With each cycle of the income crisis negative feedback loop an accelerating economic decline moves the global economy spiraling downwards into an abyss that will eventually end in total economic collapse. Systemic declining real wages starting over 40 years ago has laid the fragile foundation that fed a continuing drop in consumption when credit could no longer be a sustainable proxy for income among low to middle wage earners. Even if credit was suddenly available - average Americans are already highly over leveraged. These factors triggered a negative feedback loop of declining real income available to 95% of the citizenry, falling consumption directly proportional to falling incomes, and declining business revenue accompanied by job lay-offs & retail price declines (deflation) all completing each successive feedback loop cycle. All along the course of the feedback loop cycle theses effects oscillate across the general economy in a continual downward slope of economic decline that translates into falling GDP and national capital stock destruction that occurs at an ever increasing exponential rate.

Reversing an income crisis 'drain spiral' becomes more difficult with the passage of time since unemployment and capital stock destruction exponentially increases across a number of income crisis negative feedback loop cycles. The longer a government waits to enact substantial fiscal stimulus targeted at low to middle income citizens the more and more 'income emaciated' these citizens become thus making it much more difficult to push the entire economy up out of the income crisis spiral.

Eventually, the nation's capital stock becomes so inconsequential from an economic perspective and the number of citizens who are unemployed so numerous that the government becomes the sole income generating agent (presumes the government has infused the economy with insufficient fiscal stimulus and/or is still making government expenditures into the private sector) in an extinct standalone private economy that has reached the terminus in an income crisis deflationary economic spiral.

Reaching the terminus point is a foregone conclusion without substantial (10% of GDP) government fiscal stimulation of the 'real' economy. At this terminus point economic activity in the country has been completely extinguished from successive negative feedback cycles down economic gradients with ever accelerating declines in GDP and national capital stock destruction.

Infusing the supply side (financial sector - or top of the pyramid) with government bailout capital will do absolutely nothing (covered in many of my previous essays) to get the 'consumption engine' of an 'income starved' economy running again. Effectively, there is no substitute for bold decisive action on the part of government policy makers in implementing a substantial fiscal stimulus program that immediately creates sufficient stable employment (not a token number of jobs) at a sustainable higher tier private sector wage rate. This must be immediately followed up with rebuilding the nation's capital stock to pre-income crisis levels through infrastructure investment in an industrial base that lends itself towards taking advantage of a nation's competitive advantage in multiple areas. In the case of the United States it has been determined that long term stimulus investments (substantial) that target the creation of a 'Green Industry' sector would have the potential of employing millions of Americans across all professions within two main program branches comprised of manufacturing and delivery. Subsidiary industries would also be created either directly through government and/or private sector capital infusions that would ultimately employ a cross section of every professional occupation group that has been placed on the unemployment rolls during this income crisis.

The global community has so little time left in which to act decisively. We are racing ever faster with each passing day down a cold dark abyss towards the terminus of economic collapse. We must act now, not later.

Posted on my blog 11/5/2008 at:
http://structuraleconissues.blogspot.com/

It's impossible to conclude that our economic environment is not subject to the same diversity that comprises our natural environment. Given that an economy is a subset of the society that wrests itself from an unforgiving natural world riddled with chaos, why do some branches of economic thought continue to rationalize humankinds pecuniary endeavors down to neat tightly, clean, predictable outcomes. The structure of an economic system must reflect the multifaceted and diverse characteristics of the world in which it operates - a world of varying personalities all interacting in incoherent ways.

Our universe is not clean and orderly it-s very, very messy - nothing ever seems to work out according to the best conceived plans. It is therefore imperative that we not endeavor to extend our subconscious world view of tidy, neatly trimmed 'lawns' to any natural substrate in the living breathing messy struggle for life. There are no 'lawns' of perfectly crafted conception in nature so why extend the improbable to a natural world substrate? A prairie ecosystem is full of tall grass of varying varieties, riddled with ground squirrel holes, snakes in some regions, muck, and a variety of wildlife not allowed to intrude into our comfortable neat complacent checkerboard communities. But the interaction between the two does result in changes that affect both.

