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Friday, September 17, 2010

Income and why you should not vote R.

Since 1970, the average economic family model has shifted from 1 earner to 2 earners per household. You are expected to have 104 checks to be considered middle-class as opposed to 52 30-40 years previous.

In this time we have been forced to put another worker into the economy and charged 25% more in taxes for the opportunity with absolutely no growth in median household income, not even the "added worker effect" which you had in 1970 should you have done so or needed to for personal reasons.

We have been leveraged up to 90% higher on inflexible major fiscal expenditures. Your flexible fiscal budget has been cut by up to 40%. We are now responsible for expandability that did not exist under the previous model. We now save 30% less on average. We likely do not have health insurance provided by an employer, if we do, we now pay anywhere from 40-90% more for it and get less for your money. Same for education.

We are now, and have been made exponentially, a ridiculous prospect to consider for a loan. Something which is not lost on speculators or bankers in the slightest. We will likely never own a small business. Any innovation we might come up with will be bought out and co-opted by existing business models. It will not spur new business, particularly small business, based on the model of creative destruction.

The next 30-50 years should be a hoot.

Long term systemic institutional failure. Get used to the term. Buckle up, secure your helmets

reference: http://www.youtube.com/watch?v=akVL7QY0S8A
http://inflationdata.com/inflation/inflation_rate/CurrentInflation.asp
http://en.wikipedia.org/wiki/Economic_policy_of_the_George_W._Bush_administration (Economic indicators)

Some of you might ask, "Gid, why did you include the inflation tables?"

Well. If you look at profits versus inflation and correlate that with the data i just presented to you it's obvious a pretty small minority of currency holders are sitting on top of what amounts to a literal mountain range of capital and continues to do so, stagnating the economy. Regardless of interest rate fluctuations and the changes in the market, that mountain range is still quite obviously there to those who seek it. The question is 'why?'

I postulate the erosion of nationalist altruism based business models that used to be the cornerstone of the American economy, point of national and local pride, and got us out of the depression with WWII. But that's just me. Maybe labor's just not cheap enough for corporate America regardless of cost of living and that's just too bad.

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