Wednesday, March 10, 2010

Why do I have to explain these things?

This only makes sense to those of Us who lived through both periods of time, but check the Timing; Disposable Income at the household level began to fail, just at the moment when in-line charges to get anything done started to accelerate. The Cost of Living made a march upward with only marginal revision in the handling Costs, while Wages stayed static in the face of the creeping inflation in those formative years. One of the benefits of growing old comes in being able to detect a whiff of that skunk, before he crawls underneath your rocking chair. A early Warning Sign of Inflation can be found by watching the handling fees of professionals, who early abandon market size in favor of maintaining lifestyle costs. Things are going from bad to worse, but no one yet notices the increasing failure of labor to meet their financial commitments conjointly.

One has to read this thing, though it is basically an effort to acknowledge fiscal irresponsibility in the face of fear of rising Taxes. There is no way We are going to grow our way out of debt, neither on the Public or the Private level. Both Taxes and Wages are at traditional low levels, and percentage raises in both are called for, before We will find any way out of our current troubles. One of the basic troubles within the economy is the expectation by business that they can change the matrix of Production Costs to enhance Profits, without altering the underlying Product Demand necessary to purchase their Production. Serialized Production Costs may be the greatest economic component underwriting Consumer Demand, and Business profiles are always trying to reduce these Costs.

One can ask Why business would try to crush this basic payment system, when it is so important to the entire economic function. The fact is that while the function is fundamental at the level of economics, it is almost unnoticeable at the individual firm level because of the wide-range spread of the function–Who can tell what Cost is entailed by refusing to pass along Productive Profits to their Employees? It means nothing at the individual level, but on the economy-wide level, can cut Consumer Demand by as much as 50%. Business also does not recognize that national governments also react like normal Consumers over the long-run, as they face equal Interest rates on debt aggregation; this means reduction of taxes conflict with business interests, though try telling that to any business personnel. It is a wonderful world We live in. lgl

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