There Ya Go, Always Lookin’ Back

There Ya Go, Always Lookin’ Back
Dave Speck

Update: has a very good essay on the follies of the Fleece Market, or as it’s being sold, the Free Market.

Some would say that we need to quickly abandon the idea of looking back to figure out what we did wrong so we can fix it, but we must rather quickly fix it without worrying about the facts.

But, really, now, we all know that you can’t fix something when you don’t know what’s wrong. It’s like putting a band-aid over a bullet hole. If you don’t know what’s causing the bleeding, it doesn’t work to just fix it.

And, that’s where we are with America’s economy.  We can toss a $700 Billion band-aid at it, but without really facing up to what is causing it, the band-aid will never work. And, so, then what’s the cause of our current disaster?

Let’s look at exactly what the current disaster is. Our economy generally consists of circulation of money. Credit helps the money circulate but relying on credit to run an economy is guaranteed disaster. So, what causes money to circulate? People spending money circulates money. Adding money to an economy from outside, like selling goods overseas, speeds up the economy. Building more gadgets to sell in keeping up with an increased population also helps circulate money.

Stop selling things outside your economy and your money’s circulation slows down. Buying those things from another country bleeds money from our circulation.

We’re at the point where we can no longer rely on credit to keep our money circulating and we’re not making anything to sell to the Chinese,  so all we can do is continue to print more money to keep it circulating. This will cause a serious devaluation of the dollar, but what else can we do?

If you give a billionaire a hundred dollars he won’t put it back in the economy. In today’s age, he’ll probably invest the money over seas. What if you give a poor person $100? He’ll spend it as fast as he can. Which one of these helps our economy? Obviously paying the needy helps the economy. More poor people spending money causes more demand on small businesses and creates more jobs, thereby putting more money in circulation.

We Americans don’t have much credit left to use for buying and so much of our work force has been reduced to menial jobs and so much of our economy is going out of the country rather than into it, that we are plum out of tools to dig ourselves out of this hole. It will be a long and painful recovery.

So, by now you’ve probably guessed at the cause of our current disaster.

  1. There is not enough money in the hands of the middle class and the poor.  Too many tax increases on the poor and too many tax breaks for the rich. This is a direct result of Reagan economics that we have brought forward for the past 30 years.
  2. There’s not enough goods being exported, bringing money into our economy. Still more Reagan economics. However, we can thank Clinton for this one as well. Our trade policies are killing America. Re-institute the tariffs.
  3. There’s not enough oversight in our banking and credit and investment sectors. A handful of crooks have made billions of dollars while driving our financial companies into the ground. They’re not dummies. We are, for letting it happen. Again, this is more Reagan Conservative economics. Free (greed) Markets they say. Get the government off our backs, put industry crooks in the oversight positions intended to monitor and protect us from the crooks. That’s what we’ve been doing since Reagan convinced us that we (our government) is the problem, not the solution. We are the only solution, folks.

We must look back to see what we did wrong before we can fix it. Hold on to your shorts, it’s going to be a long bumpy ride!

One thought on “There Ya Go, Always Lookin’ Back”

  1. Great post, but what a waste. The conservatives will never allow themselves to be confused by the facts. Just more of the same, only more and harder. It’s a surprise there’s anyone left in the Republican party.

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