I love/loathe presidential politics. I cannot wait until the presidential campaigns begin and I cannot wait until they end. Presidential politics both exhilarate me and exasperate me. It brings out the best in our country and the worst. It's a time when the lunatic fringe gets to be heard and a time when the ideas and views of well-centered, working-class people are disparaged.
We can't have a genuine fact-based discussion in this country about the economy. One side loudly and incessantly insists that the economy at present is in the worst condition since, yes you guessed it, the Great Depression. Where were you in the 30's? My parents and grandparents lived in the Great Depression. These people are clueless. The other side is too terrified of being taken out of context and shouted down with the worst expletives imaginable in a sound-bite driven culture and thus will not stand up and share the facts. That side occasionally tries to counter but then astonishingly steps back saying, "I know times are bad." What?!
Today's a good day to vent about the politics of economy given the problems at Lehman and other mortgage bankers. Oh, yeah, and how about that stock market decline,eh? Regarding the stock market decline today I saw terms such as "plummet," and "crash," and "free fall." Such descriptors for a measely 3.86%. Where were you in 1987 when we had a one day decline of 30% (actually 23%, but who's counting)? Or how about 2000 when the NASDAQ lost 75% of its value under that other administration?
People today think that 5-6% fixed-rate mortgages are too high so they roll the dice and opt for high risk adjustable rate loans or interest payment only schemes so they can buy houses they can't afford. Sorry, where were you people in the early 1980's when the best my family could get was a fixed-rate mortgage at 14%? Where were you people who today complain about 2% annual inflation when in the late 70's we were dealing with double-digit inflation? Don't tell me the economy is bad.
People complain about unemployment at 5%, but that has been the average rate year over year since the Great Depression. By the way, my high school educated son and daughter-in-law both serve as managers of well-known retail stores. They have a combined annualized household income exceeding $80k and bought a brand new house costing double what ours cost in one of the nicest suburbs in Fort Worth. They both started working for their current employers as minimum wage salespeople. They had no special treatment, no unfair advantage, no handout. They simply worked hard, cared about their jobs, and showed some loyalty to their employer. They are in their mid-20s.
While I realize that not all of us have the time and patience to bone up on all the economic facts and statistics or become experts in the trends, the ups and downs, of a free market economy, we do have the gift of a brain we can use to reflect on what we see around us and compare our observations to the self-serving pleadings of our munchausen politicians.
I do not accept the claim or condescension on the part of the political parties when they compare our economy to the Depression (we're not even in a recession) or characterize the economic times as difficult when I see the following:
- New home developments all over with new houses running 2000 plus square feet. People are too good to buy smaller used homes.
- Big package retailers like Best Buy and Circuit City moving high volumes of consumer electronic merchandise.
- People not only have multiple tv's but HD and large flat screens at that.
- People own multiple digital products and enjoy cable/satellite tv. We're too good to use rabbit-ears and watch local programming.
- Ordinary people selling out sporting events and concerts spending in the hundreds of dollars each event.
- People spending billions to watch movies in fancy theaters with the latest in sight and sound and seating. Growing up we had to wait for movies to be shown on tv.
- Heavy saturation of high-priced restaurants that always sport long waiting lines in the early evening. People are too good to fix their own meals.
- And cell phones, not only do adults have cell phones but somehow afford to buy them for their school-aged kids. More talk, talk, talk; less work, work, work.
- People spending for fancy cars what my parents paid for their house. They're too good to hang on to their cars after they get a little worn. Need new tires? Aw hell, let's just buy a new car. And people trade in cars while still upside down! Why do they do that? Did the president make them?
- Every one has computers and internet access. It is practical. This 21st century depression after all is the information age.
- States rake in billions on gambling games because people are willing to risk poverty to get rich easy.
- People pay a premium for designer-brand jeans and clothing accessories.
- Churches accumulate in the tens of billions of dollars in wealth and build palacial structures on suburban acreage because people are no longer content to worship; they instead demand a worship experience.
Are these the characteristics of a society going through difficult times?
I realize there are people going through very difficult financial times, some of whom did nothing wrong and due to no fault of their own are disadvantaged in such a way they cannot pull themselves through. I'm not talking about you.
I'm talking about those people who are unwilling to sacrifice by scaling back on their luxury when necessary, those who run up their debt buying non-essentials and now don't want to pay the bills, those who perhaps were laid-off and then complain about the government rather than learning a new skill or relocating where there is work. The generations that preceded us were willing to move across the country, even across the world, to find work. What makes us so special that we feel we are entitled to a handout?
Frankly, I don't think most people want a handout. By declaring that which is not wrong to be apocalyptic is how politicians not only win elections, but more importantly how they take away more and more of our freedoms once elected. Every time war is declared on something, government eagerly comes in to save the day with more legislation to run our lives rather than to defend and serve. The more the government gives, in reality the more they take away.
For me, I'm not afraid to say it, the economy is functioning the way it should. It goes through cycles. Deal with it. New technology does indeed decrease the need for labor. When companies are mismanaged they go under. Stock prices go up, stock prices go down. That's how the marketplace works. Adversity should make us stronger not make us sniveling wimps who want mama government to make us feel better.
Holding the government accountable when things in the economy go bad is not much different than holding the government accountable for bad weather. Can you imagine a politician blaming a sitting president for an abnormally cold winter in the northeast, promising to legislate nature so that all of us can be guaranteed plenty of sunny weather without sunburns or just enough rain to keep the lakes full without flooding? That could never happen could it??
Look, I don't want the government to give me what I deserve, just don't take away what I earned.
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