The WALTHER REPORT
By Tony Walther
As painful and scary as it is, I think that the current economic crisis we are going through in the United States is a healthy thing (as to the world-wide situation, well, that’s their problem).
Collectively as a nation we’ve been living on borrowed time or borrowed money for too long and the chickens have finally come home to roost.
You know things are bad in my local area when the home foreclosures have skyrocketed, they are starting to build smaller homes – when they build them – and the contractors are going before the city council to get public funds to build low-cost housing. That last one mystifies me. If the homes are lower cost, why do they need public funds? I mean if they are cheaper to build, why do they need help? And don’t tell me it’s the cost of union labor. Home builders to my knowledge don’t use union labor in this area, for the most part, at least. There’s a lot of “Joe the Plumber” entrepreneurs no license required types around here. There’s also a lot of under-the-table work in the best why should I pay taxes Republican tradition. Of course these same folks are quick to sign up for public assistance when they get hurt or run out of work. The underground economy is no secret here. It’s been covered in the news over the years.
But back to the economic crisis. My way of looking at it is this: maybe living on credit and living beyond one’s means is not the way to do things, even though the powers that be have encouraged us all to this very thing. And maybe an economy, nationwide, that is focused more on handling imports and the so-called service sector and delivering pizzas to one another leaves us all kind of empty.
To be sure, there are a lot of folks out there who have been prudent with their money, worked hard, and now are being made to feel some of the bad effects of the nation’s profligate and imprudent ways. While things are bad all over, it is particularly unfair to those people.
While credit at some level is apparently a necessary and integral part of our capitalist economic system, I think the idea that everyone lives on plastic was always a bad one. Consumer credit is what makes things cost so much. When businesses know that their customers can charge it, they charge more for the products and services they sell. They, the sellers, know they get paid up front, and then it is someone else’s problem to collect later. And even with all the home foreclosures and the mounting credit defaults, banks are still mass mailing credit cards, no questions asked. We get them at our house and even get calls from banks wanting to offer higher credit limits (apparently they are working on either no information or bad information).
One major problem is that there is no consistent and comprehensive program to teach basic consumer finance in the schools. I have a BA degree and never once, kindergarten through senior in college, took a basic consumer finance course. I did take a consumer law business course, but it had little about basic consumer finance. And the Bank of America did pass out bank books when I was in first grade, but no one explained what they were all about. That would have been a good start, though, and if they don’t still do that, they should, and get the schools to provide instruction assistance to the program.
And don’t get me started on what the public schools don’t teach. What they don’t teach, or at least not well enough, are the basics of reading and writing and arithmetic. That’s why the state four-year colleges in California have to send many of their students to remedial classes at the junior colleges.
Computers and technology are an essential part of life now. But we still need to get back to the basics, both in education and in our economy.
In a nation as geographically large as ours, with as many people, and as many natural resources as we have, there is no reason that we should not be a leader in manufacturing and producing everything from food to basic durable goods, to high tech, and of course we will have a service sector to support all of this.
It makes no sense to waste our resources and to have the government (read taxpayers) be forced to pay a substantial portion of the population to do nothing. We actually wind up importing workers, legally and not legally, and outsource work.
A nation with a strong manufacturing base can support all of its citizens, to include the sick and disabled and aged, defend itself, and not be dependent upon other nations for capital and the reduction in its own sovereignty that comes along with being a debtor nation.
The best days are truly ahead of us. And they can get under way with either John McCain or Barack Obama, but it looks like Obama is to be the one, “that one”, as McCain would say.
We’ve been reduced to such a wretched state with the poor leadership from both major political parties over the past several decades that we find ourselves in the uncomfortable position of adopting socialist-like state-run economic measures. This may or may not work in the short term.
History shows such measures don’t work in the long term.
I believe in reasonable controls on the economy that would seek to prevent the excesses that have occurred. And I support some type of universal health care for reasons I have stated in previous blogs. Health care no matter which way it is delivered is expensive. It needs to be delivered in the most efficient and equitable matter available. But leaving a large portion of working people and others out because they can’t afford health care is certainly not equitable and is not the way to achieve efficiency. One of the problems is that universal health care is often wrongly tagged as “free health care”. We all should invest, but that investment should pay us back in the form of security that would free all of us who are able to be productive members of society. And for those of us who are disabled, have some compassion. And don’t count me out. I may come back yet (and I am still paying on private insurance at the moment (won’t be able to soon), so that ought to make all of you die-hard Republicans happy).