It Doesn't Have to Get Ugly
Posted: Wednesday, July 28, 2010
by Robert Bregman
Yes, E. Ray everything you say could come true, but like they say in Gershwin's Porgy & Bess; "It Ain't necessarily so." There is a way out of this mess
A little background first. Since WWII, the recessions in the USA have generally been caused by our penchant for over selling; autos, housing, capital goods (steam shovels, diesel engines, jet aircraft, etc.). Not all at once mind you, sometimes it was autos, sometimes another industry.
The big deal this time is that we pushed the string on autos, housing and capital goods all at the same time and now we have an inventory recession in the three biggest industries at the same time and that's why we feel this recession so deeply. One doesn't have to point fingers; we were all in on it. Oh, some more than others, but there is hardly anyone who didn't participate one way or another, on the front side or the back side (except, of coarse, me and you ;-) ).
Why is it so difficult to get out of this unholy mess? One main reason is that while the country is waiting for the inventory of homes and cars to get chewed up; there are no new industries for the workers to get jobs. Another reason is that the public's credit has to be replenished, this takes savings. If the public is saving, the public isn't spending. 70% of what happens in the USA , sales wise, is done by the public. Without that number growing, the economy doesn't grow. The economy runs on credit, if the consumer is not using his credit, we get a serious slow down. We get what we are going though now.
What happens now? The government steps in and honestly like the horse cavalry, comes to the rescue. Hooray! We need an energy policy; the government can provide one that sponsors alternative energy projects. The USA , the most efficient and inventive country in the history of mankind, is falling behind in the race to become the preeminent manufacturer of alternative energy systems; wind, solar, geothermal and nuclear. As an example take the wind turbine industry, of the top ten turbine companies in the world, only one, GE, is in the United States . How can the congress let this happen? Another example is China . The Chinese are building solar power manufacturing facilities as fast as they can. Why aren't the Republicans as up front as the Democrats in trying to craft an energy bill that will eventually create millions of well paying manufacturing jobs? I believe that an energy bill will get through the congress and lots of money will be spent on partnerships between the government and the private sector. Lots of money will be saved as we reduce our dependence on foreign oil. Venezuela 's Chavez has recently threatened to cut off oil to the U.S. , if we don't stop helping our allies in Columbia . Plus we can cut down on the billion dollars a day we send to OPEC and other oil producing nations, ONE BILLION DOLLARS A DAY! In order to start job building immediately, the government, through the private sector should cover the roof of every government, state and municipal building with solar panels. This will produce hundreds of thousands of jobs, particularly in the building trades, where the job market has been hardest hit. Whatever the government does to help, it will require less carbon based energy. Carbon fuels do not put more people to work, except in Saudi Arabia , Nigeria , Venezuela and Iran . Photovoltaic power puts people to work here. China the leading producer of photovoltaic modules sees the future and is investing in it. We in the USA let the oil and coal industries lead our Republican and some Democrats congressional representatives around by their noses, like a bull with a ring through his nose. It's embarrassing to watch. The oil and coal industries are doing everything that they can to ensure that no energy bill goes through, which to me proves the need for an energy bill. If they don't want it, then it must be good for us, you and me, the people.
In the past we could take our time with reviving the auto, computer industries and the like, because we had a lock on those businesses. In the old days people were laid off, now they are fired, never to be rehired. The manufacturing has gone overseas. We set up this free trade nonsense. It's free trade for everyone but us, we abide by the rules, no one else does. We lost the advantage of mass production to countries that under ordinary circumstances wouldn't have a prayer against us. We still have the most productive workforce in the world. Let's use them!
It's time for both political parties to get together and start working for the benefit of the people, not the banks, not Wall Street, the people! Bottom line, things in this country could get a lot better faster than anyone believes.
Bob Bregman is a graduate of the US Naval Academy, Class of '51. He is probably not the youngest author on SearchWarp (might be the oldest)
, just an old sea dog. He flew B-29's during the Korean conflict. He spent 25 years in Wall Street as a trader. He then went into the corporate world, a very ugly place. Cheating, lying, stealing and bribery were SOP from DuPont to Exxon. He retired in 1990 and went back to trading. Oiy! So then he went to selling computers, it was lonely trading. Selling was more fun. Then he sold Nissans, Hondas, and finally Fords. That was fun. Started to get old so he retired again. Now writing, because he's really irritated with his country's direction as personified by the Republicans & Tea Party horn blowing.
