Problem with our economy

[jms62]

Something I have been repeating over and over but not so elegantly. Unfortunately I see no way out of the status quo as those benefitting are funding those that make the rules.

http://www.businessinsider.com/heres...economy-2012-9

Here's The Biggest Problem In The American Economy

Read more: http://www.businessinsider.com/heres...#ixzz27wsecSPh

Several factors have come together to produce a frustratingly weak economy that has persisted in the U.S. for more than a decade:
"Globalization" has opened up a vast pool of billions of workers who work for much less than Americans. This, in turn, has resulted in companies shifting formerly middle-wage-paying jobs overseas.
Technology has continued to increase productivity, allowing companies to do more with fewer employees.
Average hourly earnings have been flat for ~50 years (after adjusting for inflation), as companies steer their wealth primarily to senior management and owners at the expense of average employees.
Tax policies have increasingly favored investors and high wage earners over middle-class and upper-middle-class wage-earners.
An obsession with "shareholder value" at the expense of other stakeholders (namely, customers and employees) has led companies to cut employee costs to the bone.

These and other factors have contributed to the most radical redistribution of wealth that the United States has ever seen. Since the late 1970s, the country's assets and income have moved steadily from "average" Americans to the richest Americans. This has created a society with more extreme wealth inequality than we have seen at any time since the 1920s.
Fairness aside, the problem with this state of affairs is that it leaves hundreds of millions of American consumers—the real engines of the economy—with little money to spend. With consumers having little money to spend, businesses suffer. As businesses suffer, they look for ways to cut costs. And this, in turn, hurts employees (consumers) even more.

One thing to keep in mind as we think about how to fix this state of affairs is that this is not an era in which everyone is suffering. Everyone is not suffering. Big companies and their owners and senior managers are not suffering. They are doing great. Big companies and their owners and senior managers, in fact, are doing better than they have done at any time in history, at least judging by the amount of profit they are producing.

It's everyone else who is getting hosed.

Now, in the current political environment, you can't make an observation like that without being pegged as an anti-business "socialist" or "communist." So, it's important to emphasize that there is nothing anti-business about this observation. I am as "pro-business" as they come. I just don't believe that great businesses exist solely to capture "profits" and steer cash into the pockets of their owners.

When a free-market economy is functioning well, as the American economy did for most of the 1950s, 1960s, 1980s, and 1990s, the benefits of the system accrue to all participants, namely:
Owners and senior managers
Customers
Employees
Society at large

When the system gets out of balance, however, the benefits begin to accrue disproportionately to one or two of of the constituencies at the expense of the others.

And that's the situation we're in now.

The benefits of our free-market capitalist system—which, by the way, is the best economic system on the planet, by a mile—are accruing disproportionately to owners, managers, and customers, at the expense of everyone else.

If we want to fix our economy, we have to fix that. Specifically, we have to persuade companies and their owners to hire more employees and share more of their immense wealth and profits with them.

Importantly, companies don't need to do this just for altruistic reasons (though no one would object if they did). If enough companies do this, they will not just help their employees. They will help their future sales growth. Because their employees and customers, the American consumers, will then have more money to spend.

The following three charts illustrate the current situation.

1) Corporate profit margins are at an all-time high. Companies are making more per dollar of sales than they ever have before. (This chart, by the way, gives the lie to the common refrain that companies are suffering from "too much regulation" and "too many taxes." Small companies may be suffering, but big ones certainly aren't).






Business Insider, St. Louis Fed


2) Fewer Americans are working than at any time in the past three decades. One reason corporations are so profitable is that they don't employ as many Americans as they used to.






Business Insider, St. Louis Fed


3) Wages as a percent of the economy are at an all-time low. This is both cause and effect. One reason companies are so profitable is that they're paying employees less than they ever have as a share of GDP. And that, in turn, is one reason the economy is so weak: Those "wages" are other companies' revenue.






Business Insider, St. Louis Fed


One thing is clear: Our current system and philosophy are not sustainable.

Why not?

Because they're creating a country of a few million overlords and 300+ million serfs.

That's not what has made America a great country. It's also not what most people think America is supposed to be about. And it's not what will restore our economy to health.


Read more: http://www.businessinsider.com/heres...#ixzz27wrapRhU

[Riot]

My parents were the successful children of successful immigrants, the first created "middle class", lucky enough to "work hard" and reap the upwardly mobile rapid success available in the 1950's, 1960's, etc.

Then in my lifetime, I've gone from my 20's - 30's, where hard work would move you up the ladder as far and quickly as you wanted, with good jobs, great pay, where every job offered, even menial ones, had a pension, health insurance, etc. offered to you, savings accounts paid 5% at least, and you knew you'd retire safely with your savings, your pension, and Social Security ...

