Tuesday, October 23, 2012

Your 401(k) is down, but why?

The big news today was the sagging price of Blue Chip stocks has diminished that average 401(k) by $1500 today alone, and there will be 1500 layoffs at DuPont Chemical. This was blamed on the weak economy, not on the fact these big corporations have been moving their production to China, and well, China just sort of takes over the production for themselves.

These companies have also been participating in driving down wages in the US which of course leads to less demand, and if you've been reading this column, you know that the one and only thing that creates jobs is (wait for it) DEMAND. Force down 'demand', and guess what? The economy contracts. Can you say 'death spiral'?

Knowledge of this economic concept goes all the way back to ancient times, but Republicans act as if this were some sort of voodoo invented by New Age crystal salesmen. The cure for this is knowledge. We must relegate the tea bag village idiots back to the street corners where they can yell at clouds without killing the rest of us.

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