The Profoundly Screwed-Up Beliefs That Compose Mitt Romney's Economic Ideology

[Mr. Big Dog 10,747]

I don't believe in rewarding poor choices either but the economy isn't going to get better if there's no money circulating though it. It's a day of reckoning. The US economy grew on credit for too long mostly because middle class incomes have largely been stagnant for the last few decades.

In 1978, the average income was $45,798.00. In 2007, it was (adjusted for inflation) $45,113.00. Over the same 30 years, the GDP grew 110%. Where did all the money go? Not to the bottom 90% of the population where the income grew only modestly. At the top 10%, however, income tripled over that period.

In 1979, the top 1% collected about a third of all profits. Now, it's about two thirds. While a CEO earned about 30 times the average salary of the workforce in the 1950's, they're now taking home 400-500 times the average salary. A full 37% off all the wealth of this nation is owned by 1% of the nation's population.

Of course, this is unsustainable. And we should have learned that. After all, the income and wealth gap in the 1920's was very similar to that in the latter part of the first decade of this century. And the result of it is very similar too. Shouldn't be surprising, really.

[BobandXiaomei 14]

I don't believe in rewarding poor choices either but the economy isn't going to get better if there's no money circulating though it. It's a day of reckoning. The US economy grew on credit for too long mostly because middle class incomes have largely been stagnant for the last few decades.

In 1978, the average income was $45,798.00. In 2007, it was (adjusted for inflation) $45,113.00. Over the same 30 years, the GDP grew 110%. Where did all the money go? Not to the bottom 90% of the population where the income grew only modestly. At the top 10%, however, income tripled over that period.

In 1979, the top 1% collected about a third of all profits. Now, it's about two thirds. While a CEO earned about 30 times the average salary of the workforce in the 1950's, they're now taking home 400-500 times the average salary. A full 37% off all the wealth of this nation is owned by 1% of the nation's population.

Of course, this is unsustainable. And we should have learned that. After all, the income and wealth gap in the 1920's was very similar to that in the latter part of the first decade of this century. And the result of it is very similar too. Shouldn't be surprising, really.

That period just pre-dates the information age and has within it all of the advances and efficiencies that computerization has brought. Where's the money? You nailed it: Senior-most managers stuffed it in their pockets and then started outsourcing to cheaper labor the work so the profits would continue to roll in and they could stuff more money in their portfolio. They didn't reinvest enough to keep it all going.

Edited August 26, 2010 by BobandXiaomei

[Dan J 277]

The conundrum as I see it is that in efforts to maximize profits American corporations have been sending jobs overseas. Now they are desperate for someone to buy those goods. But who? The American workers are in fear of losing their jobs and they don't want to buy anything beyond the basics.

So the corporations won't hire because there is not enough purchasing by consumers. But the consumers won't purchase because they're wanting a job or at least a better feeling of job security.

Your Opinion May Vary

There is some truth to this. All you have to do is look at the unemployment rate broken down by education level.

Those with 4 year collage education or better, have an unemployment rate around 5%. Not as good as the 2-3% rates of the bubble, but not terrible either.

Those people with less education, have unemployment rates that reach 15%. Many of these people would have found themselves in types of jobs that we have been outsourcing or in construction which has been hard hit by the housing bubble collapsing. I don't see at any time in the foreseeable future we will create a lot of the types of jobs that will be filled by people without collage education. When we do, they will be very low pay (More people will end up as part of the working poor). What makes this more difficult, is at the same time, collage costs are often rising faster than inflation.

[mawilson 2,133]

Really? So help people that are idiots?

Yes. Most people are idiots when it comes to borrowing, including Obama and Congress.

[BobandXiaomei 14]

Yes. Most people are idiots when it comes to borrowing, including Obama and Congress.

What folks are looking for is the multiplier effect that one expects from infusion of money into the system. We do know that banks and corporations are setting on record or near-record amount of cash.

Edited August 26, 2010 by BobandXiaomei

[I AM NOT THAT GUY 5,715]

I guess your value of fairness, is more important than an economic recovery.

Fairness as in social justice?

[웃 910]

I'd rather trust Romney with the economy than Osama. I mean Hussein. I mean Musshadeen. I mean Musleem. I mean Rasheed. I mean Muhammed. I mean Musliiiiiien. I mean Allllan. I mean Shareed. I mean Kareeem. I mean Shaqueeen. I mean Mujadeen. I mean Obama.

[Pinocchio Liberal 268]

What folks are looking for is the multiplier effect that one expects from infusion of money into the system. We do know that banks and corporations are setting on record or near-record amount of cash.

Please refrain from speaking for other people. It seems to be a problem these days.