Great Recession

Five Years Since Financial Collapse, And What Has Been Learned? NOTHING!

Ronald 30 Comments

Five years ago this week, the financial markets on Wall Street collapsed, and America fell into the Great Recession, which many might consider the Second Great Depression, now five years long, despite claims the Great Recession is over.

Lack of proper regulation of Wall Street and the banking industry, a result of GOP control of Congress for 12 years, and a Republican President, George W. Bush for 8 years, along with some manipulation by leading Democrats, led to the worst economic outlook since 1941, and even now, five years later, with the improved economic conditions, employment will not return to pre 2008 levels until 2020 at the rate of job creation now existing!

A lot of this reality is due to refusal of the Republican Party to cooperate on legislation to create and encourage jobs, including infrastructure jobs and promotion of education training, and working to return overseas jobs to America.

But also, the Obama Presidency has not worked adequately to reform the banking structure and Wall Street, and the possibility of Larry Summers being Federal Reserve Board Chairman is precisely the WRONG thing to do, as he is part of the problem that led to 2008, and is an arrogant, overbearing, obnoxious individual who should be told to “take a hike”, with Janet Yellen the far better candidate to be the head of the Fed!

So if it going to take a grand total of TWELVE years from beginning to end for this Great Recession to be over, how is that different from the Great Depression which lasted from 1929 to 1941?

Meanwhile, a whole generation of people are suffering in terms of employment, something that will scar their future, and that of the American economy!

This is a very sad, troubling situation that must not be allowed to happen again, but it seems as if NOTHING has been learned!

The Growing Democratic Party Suburbs: The Death Knell Of The Republican Party!

Ronald 1 Comment

Traditional views of American politics tell us that the cities, the urban areas, are overwhelmingly Democratic in loyalty; that the suburbs, which blossomed after World War II, are Republican, as people escape the city and urban problems, and are heavily white; and that the exurbs, those areas much further away from the cities, are Republican, along with the widespread land we consider rural areas.

So as long as the Republican Party wins the suburbs, the exurbs, and the rural areas,a they can be competitive and win national elections.

But it is now apparent by statistics that the suburbs are rapidly turning Democratic, as they have become no longer white “flight” havens, but instead have become a mix of Americans of all races and religions and cultures, and sadly, poverty has come to the suburbs, in some ways almost as badly as in the cities, due to the Great Recession.

The Republican refusal to accept that poverty is not the fault of citizens, but of circumstance, and rejection of the concept that everyone should be entitled to health care, is having a long range effect on Americans living in the suburbs.

It is not just economic factors, but also social factors, such as the issues of gay marriage, abortion rights, labor rights, concern about the environment, education, and the recognition of the need to adjust to a changing American society, which is also helping the Democrats, as the Republicans come across as mean spirited, biased, prejudiced, uncaring about anyone except the wealthy, and refusing to recognize the demographic changes that have developed in suburbs, as well as the cities.

So a political party that thinks it can survive and prosper on the basis of winning the exurbs and the rural areas is a party in total denial, as while there are massive land areas where these people live, the percentages of population living in those areas is miniscule, compared to the larger population numbers in the suburbs, as well as the cities.

While many Congressional districts can be gerrymandered and give the Republicans greater influence than they should rightfully have in the House of Representatives, their agenda and public persona of their leadership insures that the cities and the suburbs will be majority Democratic for a long time, giving the Presidency and the Senate to the Democrats. In the long run, this guarantees that the future Supreme Court , and even the lower courts, will be heavily influenced by Democratic Presidential appointments, which are considered and approved by the Senate, where Democrats need to fight to keep control so that they can promote the agenda of Democratic Presidents, and resist a Republican House majority based on artificial conditions, that can eventually be turned over to a Democratic Party majority over time.

Economic Reality Grim For Most Americans, Whether Based On Race Or Education Level!

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Growing evidence shows that the effects of the Great Recession, and really the policies of Republican Presidents and Congresses since 1980, have created a grim reality for a vast majority of Americans—likelihood of poverty, deprivation, and lack of opportunity, even for college graduates in large numbers for a long period of years! And where one lives does, and will have a dramatic effect on the long term futures of millions of citizens!

A study shows that four out of five adults in America will struggle with joblessness, near poverty, or reliance on welfare for part of their lives! 76 percent of whites will experience such a situation by the age of 60!

