How to fix this ROTTEN economy

Here are a few “quick” points, and anecdotal observations, followed by solutions.

According to published reports, unemployment has ranged, on national average, between 9-12%. However, some suggest that the real unemployment rate may be much higher, in some cases, up to twice – or more – of the reported figure. Adding strength to that argument is the fact that 1.) the government reports “seasonally adjusted rates,” 2.) has quit reporting unemployment for people out of work for over a year, and since 3.) many people have completely exhausted their their unemployment compensation benefits – two years, maximum, I believe – and 4.) Republicans do not want to supplement the benefits any longer, and the 5.) Bureau of Labor Statistics reports category U6 employment as employment, when instead it is underemployment – that is, those who have accepted part-time jobs when they are seeking full-time employment.

As well, some people have simply quit looking for work. Some people have moved back in with family – parents with children, children with parents, and other family with family, and more. Aging parents are being cared for by their children. Students have ceased attending school – higher education – and some have not sought higher education because of economic duress.

Regarding employment questions on the census – obtaining a truly accurate picture of unemployment – a standard, if you prefer, every decade; some folks, when asked in person will balk and say they’re “self employed,” when it’s really a euphemistic term meaning “I don’t have a job right now,” because to be unemployed is seen as a social stigma, a black mark, a pox, a negative mark on oneself. Thus, asking an anonymous question so that an honest answer will be given is wise. But to those whom moan, groan and complain… and even protest about such questions on the census, those folks are impediments to progress, sticks in the mud, and “just don’t ‘get it’.” They enjoy being rebels, agitators, and causing trouble – rather than creating solutions.

• We’re not in a  “Great Recession,” this is Great Depression II. The only reason folks aren’t calling it a depression is because so many would freak out. But the markers are still there. This is NOT Great Recession, this is Great Depression II.

• The president (POTUS) should have nationalized the banks, insurance companies and stock brokerage houses. That way, he could have fired all the corrupt and crooked top dogs (“executives,” though I think “dogs” an exceedingly more appropriate term), set their salaries, and ruled in the obscene profits and benefits they’re STILL rewarded with. It sure would’ve saved TARP! Heck… it probably would have even eliminated it! And “Quantitative Easing” wouldn’t even be a word!

That goes for the BIG OIL companies, too!

• While the Sarbanes-Oxley Act brought accountability to the CEOs of corporations, collusion and commingling of funds was reintroduced with the elimination of the Glass-Stegall Act (which should be re-enacted), which forbade banks, stock brokerage houses and insurance companies from operating in each others’ business. Now, it’s one giant incestuous fiscal orgy.

Sure, lawsuits would be filed, but look at the bright side. Lawyers would be put to work! And judges would have to work even more, as would juries! And besides, does anyone really love Wall Street types? Those folks continually demonstrate that they are NOT to be trusted. They love money – not people! And human nature being what it is, a lover will do anything to get more of the object of their love. So if you love money more than people, you’ll do anything to get more money… including hurt people. Loving things more than people is a very warped, demented and unbalanced perspective, anyway.

And by the time we got our nation’s economy back on track, the infighting types (the chronic complainers, and lawsuit filers) would have quit anyway.

• Cut Congress’ salary in half – same for the POTUS – and re-examine their 100% salary retirement benefits. Chances are, if you’re a Congress critter, you have a 50-50 chance of being a millionaire BEFORE you leave “service.” In February 2007, there were 123 retired Members of Congress, whose average pension was $35,952 in 2006. Others were significantly higher.

• Make the Social Security Trust Fund a hands-off account. That is, the exclusive use for the Social Security Trust fund should be to pay claims upon it – and nothing else, ever. Currently, it’s a virtual “slush fund,” meaning that it’s part of the general budget, and used to pay for everything in the budget… including – oh yes, Social Security. By so doing – making it a hands-off account – it would become solvent virtually overnight. Currently, the SSTF is not “broke” per se, but it’s pretty darn close.

