Middle Out Economics

Over the last several days Barack Obama has pushed a notion that we need to have bottom up economics. Without mincing words, I think he is a little off. He does talk about the middle class, but the middle class isn't the bottom. It is the middle. The problem is that it is shrinking.

Trickle Down or Bottom Up, these are both notions of Democrats. Neither is a sustainable economic theory. They are just simple slogans. What we have to do is reinvigorate the Middle Class. There is really only one way to do that. We need to regain the sovereignty of our nation by putting corporations back in their box.

Currently, we don't have a Capitalist system. There is a notion pushed by Democrats that we do. The Bail Outs have sheared the vestiges of capitalism back to nothing. Capitalism is an idea and ideas don't die, but the system that is currently in place is a Corporate centered Neo-Feudalistic model.

The Neo-Feudalistic model basically centers itself around having no middle class. There will be an elite class who control the Mega-Corporations and include those who revolve in and out of the government and then there will be the peasant class.

In Romney's latest commercial, the ad says that he wants to cut taxes to create jobs. Well, we've had taxes cut and stimulus ad nauseum. The plan has been very successful and created millions of jobs. The problem is that those jobs have been created in China and other third world countries. Last week I spoke with associates about our need to push back Free For All trade. They said that we need to work on issues that we can influence. The problem that I have is that any issues we work on are irrelevant until we address the 800 pound guerrilla in the room.

So you want to grow the economy, then you are going to have to get the real middle class back on track. How do we do this? By investing money in our nation's physical infrastructure. Where does this money come from? By getting Wall Street back under control with a tax on high frequency algorithm computer trading  and bringing labor price parity into the Free Trade equation.

Will there be unintended consequences? Yes, we can't avoid consequences whether we act upon this or not. Will increased domestic labor costs cause prices to rise? Yes, but people will have jobs and without this prices will rise anyway, but there will be a continued deterioration of our job market. Without people having money, then there is no marketplace and that is where we are steaming towards. We have fundamental flaws in the marketplace/economy.

So the political contenders can continue bobbing and weaving on the real issues and ducking and dodging the real questions, but at the core of this lack of growth in our economy is the issue of job growth (both capacity and wages). Without good paying jobs, we will not have a middle class. Competing against people making pennies to our dollars is not going to grow wages. Wages have not kept up with costs. People have less and spend less and the economy naturally shrinks.

What has the average American gotten out of this current system? The Wealthy class isn't assuming the risk they did in the past. If they fail, then one of their set up cronies will be along shortly to bail them out. If they succeed, then they get millions in stock options and other benefits that aren't afforded to the working class. And while this continues, our nation's future outlook continues to deteriorate.

20 years down the road, please tell me how this Free Trade World is working?

The Race to the Bottom