Thursday, October 14, 2010

The Lies We Swallow

We're told lies by our government and by Wall Street all the time and all we can do is shrug our shoulders and hope that someone will come along and change things. But it doesn't help when people will actually defend these lies as truth. I want to put two of these lies to rest right now.

During the gas price surge from the late 1990's all the way until the collapse of markets in 2008, the big lie from the oil companies was that there was always a reason for the gas prices to rise. Prior to the late 1990's there was a natural ebb and flow to gas prices, but, in general, they remained pretty stable - fluctuating, on average, about 25 to 50 cents a year. Starting in the late 1990's however, whenever the price inched upwards, it never came back down. Once gas crested $3.00 a gallon, the public started to take notice, and that was when the lying began. We were given every excuse under the sun - oil refinery fires, hurricanes, solar activity, war, famine, you name it. If something bad happened somewhere, it was a cause for gas prices to rise. Though I'm no economist, it was obvious that the people raising gas prices were looking for any excuse to justify their greed.

When the whole economy came crashing down shortly after gas prices reached $4.50 a a gallon, gas prices fell dramatically - and then rebounded slightly until they reached the $3.00 a gallon (CA price) average that they've been at since 2008. Two years... no huge increases despite dozens of natural disasters, oil refinery fires, etc... All of those things that previously caused the price of gas to jump 25 cents in one day suddenly have no effect on the price of gasoline - thus refuting, once and for all, that these things had any effect on gas prices in the past.

In much the same way, I think we can look at the incredible bonuses paid on Wall Street (a record amount this year) and really quell anymore talk of Trickle Down Economics. Again, I'm no economist, but it seems that the more money paid to Wall Street execs, the less money there has been on Main Street. There is no such thing as trickle down economics. It's a complete BS economic theory. So anyone still spouting off about giving more money to the rich so that that money can then stimulate the economy for the poor should just have their heads examined.

Now, I'm not talking about tax breaks for companies to hire employees or help for small businesses to pay health care costs or things of that nature. I'm talking about some whacked notion that we should give tax breaks to the wealthiest few because, somehow, the money saved by these few people will then trickle down to the rest of us in the form of jobs and other subsidies. It's just not going to happen. It never has. And it never will.

Historically, empires have sprung out of countries that recognized the wealth that came from the Middle Class (Don't believe me? Then ask yourself how the Dutch became a world power). It's not all that hard to understand why. If you put wealth into the hands of the wealthy few, they will defend it and not let it out of their sight. But the middle class aren't as controlling. They will spend most of that money to maintain their lifestyle and what they don't spend they can be enticed into giving back to the government in the form of taxes and fees to pay for the things that everyone needs (like roads and clean water). All fiscal policy should be set to increase the middle class and control the excesses of the rich. That's just good economic policy. Trickle Down Economics is not only a lie, but its bad economic policy.

Okay, enough real world stuff now... back to fantasy... have a good day!

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