Monday, June 04, 2007
The Monster Dragging The Middle Class Into Stagnation
Two polemics from The Huffington Post assault the complacency of The Bushenomics Boys and the agenda behind middle class economic stagnation. They cite the credit economy for manufacturing money by putting the American middle class in debt, and show how inflation is controlled by suppressing wages while allowing prices to rise. The costs of living are "much higher" now than when Bush took office. Gas prices have doubled, education costs have risen 44 percent, health care premiums are skyrocketing and housing remains expensive and scarce. The rise in the "average income" of Americans is an illusion created by the vast expansion in the incomes of the wealthy. As the joke goes, the "average income" of everyone in the room rises 10,000 percent once Bill Gates walks into it. The median income has actually fallen. As wages fall, and prices rise, American consumers borrow more and more to make ends meet. This borrowing creates the mountain of IOU's - the "paper money" - that keeps the credit economy afloat, and the Bush administration controls inflation primarily because it benefits creditors to keep it low. It is not "the people" that our leaders care about, but the institutions to which "the people" owe money.
"The Mysteries of Bushenomics" from The Huffington Post
"Beware of Economists Defending Inequality" from The Huffington Post