1) Quick note: On his challenge to President Obama to come down to his studio in Florida and have a debate with him. It reminds me of an old saying, " When you wrestle a pig, two things will happen. 1) you will get dirty and 2) the pig will get happy."
2) Fatty Arbuckle Jr. was speaking once again about the Democrats plan to fix the economy. He continues to assert that it will not work. I would totally agree with him if his plan or the fiscal conservative plan worked. It was a complete disaster the last eight years. If fiscal conservatism version Bush 2000-2008 worked we wouldn't be in this position. The fundamentals of supply side-laissez faire-trickle-down economics isn't working for our new generation. Like I said in a previous post, the initial push by Reagan in his presidency of self sufficiency, patriotism, pride of craftsmanship/workmanship has been replaced by blatant greed and individualism.
If you closely follow the issues the follow statistics may be repetitive but you need to be reminded that money isn't trickling down.
- The richest 1% hold 38% of all the private wealth while the bottom 90% holds all the debt.
- The top 10% possess 80% of all financial assets while the bottom 90% only holds 20% of the
assets.
- The average CEO salary from 1980 was roughly 25 times the average salary of an employee in
that company.
- Today the average CEO roughly earns 350 times the average salary of the average employee.
This type of economic model isn't entirely to blame but has to be at the top of the list of reasons why we are in our current economic state.
2) C Cups spoke more about in to how the Democrats plan will not work, ramping up the fear by re-stating one of the current talking points of the extreme right. "There will be soup lines before you know it just like the Great Depression." However in the Great Depression two things occurred/didn't occur that is much different from what is happening today.
1) During the Great Depression the unemployment rate was almost 25%
Our employment rate isn't great right now but it's much closer to the natural rate of 4% it
needs to be even in good economy than the 25% it was during the Great Depression.
2) During the Great Depression the federal government did NOTHING to infuse capital into the banking systems.
The banks were on their own without any help from the government which is exactly why
the Fed is trying to capitalize the banking system to prevent mistakes from the past.
If the government did absolutely nothing as some fiscal conservatives say we should do, the market would eventually correct itself but there probably would be unemployment closer to 25% than 4% and there would be a run on the banks. The market would get through it but so much damage would be done in the interim this country would be unrecognizable.
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