Dave from the shop up the road came by to ask if he could use our car dolly. He had a car that needed a transmission that he was going to repair and sell. But instead he is going to haul it to the metal yard because he needs the money today. A sign of the times, capitalists eating their capital like farmers eating their seed.
Shane from the cabinet shop next door has been working on some small projects. When I walk to the library I go by the truck rental yard where he used to rent a truck to deliver his cabinetry. It was a distinctive looking truck because it was faded on one side, and I see it sitting idle in the dirt parking lot. Shane has no work so the rental yard has no rental; Dave has no work and has begun to sell his belongings to keep the doors open.
My own son has begun to talk again about becoming a cop because he sees no future in his own business. It's harder now than it once was and he's frustrated dealing with people without any money. He used to handle cars in the $5,000 price range and now it's $3,500 tops! He does a cash business and few have any cash so they go instead to the "sell your soul finance it here" car lots.
July set the record as the second lowest new home sales number since records have been kept, but when was the worst month? That would be in June and the prices continue to fall. The median price for a home fell to 2003 levels and the number of new homes on the market reached its lowest level since 1968! New home starts are expected to be one half of 2007 levels; in 2009 new home starts were two-thirds of 2007. That means that the crisis is getting worse, 35 percent of all home sales are now distressed sales, either short sales or foreclosures.
These numbers mean little work in the future for carpenters, painters, and electricians. Little cabinetry work for Shane next door, little work for the factory suppliers and concrete people. It just expands outward as the cruel economic winds blow and the leaves fall. These dreams are deferred for millions and millions of Americans of all ages and races. Young couples afraid to have children, the middle aged afraid they'll get sick and the elderly afraid to retire.
What's going on here? Why does the media continue to talk about teabaggers and Mosques? What's wrong with this country where its leaders ignore us or worse still play politics with our suffering? The economists might have declared the recession over without ever considering that it is a depression but you don't need a weatherman to know which way the wind blows.
There are 41 million Americans on food stamps, 10 million on unemployment, four million more on welfare. Thirty million children in the national school lunch program and our economy grew at 1.4% but our trade deficit declined for the same reason as everything else because the people have no money. The major banks earned $20 billion in profits this last quarter based on the free money policy from the Federal Reserve but try as they might the banks can't escape this vortex either.
Millions of Americans no longer use banks and millions have lost their credit and will never reach the income level to get it back. The foreclosed and dispossessed will most likely never own property again or will ever to be able buy a new car again. And round and round it goes until the wind scatters us like dry leaves as the businesses suffer as well and will fall to the ground to be added to the pile.
This is no longer a matter that can be ignored. We have developed a corrosive economy where millions of Americans are being pushed out of it permanently! This is what FDR meant when he said, "I see millions lacking the means to buy the products of farm and factory and by their poverty denying work and productiveness to many other millions."
This cancer eats away at all facets of our national life as I read of workers coming to work and shooting their co-workers. I thought about the desperation of a mother with children losing her job in this economy. This is a national trauma and a national disgrace. Our current President Hoover said the other day after a week of proposing a continuation of tax cuts and proposing even more new ones that he acknowledged that he feels our pain. But does he feel our shame?
The question becomes the same question that FDR once faced, that without radical and concrete change can capitalism survive? For the millions fallen to the ground why should they even care if capitalism survives? In an economy that is 70-percent consumption it means only a continual downward spiral to the ground. Democrats are worried about losing control of Congress but if the political class were to look down the road little further they might see even a darker picture.
Human nature does not change, first we lose our prosperity, then we lose our property, then we lose our future, and then we lose our temper. Can the political oligarchs continue to choose guns over butter, drones over children and boardrooms over living rooms? Can they continue to believe that they themselves can escape the vortex of a collapsing star? Like petulant children they refuse even the possibility of taking their medicine, and so people suffer.