... to the 1990's and 2000's, where salaries have dropped, bennies are few, jobs are few, growth is impossible, saving is useless in a basic savings account. The same things: housing, utilities, food - cost the same percentage of a basic salary as it did 40 years ago.

The economic differences and opportunities between the first half and second halves of my adult working life is like night and day.

You young whippersnappers have no idea how awesome it was 30 years ago!

But, that still leaves elderly like my parents and other elderly relatives, who retired from very successful upwardly mobile lives before it all fell apart, who think nothing has changed since how it was when they worked, and that poverty and lack of success now can be due to only laziness.

Nope. The deck is completely stacked against workers now. Take away pensions, healthcare, zero life insurance, no vacation, longer hours (America works longer hours that many other first world countries for less) destruction of unions, demonization of workers as moochers.

Unbelievable. I don't know how most under the age of 35 can even possibly have a very good life in America any more. You will either be lucky enough to be born into an upper class, or you'll be a worker bee, struggling for work your whole life. Even being a doctor or lawyer or other professional won't assure you of being able to obtain an upper middle class lifestyle nowadays - you'll be paying that off your whole life.

BUT - if any of you think the Republican Party, the party who oversaw this massive transfer of wealth, and enabled and encouraged it, is on the side of those 47% of Americans who now are at or near poverty, you are dead wrong, and putting your trust into the people that stole your future from you in the first place. Believe me - I was along for their ride and helped them do it.

[jms62]

Originally Posted by Riot

My parents were the successful children of successful immigrants, the first created "middle class", lucky enough to "work hard" and reap the upwardly mobile rapid success available in the 1950's, 1960's, etc.

Then in my lifetime, I've gone from my 20's - 30's, where hard work would move you up the ladder as far and quickly as you wanted, with good jobs, great pay, where every job offered, even menial ones, had a pension, health insurance, etc. offered to you, savings accounts paid 5% at least, and you knew you'd retire safely with your savings, your pension, and Social Security ...

... to the 1990's and 2000's, where salaries have dropped, bennies are few, jobs are few, growth is impossible, saving is useless in a basic savings account. The same things: housing, utilities, food - cost the same percentage of a basic salary as it did 40 years ago.

The economic differences and opportunities between the first half and second halves of my adult working life is like night and day.

You young whippersnappers have no idea how awesome it was 30 years ago!

But, that still leaves elderly like my parents and other elderly relatives, who retired from very successful upwardly mobile lives before it all fell apart, who think nothing has changed since how it was when they worked, and that poverty and lack of success now can be due to only laziness.

Nope. The deck is completely stacked against workers now. Take away pensions, healthcare, zero life insurance, no vacation, longer hours (America works longer hours that many other first world countries for less) destruction of unions, demonization of workers as moochers.

Unbelievable. I don't know how most under the age of 35 can even possibly have a very good life in America any more. You will either be lucky enough to be born into an upper class, or you'll be a worker bee, struggling for work your whole life. Even being a doctor or lawyer or other professional won't assure you of being able to obtain an upper middle class lifestyle nowadays - you'll be paying that off your whole life.

BUT - if any of you think the Republican Party, the party who oversaw this massive transfer of wealth, and enabled and encouraged it, is on the side of those 47% of Americans who now are at or near poverty, you are dead wrong, and putting your trust into the people that stole your future from you in the first place. Believe me - I was along for their ride and helped them do it.

Well stated.

[richard burch]

when you have a 2 party dictatorship thats what happens.

keep voting them in.

[Clip-Clop]

Originally Posted by jms62

Well stated.

Aside from the obvious omission of the Clinton Presidency of course. And the fact that this current president will do absolutely nothing about the continued transfer as he is beholden as well.

[Riot]

Originally Posted by Clip-Clop

Aside from the obvious omission of the Clinton Presidency of course. And the fact that this current president will do absolutely nothing about the continued transfer as he is beholden as well.

Yet Obama has actually done things in opposition to what you say. How do you account for that?

It's all faked Ninja distraction?

[my miss storm cat]

I liked reading your post. It was nice to have some insight as to why you think the way you do or portray yourself in the light that you do.

Originally Posted by Riot

Nope. The deck is completely stacked against workers now. Take away pensions, healthcare, zero life insurance, no vacation, longer hours (America works longer hours that many other first world countries for less) destruction of unions, demonization of workers as moochers.

