Should We Just Do Nothing?

The new President just manoeuvered and signed into effect a massive package that will affect us all. Was this the right thing to do? We have seen America, along with other countries, under great financial duress. Also, the jobs that Americans once occupied have been taken to other countries such as Mexico, China, and Asia et al. Whether you agree or disagree, something had to be done. Notwithstanding, the opposition party has no immediate answers or solutions forthcoming to date. The GOP pushes (forces) Capitalism coupled with tax reductions specifically designed to benefit the wealthy as their redemptive agenda for the current dilemma. The capital gains tax is always at the forefront of the quasi tax reductions sought after and virtually begged for by the capitalists. However, in the midst of this current economic crisis I personally have yet to hear or read about an alternative to the Democratic Party’s proposal. In other words what would be the GOP’s plan and course of action for America’s economic crisis? First, I want to make one thing clear before proceeding any farther, I am not in favor of the Democrats massive bail-out program. However, I would like to see (or hear) a viable proposal that would address the issues we as Americans now face! Is Capitalism the answer to our current quandary/predicament? What is capitalism?

cap•i•tal•ism [ káppit'l ìzzəm ] noun
Definition:

Free-market system: an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit.
(http://encarta.msn.com/dictionary)

Okay, if we use this definition as a reference, we will ascertain that capitalism is a system controlled by those who own the means of production and the goods distributed by these means. However, the question is; who makes these goods and how are they initially produced? If we take for instance an example of farming and the resultant ends of producing marketable products such as produce, we insert into the capitalism equation, workers. The quasi private ownership of factories companies’ et al that produces and distributes these goods relies on labor to capitalize on or, draw advantage from the efforts of these compensated workers. But, the compensation can be brought into question and often becomes exploitive in nature by under compensating these workers. The problem as I see it with Capitalism is exploitation! It appears that capitalism in order to compensate these owners of factories, businesses (large) and any means of profit realization will do anything to enlarge their bottom (or profit) line! And, that means they will go to any foreign country to accomplish this avaricious goal! Am I against making money? No! However, I am against how this money sometimes is made!

What is troubling with capitalism is exploitation, victimizing America’s people for their own gain and comfort. When capitalists acquire our goods, goods that were produced in America by American labor, and then ship these same goods to another country such as China, and then use the CHEAP labor of the Chinese people to turn these same goods into a marketable product that is then re-shipped back to America, and then sold back to our own people, that is exploitation and perfidiousness of unconscionable dimension! We buy back our own goods at a large profit for the so-called capitalist enterprise system of supply and demand! Allow me to elucidate! If these same goods/products are produced in America and then taken to our own factories, the workers will receive compensation for their work effort. For examples sake we will use the $15.00 per hour as a reference. If the worker receives this wage times 40 hours for the average work week, they will have earned $600.00 before taxes. And if this same worker has a benefits package coupled with this wage allocation, this benefit package will naturally increase the workers compensation. Now, if these same goods are shipped to another country where the worker(s) only receive slave wages such as $2.00 per day as a reference, we can see gross exploitation by comparison. The foreign worker will receive $10.00 per week with no benefit package at all! The cost of shipping the goods and returning them to America to be re-sold to us is cost effective to the capitalist enterprise or it would not even be considered by them!

So, if we incorporate (pun intended) this into today’s financial dilemma we have a real problem. The price of goods and services in America has reached disproportionate levels. Houses are priced beyond value, and wages are also not balanced with America’s pricing demands. Some receive inordinate wages for doing nothing while the laborer who mows their lawns and nannies their children get virtually nothing in return compensation for their labor. All the while the cost of living increases but wages are not commensurate with the cost increases. So, where do we go from here and who has the solution to this disparate system of pecuniary resources? One of the major problems is debt and interest on these debts. A seven year cycle was integrated into the Torah Law for a good and specific purpose. This cycle teaches the forgiveness of debt every seven years. What this also teaches is how to live within a certain financial confine. You learn to live within your means! Forgiveness of debt is the only solution for today’s financial crisis/dilemma! All debts must be eradicated and a fresh start given. Then the seven year cycle must be implemented. Teaching people to live within their budgets must be taught as economics 101 in schools so children can learn financial responsibility at an early age. This current crushing system will collapse the entire world if debt relief is not integrated into the financial equation as a solution, mark my words!

