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... Whenever any Form of Government becomes destructive of these ends,
it is the Right of the People to alter or to abolish it,
and to institute new Government ...

Wednesday, July 20, 2016

There is only ONE ISSUE that counts now

Why the ECONOMY rules the issues in 2016

The gross profit from MAKING things (yes, software too), inventing things (yes software, too), and making things better faster and cheaper is higher, MUCH HIGHER than fixing things other people have made (and made so cheap it’s less expensive to get another than fix it), or serving in a govt mill of counseling, advice, regulation or enforcement.

There are MORE than several states (13, I believe)  now caught in a death spiral in which the tax base is declining as ever increasing claims for resources EXCEED the permanent ability of the states to pay what is owed to claimants.

But among the USA in general…

The result is a military left with the responsibilities of the 1960 USA, and the resources of a 1970 Great Britain.

The result is a DISPROPORTIONATE penalty on the less educated in terms of income.

The result is a DISPROPORTIONATE penalty on minorities (and this goes along with the above, hand in hand)

The result is a DISPROPORTIONATE penalty on the big cities where manufacturing is evaporating and idleness, unemployment and increasing competition for fewer and fewer dollars leads to crime, and VIOLENT CRIME

The result is a DISPROPORTIONATE penalty on businesses who do not seek the lowest labor costs by ANY MEANS, since the penalty for not achieving that is to be ELIMINATED

The result is a DISPROPORTIONATE penalty on blue collar middle class as businesses DO FIND the lowest labor cost

There is less govt revenue to help as pressure from lost REAL GROWTH (not growth thru financial products and derivatives) makes many systems FINALLY unsustainable. A few TBTF banks and businesses cannot make up for the lost revenues of the middle class.

R&D via govt grants diminish, then disappear.

Programs once successful, leading to jobs and INDUSTRIES, and items of pride become viewed as LUXURIES taking needed resources from the immediate needs of the people (NASA, anyone?)
There is more stress on everything around us

We are the family where two of our five kids have chronic diseases and everyone is suffering and pulling at the same rope in disjointed fashion because both parent are DEAD. Everyone is fighting for the same resources, and the pile is decreasing.

Manufacturing flees to lowest labor cost, STEM goes to where manufacturing is, service gets outsourced, and the more educated find themselves competing for jobs in Starbucks, Costco, and Olive Garden in a death spiral of decreasing wages as warm bodies get in larger supply. The overqualified who were once turned away FOR THAT REASON, suddenly find employers don’t care or or realize nothing better will come along for you, or if it does, there is a plentiful supply of warm bodies. And you look at your children and grandchildren and fear the path to fiscal success is to get final education in the technical universities of China, and manage marketing in Tolucca, or some other such result …or stay here and counsel the unemployed or unemployable with a govt service check.

Jobs don’t exist, job CLASSES evaporate, education for the few, and diminishing newer jobs doesn’t exist, can’t be reached or the people for whom this would be a benefit have not even reached the level at which they can take part in that. Result?

Police enforcement on DECREASING ORDER

We could borrow for a while (which includes printing moneys), but now the yearly interest on the national debt ($430bn in 2014) which sustained us for a bit is overtaking major compulsory programs (like Medicare-$495bn in 2014 and Defense). This has OBVIOUS consequences in constraining national programs.

Only a program which results in RAPID, SUSTAINED GROWTH can reverse this.

It’s that simple.

If we want to help our allies in the South China Sea, ..HELL - IF WE WANT ALLIES, we must have the resources only profits, and growing govt revenues, poured into R&D and then USA manufacturing of American ships, planes, sensors and weapons can provide.

If we want better health care, we must have the resources only profits, and growing govt revenues, poured into R&D and then USA manufacturing of systems, drugs, and inventions can provide.

If we want make our borders and citizens SAFE FROM JIHAD,  we must have the resources only profits, and growing govt revenues, poured into systems, increased human forces and intelligence can provide.

If we want those who are falling out of society to take part in the USA, we must have the resources only profits, and growing govt revenues, poured into WORKABLE systems to give them the OPPORTUNITY to do so.

Now if we start penalizing Chinese imports we will face higher prices, but we will supplant that with jobs in factories HERE. The businesses will pay taxes, the workers incomes will appear then rise, and they will pay taxes, supermarkets will appear and grow, car dealers, clothiers, etc. But it will NOT HAPPEN overnight.

There’s just this … THERE IS NO CHOICE.

The alternative is for the USA to eventually look like Ferguson, because sooner or later ALL HUMANS will descend to compete.

Sound bad?

Optimists make headlines, cynics make history.

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posted by Epaminondas at permanent link#


Anonymous thelastenglishprince said...


An absolutely excellent post. Thank you for a synoptic, bullet point (military style) report.

Wednesday, July 20, 2016 12:46:00 pm  
Blogger Epaminondas said...


Just another outrage #SIGHS

Wednesday, July 20, 2016 12:50:00 pm  

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