Monday, December 29, 2008

When things change....

When things change they never seem to change in the right ways. The administration in the state capitol changes, and the ideas are not new. The administration in Washington changes and the ideas are not new. The way to get things done is approached in a different way, but the ideas remain the same. I have sat back watching this mess of the financial markets and I know that there is nothing that I can actually do about it, but I do have something to say about it.

We the people of the American Taxpaying public have had to sit and watch as our tax dollars are squandered on every government SNAFU that comes along. Meanwhile the things that matter are going unfunded or under-funded. Education, Infrastructure, and research. The economy is free-market until there is a tilt in the market and suddenly the government is bailing out some business that has made bad market calls and lousy business deals, because, "the Market Needs them." Well if the market needs them so badly why are they not surviving on their own rather than the Government bailing their dumb asses out? My biggest complaint in this arena is the Automakers.

Why is it that the UAW will sit back and refuse to deal with the companies? The Legislature actually had the brains and the balls to step up and tell them that they would let the auto industry go bankrupt and thereby nullify the Union contracts, but then in steps President Knucklehead with OUR TAX DOLLARS and say that the manufacturers can have some assistance! What the fuck is wrong with this picture? It is the great ponderous Union contracts that have skewed our economy for so long in the first place. I don't have exact numbers, but I have seen some that have been bandied around in recent weeks, and it blows my mind when I see them. A worker whose gross pay and benefits package works out to somewhere between $48 and $73 dollars per hour? ( and you wonder why a new car costs so much?) Who is worth that? Maybe a diamond miner, but certainly not some bonehead who stands in one place putting a screw in a hole all day long. This is a small section of our population who has lived high on the hog for over 60 years. They have been the highest paid blue-collar employees in the USA for as long as I can remember. When I was a kid it was my dream to get a job working in an auto factory so I could get that high pay for doing next to nothing all day long. Paid vacations, and health care, sick days, and personal days and easy work. Man it was a dream!! Who needed college to put a bolt in a hole? They spent their money in every industry, from the clothing industry to the RV industry, buying anything and everything from the necessities of life to all the best toys that the world had to offer. Electronics, and fishing boats, motorcycles and ATVs. It didn't matter the cost because they had money to burn! Then the manufacturers started to see the light...

They realized that they could get cheaper labor in foreign markets. Guess what? Suddenly money was an object!! When you make top dollar at your job, and you get laid off, then you make top dollar on Unemployment. The catch is that Unemployment is a limited supply. And where does it come from? Taxes. Who pays taxes? People who are working! The more money you make the more taxes you pay, ( up to a point then the model skews the other way! ) so these high paid workers who were contributing to the tax base are now taking from it and at the highest rate possible. Their bills are piling up, ( high bills based on the pay that they were bringing home) and the debt continues to accrue. So the high pay cost them their jobs, but the remaining workers continued to make the big bucks, and when the time came they negotiated for even more money. So then more people got laid off to pay for the bigger contracts. Enter automation. Now there are machines that can do the work that men used to do, and at a faster and more accurate pace. So now there are less people contributing to the tax base. It's a cycle that has been repeated over and over in the ups and downs of our economy for the last 4o years at least.

Less people making the big buck is less people able to spend the money on the big ticket items. So that means the people that sell and manufacture the big ticket items are laid off. Now what? So they couldn't afford the crap they were selling in the first place, but the could afford the mid level items, and now they can't. So that's another level of people who are out of work. All because of these huge salaries that the UAW was making. It's trickle down theory in action the way that it really works.

People with BIG money don't spend it like blue-collar people do. Trickle down Economics only works from the Upper middle class on down. The true High income brackets save money, that's why they are rich. They hide money in off shore banks so that they don't have to pay to taxes on it. They buy specially made things and have collections of cars and homes. They socialize in their own circles and never need medicaid or unemployment. They have no understanding of what life is for regular people. They are the movers and the shakers of the business and government worlds. They don't see how skewed the economic situation is because they live in a different world. So they make deals and bail each other out, when they see a chance to blow some taxpayer money they take it.

$700 BILLION for a bailout of the financial institutions, and now more going to the automakers. Why throw good money after bad? Hey Mr. President, you really want to help America? Split that money up between the taxpayers. EVENLY! I have read various figures but even at the low end of the spectrum it works out to $27,000 for every taxpaying American. That is an economic Stimulus package! That measly $600 we got last year was a joke. It barely covered a couple tanks of gas!! ( especially when it peaked out at nearly $5 a gallon. !!)

No comments: