Tuesday, September 23, 2008

Economy: Explain this to me?

I just finished a cup of coffee so my stomach hurts and I am beginning to get wired so I can start and hopefully finish my homework before it is due. Which would be nice. But I want to get something out of my system before I settle down to the tedious work, cause it takes a lot to get my blood boiling but I think the American Gov't has managed to achieve it.

Lets take a look at our economy:

As all third graders and above should know, America runs on a free market system. Supply and Demand rules the roost and it is every man for himself to make a profit. Greed serves the community and the system balances itself out. This seems all well and good on paper, and hell-even in real life but there is something Adam Smith missed when he first brought the idea of capitalism to the world. That is unearned income.

What is it exactly? It is income that is made by not giving back to the system. Earned income means that something is sold, a product is being put into use and the company gets the money so more products can be made. Money from the system is being recycled into the system, which is how the system balances. With unearned income, interest from a bank or from the stock market, money is being earned outside the system. With stocks, the company isn't getting the money when stocks rise, all that is happening is paper is being exchanged. No money is going into the system, which causes an unbalance.

What happens when an unbalanced tower gets to big? CRASH.

It happened in 1929, cause people were spending money they didn't have and because stock prices got inflated on nothing. The bubble burst and things came toppling. You would think people would learn from the past, but no...and now the same thing is happening all over again.

Good by Fannie and Freddie, ta ta Lehman brothers and Bear Sterns.

Now, this is aggravating enough-but what the government is doing in response to this is what is getting me really, really ticked off.

80 billion dollars to AIG, 700 billion to be distributed to other floundering companies. The golden parachute, the bailout. These companies screwed up, they screwed over investors, they let out bad loans, and let the bubble get much to big. They unbalanced the economy, and now they need the government to help them out. These big ole rich companies.

What about the worker? What about the homeless? What about the people who are kicked out of their homes due to bad debt and unemployment? What about those living on food stamps? people who are barely making morgage? the everyday investor whom are losing thousands over the stock market crash? The thousands of workers who are going to get laid off? why doesn't 700 billion go to them? Why does it go to the companies that fucked up?

Can someone please explain this to me? I mean, it doesn't make any sense at all! Than again, we are talking about the gov't but...come on! Why does the average american have to let their tax money go to these giants? Isn't it better spent on internal improvement? Isn't it better going to the people who were screwed over and not to those that screwed up?

I mean open your eyes people, look to the past. Big business has done nothing but fuck this country over in the past. The people don't benefit, the politicians and bussiness men do! Isn't it our country? Our money? Why the hell does a family have to worry about food when the government can spare hundreds of billions of dollars to a corperation?

I know I am only a teenager, and there are other forces in play-but I can't see them. Can anyone else? Please, please explain it to me if you do see them. Until than, all I can do is eye Canada in some sort of envy.

Screw the companies, give the money to the people. So they can consume, and get the money back into the system so it can balance itself. Stop pandering to the wealthy politicians, look to the people you promised to help. I can't wait to see how karma plays out in this. God damn.

I am going to try and do homework now, but I am still mad. Who wouldn't be?
Excuse me while I beat my head against a wall.

Questions?
-Cheers

1 comment:

TheLaugingMan said...

The economy is in the shitter, and so are we as a race. Those poor, poor consumers and men in sharp suits worth more than your second mortgage. Personally, when I saw the collapse of such large banks and insurers, I almost did a victory leap. Wake up, bankers. We'd like very much not to be fucked with while you repossess our homes, posessions, and lives. Thank you so much for putting us in incredible debt. Oh, and be sure to thank all your hard working employees who are now on unemployment pay and searching for jobs in the ever-so-quickly shrinking market. I hope you brought your parachute, it's a long fall from grace.