Tuesday, March 7, 2017

Over Time, The Built-In Boom-Bust Cycles Of Cowboy Capitalism Have Predictable Results

Image result for the free market
Alan: Capitalism engenders boom-bust cycles. 

And in that cyclicalness it is true that most people enjoy economic benefit during "the booms." 

It is also true that savvy rich people (Donald Trump more so than most) make their biggest "killings" by buying depreciated assets during "busts," then "sell 'em high" during the next "boom." 

However, during "busts" non-wealthy people -- usually cash-poor -- get fleeced of the few hard assets they have... or, more accurately stated, lose "whatever they have left."

On those rare occasions when a cyclical "bust" is big enough to harm the rich folks themselves, it is poor people who are forced to "bail them out."  

Everything about boom-bust economics is designed to favor the wealthy, while seducing the non-wealthy into believing they'll benefit so much during "boom times" that the alternating "busts" are just bothersome blips "along the way."

In some business cycles, it is true that "busts" are only blips along the way.

But here's the zinger: 2 or 3 times a century -- at least once in everybody's lifetime -- non-wealthy people are hit so hard by a Great Recession or Great Depression that many-or-most must return to "Go"... without collecting $200.00.

Since the 1970s (nearly half a century ago) purchasing power has actually declined in the United States so that most Americans -- except The 5% who just keep "rollin' in clover" -- see no long-term prospect of significant economic improvement except for the fey hope Devious Donald inspires. 

And in that bargain, they surrender Reason, Will and Liberty for Agent Orange's propagandistic promise to "bring jobs back," "keep darkies out" and create magical abundance by lowering taxes, cutting regulations and trusting The Invisible Hand (to do something other than pick poor folk's pocket). 

Speaking of which, where are the jobs that, according to diehard ideologues, would be created by the Bush tax cuts? 

"Plutocracy Triumphant"
Cartoon Compendium

Compendium Of Best Pax Posts: Plutocracy, Economic Inequality & Collapse Of Conservatism

"Politics And Economics: The 101 Courses You Wish You Had"

Pope Francis: Quotations On Finance, Economics, Capitalism And Inequality

Teddy Roosevelt: "Malefactors Of Great Wealth... Are Curses To The Country"

Why Are Americans So Poorly Paid. This One Chart Will Even Shame The 1%

Inequality: Joseph Stiglitz Brilliant Reflection On Obama's State Of The Union Address

"Of The 1%, By The 1%, For The 1%,"
Nobel Laureate Joseph Stiglitz

It's Not About Income. "It's About Net Worth, Stupid!"

No comments:

Post a Comment