Unbelievable. I don't know how most under the age of 35 can even possibly have a very good life in America any more. You will either be lucky enough to be born into an upper class, or you'll be a worker bee, struggling for work your whole life. Even being a doctor or lawyer or other professional won't assure you of being able to obtain an upper middle class lifestyle nowadays - you'll be paying that off your whole life.

If you can compose something so rational as the above why on earth can't you understand that, for some, Romney - by virtue of not being Obama - is the one who offers hope?

We know what the next four years will be like with the current administration.

We're all bettors here, right?

I'd rather chance the unknown, faults and all, because to me Mr. Obama is terrifyingly awful.

The past four years has showed me nothing in terms of why he should have another (four).

Isn't that understandable? Even if you don't agree you do get it, don't you?

[Danzig]

just saw some of the latest headlines about the polls-that fla and va are a statistical tie for example.
with all romney's gaffes, he's still right there. that should speak volumes about the complete unhappiness with where this country has gone the last four years. and what's up with biden's remarks that the middle class has been 'buried' the last four years (he's right by the way-but it's been longer than just the last four)? i'm surprised they still have him out and about speaking without his remarks being prepared in advance-talk about your loose cannon.

[Danzig]

http://news.yahoo.com/whats-bringing...154734351.html

this could be great news if enough companies make this move. here's hoping.

[Danzig]

when it all originally went south:

http://www.history.com/this-day-in-h...t-passed-in-us

[hi_im_god]

Originally Posted by Danzig

when it all originally went south:

http://www.history.com/this-day-in-h...t-passed-in-us

at least they were trying to pay for the war. different story in 2003.

[Riot]

Originally Posted by my miss storm cat

If you can compose something so rational as the above why on earth can't you understand that, for some, Romney - by virtue of not being Obama - is the one who offers hope?

Because Romney's policy promises are exactly a continuation of that transfer of wealth, literally embracing every GOP policy that has destroyed this country and put us into massive debt over every GOP presidency since 1968, and Obama's policies and laws implemented have actually been the opposite of that?

[Riot]

59 Congress Members Get An "F" on First-Ever Inequality Report Card
—By Josh Harkinson
| Wed Oct. 3, 2012 3:00 AM PDT

Forty eight representatives and 11 senators earn an "F" on a new report card that ranks lawmakers based on how well they address income inequality.

All of the failing grades went to Republicans.

The "Inequality Report Card," published today by the Institute for Policy Studies, looks at how lawmakers voted on dozens of bills that would, among other things, raise taxes on the wealthy, restrict the use of offshore tax havens, increase the minimum wage, and strengthen labor unions.

The report gives the worst combined grade to Arkansas' congressional delegation and the best to Vermont's.

Too bad Vermont Senator Bernie Sanders, a self-described socialist, isn't as exportable as Bill Clinton.

None of the senators earning an "F" grade come from the nation's five most equal states.

Lawmakers' scores on the report card correlate loosely with how much income inequality exists in their home states. California and New York rank among the highest for income inequality but employ lawmakers that earn, on average, a B- for their friendliness to the middle class.

None of the senators earning an "F" grade come from the nation's five most equal states.

The report also looked at whether rich members of Congress tend to favor the 1 percent, but it seems that their votes depend more on party than pocketbook.

The 10 wealthiest Democrats earned grades ranging from a "B" to "A."

The best grade earned by a wealthy Republican was a C-minus.

[ Editorial note: Yes, the two parties clearly are not the same, and do not have the same vision for America, do they? Romney vs Obama - it's not an equal choice]

Mother Jones
http://www.motherjones.com/mojo/2012...-congressmen-f

[Danzig]

Originally Posted by hi_im_god

at least they were trying to pay for the war. different story in 2003.

true. too bad tho the 'temporary' measure didn't turn out that way. we'd all have been better served all these years had they paid for that war, and then reverted.
but once you turn that money siphon on, good luck turning it off.

also, too bad that we are so much quicker to war these days then we were back then.

[Riot]

Here are the grade totals from the Inequality Report Card spreadsheet (individual voting records are there)

