Couple of swells
Continuing my spittle-filled rant about the US economy, I’m going to change gears in this post and approach the subject not from the side of what’s wrong, but rather what can be done to make things right.
In a previous post, I noted that the US economy is driven by middle class consumption, so policy makers that push supply-side economic policies to de-hobotize our economy seem very hopeful, at best, that they can motivate the middle by giving to the top. What is the fucking goal here? Motivate the middle class through envy to work harder for a few extra scraps to be tossed their way? I mean, sure that shit hasn’t worked since, what, 1982, but hey, that’s no reason to stop trying! Right? Guys?
Supply-side economics seems predicated on the quaint notion that eventually the drippings will drizzle down the chins of America’s swellegant set to sate the thirst and fuel the consumption of the nation’s remaining 95%. Meanwhile, as we wait and the temperature falls, don’t be surprised to hear: “Jeeves! I’ve a discomforting chill in the marrow. I say, throw another hobo on the fire, there’s a good man.” That is, unless you are the hobo.
Seems a quicker path would be to directly pass a goodish chunk of The Splurge funds directly to the remaining 95% and let them have a go at it (consuming that is.) And by directly, I mean the provision of cash, not just the reduction of taxes. Quite frankly, the recent economic nightmare the lower and middle class is living these days will leave most hesitant to shove cash out the door when the bank account is running low and the bills piling high.
Not only is America’s economic engine fueled by middle-class consumption, it is also dependent on small businesses to employ the bulk of its citizens – not on the Cokes, GMs and Goldman Sachs of the world. Those two facts alone bolster the argument that the key to America’s economic recovery, its pace and depth, resides with the middle class. Specifically, the middle class must have two key resources (money and confidence) if America is going to pull itself (sooner rather than later) out of this deep-ass economic hole it has dug for itself. At the moment, we seem to be unkindly short of both but stuffed to the gills with debt and uncertainty. (Ruh roh!) Any plan that is to work must provide us the former two will riding us of the latter two. To put forth anything less would be un-American (or very elitist). Where do you stand?
Before you answer, just note that October’s consumer confidence reading dropped to a record low of 38.0 from September’s revised reading of 61.4. Expectations were for a reading of 51.5. Discuss .
Bloomberg columnits John F. Wasik recently posted an opinion piece on ‘trickle up’ economics that address the role of small businesses in the context of the presidential election. Defs worth a read.
