Posted by: James Atticus Bowden | March 3, 2009

Futures Tutorial Part 13: Economics Drive

futurestutorial13

The outcomes of the variables in the middle of the graphic push people to the Haves side or the Have Nots side.  The biggest outome would be, and proved to be true, a squeeze on the middle class. Middle class is a term that can mean many things.  If we take it to mean the folks earning more than the bottome 25% of the population and less than the upper 25% of the population, we are on safe ground statistically.  Although, there are many Americans whose family incomes are in the top 2% (today that is over $200K) who consider themselves and live lives that are ‘upper’ middle class but certainly not wealthy, privileged or rich.  Income, like real estate, depends on location, location, location.

In a previous post I showed the graphic of how the top half of the country were gaining in income over the bottom half.  We knew that in 1990-92.  It was exacerbated by taxes.  See http://www.americancivilization.net/articles/2006/Harvard_Tells_the_Truth_on_Taxes.htm 

The green words are options that have meaning for Virginia.   The economics lesson should teach us that we need to have capital growth.  More capital growth – real growth, not phoney inflation – is good for all.  And, Virginia needs to find new safety nets.  The nets are for individuals who will be squeezed out of health care and other benefits to keep their employer’s businesses competitive and for when whole industries, like furniture making in southwest Virginia, suddenly go away.

It is the political perception of the winning and losing outcomes that shapes future decisions in New Rome and Richmond – and around the world. 

Neither party in Virginia has demonstrated an understanding of this finding.  The Dems, our Puritan Liberals, reach back to the 1930s to try solutions, like government stimulus, that are proven failures.  The Establishment Republicans can’t bring themselves to cut taxes, cut spending and reform entitlements.  Conservatives could do it, but we have an impotent minority among elected representatives. 

This is the biggest story of 1992-2015 for domestic politics.  9-11 as Pearl Harbor for WW IV is the biggest story for international politics – but this economic story runs a close second. 

The current economic crisis we are in began as the housing bubbel.  Like the dot.com bubble.  If it continues and gets worse, like descending into a depression, you can thank the government and President Obama for that.  The policies Obama is scolding about are losers.  They will ruin the economy for as long as they are followed and great terrible problems for the future.

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