Bush’s Requirement – Lower the Average Middle Class Wage
What happens when you have a mental midget running the country? You end up with what we have today. No wonder Bush’s closest friends call him 85. I’m sure it’s not because of his IQ. I couldn’t imagine him reaching above 75.
Anyone who has read any history knows what caused the first Republican Great Depression and it’s only painfully obvious that that’s the same that is causing this Republican Great Recession (hopefully not another Depression). The cause? An imbalance between productivity and wages, or in simpler terms, supply and demand. Of course, there were other contributing factors like the run on the banks and no minimum wage. The run on the banks is more a symptom than a cause and the missing minimum wage is just more of the same supply and demand balance issue. Like the run on the banks a century ago, we are again failing to properly monitor and regulate the banks and investment institutions.
Let’s talk about the balance between productivity and demand in simple terms. Productivity is the amount of products that Americans make in a given time. In other words, supply. Demand is driven by low and middle income wage earners. When supply goes up and demand (aka wages) doesn’t, prices have to fall. Simple, yes?
A president like eighty-five will want to reduce the wages thinking that the consumer fairy will take care of buying up the excess supply. He probably also thinks he was chosen by God. Eighty-five.
So, what has Bush done? He is demanding that the United Auto Workers reduce their wages, bringing DOWN the average spendable wage in America. When the UAW workers wages fall, all the other non-union automaker wages will fall as well. So will the income at all the businesses relying on the auto workers and so on.
Just as an aside, remember the HUNDREDS of BILLIONS of dollars mysteriously given to the banks to free up credit? Wonder why it’s not working? The bank execs have skimmed off 1.7 BILLION for their personal income. I don’t remember giving them money to fatten up their coffers, do you? If anything, they should be penalized for being greedy and for helping cause this mess.
Back to the economy… When you give a billionaire $100 dollars, he pockets it; when you give $100 to a low or middle income family, they spend it immediately. Which one will stimulate the economy? Simple, yes? Even ol’ eighty-five could figure it out if he had half a desire to.
So, lowering the average wage of the American low and middle class worker will reduce demand even further and more prices will fall. If we continue to mismanage this disaster like Hoover, we’ll be in the next Republican Great Depression. The ONLY solution to this is to raise the average wage for American workers.
We can’t wait for January 20th to get Bush out of power. We need to tie him up in investigations 24 hours a day until the day he leaves office. Otherwise, he’ll only continue to cause America more harm.