Economic Growth Paradox

You want population growth so that people buy more cars and toys, to put money in your pocket.

But you can’t afford to hire enough people to do the work at hand, because that will hurt profits.  You rehire people at a reduced salary, without benefits, and if possible without benefits.  Now the people can’t afford new cars and toys; they can’t afford to settle down, buy a house, and have kids.

07aNo problem, you provide a no-interest, sub-prime loan to help people buy a house.  And you take home fat profits, until the recession exposes the instability.  But you can still makes fat profits on higher education, because to get ahead in life we need an education, until we’re so far in debt before we even start a career, that we’ll never get ahead.  So we’re enslaved to the thankless jobs, with meager pay, to support your corporations with stock options, business expenses, golden parachutes,

Of course, you still have extremely cheap labor from immigrants so unfortunate that they work for so little.  They clean your house, watch your kids, care for ailing parents, all of the dirty jobs you can’t bring yourself to perform.  Many pay taxes, but never reap the social security or other benefits a citizen would rely on.

You also make fat profits by increasing the number of prisons, I do not believe that rehabilitation occurs but rather further degradation of a person’s character leading to continued criminal behavior.  The number of detention centers is also rapidly growing.  As if monetary gain wasn’t enough, these facilities also provide personal pleasures you might enjoy.

How much money and greed do you need to be happy?

The sad part is, you have been duped even more, by the friends and society who told you that happiness is having a domed cathedral ceiling on your foyer.  I don’t think you can ever be happy, or share real happiness with others.  You naively believe that comfort and luxury is happiness, and that you share your happiness by giving your staff a bonus at Christmas.

Living the Dream…

Does it feel like we work our butt off, to afford a house that we don’t even get time to be home and enjoy?  We’re doing more work for the same, or less pay and benefit?  OK, yes I can be VERY cynical.  And yes, I think this all stems from unrealistic expectations.

All of the journalism groups are covering the plight of the middle class in the US, as it’s an important topic this election cycle.  People are working harder, and getting less.  Students go into major debt before they even start working, racking up students loans because it’s considered “Good Debt”.  Just like mortgages are good debt, unless you are buying a million dollar house on a salary of $20,000 a year.  I guess it’s human nature to blindly believe that we can achieve so much.  And human nature for bankers to inflate those dreams, because they can make money off of the false ideas.  I’m convinced, if you can make money off an idea, the Republicans will ensure it’s legalized and tax exempt.  For that reason I’m happy someone has decided to get them back, an atheist has offered pet insurance, he will take care of your pets after the apocalypse (but cancelled the service due to low subscriptions).

Why is our society moving in this direction?  A natural development from our desire to pay less for everything, and someone else’s ability to do our work for less money.  But those in power, i.e. the wealthy, are able to insulate themselves from this augmentation.  I just wonder how much they actually influence this natural development for the 99%.  We have to wonder why the cost of education is rising so fast, 2-3 percent more than inflation according to Ronald Ehrenberg at Cornell University.  It’s supply and demand, people want to go to the top universities, and so they can charge more.  They use those funds to improve the university, to maintain it’s status as a top university.  And people are willing to go into significant debt to get a degree from these universities, even if they cannot pay back the loan.  An article on Yahoo Finance reports the outstanding debt on student loans is at $1 trillion, and states that neither Romney or Obama’s plans for helping students will have much impact.  Because people are willing to dig in that deep, not realizing the challenge of paying for the debt after college, especially if you don’t get a job right away.

My goal is to save up in advance to buy things, and limit my debt.  It’s the same as making monthly payments, just that I make the payments before I enjoy the item of interest instead of after.  And I spend less overall.