Similarly, our economic system must reflect the realities or 'ground truth' inherent in the natural environment, societal structure, and impractical, irrational interspersed behavior of the human substrate. So why continue to refine any economic model based upon illusion by further perturbing an already tumultuous society by injecting policies that don't align with any existing observable dynamic?

Over the past few years we've been led to believe that the Laissez-faire neoclassical economic realm of illusory conceptualization would translate into this wonderful world guided by some 'invisible hand'. Ours would be a service sector oriented economy never again requiring the utilization of dirty hands, and strong muscles. Every citizen would magically be endowed with all the necessary intellect, desire, and personality to expand the service sector into the preeminent sector of employment. There was just one problem with the distorted nation state competitive advantage simplistic view of our globe - it still left a substantial segment of our population underemployed, and unemployed because they just didn't fit into the special mold of a service sector laborer.

Expanding the concept of competitive advantage outside of its original boundaries centered in a particular industry was just another attempt to mold reality (only perceptually achievable by propaganda) to fit illusion. Over the past few decades we've been deluding ourselves into thinking that a viable economy can function stripped of its manufacturing sector. It has become abundantly evident that an economic system crafted for the benefit of the larger community cannot operate solely as a service sector economy devoid of a sustainable manufacturing base.

Competitive advantage must mold both the service sector and manufacturing components across industry segments that are jealousy defended by national policies within a completely economically integrated world. No economy can be sustained under just one of these core economic components they both must be merged together in order to achieve some semblance of economic and societal sustainability & stability.

We have witnessed the effective subversion of an already inherently unsustainable service sector nation-state competitive advantage model into something contrived and contorted beyond its illusory construct. Perpetuated by the 'information age' propagandists we were led to believe that an economy could be solely built upon a technologically oriented service sector. Factories were no longer needed within an economy based solely upon intellectual labor. The problems with this early nation-state competitive advantage centered model were three fold. First, it was myopically constrained to a nation-state centric advantage that never expanded across borders. Secondly, it failed to account for the unpredictable effects of human behavior within a tumultuous greed enhanced global society. Thirdly, as already conveyed, the competitive advantage of a technologically oriented service sector was too broad in scope to be maintained at the nation-state level.

But what mutated from this touted elegant distortion of reality was driven by the second factor, the uncontrollable greed educed by Laissez-faire religious tenants that encouraged human behavior contrary to the maintenance of sustainable and stable communities. Any behavior was permissible in the corruptly focused short-term greed addicted behavioral state. What evolved was a belief system built around the individual to the exclusion of the community a credo that any means was justified even the 'slash and burn' pillage of entire nation-states to fulfill the unquenchable desires of the few wealthy elite. Labor arbitrage became the 'club' of choice wielded by the 'strong arms' of an army of mercenary lobbyists fielded to sustain the wealthy fiefdom's ability to exploit workers by any means imaginable.

With so many interconnected messy threads weaving throughout our society, class consciousness, across unique behavioral responses to stimuli, and the turbulent at times dangerous physical world we inhabit it is abundantly clear that any economic theories must be conceived in the forge of reality. It is a reality that recognizes a simple requirement of all human beings - fairness. Without fairness or some form of equity, infused with equality the best conceived seemingly realistic policies will be nothing more than distorted illusion cloaked in a thin veil of reality. Human beings are very adept at perceiving whether certain aspects of their societal framework is fair, or slanted towards the interests of those ultimately in control. No amount of 'packaging' will deceive a community of citizens over the 'long haul' - this is aptly reflected in the current rejection by the general populous of the trickle down supply-side greed based economics benefiting the few practiced over the last few years.

