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October 19th, 2011

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  1. Troy
    October 19th, 2011 at 11:19 | #1

    The only threat the left has left is not voting for the lesser evil.

    Kinda cutting our own throat to prove the point, but what are ya gonna do.

    If the right wants to run this country completely into the ground, it may be time to let them.

    We’ll pick up the pieces like we did in 1933-36.

    But to get there from here is going to be brutal.

    I do think my take on things is slowly beginning to be understood, that wealth disparity is just an immense and ongoing problem here.

    The right’s “job creators” bullshit isn’t going to cut any ice this decade, things are way too far gone for that.

    Oddly, Japan still is bringing in more trade surplus than it knows what to do with:

    http://www.census.gov/foreign-trade/balance/c5880.html

    http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

    This implies to me that the yen might be getting stronger still this decade.

    Much of the US’s trade deficit with China is trade with Japan through its manufacturing base in China.

  2. Roger
    October 19th, 2011 at 12:52 | #2

    Well, one complaint I’ve heard loud and often from Tea Party people is that they resent the Republican Party establishment trying to subvert their movement into something to collect votes and money over – without actually changing the way things are done in Washington. I guess at least we don’t have that complaint yet about OWS. But yes, it feels like running in place. I’m reminded of the 2002-2003 anti-Iraq War protests that went roundly ignored/mocked. I’m glad to see the OWS movement – but I must admit I’m still not optimistic about how the power structure will respond.

  3. Troy
    October 19th, 2011 at 13:15 | #3

    To fix things is going to require ~$600B in gov’t spending cuts and ~$600B in tax raises, plus more as social security bonds start needing to be redeemed.

    We’re also going to need to close the $500B/yr trade deficit by half or more, which will involve the dollar falling against other currencies (and oil prices going up, probably doubling).

    We also need to actually reform health care, to cut the per-capita cost down from $8000 per person to $4000 or less.

    All of these changes are politically impossible.

    We’re simply screwed.

  4. Troy
    October 20th, 2011 at 04:51 | #4

    Another thing, the core imbalance of the economy isn’t “corporations” per se.

    Sure, Coca Cola and Apple make very high margins, but these are products of choice.

    Where capitalism goes evil is rent-seeking in necessities like housing, medical care, finance, and energy.

    Corporations play some part of the maldistribution of wealth, with the rich getting the bulk of corporate dividends — the top 1% owns 40% of the equities here — and also the trade deficit and labor arbitrage that all consumer companies support and profit from.

    But consumer goods are not the dominate thing in our economy — per capita health care is $8000 per year, and we pay more than that per-capita on ground rents (land value) too. Plus the average household pumps 1000 gallons a year.

    Compared to that, consumer baubles like iPods are not significant.

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