Peruse the news this morning: just five companies are responsible for 28% of the S&P’s 2017 returns, Synchrony, Capital One, and Discover have increased their provisions for bad loans by 36% already this year, 40% of Americans spend half of their income servicing debt, Bernanke says even a meager 3% growth in GDP is unlikely, and Mish Shedlock adds the capstone to the morning news by pointing out half of the country is living paycheck to paycheck.
As much as I rather despise Donald Trump I get it. The dynamic has to change. People – everywhere – demand a chance. Those chances cannot be limited to a select few geographical areas and the select few occupations that are the recipients of the largesse generated by Federal policy. We cannot continue with a political model that generates only 2% (or less) of economic growth but every single dollar of that small amount of growth ends up in the wallets of less than 10% of the population.
We cannot continue a political model where there are more people of working age not working than there are people employed in private-sector full-time jobs – yet that is the situation that for the last eight years we have been induced into believing is good and ‘Progressive’. The unthinking response of the automatons that by raising the minimum wage and bestowing further benefits on those who are unemployed and underemployed will quell this tidal wave of discontent is delusional. We tend to look back on Marie Antoinette allegedly saying, “Let them eat cake” and we wonder how someone could be so thoroughly obtuse. We then look at DC and state governments and the media and some of our neighbors and we fully understand Marie Antoinette.
“Let them eat cake” is the battle cry of half the country at the moment. Raise the minimum wage, give them more benefits but do not do anything to change the dynamic of the largesse flowing into the hands of the few – in other words let them eat cake.
People are demanding that the dynamic change – not for the dynamic to be accelerated.
Half the country has become invisible to the other half. They don’t exist, they don’t count and they most certainly are not to be listened to. One half of the country labels the other half as racist and homophobic and xenophobic and whatever rude things they can think of in order to satiate their conscience at being able to ignore and dismiss their plight. One half of the country believes that if they just supply the other half with more government cake then the other half will be grateful – and if they are not grateful it just goes to show why it was socially acceptable to ignore them in the first place.
Marie Antoinette indeed.