The Economic Truth in Two Minutes

[georgephillip]

In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best.

Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.

Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.

Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.

Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services

Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.

Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.

The Truth About The Economy In 2 Minutes | Common Dreams

The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.

 

[sparky]

George,
although i admit to reading , as well as holding RR's opinions in high regard, i must say he constantly dodges the Glass Stegal bullet, a major banking event who's consequenses festered into a key wall street bubble element

this was a Clintionian era event, which RR served in

~S~

 

[georgephillip]

Sparky:

I still haven't finished RR's book Supercapitalism because of his establishment credentials.
I think it's fair to suspect Reich exploited the system when it worked to his economic advantage.

Some of us have eyes that are slow to open to painful realities, and I think that's especially true for those who've worked inside the beltway.

I'm trying to remain open to the possibility that the economy has changed so profoundly since Reich left DC that this particular leopard has changed his spots. If he has, everything he learned about our economic establishment can now be used against it.

According to his blog, RR's on vacation for three weeks.
Time will tell?

 

[sparky]

a big 10-4 there George

time has also resulted in many trickel down Reaganista's denouncing the doctrine they once upheld

 

[georgephillip]

a big 10-4 there George

time has also resulted in many trickel down Reaganista's denouncing the doctrine they once upheld

It's hard for me to stop thinking about how different our conversations would be if Ralph Nader had moved into the White House in 2009, and Larry Summers and Tim Geithner along with hundreds of other Wall Street Lords were rotting in prison this very minute.

If this economy ever screams loudly enough to focus American attention spans the way 911 did, we could roll back the last forty years of plutocratic gain in four years (maybe????)

More likely we'll get an American Stalin or Hitler or Mao and hang gay immigrants.

 

[midcan5]

John Kenneth Galbraith's book on the contented class is probably not read much today as it would be taboo given the fact we live today in so class divided a society that the upper cannot even see the lower. Gated communities shelter those who live the good life. I was in a nursing home yesterday, a close friend of my wife is stage four and in need of help just to get around. As I looked at the people, some old some not so old, sick or injured I was thinking about the talk in Washington to cut back on Medicare. Why not, congress lives in a nice bubble. Or the talk to raise SS, all congress does is talk, maybe we should make a law all congressmen work in a mine at 60 or do roofing at 65. Reality is hard for some people. Whenever I see Boehner and his sidekicks, especially Cantor with the fake smile, my stomach turns. Someone elects these people, guess who.




"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together." Dwight D. Eisenhower

 

[georgephillip]

John Kenneth Galbraith's book on the contented class is probably not read much today as it would be taboo given the fact we live today in so class divided a society that the upper cannot even see the lower. Gated communities shelter those who live the good life. I was in a nursing home yesterday, a close friend of my wife is stage four and in need of help just to get around. As I looked at the people, some old some not so old, sick or injured I was thinking about the talk in Washington to cut back on Medicare. Why not, congress lives in a nice bubble. Or the talk to raise SS, all congress does is talk, maybe we should make a law all congressmen work in a mine at 60 or do roofing at 65. Reality is hard for some people. Whenever I see Boehner and his sidekicks, especially Cantor with the fake smile, my stomach turns. Someone elects these people, guess who.




"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together." Dwight D. Eisenhower

No doubt in my mind Republicans are the greater Evil.

Elites in both major parties have to be confronted with the specter of a Great Voter Awakening that calls for the purging of hundreds of DC incumbents, Republicans AND Democrats, in a single November news cycle.

No president in my memory hears History as clearly as this one.

If such a movement shows legs, Obama will morph into Lincoln, FDR, MLK and Huey Long faster than Goldman Sachs's servers can front-run the Fed.

We should, imo, lay out some "lines in the sand" regarding just how badly this economy would have to be performing 17 months from now to justify calling for the mass removal of ALL DC incumbents.

And then see which side Obama chooses.

 

[Mad Scientist]

"Robert Reich".

 

[Soggy in NOLA]

In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best.

Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.

Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.

Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.

Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services

Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.

Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.

The Truth About The Economy In 2 Minutes | Common Dreams

The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.

What? Hell, I'm making over 5 times what I made in 1980. And the rest is just more of the same, raise taxes on 1% of the population and all will be fine.

Reich is an idiot... he noticeably left out an analysis of the rapid rise in defense spending, entitlement spending, the number of people paying NO TAXES, government programs, or how spending increases have outpaced growth for years, etc.

FAIL.

 

[bripat9643]

"Truth" must be a leftwing euphemism meaning "idiocy."

In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best.

Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.

Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.

Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.

Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services

Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.

Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.

The Truth About The Economy In 2 Minutes | Common Dreams

The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.

 

[Contumacious]

In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best..

Let's see if I can connect the dots for you in 30 seconds:

Mission


The Federal Reserve System is the central bank of the United States.
The Federal Reserve's mission in providing currency services is to furnish an "elastic" currency; accommodate the demand of the domestic and international public for U.S. currency; and to ensure the efficiency, integrity, and accessibility of currency services.

.

 

[georgephillip]

What institution would you suggest as a replacement for the Fed?

My choice is along the lines of what North Dakota discovered in 1919:

"Last week, the Federal Reserve Bank of Boston (FRBB) released a report titled 'The Bank of North Dakota: A Model for Massachusetts and Other States?'

"The report confirms that the Bank of North Dakota (BND) is a prudent, well-managed financial institution that serves in partnership with community banks as an effective economic backstop to credit contractions.

"The report also shows how the BND has evolved over the years to use its asset base to increasingly inject liquidity into its economy while maintaining conservative lending practices.

"The report suggests, however, that forming a state-owned bank is probably not worth the effort in Massachusetts. We respectfully disagree. Below is the response of the Public Banking Institute to the report’s bulleted conclusions:..."

“The Bank of North Dakota: A Model for Massachusetts and Other States?” — Response to the May 2011 Report by the Federal Reserve Bank of Boston « WEB OF DEBT BLOG

 

[Oddball]

Robert Reich: American economic history began during the Reagan years.

What a useful idiot tool.

 

[georgephillip]

Since 1980 the American economy has doubled.
The richest 1% of Americans took home 9% of total income in 1980.
They take home over 20% today.
Reich sees that as a problem.
What do you see?
Opportunity?

 

[Oddball]

How much more of the take is Big Daddy Big Gubmint cutting himself in for, nincompoop?

 

[georgephillip]

How much more of the take is Big Daddy Big Gubmint cutting himself in for, nincompoop?

Who processes your poop, nincom?

The Koch brothers?

 

[Oddball]

The Koch brothers don't threaten to throw me in prison if I don't pay for their "services".....Foo.

 

[georgephillip]

The Koch brothers don't threaten to throw me in prison if I don't pay for their "services".....Foo.

What does Dr. Doom threaten?

"Roubini has also written extensively about how the post-bailout Federal Reserve policies were fueling a commodity bubble that may be in the midst of bursting, possibly triggering a double dip recession.

"Essentially the big banks and rich investors were borrowing cheap dollars from the Fed and investing abroad in commodities with the hopes of higher returns. Roubini states:

“The risk is that we are planting the seeds of the next financial crisis...this asset bubble is totally inconsistent with a weaker recovery of economic and financial fundamentals." (October 27, 2009)."

Has too big to fail become too big to save?

The Rich Are Destroying the Economy | Common Dreams

 

[oreo]

In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best.

Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.

Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.

Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.

Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services

Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.

Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.

The Truth About The Economy In 2 Minutes | Common Dreams

The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.

There is no other solution to 14.3 trillion in red ink now-- with another 64 trillion in unfunded liabilites--than to cut--cut--cut. There isn't enough wealth in this entire country to pay this tab.

Currently there are 18,000 baby boomers entering medicare/social security DAILY which will continue for the next 15 years--resulting in the 64 trillion in unfunded liabilities.



1 billion dollars--($100.00 bills stacked on palets)



1 TRILLION dollars--$100.00 bills stacked on palets--**notice how small the man is now in the lower left hand corner.

14.3 trillion now--with another 64 trillion in unfunded liabilities. This is not chump change--it is an oncoming TRAIN WRECK if the federal government doesn't dramatically cut it's spending. There can be no sacred cows--military--social security and medicare--foreign aid--ALL of it needs to be on the chopping block.

 

[georgephillip]

Why are you assuming the entire $14.3 trillion has to be repaid?
When has that ever happened in all history.

One place to start increasing revenues would be to stop borrowing from the richest 1% of Americans and corporations and resume taxing them at the same levels they paid 40 years ago.

As far as cutting spending, how about cutting the American Empire in half and put the Pentagon to work building high-speed rail (freight and passenger) in the Homeland along with universal internet from Maine to Maui.

North Dakota figured out some of the financing in 1919 when it began doing business as the State Bank of North Dakota.

“The Bank of North Dakota: A Model for Massachusetts and Other States?” — Response to the May 2011 Report by the Federal Reserve Bank of Boston « WEB OF DEBT BLOG