Misinformation, distortions, downright lies, and ultra-capitalist dogma attempts to choke the life out of a single unassailable fact; the majority of global citizens have received and continue to receive income crumbs from a top heavy income bloated elite group of executives, bankers, and speculators.
Nearly every day some bought out ultra-capitalist media outlet has its squawking propaganda parrots point out that the reason we're not spending is because we're such bad little boys and girls who used credit to buy all that stuff we really didn't need. It must be hard for you to count all the yachts, homes, racing horses, jet planes, and luxury items you've accumulated by blowing all that money you received from easy credit?
Don't you just get sick and tired of hearing these well paid six figure propagandists placing the blame for the failure of this dysfunctional, corrupt and contrived ultra-capitalist global economy on our shoulders?
The fact is; the majority of hard working global citizens hasn't received enough income for over 30 years, and during this time has used the proffered credit from banks (think company store analogy) to maintain a semblance of a decent standard of living. In contrast, those at the top of the income pyramid through their control over our governments have seen their incomes shoot to the moon in the billion and trillion-dollar range.
When was the last time you heard the hooting of some media Droid about the fabulous salary paid to a CEO? Think back, has it been over a year? Now when these predominantly incompetent practitioners of a discredited economic & business model are paid millions and billions of dollars not a peep is uttered by those previously animated media droids. The big business media bosses have programmed their box thinking parrots to keep quiet about executive compensation; must not let all the little boys and girls that make up the labor force, the poor and ultra-poor tent sleepers become unaware of the continuing income pillage by those resting comfortably up top.
How about all that money we the majority (those of us without a private jet) are supposed to be hording in savings accounts. According to some media parrots this figure is so large if we just spent it our economy would perk right up - the bright green shoots of prosperity would immediately pop out of the dead ground.
Whatever spaceship these idiots have been living on for the past thirty years must have been light years from our planet. With savings amounting to only $19.26 billion or 4.2% (in July 2009) of a disposable personal income (DPI) reaching only $458.5 billion (less PCE); how in this solar system (not unless their spaceship has reached another galaxy in an alternate universe) do we expect the spending of a savings amount that is only .175% of an approximately $11 trillion dollar U.S. economy to "part the waters" so that we may reach the economic promised land?
To make matters worse the savings rate declined from 4.5% of a $486.8 billion (DPI less PCE) in June 2009 to the 4.2% rate in July 2009. So in effect we depleted from our savings $2.65 billion dollars reducing it from $21.91 billion in June 2009 to $19.26 billion in July 2009. It's inconceivable that any big time super-duper expenditures were made in our multi-trillion dollar economy with this down right pitiful some of money. Probably all of us poor working saps reduced our savings to cover the July 2009 increase of $8.4 billion in our personal current taxes compliments of our broke local and state governments that are required by law to balance their budgets.
With only short-term fiscal stimulus shoring up our dysfunctional economy our local and state governments finally realized that they'd still be in the preverbal fiscal hole even after they received their portion of federal help. They therefore rescinded the $13.4 billion in tax decreases from June 2009 and increased taxes to cover the projected short fall in revenues. No escaping this little nasty - more citizen's unemployed, underemployed in part-time positions, working shorter hours, and at the same or reduced rates of pay translates into less tax revenue that Uncle Sam had better cover or else those darn taxes will increase at the state and local level.
Anyone ready to replace this dysfunctional Ultra Capitalist economy with what I'll call Rational Capitalism; come on, there must be some open minded non-dogma 'droolers' among you who've had enough of this 'flat world' economic syndrome?
Rational Capitalism is based upon the understanding that neither Labor nor Capital can hold ultimate power over the other. Balance must ultimately be achieved between not only Labor and Capital but all the sub-systems of a complex system like an economy or emergent behaviors will occur; these behaviors can perturb an economy so negatively that the entire societal system collapses from shock waves produced by accelerated societal instability.
Therefore, within a Rational Capitalist based society (please read my other essays for more in-depth details) it is imperative that gradations in pay rates based upon skill be reasonable & sustainable, labor unions or labor cooperatives exert proportional power over their business counterparts, lobbyists are outlawed from influencing governments, and term limits be imposed for all government representatives. Furthermore, all of this must be accomplished globally or we'll continue our "race to the bottom" towards lower cost & least restrictive geographical 'sinks' that will suck all of us down the financial drain.