Quakers believe that we are all our brothers keeper, that when we act in the best interests of our fellow human beings we serve the better interests of our communities. Thus, realizing that in order for a sustainable, stable economy to transpire we need to include everyone; those who desire or are suited to work in a vibrant manufacturing component, others who excel in a service sector intellectual or assistance driven component, and those who must be cared for by a compassionate community (government) because their unable to survive in either component of a competitively oriented sector of our economy. It is also important to integrate our nation-state economies into an 'International Economic Congress' whereby the interests of Capital (businesses) and Labor can be democratically resolved, and a coordinated oversight of all economically related endeavors can be achieved for the betterment of the entire global community. We are on the cusp of an appreciation that transcends any past global paradigm shift - our movement towards a sustainable, stable world community is very achievable. Let's make it happen.

Originally posted on my blog at:
http://structuraleconissues.blogspot.com/

As I've mentioned previously, there is a particular urgency that you call your elected officials this week to tell them no on the Colombia Free Trade Agreement.  President Alvaro Uribe flew into DC on Tuesday of this week to work behind the scenes to talk with your elected officials to convince them to go along with this trade agreement that was drawn up without the voice of labor--just Bush and company, Uribe and his AUC deathsquads, and American corporations like Chiquita.  It is disgusting.

Oops I just learned that Uribe delayed his visit until next Friday because of the conflict in Bolivia.
Still it doesn't hurt to call your Congress people on this topic.

I've been reading and writing about this topic for over a year now. A lot of my research and comments can be found here: 

http://iflizwerequeen.com/?cat=425

   Read More »

Campaign Receiving Important Endorsements:

As we move into the fall campaign season, the McCracken for Congress campaign is receiving several important endorsements. Earlier this month we were honored to receive the endorsement from the Pennsylvania AFL-CIO. This is a key endorsement from an organization that is a leader in supporting the rights of the working people, not only in the 5th district, but in Pennsylvania and across the nation.   Read More »

White House Announces Bush Administration to Leave a Record Budget Deficit of $482 Billion.


Since January when we began our campaign for the 5th District seat in the US Congress, I've consistently stressed that my biggest concern is the fiscal mess that has happened in Washington. This week, White House officials admitted the Bush administration would leave office in January 2009 with a record budget deficit sitting on the books of $482 BILLION. This record $482 billion deficit is coupled with a record debt of $9.5 trillion.

On January 20th, 2001, when George W. Bush was sworn in to his first term in office and the Republican Party had control of both houses of Congress, the United States government had a record budget surplus, our economy was in a period of record expansion and the national debt was being paid down. In fact, if the Bush administration would have continued the fiscally responsible polices from the 90's by continuing to grow the surplus and pay down the debt, the federal debt could have been retired by 2013.   Read More »

Blind Acceptance of Unjust Economic Society
http://structuraleconissues.blogspot.com/2008/07/blind-acceptance-of-unjust-economic.html

We've all been blessed with the ability to rationally discern reality from illusion propped up by an aesthetic orthodoxy of economic fundamentalism. What do we realize when we arrive at a gas station to fill our car up with gas, visit the grocery, receive a bill from a hospital that shows a $200,000 balance that our insurance didn't pay, open the mailbox and find a foreclosure notice on our home, get the news that our office or factory is closing and moving overseas, or we find ourselves unable to send our child to a university because the cost is now beyond our comprehension? Are we then struck with a profound belief that the 'free market' coupled with 'globalization' will continue to provide us with economic security or does reality grasp us by the neck demanding our recognition.

We all know far to well what is transpiring globally - a select group of oligarchs (the business elite) that comprise less than 5% of the population have setup a system (totalitarian economic society) that ensures them ultimate power over the 95% of us that fall under their crushing 'boot'. Within their society we're continually bombarded by the frantic ranting of fanatic experts espousing the omnipotence and infallibility of the 'free market economy'. They've even instructed the most intellectually pliable among us in the fine art of simultaneously reconciling a multitude of contradictions into unquestioned compliance and acceptance of their orthodoxy. Essentially, all it requires is a citizenry that is indoctrinated into thinking in terms of proffered processes and dissuaded from deep thought.

