[BITList] more re NYTimes.com: Japan Goes From Dynamic to Disheartened

[CT's]

?hugh

from the article I  found similarities between the slow decline of japan and the predicament the usa is in now. that is, an eroding of living standards and great expectations. 
May be not everyone is going broke - but many are. There are nearly 15 million people claiming unemployment benefits, and probably another 5 million who have given up!

the apparent attractions of an all- knowing free market in the usa pushed forth by politicians of all stripes, [but largely republicans] embraced deregulation and privatisation, attacked and diminished labour unions, cut taxes on the wealthy [think trickle down economy] and shredded social safety nets. the general result was stagnant wages for most americans, more job insecurity. and steadily widening inequality. 
but by design, the benefits of economic growth accrued to a smaller and smaller group. Thus the goal of the rich to make themselves richer [via their lobbyist and paid politicians] was successful.

it is said, In the late 1970's the richest 1% of the country took in less than 9% of the nations total income. after that, income concentrated in fewer and fewer hands. by 2007, the richest 1% took in 23.5% of the total national income. is it a coincidence that the last time income was so concentrated was in 1928?

as the economy grew the majority in the middle [your average Joe] naturally expected to live better, because people at the top were seen to be enjoying the benefits in growth in the form of larger homes, bigger cars, more stuff - and all the other things money can buy. but in real terms most peoples wages were not rising! 
it  is said it is now Game Over for the American middle class - inflation adjusted wages are up only 20 % in the last 20 years while housing costs are up 56 % and healthcare costs are up 155 %.
with net falling wages  their aspirations to live better could only be fulfilled by firstly, borrowing from the banks [pay back later], and when that became difficult they borrowed on their credit cards [pay back later], and when that line of credit became difficult/expensive, they "re-fied" - re-financed their houses [pay back later]. Now most are left with the reality of having no more available credit and having to start paying back what they borrowed - difficult when you have no money or job. they can no longer buy the desirable baubles. 

Clearly when goods and services are no longer being paid for, businesses don't have that income and the economy sinks - as businesses have less/no business, equating to less/no income, workers are let go. unemployment rises, as we are now seeing.

it is a massive undertaking to turn the economy round, and with republicans saying NO to every effort now being made, I have little hope. So the US economy is going from dynamic to disheartened a la japan.

there is a ray of sunshine however. mid-term elections will be held in november, and it is possible that republicans will hold a majority then [democrats hold the majority now]. from what republicans say, they have the answer to all our many problems, just elect us and your problems are over...............

I tell my republican friends that I look forward to better days [like we had under bush43, ha, ha,] - because they tell us they have the key to progress, unlike japan....................................................!   

ct


From: HUGH 
Sent: Sunday, October 17, 2010 10:57 AM
To: BitList 
Subject: Re: [BITList] NYTimes.com: Japan Goes From Dynamic to Disheartened


Colin,

Bear with me - I'm not all that bright.  How can EVERYBODY be broke ??  Am I missing something?

Hugh.


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