The View From 1776

Stimulus Disincentives

Family farms are losers in the stimulus pork barrel.

Posted by .(JavaScript must be enabled to view this email address) on 02/28 at 05:18 PM
  1. That is wrong about business existing for the shareholder. It exists because there is demand for what that business produces and that affects the shareholders, owners and workers in different ways at different times and with different outcomes.

    For example, a business that exists for a basic need will see his business survive during all types of economies if he is competitive. A business that produces luxury goods can only survive if the nation has enough prosperous people to buy enough to keep him and his shareholders in business.

    Those luxury business and thousands of others can only survive during good times if they are competitive. When you have a depression like we are in, each year, thousands more businesses will go out of business and shut their doors not because they weren't competitive or didn't have a product people would like to have, but because there weren't enough people with money to buy them.

    If a nation over immigrates and has more workers than the demand can support, wages are artificially held down. That is the case in the U.S. and has been the case for decades under both Republicans and Democrats. Why?

    Because it take 4 or 5 workers to retirees to fund Social Security and Medicare. The government in their simple minds can't seem to understand that reform, not keeping a ponzi scheme of funding has to take place. By immigrating more, they actually hurt the system by keeping wages lower and thus, payroll taxes lower.

    Unions aren't the solution because without good government you repeat the disaster we had when unions were strong before. They demand more than the consumer will pay for. The solution would see to be tariffs to make imports so expensive consumers would have to buy "made in America."

    But, that causes CPI to rise and then buying power is lost and consumers have cut back or get wage increases. If they get wage increases then what union workers buy costs more and so they have to go back and demand more wage increases too.

    Anything that artificially limits or exceed the ratio of labor to demand will end up causing problems. Business has to compete for labor with wages and too many workers destroys that need for business to compete.

    We saw in the tech boom, salaries of technicians soar. They were offered cars, bonuses, vacations to company getaways, big pensions, etc. to get enough workers to leave other businesses. When that bubble broke, all those workers were laid off and then had to compete for much lower wage jobs.

    That is because government first intervened to create a credit bubble and then took it away.

    During the housing boom, workers here in Az. were getting $15 an hour to just push a wheel barrow, no other skill required. The workers were leaving the farms to get those jobs and the farms had to pay more to get workers in enough quantity.

    Again, when that bubble burst, they all got laid off and tax revenues from their pay and spending plummeted. Government had intervened and created a credit bubble, this time with homeowners, and then burst the bubble or it burst on its own depending on how you look at it.

    What the President is doing is similar to what they tried in the Great Depression and it caused more layoffs then. If unions were to start demanding more pay, when consumers can't afford it, they will just close more businesses and concentrate power in the few that survive leaving millions of workers without jobs that could have had jobs.

    We have to have the monetary and economic policies that create private sector jobs not destroy them. That means almost total reform of government and a long depression during the transition mode. Since we won't voluntarily do that, we will have to have a collapse first. That means it will be even worse in all likelihood and probably last longer.

    Until we stop using the monetary and economic theories we have used for the last 95 years, we will continue to see things get worse for workers. At the same time, people who know how to use those things to their advantage will continue to get more and more wealth by "investing" in the system government has created.
    Posted by JanPBurr  on  03/01  at  06:55 PM
  2. By the way, need a home?
    Evergreen Rd, Detroit, MI 48219 1 / $7,800
    2 Details Puritan St, Detroit, MI 48223 3 / $13,000
    3 Details Burgess, Detroit, MI 48219 2 / 3 $7,500
    4 Details Spinnaker Ln Ofc 10, Detroit, MI 48207 1 / 1 $94,500
    5 Details Burwell St, Detroit, MI 48210 2 / 2 $75
    6 Details Alter Rd, Detroit, MI 48215 2 / 2 $5,000
    7 Details Chalmers St, Detroit, MI 48215 1.5 / 1.5 $6,900
    8 Details Gainsborough Rd, Detroit, MI 48223 / 1.5 $21,900
    9 Details W Outer Dr, Detroit, MI 48219 2 / 2 $8,500
    10 Details Sturtevant St, Detroit, MI 48206 1 / 1 $2,900
    11 Details Chelsea St, Detroit, MI 48213 2 / 2 $3,600
    12 Details Rutland St, Detroit, MI 48228 1 / 1 $5,900
    13 Details Ardmore St, Detroit, MI 48235 1 / 1 $16,900
    14 Details Monte Vista St, Detroit, MI 48238 1 / 1 $1,700
    15 Details Grayton St, Detroit, MI 48224 2 / 2 $12,000
    16 Details -84 Waltham Str, Detroit, MI 48205 $4,000
    17 Details Marlowe St, Detroit, MI 48227 1 / 1 $3,000
    18 Details Beaconsfield St, Detroit, MI 48224 1 / 1 $3,500
    19 Details Littlefield St, Detroit, MI 48227 1 / 1 $2,900
    20 Details Pierson St, Detroit, MI 48219 1 / 1 $3,000
    21 Details W Outer Dr, Detroit, MI 48235 1.5 / 1.5 $26,900
    22 Details Park Grove St, Detroit, MI 48205 1 / 1 $3,500
    23 Details Asbury Park, Detroit, MI 48227 1 / 4 $3,499
    24 Details Saratoga St, Detroit, MI 48205 1.5 / 1.5 $400

    There are 9 more pages of homes in this price range. The average price is $7,500
    Posted by JanPBurr  on  03/01  at  07:44 PM
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