15 percent of the American people, nearly 47 million of the population, are in poverty, with higher percentages of African Americans and Hispanic-Latinos, but in absolute numbers, whites are 41 percent or 19 million of the poor, double what African Americans are in numbers. Most of these poor whites live in Appalachia, the industrial Midwest, and the heartland of Missouri, Arkansas, Oklahoma and the Great Plains, areas of rural communities , and even in many suburbs, in areas where 60 percent of the poor are whites.

So working class whites, those without college degrees, are in a terrible state, unable to look forward to the accomplishment of the “American Dream”!

But the problem is that even those who have a college education are facing a horrible job market. Many are unemployed, while even more who are working, are underemployed, working part time, and also, many are working in jobs that do not require a college degree, so are wasting years trying to break in to the job market they planned for, but are unable to engage in, due to the Great Recession and its aftermath!

Additionally, it has been demonstrated that where one lives has a dramatic effect on climbing up the income ladder! Social mobility up the income ladder is MUCH harder in the Southeast and industrial Midwest, including such cities as Atlanta, Charlotte, Memphis,. Raleigh, Indianapolis, Cincinnati, and Columbus!

At the same time, social mobility and rising up the income ladder is best in the Northeast and the West, including New York, Boston, large areas of California and Minnesota, and Pittsburgh, Seattle, and Salt Lake City.

It is extremely disturbing that earlier studies of social mobility demonstrate that a smaller percentage of people escape childhood poverty in America than in Canada, Australia, France, Germany, and Japan.

Affluent children tend to remain so, achieving a lot of success by as young as age 30, while children from poverty rarely see much improvement, and that is not just a race issue, as whites have the same results, based on how they were born, rich or poor!

The need to deal with social mobility and opportunity, for working class whites and minorities, are the agenda that Barack Obama is pursuing as he travels the nation, calling for an economic plan for the future, including improvements in education, infrastructure, new technologies, and environmental challenges to overcome climate change!

There is no more important agenda for the nation than the providing of economic opportunity, in a nation where the middle class has been decimated, from its high point, 40 years ago, in 1973!

Republican Factions And Hatred Of President Barack Obama

Ronald 40 Comments

The Republican Party is creating a history they will not be proud of, when the history books are written on the times we live in!

Yes, every President has opposition from the party out of power in the White House!

But the level of hate against Barack Obama is beyond all sane limits!

One faction, the establishment Wall Street Republicans, hate Obama for the gall that he has, expecting that after years of lack of regulation of Wall Street and the oil companies, and years of massive tax cuts for the top two percent, that he dares to promote regulation, and higher taxation of the wealthy!

Another faction, the Tea Party radicals, are out to return America to the 19th century, condemning everything the New Deal of FDR and the Great Society of LBJ have done to promote equity, fairness, and justice in America in the past century, and they see Barack Obama as the inheritor of those highly popular and successful programs! Instead, they want to put labor, women, minorities, and the poor back to the times that existed in the Gilded Age and early 20th century, a time of laissez faire capitalism and Social Darwinism. And much of the Tea Party Movement resembles the old South of the Confederacy, longing for a return to the pre Civil War mentality, as well! And therefore, the average middle class person is being exploited by the right wing groups led by the Koch Brothers and other corporate interests, who see a way to manipulate public opinion for their own selfish, greedy desires to dominate and increase their acquisition of wealth at the expense of 98 percent of the population!

And then, there are the Christian conservatives, who want to control our private lives and impose a theocracy on America, denying the Founding Fathers’ promotion of separation of church and state. In so doing, they wish to cause more control over our lives, while rejecting economic regulation and pushing social regulations, and they see Obama as a threat to their agenda!

The fact that we have been experiencing the effects of the Great Recession has allowed these groups to exploit the situation, and allow them to make it seem as if Barack Obama has created these conditions, when these groups are simply acting demagogic in their desire for control, and advancement of their own agendas, against the interests of the American people at large!

The Imminent Doubling Of College Student Loan Interest Rates: Tragedy For America!

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If nothing is done to prevent it, on July 1, student loan interest rates will double from 3.4 percent to 6.8 percent, and the Republicans in the House of Representatives are doing nothing to prevent this tragedy, not only for college students, but for the long term future of the American economy!

