Wednesday, March 18, 2009
Political Contributions = BIG AIG $$$$$$ REWARDS
Obama was voted in to "change" Washington. The only change appears to be the party, now Democrats, that get "pay" to "play". AIG "invested" $100,000.+ in Senator Dodd, Senate Banking Chair, and $100,000.+ in Obama, now President. What AIG bought for these contributions was the AIG "loophole" Senator Dodd inserted in the massive, 1100+ page, American Recovery/Stimulus Act, Pub. Law 111-5, a loophole that has cost U.S. taxpayers $165,000,000. million in AIG bonuses to date and likely much more in the future. What a return for the AIG $200,000.00 investment !!, $165 million in less then 1 year !!! Political investments continue to pay off BIG, VERY BIG, by comparison to the paltry return hard working, main-street, Americans can get on bank CD's. The thing that has changed in Washington is BIGGER BONUSES for those who make significant campaign contributions. This is just the start, there are lots of "loopholes" in the 1100+ pages of Pub.Law 111-5, that will cost taxpayers many, many more billions and bankrupt future generations of citizens.
Tuesday, March 10, 2009
THE TEMPORARY WORKER
The U.S. is writing a new chapter in the book of employment. The global financial crisis created by unregulated private U.S. financial sector interests is raising havoc not only with the lifestyles of hundreds of millions around the world, but on what has been traditionally thought of as employment. Gone forever are the days when a U.S. worker could expect to be employed by a private company for ten (10), fifteen (15) years or longer. Retirement from a single employer ( except for government jobs ) has become virtually extinct. The U.S. and parts of the world that follow the U.S. model are now embarking on the path of the " TEMPORARY WORKER ".
The " temporary worker " bodes well for U.S. companies and foreign firms that follow U.S. models, in that "retirement " no longer presents a "cost" to the company. Federal, State and Local Governments will survive as the refuge for employee "retirement". This shift will be reflected in the increasing "cost" of government that translates directly into increased taxes on the population in general.
Taxes and the increased "cost" of government reduce, and do not contribute to real GDP. Employment by governmental entities, is not productive nor market employment, because taxes are not optional. Market forces, and choice, play no part in government employment. And, unlike other enlightened countries, the U.S. has an open border, open employment policy: if you get to the U.S., you can be employed. This new era, ushered in by the current recession (depression) provides the foundation for the new "temporary worker" status for all U.S. private sector workers. It includes employment created by American Recovery Act deficit spending as the employment by private firms contracted for "stimulus" programs only lasts as long as Washington continues to dole out money. Such employment is "temporary" and will not create a climate for real jobs in the private sector. All one has to do is look at the data complied by good old "Uncle Sam" over the past 10 years. The fastest growing sector in the U.S. is government related jobs, i.e., the U.S. has become the land of BIG GOVERNMENT.
The new "temporary worker" will have little job security, and therefore, will live, as many U.S. workers now do, on a pay-check-to-pay check basis. Banking and credit institutions will have to adjust lending practices accordingly. The idea if home ownership and a 20 or 30 year mortgage predicated on a steady income stream, will likely fall by the way side except for the wealthiest 1% to 2% of the population. In short, the U.S. will retreat to lifestyles and expectations reminiscent of 1910. Although this is not the aim of the Obama administration and U.S. congress, will become the reality as a consequent of their misguided actions. The surviving private sector will continue to struggle to underwrite the increasing cost of Big Government, and will fill diminished ranks of workers from the increased pool of "temporary workers" though-out the world decreasing the hourly value and wage of every worker, and significantly reducing the employment of U.S. citizens.
Don't tear up, nostalgia aside, HELLO ....TEMPORARY WORKERS !
The " temporary worker " bodes well for U.S. companies and foreign firms that follow U.S. models, in that "retirement " no longer presents a "cost" to the company. Federal, State and Local Governments will survive as the refuge for employee "retirement". This shift will be reflected in the increasing "cost" of government that translates directly into increased taxes on the population in general.
