Monday, June 13, 2011

Living in the Banksters world

And by Banksters, I mean the owner/investor class. If you're still wondering why there's no political will to deal with the unemployment crisis, the explanation is simple enough. Two words. Corporate profits:

Profits at American companies are poised to be one of the few bright spots in the U.S., helping to steady the faltering recovery.

Earnings will climb an average 10 percent a year through 2013, more than three times quicker than the economy, after what has already been the fastest rebound since the late 1940s, JPMorgan Chase & Co. projects.
And why don't the corporations care that the consumers in our consumer economy don't have any money if they don't create jobs? Pretty much the same answer. They're making mega-profits in foreign markets and low wages at home mean -- more profits.

“Employment growth will gradually get better, but the increase in wages for each worker will remain weak,” Mellman said. Unemployment exceeding 9 percent and a pool of almost 14 million Americans without a job give workers little leeway to ask for higher pay. That means the Fed will stick to its “low- for-long” policy on interest rates for some time, he said.

“With increasing profits and a lower jobless rate, at some point wages start to go up as workers get more bargaining power,” Mellman said. “But we’re probably a few years away from that.”
On a related note, this is part of the Banksters' grand plan to restore a feudal society.
The aim a century ago was to mobilize the Industrial Revolution’s soaring productivity and technology to raise living standards and use progressive taxation, public regulation, central banking and financial reform to distribute wealth fairly and make societies more equal. Today’s financial aim is the opposite: to concentrate wealth at the top of the economic pyramid and lower labor’s returns. High finance loves low wages.
Read the whole wonky piece at the link for all the gory details. Our system is so broken. These guys literally want to take over the world and leave the majority of us in complete serfitude. And our political class will sell their souls to their cause for a few paltry million in campaign donations. We are so screwed.

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Blogger Ruth said...

The very big hole in the right wing plan to beggar the workers is that they haven't figured out yet that the upper 1% doesn't buy enough in quantity to support the economy. For awhile we ramped along on credit. That time is over. When business reporters insist that it's lack of confidence that's keeping the retail sales down, they're really whistling past the graveyard that is the consumer economy. The stock market is not the real economy, it's gambling and nothing more. Even on Wall Street, without real products and sales, the national goose is cooking, slowly.

11:55:00 AM  
Blogger Libby Spencer said...

Banksters don't need American consumers to make their money anymore. Neither do the multi-national corporations. So they're never going to care. But found it interesting that the cables are suddenly worrying about poverty. Their base is really the non-computer savvy working class who will keep their cable tv as an affordable source of entertainment for as long as they can. And they're reaching the point where they can't afford it.

9:21:00 AM  
Blogger Ruth said...

Even banksters need U.S. income/disposable income levels to make their money. Quantities sold at bottom prices don't do it. For now, they're reassuring themselves that it's lack of confidence. Making pennies a day means not being able to buy things that cost dollars.

12:34:00 PM  
Blogger Libby Spencer said...

Not sure they need us as much as they used to Ruth. They seem to be making a ton of money even though nobody has any in the US.

12:35:00 PM  

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