As it is, many college students are in a bind, unable to pay their student loans, and therefore, will lose their credit rating, and be unable to purchase homes, rent apartments, buy automobiles, plan to have children, and all of the other plans and dreams of young people, who get an education and then discover how difficult it is to gain employment in their field of study!

37 million young people have student loans, and close to 7 million are delinquent on student loans more than 90 days.

The average outstanding student debt per household was nearly $27,000 in 2010, and one in four students have a debt more than $61,000 per household, an insurmountable burden.

69 percent of student loans are paid by middle class and poor families, and 24 cents of every dollar earned in a poor household and 12 cents of every dollar earned in a middle class household goes to student debt payments. For the higher income level, only 2 cents per dollar earned goes to student debts, and only 31 percent of loans are in higher income households.

$1.1 trillion, second only to mortgage debt, is owned by students who have no hope in many cases of ever coming out from under what is a form of economic slavery!

With the Great Recession of 2008 and its aftermath, the effect has been to delay or forgo the vision of ever having a normal economic life of home, automobile, and marriage, the whole concept of the “American Dream”!

While this crisis festers, banks are able to borrow from the Federal Reserve at 0.75 percent, one eighth of what students will face after July 1, adding $2500 to their financial burden, while under a plan of Senator Elizabeth Warren of Massachusetts, students would get the same interest rate as banks, and save an average of $6500 per student.

This change in student loan interest needs to be adopted, but the GOP seems uninterested in doing anything, and lack of action will victimize millions of college students!

67 percent of Americans want the Warren plan adopted, and 83 percent want the loan rate to stay at 3.4 percent or go down to the bank rate of 0.75 percent!

Can the Republican Party for once do what is right for young people, since not all young people are born to wealthy parents? Can they show some understanding of the struggles of young people trying to get ahead and get an education, and still have a future of independence, ownership of homes and autos, ability to have children, and save for retirement?

Should student loans become a new form of economic slavery forced on us by banks which have no conscience, other than obscene profits?

College Graduates Now One Third Of Those Ages 25-29: The Highest Percentage Ever

Ronald 37 Comments

Higher education has reached more and more Americans over time, and now among those 25-29, one third have at least a four year undergraduate degree.

More Americans have started and graduated college in recent years, spurred on by the Great Recession, and the recognition that unemployment levels among college graduates is 3.3 percent for those ages 25-34, compared to 11.8 percent for high school graduates.

Still, too many students fail to finish a four year, or even a two year degree, and in many states, the graduation rate is much lower than in others, with the trend being that the “Blue” states have higher graduation rates than the “Red” states, another indication of two Americas in our midst, one in the 21st century, and the other moving back socially to the 19th century in many ways, sadly!

And low income American families still see only about one out of ten of their children going on to college and graduating in a six year period, while high income families see seven out of ten children gaining a college degree.

And women are graduating at higher rates than men, another disturbing issue regarding the emotional maturity of young men, many seeing just having any job as enough, making more women more highly educated than men, and in many cases, choosing not to marry someone of lesser educational attainment.

And Asian Americans continue to have higher percentages of college degrees, followed by whites, blacks and Hispanics, respectively.

The road to the future in a technology based and digital economy is higher education, so those not attaining that goal are at a long range disadvantage in the American economy of the future.

Michele Bachmann To Leave Congress: Goodbye, Good Riddance, And Please No More Public Appearances Once You Leave (Fat Chance)!

Ronald 55 Comments

Minnesota Congresswoman Michele Bachmann, arguably the most infuriating Republican House member, although there are others who could certainly compete for that honor, has announced she is not going to run for a fifth term in her Congressional district, and everyone should celebrate this news!

Bachmann will go down as one of the most reckless, most irresponsible members of the US House of Representatives in its entire history!

She said stupid, inane things on a regular basis; worked at character assassination of Democrats and progressives; and her husband added to the embarrassment of her public appearances and speeches, both on the floor of the House and off!

She contributed NOTHING positive to American politics, working at dividing Americans, rather than unite them on anything!

She was also an embarrassment to the advancement of women in politics, and her Presidential campaign was a disgrace, that she even thought she was qualified to serve in the Oval Office!

To believe that she is a tax attorney is hard to conceptualize, as he came across as brain dead, having no understanding of the Constitution and the Bill of Rights, and rejected science totally, and accepting mythology and hearsay as fact!