When you can rob someone of all pretenses of personal power over their lives and instill in them a sense of hopelessness in the face of forces seemingly beyond their control you've essentially anesthetized them from taking meaningful actions at understanding the reality of their situation much less directly acting to change their condition. Feelings of "that's just the way it is", "we've done it to ourselves", "there's nothing we can do about it", and "we'll just have to adjust", begin to permeate the collective consciousness.
...

The 'Free Market' Guise Is "Big Brother"
http://structuraleconissues.blogspot.com/2008/07/free-market-guise-is-big-brother.html

Funnel everything back onto the adaptive, receptive masses of the global citizenry instilling in them a feeling of inferiority whereby all their actions have and will be perceived to result in a continuing deterioration of their economic situation. It is a perversion of thought pandered through the totalitarian economic society that every injustice or inequality committed by the business elite is ultimately our fault due to our inherent inferiority. We are to blame for not adequately educating ourselves, for over spending, and generally not adjusting to the new world economic order.

In order to effectively perpetuate this ball-faced lie the media is used by the business elite to manipulate not just public opinion but thought itself. There now exists correct and incorrect thought and incorrect thought is portrayed as deviant thought to be identified and ultimately vanquished within our current authoritarian society. Thought is always constrained to only those ideas and concepts acceptable to those who wield power within a strictly regimented hierarchical society. Therefore within the totalitarian economic society complete uniformity of opinions throughout the entire global citizenry is a goal strived for constantly by the elite.

The totalitarian economic society can only effectively extend it tentacles of corruption, subversion, hate, and inequality into every crevice of existing equality through their complete obliteration of the self. Individuality is the enemy of the oppressor for it represents individual thought that disrupts the currents of illusion perpetuated by effective societal propaganda. In fact, the two primary aims of the totalitarian economic society is the complete subjugation of all global citizens under the 'heal' of the business elite and the maintenance of a perpetual vigilance targeted at rooting out and extinguishing all independent thought from whatever level of society it originates.
...

Not Inflation but Monopolistic Pricing
http://structuraleconissues.blogspot.com/2008/07/not-inflation-but-monopolistic-pricing.html
Inflation is an increase in prices that is triggered primarily from rising wages among the general population which in turn results in a significant consumption 'pop'. With more and more money flowing into the economic system from the acceleration in consumption spending by a citizenry flush with wealth - prices will trend higher. Companies realize that there are far more consumers that are willing to spend money on their products than products available to purchase - they therefore ramp up production to meet the demand. In the process, these companies will increase their prices for their products realizing full well that consumers that may never have purchased their products before may now want them given their new found wealth.

Prior to reaching an inflationary period the Federal Reserve will analyze trends in inflation indicators such as the M1 money supply and wage levels relative to worker productivity. If the money supply and wages start rising within an economy that has experienced negligible productivity increases this (along with other economic markers) typically indicates that an economy is moving towards an inflationary period. Wage increases within an economy that has experienced negligible productivity gains is indicative of a tight labor market and/or a well organized labor market that is in a position of strength relative to (capital) corporations. In the 1960's & 70's when the United States was at its economic nadir and labor unions represented a larger percentage of workers there were periods of inflation and one brief instance of stagflation.
...