Taxes and the increased "cost" of government reduce, and do not contribute to real GDP. Employment by governmental entities, is not productive nor market employment, because taxes are not optional. Market forces, and choice, play no part in government employment. And, unlike other enlightened countries, the U.S. has an open border, open employment policy: if you get to the U.S., you can be employed. This new era, ushered in by the current recession (depression) provides the foundation for the new "temporary worker" status for all U.S. private sector workers. It includes employment created by American Recovery Act deficit spending as the employment by private firms contracted for "stimulus" programs only lasts as long as Washington continues to dole out money. Such employment is "temporary" and will not create a climate for real jobs in the private sector. All one has to do is look at the data complied by good old "Uncle Sam" over the past 10 years. The fastest growing sector in the U.S. is government related jobs, i.e., the U.S. has become the land of BIG GOVERNMENT.
The new "temporary worker" will have little job security, and therefore, will live, as many U.S. workers now do, on a pay-check-to-pay check basis. Banking and credit institutions will have to adjust lending practices accordingly. The idea if home ownership and a 20 or 30 year mortgage predicated on a steady income stream, will likely fall by the way side except for the wealthiest 1% to 2% of the population. In short, the U.S. will retreat to lifestyles and expectations reminiscent of 1910. Although this is not the aim of the Obama administration and U.S. congress, will become the reality as a consequent of their misguided actions. The surviving private sector will continue to struggle to underwrite the increasing cost of Big Government, and will fill diminished ranks of workers from the increased pool of "temporary workers" though-out the world decreasing the hourly value and wage of every worker, and significantly reducing the employment of U.S. citizens.
Don't tear up, nostalgia aside, HELLO ....TEMPORARY WORKERS !
Monday, March 9, 2009
TO BIG TO FAIL
Washington has overlooked and continues to ignore the part the failure to enforce U.S. Anti-Trust laws [ 15 U.S.C. 1 et.seq. ] has played in the economic collapse ( current recession/depression ) of the U.S. and the collateral damage it has caused to the world community. As far back as 1890 [ Sherman Act ] it was recognized that a company or corporation could grow to a point of suffocating free markets. Since the 1960's Washington has been a rudderless ship when it comes to preventing acquisitions and mergers that tend to create monopolies that stifle free markets; and, this failure has lead to the creation of the " TO BIG TO FAIL " now U.S. Government/Taxpayer bail out of the likes of AIG, Wall-Street, Big Banks and G.M. U.S. politics and ideological differences prevented the U.S. from vigorously enforcing Anti-Trust laws long on the books. Main-street U.S.A. and the average Joe & Jane of other nations have paid the price of U.S. Government lethargy.
Had Washington enforced anti-trust laws long on the books [ Sherman Act 1890;Clayton Act 1914 ] AIG, Goldman Sachs, Bank of America, CityBank etc. would never have grown to the size that would imperil the U.S. "TO BIG TO FAIL" taxpayer bail-out would never have come into play. Fingers continue to point to the U.S. housing bubble, and sub-prime mortgage collapse as the cause of the current economic crisis. These were indeed factors and the probable trigger for the current crisis. However, had the U.S. anti-trust laws been vigorously enforced mega-banks (Bank of America ) and mega insurance and financial institutions (AIG, Goldman Sachs, etc. ) would never have achieved the size and dominance to significantly impact the U.S. and world economies. Size does matter, bigger is not better; by containing the size of institutions, not only is competition enhanced, but the failure of a single institution will not cause market collapse.
There is entirely too much outside political influence in Washington ( lobbyists, PAC's, etc. ) for the U.S. to function except at a remedial level, far below what is required to effectively be a leader in today's world.
Had Washington enforced anti-trust laws long on the books [ Sherman Act 1890;Clayton Act 1914 ] AIG, Goldman Sachs, Bank of America, CityBank etc. would never have grown to the size that would imperil the U.S. "TO BIG TO FAIL" taxpayer bail-out would never have come into play. Fingers continue to point to the U.S. housing bubble, and sub-prime mortgage collapse as the cause of the current economic crisis. These were indeed factors and the probable trigger for the current crisis. However, had the U.S. anti-trust laws been vigorously enforced mega-banks (Bank of America ) and mega insurance and financial institutions (AIG, Goldman Sachs, etc. ) would never have achieved the size and dominance to significantly impact the U.S. and world economies. Size does matter, bigger is not better; by containing the size of institutions, not only is competition enhanced, but the failure of a single institution will not cause market collapse.
There is entirely too much outside political influence in Washington ( lobbyists, PAC's, etc. ) for the U.S. to function except at a remedial level, far below what is required to effectively be a leader in today's world.
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