To believe that this dumb moron was on the Intelligence Committee of the House demonstrates what a mockery the Republican Party has become in the House of Representatives, accomplishing the least legislative action of any Congress in 70 years!

Bachmann claims that she was not worried about losing her seat, even though her margins of victory were smaller each time, and the last round, she won by one percent.

Bachmann also claims that she is not concerned about the investigation of her Presidential campaign funding by the Internal Revenue Service and the Federal Bureau of Investigation, but an active pursuit of information about likely corruption is in process, and do not be surprised that she could be indicted, and could, in theory, face expulsion from the House if the investigation develops quickly enough over the next 18 months.

It would be fitting for Bachmann to be repudiated and forced out, as she is a a literal nightmare that brought out the ugliest side of the American right wing!

And the Tea Party Movement, of which she was the leading member, is also in trouble, and hopefully, there will be a repudiation of that hateful, backward, movement that promoted selfishness and greed, and condemns people who are not part of the elite upper class white establishment that put us into the Great Recession!

Meanwhile, we have rid ourselves of Florida Congressman Allen West, South Carolina Senator Jim DeMint, and former Alaska Governor Sarah Palin, other morons and threats to a stable future in America, so we do have some things, as progressives, to be happy about!

The True Heroes Of Natural And Man Made Disasters: Teachers, Nurses, Paramedics, Police Officers, Firefighters!

Ronald 24 Comments

Again, with the Oklahoma and Boston Marathon tragedies, as so many others, it is PUBLIC servants–teachers, nurses, paramedics, police officers, firefighters–who are the true heroes, doing beyond the call of duty to rescue and save lives!

But yet, these public servants are constantly pilloried and condemned, if they demand a living wage and decent benefits, as appreciation for their services, while people in the world of business make outrageous salaries and perks on Wall Street, and think that they deserve what they get, despite having messed up the economy, causing the Great Recession of 2008, as they have in every recession since the Great Depression!

We are told to worship Jamie Dimon of JP Morgan Chase, and other bank CEO’s who, by all justification, should be in prison for their actions!

We allow the Koch Brothers and the Walmart heirs to run rampant without any consideration of how they exploit their work force, and these are just examples, not the only ones.

We have Apple and Walmart and Target and numerous other companies which exploit foreign workers, and do not give a damn about safety or a decent living wage for these poor women and men who died in the disaster recently in Bangladesh!

It is time to hold these corporate leaders and companies accountable, and stop complaining about public servants who deserve respect and dignity and better pay for their sacrifices and dedication to the people they serve!

Senator Elizabeth Warren, Banks, And Student Loan Rates

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Massachusetts Senator Elizabeth Warren is a treasure to behold, and the legislation she has just introduced, to give college students the same low loan interest rate that the big banks get from the Federal Reserve when they borrow money, is a wonderful idea!

Instead of a doubling of student loan interest rates from 3.4 percent to 6.8 percent, Warren suggests that the rate be what Wall Street gets from the Federal Reserve–0.75 percent!

Why not, as the big Wall Street banks have caused the Great Recession of 2008, and are still victimizing mortgage holders and credit card owners with outrageous rates, and also forcing many into bankruptcy by intimidation and manipulation?

The big banks need to be put under tight regulation, but of course the Republicans in the House refuse any such thought, and if this is not enough to convince sane people that the GOP is out for the wealthy alone, then what will?

Warren should be applauded for her effort on student loan rates, and fight for fairness, even though it is a long term battle!

And if Hillary Clinton decided ultimately not to run for President, then Warren needs to become the alternative female candidate for President of the United States! She would be an inspiring leader for the American middle class and the poor!

Wealth Gap Has Widened Due To Economic Recession: Danger For America’s Future!

Ronald 4 Comments

While almost everyone, except the very wealthy, suffered from the Great Recession and its aftermath during the past five years, what is most distressing and dangerous for the future of America is the widening wealth gap among the races.

The average white family earns TWICE what the average African American or Hispanic family makes, and has SIX times the total wealth of the average minority family..

White families lost eleven percent of their wealth due to the recession, as compared to 44 percent for Hispanic families and 31 percent of black families.

Unless “Baby Bonds”, an investment in a child’s future, are given to all poor families, the future of minority youth to overcome their poverty and deprivation will be impossible, and the wealth gap will be impossible to narrow over future decades!