jobs and dreams vanish because that dollar didn’t stay here. Today almost everything has the word China or other offshore stamped on the back. Why? So the American Corporations make more profit, and the stock market grows with those profits. BUT the profits go to the investors, not the workers since the workers are NOT THERE.
So when we, as buyers, spend money into the system, seventy-eight percent of every hundred dollars goes overseas. Then it comes back in loans to us. Is every body blind as to what happening?
The GREAT WALL-MART of CHINA
Wal-Mart is probably the best example. When we had Mom and Pop stores we had only forty two percent of the dollars went away or out of the country. Literally four-fifths or more of our economy dollars you spend vanishes each time you shop at Wal-mart and every time the stock market goes up a few points.
Since the Republicans and Democrats have their hands invested through lobbyists in almost every major corporation that looks good, the more money that goes into them means better profits for our Congressmen and Senators. It’s about greed. It always has been greed, it’s nothing to do about serving the country. It’s career and money and greed on both sides of the coin.
“MADE-OUT IN AMERICA”
Remember the car industry, those great days of FORD and CHEVY, and the production of almost anything like washers and dryers, radios, TV, furniture, carpeting, clothing, shoes, tables, chairs and food, consumer items that were the strength of American production. These were the jobs that supported the middle class. So I state again, what middle class?
Wake up America, they are gone. Their part of America was funneled to the stockholders. The rich got rich, the workers got pink slips. That’s what made the stock market recover, the infusion of all those dollars that never made it to the workers plus the Government gave them anything they wanted. And they want to take that taxpayer money and give bonuses to the same folks who bankrupted the nation. Shame!
Wall Street and the investors are not for the people. The bonuses are still getting paid. The stocks went back up, breaking 10,500 points and no jobs came from it. The middle class bailed out the holders. The top end gets as much as the corporation see's fit to pay the rest. What a gift. They lose the empire and we buy it back for them.
HOW OTHERS DO IT
I am beginning to see the wisdom of some foreign political systems, and the Kalashnikov theory of keeping folks honest. Lets see how the world would react if this happened there.
CHINA - Had this happened in China, the principal responsible would be shot or probably do it himself.
JAPAN - Fell on a sword, he didn’t trip either. They call "saving face".
RUSSIA - In Russia, they just vanish, vacation at Gulag13, or Joseph Stalin just shot them.
FRANCE - Riots and the real good old days, of the "guillotine".
GERMANY - The "firing squads".
MIDDLE EAST - Swift beheading.
USA; Here we bail them out and give them a raise for their incompetence and greed.
We talk about jobs and new startups. What a dialog of horse manure. Innovation, is the answer but we are failing in the battle for the leadership role in innovation. The Japanese for one are the innovators, they design the toys we buy, from cars to Wii, and then it gets into production in China. So the chinese learn from the Japanese and cut the japanese out. We are no longer the great innovators alone in the world, get it. These other countries in the BRIC can and do create the new toys and electronics we blow our dollars on.
What new store can compete against a Wal-Mart? Rephrase; What new stores can compete against a Wal-mart, as there are fifty plus stores under one roof, paying minimal wages for the employees, with products built under the market in both labor costs and quality. I remember, Sam Walton saying many times, In our store, it‘s “Made in America”. He got to be doing two and half gainers in the grave.