Wake up America - The Financial Pillage Continues
http://structuraleconissues.blogspot.com/2008/06/wake-up-america-financial-pillage.html

The U.S. dollar's fall against most of the major currencies is the result of a lack of confidence by speculators and governments in the future viability of our economy. We are a nation of debtors that produce very little of anything - not even our past ingenuity and technological base remains for it was erased by greed induced multinational companies scouring the planet in search of cheap labor. Why would anyone want to possess even one dollar bill since it represents a government in name only, a government that is completely beholden to special interest business elites that only use its shell to do their exclusive bidding. Therefore it is only logical that these same evil cloaked speculators realize that the United States is on the verge of a final pillaged by their fellow wicked business elite rulers. Why possess the paper money of a shell of a nation whose poor citizens are bleeding profusely on the pavement (from globalization) unable to muster any meaningful spending power without acquiring debt that they can no longer find or afford.

Only the special interests of a few well heeled business elites matter to our governmental representatives - you're of no concern to them, just a mere citizen. National interests are no longer relevant because nations are fast becoming just fascades that are used by the business elite to exact their complete control over every aspect of our lives - our wallets will be completely drained into the bottomless cauldrons of a seething greed that covers the entire financial landscape of this corrupt totalitarian economic society.
...

The Human Toll of Our Economic Death
http://structuraleconissues.blogspot.com/2008/06/human-toll-of-our-economic-death.html

Sitting out in the car last fall waiting for Diana to step out of the last remaining department store in a dilapidated mall that had been dying slowly for a few short years, it occurred to me that the moment represented the collapse of our nation. This store was closing its doors forever, when the setting sun caressed it in shadows - there would be no returning. Looking over the quiet, dark, and desolate concrete that the encased towering glass opening one couldn't help but wonder what went wrong, for when it happened we were all in the midst of flying head first towards the payment with hair streaming back - there was no halting the terrible fall.

This had mall been just a reflection of the general capital destruction (both material and human) that had been occurring even prior to the 'Great Fall' which happened in just a few sharply defined months. Through a combination of factors both inherent to the distorted economic society and symptomatic of the resulting consumption crisis that grew unabated as real wages steadily dropped lights everywhere started their crescendo of darkening.
...

Consumption Crisis Resulting From Distorted Economy
http://structuraleconissues.blogspot.com/2008/06/consumption-crisis-resulting-from.html

Everything that transpires on our planet cycles within one of many natural loops given that the entire biosphere is our self contained spaceship hurtling us on its elliptical track around the Sun. Space engulfs this living organically lush planet reaching around it with a cold vacuum of nothing other than plasma energies that race across the poles ebbing from our pulsing star. All the various natural systems stabilize across a range of dynamic spectrums merging, mingling, and converging across boundaries that are in a constant state of flux. Nothing is at any instant in a state of equilibrium but only continually approaching a natural steady state. The key word is approaching, since the planetary events are like a boiling pot of water vigorously active but never so stimulated to exceed the natural limits placed upon their expanding volume of molecular excitement.

Chaotic systems both natural and artificially induced (like our contorted, manipulated economic society) always involve the excitement of a multitude of variables that operate within a unique closed system. It is still a system even though most of the variables have been distorted in order to bring short-term gain to a few at the expense of those many who continually grope for income with outstretched hands. Any one of the perturbed variables may tilt the entire system towards temporary instability. Granted a multiplicative effect of income generation is possible by generously infusing the system with income but only through meaningful production either creative or actual transformation of material into useable capital is unperturbed economic steady state migration possible.
...

Caress Us with Lies from a Corrupt System
http://structuraleconissues.blogspot.com/2008/06/caress-us-with-lies-from-corrupt-system.html

The cackles can be heard coming from behind every wall of this 'windowless dirty room' that where trapped within - with little or no hope of escape. Don't worry every now and then they'll throw us a dark moldy piece of stale bread from that opening in the wall to our far right. Word is that those on the other side who call themselves 'controllers' have nightly banquets within crystal palaces. The controllers belong to a select group of privileged citizens who are the lobbyists, business elite, corrupt elements of the intelligentsia, and least we forget the governmental representatives that have been 'body snatched' by the business elite through their lobbyists.

