Image Image

  Nostalgia ain't what it used to be

Tuesday, 01 December, 2020

Our Economy (part one of three)

Date: 15 November, 2010

By: Chief

Imageucks. There really is no other way to state it. It just sucks. Furthermore, if you want some really good news (that's sarcastic humor for those who have no sense of humor) — it probably won't be getting any better for sometime to come.

There happens to be a bunch of reasons for this and I sure as shootin' am not going to go through them all. Besides I don't even know them all myself. Neither do economists. And they are a large part of the problem.

The major problems

As I already wrote this list is not all inclusive and, by the way, is in no particular order. — but you already knew that. So here we go:

Public companies

According to the Kauffman Foundation, as it pertains to job growth, which I believe is rather important to our country's economic well being, public companies shed more jobs than they create. Quoting a recent Kauffman study:

"When it comes to U.S. job growth, startup companies aren't everything. They're the only thing. It's well understood that existing companies of all sizes constantly create - and destroy - jobs. Conventional wisdom, then, might suppose that annual net job gain is positive at these companies. A study released [...] by the Ewing Marion Kauffman Foundation, however, shows that this rarely is the case. In fact, net job growth occurs in the U.S. economy only through startup firms."

How do you like them apples? This same study goes on to say (quoting the Kauffman Foundation in pertinent part):

"The study reveals that, both on average and for all but seven years between 1977 and 2005, existing firms are net job destroyers, losing 1 million jobs net combined per year. By contrast, in their first year, new firms add an average of 3 million jobs.

[. . .]

"Because startups that develop organically are almost solely the drivers of job growth, job-creation policies aimed at luring larger, established employers will inevitably fail, said the study's author, Tim Kane, Kauffman Foundation senior fellow in Research and Policy. Such city and state policies are doomed not only because they are zero-sum, but because they are based in unrealistic employment growth models."

Hooray for the local startup companies! However, do not hold your breath that government will change and support startup companies for two very simple reasons — startup companies do not have the:

the "established employers" have. It is as simple as that. And that too sucks.

Established companies quite literally buy or at the very least rent a:

to get what they want. Startups simply do not have that kind of political muscle. Indeed, startup owners are far too busy trying to get their business off the ground — successfully. Startups are without doubt the best kind of company — local.

Furthermore, it is the large public companies — not the startups — that close down manufacturing plants and, of course, lay people off in this country in order to contract out the manufacturing in — China. All for the financial gain of their gamblers (stock holders). Scumbags.

Large financial companies

Also known as the Wall Street fat cats. In other words the:

Each one of these thiefs has more than earned a 'neck tie party' for their own contributions, that means white collar crimes, in flushing our national economy into the sewer (flush three times ... it is a real long way to Wall Street). Quoting an S.F. Chronicle news article of 03 February, 2008, written by Carolyn Said (sorry, no link):

"The big Wall Street institutions that bundled up mortgages and resold them as securities are among those the FBI is now scrutinizing. The city of Cleveland, in an innovative legal strategy, is taking aim at investment banks too. In January, it sued 21 such institutions, claiming their subprime lending practices created a public nuisance.

"Mark Hanson, a 20-year mortgage lending veteran who now works as an independent industry consultant in Walnut Creek, said the focus on firms at the top of the food chain makes a lot of sense because they bear responsibility for creating the system that allowed fraud to spread.

" 'Mortgage brokers and bankers don't come up with money unless the Wall Street investment banks say they'll buy it', Hanson said. 'All the big Wall Street investment banks would put out guidelines on what they would buy. The mortgage brokers originated loans based on what those guys said they wanted. They never told anyone to lie'. 'But they said, We don't need this documentation (of borrowers' income and assets); we won't do any due diligence to check it out'."

And while We the People got the shaft with non-skid, they got the gold mine. Those dirt bags.

The two major political parties

Do not even think, not even for a second, the Democratic and Republican parties are pure as the driven snow in our national 'financial meltdown'. Oh no. Not even. The two major parties are just as guilty as the:

in the torpedoing and sinking of our national economy.

But how could this be? Simple my dear Watson, the two major parties are the enablers. Dependant upon which of the two is currently in power, they and their henchmen (members of Congress, staffers, bureaucrats and the idiot in the White house):

favorable to those who provided the cash which allowed the prevailing political party to either:

It is nothing more or less than the old 'scratch my back and I'll scratch yours' [sin]-drome. And believe me it is not just a sin but a crime against humanity. It is a crime against We the People.

Continue on to part two.

(Return to the top)