I am just a regular American with a skill at simply observing the world around me and applying simple logic. I have made a few observations about our economy and what it means for us. I will say up front, that I have a personal bias in that I am an American and I enjoy eating, living and I believe that Americans should enjoy at least some measure of economic security.
Global Economy=US Economic Destitution
Globalization was a lie and a farce perpetrated by a few groups that stood to benefit at the expense of regular Americans. Cheap labor overseas does the regular American no good whatsoever. One must look at what has happened in the last few decades to see why.
- Small business has all but been completely destroyed in the America. I had the opportunity to live in Hong Kong for three years. Small business in Hong Kong is not only thriving but also expanding at an alarming rate. The Government provides REAL tax incentives for people to start small businesses and not just the worthless fluff coming from the US Government recently. The Government seems to think incentives that simply amount to merely creating a greater debt burden for small business is a wonderful thing. Here in the US most all businesses are large company franchise operations.
- Most regular Americans do no longer own businesses so and are simply underpaid slave employees.
- A significant number of these jobs in America that used to pay a living wage were either outsourced overseas or converted to lower paying service jobs. The wages therefore have not allowed people to realize the “lower prices” as they have less to spend on necessities.
- What good are low prices when people do not have a job to make the money to pay for the goods? This invisible carrot of lowering prices does nothing to increase the revenue generating capability of the regular American.
- The debt burden is too great and this has nothing to do with people splurging on Plasma TVs or mp3 players. The cost to put a roof over one’s head has been exorbitant. The amount of additional services a regular person must have now even to get or keep a job in, cell phones, computers, PDAs, over priced vehicles and energy amounts to a tax that has been skyrocketing at unsustainable levels.
- Living expenses for the basic needs of regular people in emerging markets is a fraction of the burden we are shackled with in the US. All human beings need food and shelter. Overseas a worker can eat for a few dollars a day and the tin shack he lives in costs him nothing.
I could support Globalization if they would erase our debt reduce the cost of living so we could compete. To simply destroy our means to generate revenue in this company without lowering living expenses on basic necessities is disaster. Those that run the economics around the world are either stupid or they are intentionally enslaving us. To saddle us with a $200,000 dollar mortgage and force us into $7 dollar an hour jobs is criminal.
Without a prolific small business sector there is no cushion for workers when idiot large companies close their factories leaving a whole community dependent solely on a single company for revenue destitute.
This housing bubble was no surprise to me and it was due to the creation of the tech bubble and its eventual demise. People who were accustomed to making $100,000 a year suddenly found themselves without employment. They cashed out the equity in their homes and refinanced to the only loans that were made available: ARMS. Many thought if the simply rode out the storm then the economy would turn around and they would resume where they left off.
That did not happen because behind the scenes in a relatively short period all the tech sector jobs were moved overseas forever. Save for housing the only sector that could not be outsourced overseas because the houses have to be built here there was no real revenue generator left for regular people to turn to. Many IT workers turned to the housing sector for income. That is gone because after the equity money ran out people began dumping houses on the market and with the glut of homes on the market and no one with decent jobs a disproportionate number ended up in foreclosure.
I have a special expletive for the liars that claimed everything was going great and that globalization and specifically outsourcing was such a great thing for regular Americans. They claimed to have created more jobs and the dismal state we found ourselves in was simply our stupidity of not understanding reality.
The reality was these large companies took our 100,000 a year IT development jobs, converted them to two $12,000 a year jobs overseas and two testing jobs at $20,000 a year job here at home. From the companies perspective it was a great trade in that they saved about $36,000 a year for four times the labor. That is great for them but tell me again why I should be excited about losing $80,000 of my income?
Another thing and this is directed to Mr. Bush specifically: STOP SAYING THAT AMERICANS DO NOT WANT THE JOBS THAT ONLY MEXICAN IMMIGRANTS WILL DO! That is a lie and a deliberate self-serving misrepresentation!
THE ACTUAL TRUTH IS THAT REGULAR AMERICANS ARE UNABLE TO TAKE THOSE JOBS BECAUSE THEY HAVE BEEN SADDLED WITH THE BURDEN OF AN OVERPRICED AND INFLATED COST OF LIVING EXPENSE THAT THEY ARE BEING FORCED, UNDER THREAT OF ABJECT POVERTY, TO HONOR!
Until idiots like Greenspan, Bernanke, WMF, IMF, UN, Congress and our President recognize the position they force people into in this country then we are going to suffer. If they are surprised that the economy is tanking then they are incompetent and if they are not surprised then they are intentionally impoverishing Americans and this a crime and that is us that demands revolts as soon as possible.
Bernanke is asking banks to re-write loans for the first time in history. Rather then rewrite loans they should just cover the difference between reasonable housing prices and the inflated housing prices. Why is that fair? It is fair because they themselves created the problem in the first place.
I think it is funny that homeowners in America do not recognize the power they have. People have been living in their houses for over a year and have not paid their mortgage. The bank has not proceeded with the foreclosure because they don’t want to dump even more houses on the market because they would lose their shirt. Better them then us.
I say what is good for those homeowners, is good for us all. If all homeowners stopped paying their mortgages then the banks would be forced to play “let’s make a deal”. I think it is time for banks and big business to experience what regular people in this country have been dealing with for a long time. They need to know what it feels like to be forced to live with less and work harder to survive. I think it is time for us to leave them with the same options they leave us. Pay or be destitute!