Thursday, October 01, 2009

Real Belief

Study this Release and ask if We could possibly be an the correct path? No one considers the real implications of the material as they read. Debt equivalent to 300% of GDP would lead to the Dollar being as valuable as the Japanese Yen is today. The Process will lower real American Wages until We are even with Indian labor, below European and China labor, but equal to basic South American and African Wages. The sorrow of the situation resides in the absolute idiocy of the impulse behind the trend. Simple reversion to the Tax scales of pre-Bush Tax Cuts would probably reverse the Trend over the century. American output is massive, and normalized Tax rates should handle most of the problem, with restraint of Congress and Legislative Spending canceling the rest of the Effect. This is accomplishable Now, and will probably be available for another decade, though there is a Point where normal correctives will fail; solely due to the actual magnitude of the Debt itself.

Educated people like to blame the debacle upon Medicare and Medicaid, and their creation of huge Costs which cannot be paid. I will not enter into a tirade about the artificiality of those listed Costs, except to mention that the interaction of Medicine and Corporate style of business has led to vast inflation within the health sector. Drug and medical equipment royalties are extremely outsized in relationship to the provable benefit. The Production Cost of the average Drug is less than $.50 per pill, and less than $2 per vial. Rarely does the Production Cost of any Injection exceed $4. The average qualified medical technician can give around 80 Injections per day under pressure, and normally average about 3 Injections per Day. Education must be considered prime, but there is existent threat of monopoly pricing in Medicine. It is a real element of the total problem, but not the generative cause.

The real problem causes come from the Business world. Business personnel hate to pay Taxes or Interest on their Credit. They support policies which reduce their Taxes, and incite Inflation to levels where they do not have to pay real Interest on their debt. This is very advantageous to themselves, as they can retain all Profits from their industry in-house. The trouble with this venue lies in their switching these Costs onto the greater economy by the Inflation, which impacts their Income far less than Labor; it is all a question of the greater ease in raising their own Prices in comparison to Labor’s ability to demand Wage increases. The actuality exists that the Business world insulates themselves from Cost payment, by the destruction of the stability of Everyone else–Stable Incomes, the Elderly who lose the value of their previous labor, and Workers who cannot realistically organize to gain Wage advantage.

The stressed inequality of such Taxation cannot be long maintained, without long-term injury to the economy. The most obvious Sign of this damage is the huge debt ratios–by both Government and the Private Sector. The second, hidden Sign must be the loss of Consumer Demand for Product; something which can be marked not by compilation of total Dollar Sales, but by quantities of actual Product sold. Am I simply a Scare-Monger who does not understand the modern economic forces in play? I doubt it! I am an old man who is likely to be dead in a decade by statistical measure. The kids should be told, even if they will not believe. lgl

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