Monday, May 17, 2010

Some Thoughts on the Economy

Over the past handful of decades, things have remained fairly predictable. There were booms, there were busts, there were years of outrageous spending, and years of shortages. Back-to-the-landers have been in and out of style a few times in my memory as have been bell bottoms and shaggy haircuts for the guys. Many things, both in the economic sector and the social sector, I have seen coming (why people in recent years chose variable rate mortgages is beyond me seeing how well they worked out in the 70s) since I had seen these things come, cyclical fashion, before. However the current socio-political situation has me stumped.
Things are starting to look mighty bleak, in my point of view. Note:
  • The new "healthcare reform" is going to bankrupt our country. I don't see how it can not. You have a "guarantee" of health insurance now for the millions of people who before didn't have insurance because they couldn't afford it. Nothing has changed since then, in fact the economy has take a sudden and distinct downturn over the past few years, so if they couldn't afford it then, they certainly can't afford it now. There have even been major employers looking at dropping healthcare coverage in favor of just paying the fine for not having health insurance because it would save them many millions of dollars. The math just doesn't add up.
  • Property prices have grown stagnantly lower (I may be grumbling because I haven't sold my house yet) and people think nothing of walking away from their mortgages (which drives prices even lower) while banks talk about "readjusting" people's mortgages downward (where do we get in line for this? I would certainly like money just given to me). I have never seen a time when people didn't have pride of ownership in the land.
  • People now get 99 WEEKS(!) of unemployment. That's nearly two years of people being on the public dole. I can see some unemployment insurance for a few months so people have a bit of time to find a job, any job, and get back to earning an income but giving a handout for TWO YEARS is a disincentive to work. Without work there is no economy. And when people get used to entitlement program, that is the downward death spiral for not only the economy but for society in general.
  • Social Security is going to collapse like a house of cards in a breeze. If I had any graphic ability at all I would draw a picture of this, but sadly I don't. I do know, however, that Social Security worked fine when the Boomer generation was employed in full force and paying into the system to support those who retired before them. Now that the Boomers are going to be receiving Social Security in full force, there doesn't appear to be enough workers, earning enough money in which to tax, to support such a program. Again, I am not a math genius but I believe I have a handle on addition and subtraction.
  • The illegal immigration situation has no answer that I can think of. Human migration is a has been part of the human experience since the first people walked out of Africa. I don't hate illegal immigrants, in fact the ones I know are very hard workers and came to the US fleeing from all kinds of horrible situations (not just from Mexico but from Europe, Asia, and Africa as well). But with no way to control the flood of migrants (and the drug dealers/criminals/other riff raff that comes with them) since walls don't work (apparently no one pointed this out to the US know, Great Wall of China, Hadrian's Wall, etc), I shudder to think what will become of our country. Our southern border is now a freakin war zone in some parts thanks to the drug cartels in Mexico (and yes I know, the drug users in the US).

Hopefully I will have a cheerier disposition tomorrow. If nothing else, I will have some ideas for dealing with these problems.


  1. Some ideas about surviving the demise of the Bill of Rights and the rising domestic Inquisition called "the war on terror" would be helpful...
    What I'm talking about:

  2. Right On Brother! (that dates us both) All very valid observations! But what to do??? A great segment of the populace doesn't remember anything but the boom years since the 80's. And, while they may see a glimmer on the horizon now, they are too busy trying to keep their heads above water to decide what to do about it. (my kids) They tend to be politically apathetic, non-voters, who see such a great technological and lifestyle gap between them and their parents generation, that they discount all of our warnings. (also my kids) I'm with you, its going to get a lot worse before it gets better.

  3. It is a discouraging time.However I got into a mindset several years ago that I would somehow find joy (And survive) even in the worst of times. And lots of times I find it hard to maintain that mindset. I would like to think that even if I was reduced to just the clothes I was wearing, that I could go on with the information I've learned over the years. Right down I'm revamping my BOB to a bare minimum. I guess to boil it down, even if you have nothing, there should be a way to find some joy.

  4. My theory is, the kakostocracy of "both" party are endeavoring to destroy the national economy so they can blame it on capitalism and use it as excuse for more/complete nationalization.

    Your thoughts on how to survive the country being turned into a fascist police state would be welcome, as it appears that is where we are heading...Check the enclosed links for details.

  5. Here are my thoughts

    Health Care Reform - we needed reform, but not this mess that has been created. A number of people I know would leave the corporate rat race and start businesses except for lack of health insurance should they leave their current jobs. Small business is the backbone of our economy. If millions of new people start businesses it would boost this strength of this country in a huge way.

    Housing - for the working person, housing costs are way too high. It is an artificial inflation and attempts by .gov to keep prices high through incentives are hurting many people. Better to let the market cool and get back to sustainable prices.

    Unemployment - yep, we need to limit entitlements. But that is the hook that gets politicians re-elected. Basically buying votes.

    Social Security is a ponzi scheme. Always was.

    Illegal Immigration - penalize the American businesses that hire illegals and most of the problem vanishes. You hire illegals, you are competing unfairly - you loose your business. It is that simple. Don't blame people for coming here to improve their quality of life - blame the employers that hire them!

  6. FireSteel,
    The problem with the illegal migrants is not that they "want a better life", but at whose expense they want it.
    It used to be the working opportunities in America brought quality people from the rest of the world (including the third world) to compete and produce.
    Now most of that's been replaced by the Welfare State, and we are attracting MOOCHERS, not workers...NOT GOOD!