I Have…Had a Dream Too…But You Destroyed it!

Dr. Martin Luther King had a dream for the people, that everyone would be equal in the eyes of the Most High! The day that he dreamed about came true this past Presidential cycle. However, it remains to be seen if this is a true Dr. King dream or; a nightmare in the making! I am referencing the new president Barack Obama with this thought. What he will do for or against the American dream is yet to be determined. We all want the best for our country and the good citizens therein, don’t we? The American dream contains success for diligent people willing to work hard for it but, is this dream realistic today? Can we work hard and have our own home, our own car? What about a retirement account free from scams, banking vandalism, and covert schemes? Can I retire and be free from debt because everything is paid for? Or; is this no longer possible? Have the dreams that one holds for their life and family now become unobtainable? Have they destroyed our dreams because of their (some people’s) avarice and insatiable desire for amassing great wealth at other people’s expense?

Today the housing has been inflated beyond true value wherein no average person can conceivably afford one. The automobile market is about the same…who can afford an automobile at current prices. And, after a brief period the vehicle is no longer worth its initial value or asking price. Everything goes up in price, but not wages. Workers are either making too much say some or very little say most. Minimum wages are not capable of sustaining a household of two adults and two children. And any dream (s) that the minimum wage earner might have is impossible to achieve. Why is there such disparity and class division/distinction in America? It there a glass ceiling that cannot be penetrated by the hard working masses of America? Is there a restricted level that someone cannot arise above? Today I believe there is a stopping point for most sans any extended education such as a college degree, or; personal access to inordinate amounts of wealth.

What could be the long term solution for this discrimination against the working class people? Could the housing market create affordable homes? Could the car manufacturers build good yet inexpensive cars? Could the minimum wage be raised to the actual living standard that balances between accounts receivable (wages) and accounts payable/expendable (debts)? Yes, all of this is possible if the quasi establishment wants it to be so! I am not saying that Americans should be forced into shacks and the people’s car as per Germany during the WW2 era. How much of a house does the standard American family actually need? It appears that a four bedroom two bath home would be sufficient for most families in America today. Gone for the most part (sans illegal immigrants) are large families.

The average home size is another factor to consider. From 900-1200(60’s-80’s) square feet to over 2400 square feet today, the home size has accelerated in size. If the average family is 4 or even 5 per household, how much room does one family actually need? If you have ever spent any time in a third-world country you would simply be amazed at how little space in land and housing is available to them. The houses are small 3-4 rooms and the land is big enough to plant a small garden with some chickens-perhaps! So let’s look at necessity pricewise and repayment possibilities on a home loan. The median price of homes in December 2008 was around $242,000.00. So, loosely calculated the monthly mortgage payment could/would be around $1,800.00 all things included such as taxes, insurance etc. Now let’s extend that times 12 months, and this equals $21,000.00. Using mid-2009 minimum wage projections of $7.25 with some (a few) states having a slightly higher rate from $8.00 to $8.55 per hour rate, we arrive at approx. $15,060.00 based on 40 hours per week labor, and $18,850.00 at 50 hours per week. Now let’s factor in wages versus expenses, starting with mortgage payments.

At $1,800.00 (approx.) times 12 months for yearly house payment demand, the total comes to $21,000.00. We can end it right there, for to proceed any further is an exercise in futility. Wages based on 50 hours per week time 52 weeks equals $18,850.00 and house mortgage payments for one year are $21,000.00 leaving the average wage earner MINUS -$2,150.00. Now this figure does not include anything else and it is based on the average home value and the minimum wage today in America. Now do you see what I am saying that the American dream realistically is no longer attainable? The average or median wage as of August 2008 was $50,233.00. Now we can take this figure and factor in car payments (usually times two per household) mortgage payment, utilities, food, transportation costs and several day to day necessary living expenses and still see a problem. More on this later…Can we still achieve the American dream or has that dream become shattered/destroyed by the avariciousness of several unscrupulous companies and the owners thereof..?