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GOOD NEWS OR SAME OLD NEWS?

August 4, 2017
  1. GOOD NEWS OR SAME OLD NEWS?
    Today I participated in commentaries to a blog containing the supposedly good news that the unemployment rate is down and that there are 209,000 new hires in the month of July, as though the economy is poised to make great strides as employment has reached the level preceding Bush’s Great Recession. Economic growth and the 22,000 Dow level, except for the moneychangers and paper shufflers on Wall Street is not related to how the real economy is performing, as I explained below in a thumbnail sketch of what is really happening amidst this cancer of wage inequality in our economy. Take a look.
    Other  good news this morning – 209,000 added to the workforce in July, but as I often blog, it doesn’t matter if we have 0 percent unemployment and 4 million people added to the workforce every month if they are being paid slave wages. Demand would only be marginally affected and social outlays marginally reduced, but the economy would still be underperforming because of the slave wages paid by corporate America. An increase of 1.6 percent in economic growth whatever the numbers are on unemployment even with a 0.2 percent annualized increase in median wages offers no help on aggregate demand as they are eaten up by inflation, a situation that leaves us where we were before Reagan ended the fair sharing of the economy’s income and introduced trickledown economics to America, a system that ended the New Deal and handed the economy’s income over to the rich and corporate class, a class that is now enjoying a 22,000 Dow while complaining about high taxes and overregulation all the way to the bank.
    My point is this: That with the current lopsided policy of giving the money to the rich and corporate class while taking it from those who make such earnings available for the pickings no good news is possible since it is aggregate demand that controls market economies and not statistics on unemployment and a stratospheric Dow and, obviously, with the lack of wherewithal comes a chronic lack of demand and a continuing flirtation with recession whatever such statistical measures claim to be measuring – but aren’t. Doubling the minimum wage would be a start, but with 40 years of stagnant or even declining median wages we have a long way to go to pay labor in tandem with what we have paid capital over the past four decades. We need an “affirmative action” policy on behalf of working Americans to catch up with the wage travesties imposed upon them by those who fill the airwaves and business press with propaganda relating to “trickledown” and “austerity” economics, neither of which works, and both of which are deliberately and fallaciously labeled as pillars of market economies, which they are not. What to do? Agitate ceaselessly for a living wage for all, and by so doing end wage inequality for all and rescue an underperforming economy in the process. When? Now.   GERALD     E
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