Diatride Against Most Everything

October Retail Sales were down 2.8%, and October Deficit was highest monthly toll in history–some $237.2 billion. Everyone can say what they will, but the Two numbers are Constraints which restrict the economy. They integrate with each other in adverse ways: low Retail Sales curtail the extension and assumption of Credit, while high federal Spending absorb the ready Cash in the Credit Markets–forcing States to raise Taxes–mostly notably their Sales taxes which further retards Retail Sales. Most Economists would claim such activity has little impact, but additional State taxes this Year probably cost a yearly loss of 0.37% loss of Retail Sales alone, and will probably triple the Cost to such Sales in the new Year. It is not a small thing when transferred to the national level.

Mark Perry is not completely correct about the Pay Scales, though his Numbers are basically right. The reason he is not Right comes in the fact that the Big Three did not maintain the Set-Asides to keep up the Medical and Retirement programs, and they shove such Sums off on the current Labor force. This is not the fault of Labor, or does it express a usurious Wage demand by them. It is a Question of Management malfeasance in not maintaining Reserves, and it most clearly becomes a judicial decision of redistribution of funds, so that Bankruptcy Court and Chapter 11 makes far more sense than a Bailout. I agree with Mark on that! It is also a fact that any Congressional dispersion of Cash will bring a host of Scavengers with their Hand out.

Arnold Kling comes close to the Truth, but again misses the main Point: Bailouts, by their very nature, are a profound redistribution of Wealth. Government take funds through Taxation, or more likely course of funds absorption of Credit avenues, to give Money to Individuals and Individual Corporations who have already shown an inability to manage Money properly; the sole criteria consisting of giving such Individuals the power to blow the Money again. Too Harsh! What I think is too harsh is Thousands of people getting Pink Slips because they did their Jobs efficiently, especially when the sole factor behind those Pink Slips being that Management had overspent their financial reserves, and cannot maintain reduced full staff operations. It appalls Me that the epicenter of every Boom and Bust Cycle has always an over-grasping Management mentality. We need Management replacement, not more efficient Labor. lgl