We've been dropped here because when we were working outside within their society we had the indiscretion to engage in wasteful spending. Not just your average supplementing of our paltry subsistence wages through excessive borrowing (credit card, and 2nd mortgage debt) at their financial 'company stores' but the heinous act of causing a correction within their economic society. We neglected to cut back our daily meals from 3 to 1 in order to save some of our meager income at their banks.
...

Oil Block Induced Profit Inflation - Crumbling Economy
http://structuraleconissues.blogspot.com/2008/06/oil-block-induced-profit-inflation.html

Immediately nationalize all the oil companies whose corporate offices reside within the borders of the United States. Seize all assets belonging to the oil companies and their associated oil block (OPEC, oil speculators, and oil companies) thieves' intent upon exacting a short term extraction of available income from every sector of our dying economy. The consuming nation-states should use any and all means at their disposal to ensure that an adequate oil supply is maintained. We cannot afford to idly watch while the entire contrived totalitarian economic society swirls into an income drain gasping with flailing arms for consumption that is mostly chocked off through artificially imposed oil company profit inflation, and speculator income extraction enhanced through OPEC production limits.

Stop the profit inflation spurred on by the oil 'block' intent upon financially razing each and every global citizen leaving behind a barren economic landscape incapable of sustaining consumption spending. With the consumption 'machine' already sputtering from lack of any real wage growth among the working class (even during a period of unprecedented productivity gains) the assault by the oil 'block' on the wallets of this most important group of citizens further erodes their already strained ability to spend. With each and every day the erosion of potential spending from this majority of the citizenry is spilling every additional dollar of potential spending into an encroaching sea of oil profits.
...

Many more articles that break through the wall of illusion...
http://structuraleconissues.blogspot.com/

The following is from the United Steel Workers (the link to the source follows on the extended post)

Top Ten Effects of Globalization

10.   Manufacturing Job Loss - Since early 2001, we've lost 17.4 percent of our manufacturing jobs.  That's nearly three million family-supportive jobs!

9. "White Collar" Job Loss - Accountants, scientists, editors, programmers and many others are at risk of seeing their jobs head offshore due to the growing availability of technology and cheap labor.  A Princeton economist recently estimated that 30 to 40 million U.S. jobs could be outsourced in the near future.

8.  Devastated Workers & Families - The U.S. social safety net isn't properly set up for workers in this economy.  Often, a job loss means losing a pension, health care and financial footing. These pressures mean severe strain and hardship for families.

7.  Depressed Wages & Benefits - Direct competition with workers around the globe (who are often paid poverty wages) means U.S. workers are pressured to accept lower wages and fewer benefits.  Globalization creates extreme income inequality.

6.  Failing Economies - When jobs are lost, the tax base shrinks. It becomes tougher for communities and states to provide services to taxpayers. 

5. Shrinking Paychecks - Manufacturing jobs average $725/week, while the overall weekly average for all jobs is $602/week. 

4.  Giving Our Nation's Lawmaking Power to Corporate Entities - We've put ourselves in a position where we've had to overhaul our domestic laws because they've been challenged at the World Trade Organization.  In deals like NAFTA, we agreed to let corporations challenge any of our laws - even environmental protections!

3.  Skyrocketing Trade Deficit - Our number of exports is dwarfed by the number of products we import.  This isn't sustainable and goes hand in hand with job loss.

2.  Sweatshop Exploitation & Toxic Imports - Globalization is encouraging companies to scan the globe to find the most exploitable workers in order to fatten wallets.  Child workers, slave labor and inhumane conditions are becoming all too common.  In this rush to make cheaper goods, safety standards are compromised. We are then left with toxic products flooding our market and endangering even the lives of our children.

1. Constant Stress and Insecurity - We now live in a world where no matter how hard we work or how dedicated we are, we can still lose our job at any time.  We have to constantly live with the fear of losing our job, not being able to support our families, losing our healthcare and being forced to take a job (if we can even find one) that pays much less and immediately lowers our standard of living.

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