The wrong saw of conservatism

The wrong saw cuts wrong every time.

barrydeutsch

I don’t know who was first to say that, but it is always true. People on the “Red Right” want cuts everywhere except where cuts are needed. Conservatives often bring up cutting the arts, Social Security, or some other social program, while not batting an eye as the costs of empire rise.

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How I learned about capitalism

WE’VE ALLOWED OTHERS TO MAKE A MESS
By_Word_of_Mouse_Still
By Word of Mouse, 1954, Looney Tunes, Merrie Melodies, Warner Bros.

This 1954 cartoon is where I first learned about capitalism as a child. As far as I’m concerned, ANY derivative…Washington, Wall Street, outsourcing, off-shoring, whatever, is laden with corruption, and is at the root of the financial problems that the people are going through.

It’s really this simple. Once you start overtaking the plumbing, for whatever reason, you end up with job losses, recessions, people not able to meet bills, businesses not able to meet bills, etc.

http://www.b99.tv/video/word-mouse/

Horse and Sparrow

horses-assI recently heard supply-side or trickle-down economics compared to a horse and sparrow analogy where if you feed the horse enough oats, some falls to the ground to feed the sparrow.

It doesn’t work.

It was a cute idea in 1980 when Ronald Reagan presented it to a nation coming out of the 1970s malaise of inflation that Nixon left to Ford who handed it off to Carter. But they didn’t talk about the effects of that inflation longterm.

The money that trickles down loses its purchasing power because of inflation and other taxes and issues. If we put a $100 bill in an envelope in 1980 and allowed inflation to act on it, today when we went to get our cash we would only find $33.60. That is a 66% loss in purchasing power. We just cannot purchase the same amount of goods and services today that we could in 1980. Just fill up a grocery bag and see how fast it adds up.

So if you feed the horse enough oats eventually he shits on the sparrow.

Inflation is a jack

In 1981 the average price of gold was $459.25/oz.
That year the Federal Minimum Wage was $3.35/hr.
You would have had to work about 137 hours (about three and a half weeks) to save up the cash to buy one ounce of gold from the coin dealer.

Today 3/22/11, the price of gold was $1426/oz.
Federal Minimum Wage is $7.25/hr.
You’d have to work 197 hours (nearly five weeks) to save up the cash to buy one ounce of gold from the coin dealer.

Over the last 30 years the system has stolen a third of your buying power and made you work 43% longer for it.