Saturday, April 7, 2012

The good, the bad and... well, you know

The good new is that there were 120,000 net new jobs created in March, the numbers would be much better except for a continuing decline in construction, retail, temp and government employment. Manufacturing employment was up sharply, that's the only real bright spot. These are jobs that create more jobs, except for the new lower wage scale. Weekly unemployment claims remain on downward trend, and this is good also.

Construction is lagging because of a glut of existing houses a middle class that can no longer afford to buy a home on Republican wages. There is a coming decline in the retail sector, again from declining wages. Look for widespread retail sector bankruptcies as all the loans incurred before the crash end their 5-7 year maturity cycle. Corporate junk bonds are just as big a problem. The jobs number would look much better if the Red States weren't continuing their insanely cruel austerity measures designed to kill the economy.

Major corporations are talking openly about the new Hour Glass Market with product development and marketing strategies aimed at the rich at the top and the vast bulk of the population at the bottom. The tiny center of the glass is the soon to be non-existent middle-class. Of course in this plan, the flow of wealth defies gravity and moves steadily upward.

Don't let the right-wingers tell you that this is all "natural and unavoidable" or that nothing can be done.  The Revolutionary War was all about throwing the corporations off this continent. The Progressive Movement and the New Deal were all about taking power away from the people who are screwing you now.

None of this is happening by accident. The billionaires have spent billions over the last 60 years to re-write history, invent new economic theory and create public policy. They used to be treated like cranks, that crazy Reagan with his Voo Doo economics. Now they are treated as the "serious people" in the room and given great deference, of course they pay the people very well who show them this deference in the media. They also pay people with guns and badges to enforce this doctrine if proper deference is not shown to them in the streets.

I'm not even going to get into the "well, you know" aspects of all this.


Anonymous said...

Hopefully, those people with the guns and badges will also enjoy escorting these once deference shown folks to the guillotine.