The Phony Recovery

A recent study, by the Wall Street Journal of all places, confirms what the bottom 99% of Americans have long suspected for years: the so-called economic "recovery" of the past five years was essentially a joke all along.  In a nutshell, corporate earnings are at a record high, while revenues have been flat for the past five years.  In other words, consumer demand is low because customers are broke, and companies have mainly been "growing" their earnings by cutting cannibalizing their workforce and buying back (i.e. manipulating) their own stock to paper over their flat or declining sales.  All while they sit on trillions of dollars.  It's a zero-sum game, and a vicious cycle.  Thank you, Captain Obvious! 

So how can we break this vicious cycle before the resulting bubble bursts leading to the next big crash?  The answer is really quite clear:  adopt the TSAP party platform ASAP.   But since it is unrealistic to expect either corporate party in Washington to take up an entire platform that threatens their own interests, we have devised a list of the highest-priority measures to take before the inequality-fueled crash of 2016 happens:

1. Raise the top marginal tax rate to at least 50% (if not 70%) for incomes above $1 million, and simplify the tax code by removing loopholes geared towards the wealthy.
2. Reduce the corporate tax rate to 20-25%, remove all loopholes, and tax only retained earnings.
3. Reduce tax rates for the bottom 80% of Americans, and un-tax small businesses with earnings less than $100,000 per year.
4. Raise the minimum wage to at least $10/hour if not higher, and index it to inflation from now on.
5. Remove the "sequester" cuts ASAP, and sharply increase funding for infrastructure, education, green energy, and other crucial goals to put Americans back to work.

Of course, it would even better if the entire TSAP platform were adopted, but doing just these five things alone would probably be enough to, in the words of Paul Krugman, "end this depression now".  Because that's what this "recession" really is.  And ending it is long overdue--five years overdue to be precise.

Detroit: The Canary in the Coal Mine

"Hey, at least we're not Detroit!"

That is probably what every city and town in America is saying to themselves now that Detroit has declared bankruptcy after decades of decline.   Yes, Detroit's decline is by far the worst of any city in the nation without a doubt, and their historic bankruptcy is unprecedented.  However, the rest of the country probably wouldn't be so smug if they knew the facts about the crises facing the nation as a whole.   They would realize that Detroit is simply the canary in the coal mine, and now that canary is essentially dead.  And both parties (two sides of the same ugly coin) are to blame for such crises facing our declining American Empire.

Much like Detroit, our nation's once-great manufacturing base has been hollowed out over the past few decades as a result of "free trade" and other failed policies.  As a result, we are essentially becoming a plunder economy that is increasingly based on looting existing resources rather than producing anything new, while the rest of the economy is based primarily on manipulating finance.  Ever notice that the states with the lowest unemployment rates tend to be the oil-rich ones?  Not only is such an economy inherently unsustainable in the long run for obvious reasons, it also eviscerates the middle class and widens the gap between the haves and have-nots, which makes things even less sustainable.  Just ask the ancient Romans how well that worked out for them.

The other big long-run problem is the pensions crisis, which is true for all levels of government as well as much of the private sector as well.   The wolf is now at the door for Detroit, and will soon be arriving elsewhere as well.  Both unions and management are to blame for this crisis:  the former demanded too much and bit off far more than they could chew, while the latter deliberately underfunded the pension system, essentially stealing the money from the workers (albeit legally).  Simple demographics also compound the crisis; as the population ages, there will be more retirees with fewer current workers to support them, and the whole Ponzi scheme eventually unravels.  Though not as acute and much easier to solve, a similar problem exists for Social Security as well.   The trust fund is continually being raided while the population ages and the wealthiest Americans refuse to pay their fair share of contributions.  And neither party has the intestinal fortitude to solve it at this time, while the basic social contract that once held this country together is essentially broken.

Finally, as a result of three decades of reckless and wasteful spending, warmongering, tax cuts for the wealthy, and the aforementioned problems, the nation is now mired in a debt crisis, with our national debt topping $16 trillion.  While it is true that the deficit is down, we are still adding to the debt every minute of every day with no end in sight.   America is already technically bankrupt, and it is highly unlikely anyone will bail us out but ourselves.  Fortunately, there is still time to prevent the entire nation from turning into Detroit, but we need to act fast.  But as long as we keep on electing Republicans and Democrats, the chances for salvation grow increasingly slim each year.      

The TSAP is well aware of what needs to be done to save this country from the fate of the Romans (or worse).  Our party platform contains several crucial planks that must be implemented sometime within the next few years in order for there to be any hope left at all.  Anything else is just rearranging deck chairs on the Titanic.

America Eats Its Young

Unfortunately, the title of this post is not just the name of a Funkadelic song (and album) from 1972.  It is also the best way to describe what is happening to the Millennial generation as we speak.  And it's not good. 

An excellent article by Stephen Marche (in Esquire of all places) really hits the nail on the head in describing what is happening.  Which is nothing short of intergenerational robbery. 

To the aging Baby Boomers who are currently voting and/or in power, listen up:  You have only a few short years left to rectify these wrongs before they become irreversible.  And you have the power to do so.  You may not like what has to be done, but it is FAR better than the alternative.  Even the most self-centered and self-interested among you should be able to see the writing on the wall.  Remember that the Millennials are the ones that will be paying for your retirement and ultimately deciding your fate as far as that goes.   And unless you want to end up in the gutter because we are too broke to pay for it all, you might just want to invest in us instead of hoarding or squandering your vast and unprecendented wealth.