Here’s how the bookkeepers finagle the SSTF. Imagine it as a Petty Cash Fund at work, which has a balance of $100. Petty Cash is used to pay for incidentals in the course of work, such as a book of postage stamps, somebody forgot their lunch money, snacks, parking meter money, etc., and is paid back most often in a week, and at the very latest in a month. The recipient may take $5.00 for incidentals, signs and dates an IOU (I Owe You) for the amount borrowed – sometimes notating the purpose of the expense – and pays back the borrowed money the next day, or within a week – again, in no case more than 30 days. When bookkeepers examine the Petty Cash Fund, they balance the account using IOUs and Cash On Hand. So, if there are $75 in IOUs, and $25 in Cash On Hand, the books balance. The problem is, that IOUs can’t be negotiated. They’re not “negotiable instruments” like money is. In the case of the SSTF, the money that’s being removed to pay for numerous projects – including Alaska’s infamous “Bridge to Nowhere,” and other (hopefully) more worthy projects – is being replaced with IOUs. In this case, the IOUs are future payables – that is, they are notes (loan papers) that are issued by the U.S. Treasury. Sure, it’s the full faith and credit of the U.S. government, so it’s good as gold, eh? In one sense, yes. In another no. When bookkeeping comes around to see if the books balance, they do! Why? The future a payable has value. It’s “face value” is the amount of the loan. In other words, a note for $100,000 is worth $100,000. The problem with using IOUs to fund the SSTF is that eventually, the due dates on the notes will come due, and in the mean time, the money that’s being placed into the SSTF by workers is currently being paid out as quickly as it comes in. We’re now in that situation. Some folks have said that presently, there are three workers paying the Social Security of every retiree. The Social Security Administration says this: “Today, about 155 million people work and pay Social Security taxes and about 54 million people receive monthly Social Security benefits.”

They also identify that, “You pay Social Security taxes on your earnings up to a certain amount. That amount increases each year to keep pace with wages. In 2011, that amount is $106,800.” Why do the über-wealthy get of scot free? Why don’t they pay Social Security tax on ALL their income?

• Return the tax structures to post World War II levels – tax the filthy rich and corporations – you’re not a corporation, and you’re not filthy rich – heck, you probably don’t even make $250,000/year!

HIRE people – put them to work!

Okay… since private enterprise is not doing that, let the federal government do it. Give jobs to every man and woman that wants a job and is able to work. I’m talking about useful, genuinely beneficial jobs that would benefit our nation.

The CIA World Factbook has indicated on the subcategory “Economy” under the nation identified as “United States” that “Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.”

Not many people may recall the so-called “alphabet agencies” created under president Franklin Delano Roosevelt (FDR), whose efforts brought America out of the Great Depression, improved our national infrastructure, created a large middle class, and brought numerous benefits to this nation, and placed us on the fast track to being a “super power” nation.

The Civilian Conservation Corps, for example, built numerous parks, and other amenities we now take for granted. The Tennessee Valley Authority brought rural electrification to previously darkened hills and hollows throughout the Southeast. In the process, it brought increased health, created farm and other markets, and innumerable business opportunities.

All those people were paid good, living wages, had healthcare for themselves and their families, clothing allowances, housing stipends, and more.

For the federal government to hire people would stimulate private enterprise, since government would be ordering materials and goods, so private manufacturing would be stimulated, mining, factories, shipping, sales and more would be boosted.

Our nation’s roads, waterways, electrical power grid, and more would be improved, and numerous benefits would be reaped.

If private enterprise is not hiring (and they’re not), and since the federal government has the ability to print money – create wealth, if you will – then improving our nation’s weakest areas by putting people to work (employing them) in improving our nation’s crumbling infrastructure would benefit everyone.

It’s a fairly simple concept.

But some – Republicans and “TEA” Partiers – don’t want to spend money, just like true miserly tightwads. They simply want private enterprise to run everything… including government. They are genuine governmental deconstructionists. Why else so we see and hear of “private security firms” in Iraq and other Middle Eastern nations where conflict is current?

Think about this: If government has the power to print money (and they do), and true wealth is created and generated by creating or selling something (and it is), when no one in the private sector is buying, the obvious solution/answer is that the government should buy.

Hello? Is anyone listening?