Mojo2
Gold Member
- Oct 28, 2013
- 6,210
- 1,026
The big challenge for any post 1973 presidency is how to revive the great postwar middle class without credit cards and debt.
During the great postwar period - an unprecedented period of middle class expansion - Americans use to flock into Main Street businesses and consume because they had high wages and great benefits. Then Reagan decided that high labor costs were strangling capital investment and dampening economic growth.
As a result, America traded manufacturing plants (which were shipped to cheaper labor markets in Asia) for shopping malls (which were kept in business not by solid wages but MadterCard Visa and American Express).
The Great American Middle Class - the envy of the world - died when we shipped our manufacturing dominance to China. After shipping their jobs overseas, we tried to keep our middle class alive for 30 years by the most steroidal expansion of credit (debt) the world has ever seen. That experiment ended in 2008, under George W Bush, when consumer debt finally reached a tipping point. Americans, in record numbers, were spending more than they earned. It got so bad that they turned to the last thing left with any value - their homes. This resulted in a meltdown of epic proportions. Now there simply are not enough solvent consumers left to drive domestic consumption.
Had Obama successfully destroyed the health insurance monopoly that had been bankrupting middle class consumers for years, his presidency would have been a spectacular success. Unfortunately, he was defeated.
Game over.
You guys problem is always a pre-supposition of an impossible political, societal or cultural stage upon which your fantasy WILL work every time.
But you WILL never and CAN never make your ideas work because the supposition is impossible. For example, your post here mentions NOTHING about any of the other intentionally deceptive and decidedly un-American activities, attitudes, policies that existed or were going on at the same time which would have made Obama's presidency a failure.
You show us this marvelous matrix of bureaucratic and economic symmetry on paper but once you try to get it to work in the context of reality it all falls apart.
EDIT: And by the way, here's something from The Atlantic Monthly.
Hey, Barney Frank: The Government Did Cause the Housing Crisis
PETER WALLISON
DEC 13 2011, 11:20 AM ET
A member of the Financial Crisis Inquiry Commission responds to our interview with Barney Frank, arguing that without the government's intervention, there would be no housing crisis
"...It is government's fault for offering a housing finance program without making an effort to maintain underwriting standards..."
Hey, Barney Frank: The Government Did Cause the Housing Crisis - Peter Wallison - The Atlantic
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