, just an old sea dog. He flew B-29's during the Korean conflict. He spent 25 years in Wall Street as a trader. He then went into the corporate world, a very ugly place. Cheating, lying, stealing and bribery were SOP from DuPont to Exxon. He retired in 1990 and went back to trading. Oiy! So then he went to selling computers, it was lonely trading. Selling was more fun. Then he sold Nissans, Hondas, and finally Fords. That was fun. Started to get old so he retired again. Now writing, because he's really irritated with his country's direction as personified by the Republicans & Tea Party horn blowing. This Article has been viewed 730 times. (Not updated in real-time.)
Top-level comments on this article: (8 total)Yeah!!Good morning, ERR,What a pleasant way to express your satifaction.Good luckBob
You posed some interesting things to think about. thanks for writing this piece!Thank you Marijo,If I've got you thinking, I've got you. I'm looking forward to reading some of your work.Good luckBob
Robert, first, please let me congratulate you for your graduating the Naval Academy and giving much to your country in Korea. As an American I thank you. While reading some of your articles I find that I disagree with some of what you say but I agree with you regarding this article wholeheartedly. I too hope that we as a country "put it in gear" together as a team, and do what we have the ability to do.SteveThanks Steve,Going to USNA was as great an experience as I've had in a pretty full life, so I have to thank the people of this country of ours for sending me there. The government can do things right. The service academys are the pride of the nation and the envy of the world. The academys have taught us all a lot about team work.And, Steve, disagree all you want, that's how I learn, if you'll tell me your side of the story. Thanks again.Good luckBob
Another great article, Robert.One additional point: the workforce that has been displaced by the demise of dinosaur industries needs new training to find jobs in the new energy tech fields. I think we need to find ways to encourage the new industries to train the men and women who are older and out of work, as well as the youngsters just entering the business. It's hard to find a job in these new fields when you're 50 and looking for a job...you've got lots of good years yet, and a working brain, but employers won't necessarily take a chance.I really like your writing and your thoughtful topics. Thanks again!Thanks Debi,You are one of my earliest fans. You are right when you write about training for new industries. It is one of the things that the government is working toward. As a matter of fact I believe some states have programs. The problem is the states are broke and sometimes can't follow through when the training is needed the most. The president is trying to get more money to the states so that they don't have to cut programs.Thanks for thinking.Good luck.Bob ;-)
"It ain't necessarily so" - what a great song title, and it's something I really believe in. I think we're capable of reaching for solution and achieving it, and actually I think we are working towards it. I don't buy that we're about to implode on ourselves. Thanks for your inspiring article.Thanks Jen, (Can I call you Jen or do you prefer Jennifer?)I loved the music in Porgy and Bess..."Old Man River" was another great song from the musical.We certainly, as a people are capable of a solution, that's why this election is so important. Let's try to elect patriots who can think for themselves and us, the people. It doesn't matter which party their affiliated with.Thanks again.Bob
Hi Robert, I'm reading this in reader's club, and it's still great! Thanks again.Hi again, Jen,Wasn't there a song about things being better the second time around?. I forget what they were singing about, it must have been love.Thanks againBobEverything they sang was about love, they had their priorities right!
robert-thanks, your last paragraph says it all. when and how do you think that will occur?-bingBing great question, I wish I had a great answer.
I can't predict the future and won't even try, but I've been around long enough to have a lot of experience with the past. History indicates that like lawyers, disputes between partys get settled when there is no further benefit to carrying the case forward, they want to get paid; Congress wants to get elected. This next election may tell us something. If the Dems don't lose too many seats in the House, the GOP may decide that being obstinate may not be the right tactic and the corporations who are paying may decide that they are wasting their money trying to control the congress. If the Dems lose a lot of seats they may realize that the people want to be controlled by the corporations, the Supreme Court seems to think that's the peoples wish. There are other choices but these are the ones that come easiest to my mind.Thanks again for the commentGood luck.Bob
I think America above all is in a good place to get ahead as they are a consumerist society. America is programmed to trow away the old and purchase the new, the reason why this mess appears bigger than normal is that the main part of the loop i.e. the "Banks" will not lend out.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.