ALABAMA
Sen. Jeff Sessions R D
Sen. Richard Shelby R D

ALASKA
Sen. Mark Begich D B+
Sen. Lisa Murkowski R C

ARIZONA
Sen. Jon Kyl R D
Sen. John McCain R F

ARKANSAS
Sen. John Boozman R F
Sen. Mark Pryor D C

CALIFORNIA
Sen. Barbara Boxer D A-
Sen. Dianne Feinstein D A-

COLORADO
Sen. Michael Bennet D C+
Sen. Mark Udall D B

CONNECTICUT
Sen. Richard Blumenthal D A
Sen. Joe Lieberman ID C

DELAWARE
Sen. Thomas Carper D B
Sen. Chris Coons D B

FLORIDA
Sen. Bill Nelson D B+
Sen. Marco Rubio R D

GEORGIA
Sen. Saxby Chambliss R F
Sen. Johnny Isakson R F

HAWAII
Sen. Daniel Akaka D B+
Sen. Daniel Inouye D B

IDAHO
Sen. Mike Crapo R D
Sen. James Risch R D

ILLINOIS
Sen. Dick Durbin D A+
Sen. Mark Kirk R INC

INDIANA
Sen. Daniel Coats R D
Sen. Richard Lugar R D

IOWA
Sen. Charles Grassley R D
Sen. Tom Harkin D A

KANSAS
Sen. Jerry Moran R D
Sen. Pat Roberts R C-

KENTUCKY
Sen. Mitch McConnell R D
Sen. Rand Paul R D

LOUISIANA
Sen. Mary Landrieu D B
Sen. David Vitter R D

MAINE
Sen. Susan Collins R C
Sen. Olympia Snowe R C

MARYLAND
Sen. Ben Cardin D A-
Sen. Barbara Mikulski D A-

MASSACHUSETTS
Sen. Scott Brown R C-
Sen. John Kerry D B

MICHIGAN
Sen. Carl Levin D A
Sen. Debbie Stabenow D B+

MINNESOTA
Sen. Al Franken D A+
Sen. Amy Klobuchar D B

MISSISSIPPI
Sen. Thad Cochran R D
Sen. Roger Wicker R D

MISSOURI
Sen. Roy Blunt R F
Sen. Claire McCaskill D B

MONTANA
Sen. Max Baucus D A-
Sen. Jon Tester D C

NEBRASKA
Sen. Mike Johanns R F
Sen. Ben Nelson D C

NEVADA
Sen. Dean Heller R F
Sen. Harry Reid D B

NEW HAMPSHIRE
Sen. Kelly Ayotte R D
Sen. Jeanne Shaheen D B+

NEW JERSEY
Sen. Frank Lautenberg D A
Sen. Robert Menendez D B+

NEW MEXICO
Sen. Jeff Bingaman D B
Sen. Tom Udall D A-

NEW YORK
Sen. Kirsten Gillibrand D A
Sen. Chuck Schumer D C+

NORTH CAROLINA
Sen. Richard Burr R F
Sen. Kay Hagan D C

NORTH DAKOTA
Sen. Kent Conrad D A-
Sen. John Hoeven R D

OHIO
Sen. Sherrod Brown D A+
Sen. Rob Portman R D

OKLAHOMA
Sen. Tom Coburn R C-
Sen. James Inhofe R D

OREGON
Sen. Jeff Merkley D A
Sen. Ron Wyden D B+

PENNSYLVANIA
Sen. Robert Casey D B
Sen. Patrick Toomey R D

RHODE ISLAND
Sen. Jack Reed D A
Sen. Sheldon Whitehouse D A+

SOUTH CAROLINA
Sen. Jim DeMint R D
Sen. Lindsey Graham R F

SOUTH DAKOTA
Sen. Tim Johnson D B+
Sen. John Thune R F

TENNESSEE
Sen. Lamar Alexander R C-
Bob Corker R C-

TEXAS
Sen. John Cornyn R D
Sen. Kay Bailey Hutchison R C-

UTAH
Sen. Orrin Hatch R INC
Sen. Mike Lee R D

VERMONT
Sen. Patrick Leahy D A
Sen. Bernie Sanders ID A+

VIRGINIA
Sen. Mark Warner D B
Sen. Jim Webb D C

WASHINGTON
Sen. Maria Cantwell D B
Sen. Patty Murray D A

WEST VIRGINIA
Sen. Joe Manchin D C+
Sen. Jay Rockefeller D A-

WISCONSIN
Sen. Ron Johnson R C-
Sen. Herb Kohl D B

WYOMING
Sen. John Barrasso R D
Sen. Michael Enzi R F

[alysheba4]

anything that has Boxer & Feinstein with grade A. is a Fcking Joke.

[my miss storm cat]

Originally Posted by alysheba4

anything that has Boxer & Feinstein with grade A. is a Fcking Joke.

[alysheba4]

born and raised in california, its dip shits like these two that has this once great state so fked up its beyond sad.

[geeker2]

Originally Posted by alysheba4

born and raised in california, its dip shits like these two that has this once great state so fked up its beyond sad.

ditto

[joeydb]

Problem with our economy: Obama.

The solution begins on November 6th: elect Romney.