Enter the New Great Depression
It’s foolhardy to make predictions about the future, but increasing numbers of Americans don’t have much to lose anymore, so why not be foolhardy?
It looks to me that we’re entering into a depression. The recession has already been here for awhile, but now it looks as if we’re going deeper.
You might want to call your bank this morning and check – has it been bought out by Bank of America yet?
This isn’t just a credit crisis, or a real estate crisis. If wages had not been declining for decades, there wouldn’t have been such a demand for credit in the first place. The monumentally stupid economics brought to us by Ronald Reagan never trickled down. Instead, America’s wealth trickled out, as special tax breaks for corporations and the super wealthy left the United States. The fat cats never reinvested their supply-side savings in the United States. They took their money and invested it in jobs and manufacturing resources in countries like China and India.
Then we’ve had that Iraq War (thanks for George W. Bush and John McCain!), which has sent more money overseas instead of investing it here at home. That money has come in the form of dollar bills, converted through the magical processes of defense contracting, into bullets which, one shot, are destroyed forever. Spend a dollar locally, and it cycles through the community five times. Spend a dollar on a bullet, and it doesn’t cycle at all. It’s just spent.
The Republicans are now going to tell the American people that this depression has arrived because there wasn’t enough offshore drilling – although even if all the offshore drilling the Republicans are asking for were allowed, it would save mere pennies per gallon of gasoline. Drill baby drill, they’ll say.
I have another prediction to make: I fully expect the American public to believe the Republicans.