Our current economic crisis has impacted Europe as well as China and Japan.
There is a clear case of manipulation of labor statistics. It is no more evident than this past April when the Department of Labor and Wall Street analysis differ in the unemployment figures. What many of our elected officials in Washington seem to believe is that the situation in the US is not that bad. It seems that they have a mistaken identity crisis because they fail to realize the true scope of how our policies especially in trade for the past 30 years has undermined the very essence of our work force. This to the tune that no matter how many jobs were reported created in the past two months there is still that gaping hole in our economy. This gaping hole is like those sinkholes in that they only get wider and deeper. Only when these holes threaten to engulf our society, I am afraid that no matter what policies are implemented, it will be too little too late to bridge the gap that has only gotten wider. It will take more than an enormous effort on part of our business leaders, and our own elected officials in every level of government to devise a workable set of endeavors to reign the continued exodus of American workers. It is our for profit industries like our health insurance companies that have literally taken “Greed is good” to a whole different and higher level.
The severity of the unemployment rate is so severe it is affecting every level of service in this country from social security to education. When we have such an acute crisis as we are seeing with this nations unemployment rates it should be obvious that what our leaders are doing isn’t working. When this nation continues to face an overwhelming under employment and an unemployment condition that is totally unacceptable there are other disturbing factors that contribute to the lack of economic stability within the United States. One of the most concerning is the fact that the government has seen an increase in the number of applications for food stamps. In no other time in recent memory has the United States been inundated with such an influx of people seeking financial assistance in the form of food stamps.
When we put these two scenarios together it is unquestionable that our base economic system is indeed in real serious trouble. To compound the problems facing this country today we have a Republican mindset that is openly antagonistic toward anyone seeking assistance just because they are in a financial bind. When Albert Einstein said “We can not solve our problems with the same thinking we used to create them” he wasn’t too far off the mark in the way our legislatures form Washington to every state house across the country has been dealing with the economic and financial problems that have only continued to mount.
What we are seeing today is a universal set of undermining contingencies that are affecting not only the United States but Europe, China, and India. We have to mention Mexico to because the continued violence there threatens the United States as well. Everywhere what we are seeing is that too many countries are trapped in an economic and financial tailspin. From recent reports China and India whose economic boom these past ten years has managed to morph into a economic system very much like our own. But, the reality is that they too have been thrust into a harsh reality of economic boom going bust.
It is quite clear that if our unemployment rate reflected who we usually consider unemployed, people who aren’t working or who are working only part time, but would be more than willing to take full time work if there was actually one available and qualified to do so then our unemployment rate would be more that double of what is actually being reported. In reality more than one in five Americans who wants work isn’t able to land a job.
The overwhelming factor in a resurgence in economic momentum in reducing the true unemployment figures is our financial institutions. So far the QE-2 efforts by the Fed have only served to stimulate those financial institutions that brought down the economy in 2008. The stimulus efforts by governments in the United States, Europe and China has only helped the fat cats on Wall Street and nobody on main street. By no means has this recession receded. In fact in Japan they are suffering a deflationary crisis that is only threatening all of Asia’s economies.
In the United States as well as the European Union have all struggled with after effects stemming form this past housing crisis and a very persistent economic climate that continues to stifle job creation. In China what we are seeing is a housing bubble that was going quite strong now appears to be very volatile. And, when this bubble bursts and it will at some point soon, look out.
What is happening here in the United States an now in China with interest rates too low for too long and an economy with a consumer price inflation ever increasing have now set off further surges in home prices. But, the problem lies within the fact that any job creation still corresponds with low wages or part time work that still won’t meet the needs of the existing mortgage rates.
With any further monetary stimulus, which continues to be the solution at hand, especially with the Fed able to still print out billions for a sluggish economy have now sent housing prices even higher. In China they too are now experiencing a mirror copy of our economic climate. As in the United States now in China there are very few people who can afford to by an apartment, home, or condo because the cost there can be as much as 35 times a college graduate’s first year salary.
When the worlds two biggest economies response to economic weakness has always been another round of more stimulus money for financial institutions have yet to put a spark in any kind of job creation with corresponding wages that would enable them to keep pace with the inflationary trends that always keeps increasing. When in China as with the United States there are so many without the necessary financial means to maintain living at the cost of living puts more of a burden on governments to repeat borrowing. In the United States this borrowing for programs like food stamps and other much needed services continues to be a contentious issue because of our budget deficit has only continued to grow. And, now with our Republicans in Congress are doing anything they can to gut these service programs just when they are needed most.
It is quite depressing when the government can only come up with another round of stimulus that only increases the nest eggs of Wall Street. The preverbal question is how then does the US embark on an economic resurgence policy that will in fact reduce the unemployment rolls? And, at the same time increase wages that manages to keep pace with inflation and the cost of living today. We have to remember that the greatest economic impact that any country can have is by the fulfillment of the “Williams Theory Of Economic Evolution” is reached by the majority of a countries own population.
In order to reach and meet this goal what the United States must realize that current policies haven’t worked. It is time to step away and take a real hard look at what is actually happening. We have seen the greatest wage and income disparity gap in the history of this nation. A gap like that of those sink holes and our unemployment figures that have only gotten wider. It is these gaping holes hat continue to undermine the economic stability and our national security. Now, to close these gaps it will require a total reform of current policies from our trade agreements to every governmental agency and our political process, [which by the way has become so corrupted it only encourages more wage disparity in the process] Only through implementing National Economic Reform with it’s Ten Articles of Confederation will the United States be able to actually secure our nations financial and economic security.