Ownership???

Paul Krugman advances three factors causing the current economic mess We are in, providing an excuse of nonentity escape for the Bush Tax Cuts. Those factors were the Housing bubble, rising health care Costs, and the Run-up of raw materials pricing. It is a good evaluation, if One accepts that the current economic structure is basically sound. Democrats have to join with Republicans to support the position which Paul espouses, simply because of their past involvement in the Process. An alternate interpretation of any circumstances can always be found, and I might as well spout one.

The overwhelming Cause of the economic malaise has been the huge Increase in American Debt, both Public and Private. No other factor has had the same impact, weakening the Dollar drastically here and in the World, and granting an avenue to finance American Imports other than the traditional venue of purchase of American Exports. The vast aggregation of American debt gave access to the American economy without buying American Products. This was the deliberate result of American Tax policy, a policy supported by both Democrats and Republicans, which insisted that Our Government must run in deficit. It is not helpful that most Economists and Business leaders were in full support of this chicanery, believing that such deviant Accounting was good for the Economy.

The second great Mistake was the belief in the Government policy ordered to turn America into an Ownership society. Mortgage credits allowed Homeowners to buy above their Means, crippling their ability to sustain economic shocks so prevalent Today. The worst effect, though, came in the 401k programs; all directed to reductions of the Tax base while fostering a false sense of Ownership among Labor. The Tax-evading programs all propelled Business leadership to dilute Paper stock ownership of their Concerns to serve a new Market. Now, when economic conditions are worsening, there is too much Paper out there, and no way to pay Dividends upon that Paper; effectively canceling any Resale value on the Paper. The Whole of Government policy mismanagement has introduced a parasitic middleman class into the matrix, absorbing the Profits without economic gain, and deceiving the owners into a belief that they possess a real Ownership stake; it will never be one which they can exercise possession rights for economic gain. lgl