The Popeye Point

Until the recent troubles with the mortgage industry, the financial industry and its talking head puppets in the media were crowing about the rising numbers in the stock market. Every time I heard a glowing report on the market translated into a strong economic outlook I found myself saying to the TV “...and the stock market has what to do with the economy”? I know, I know, talking to the TV, or to anyone for that matter who is not there can be consider suspect behavior. All right, I admit that I’m crazy, I have papers that prove it…six pages in the last report.

But as crazy as I am, I thought the people in the Bush administration were crazier. Time has shown me that they are not crazy at all. They are lying, cheating, no good sons-a-bitches and the majority of the American people still buy into the myth.

When Bush took over in 2001, he had predicted a surplus of $516 billion for fiscal year 2006. The 2006 deficit of $248 billion, missed the Deciders projection by a mere $764 billion and change. Bush then went on to say that the numbers are "proof that pro-growth economic policies work" and are "an example of sound fiscal policies here in Washington."

Sound fiscal policy? Even conservatives disagree. Brian Riedl of the Heritage Foundation said, "The White House has a track record of projecting budget numbers to be a lot worse than they end up, which therefore helps them defeat the gloomy expectations and declare victory." If Bush does manage to make the tax cuts permanent, it will add more than $3 trillion to the deficit over the next 10 years. The federal budget would be virtually in balance if there had been no tax cuts. Ooops, is Bush stupid or just a liar?

Meanwhile, what we see in the economy as a whole is an immense shift of wealth from the poor and middle class to the very rich. It seems a little painful to have to point this out yet again after six solid years of it, but these strong economy stories are just lies, damn lies based on some sort of statistical masturbation.

While lightening the tax burden for the rich, other parts of the Bush economic program continue to undermine the middle class in this country. As you may recall, in 2005 the credit industry successfully rammed a disgraceful bankruptcy reform bill through Congress. It's working out just the way we expected it to: Middle class families are borrowing more than ever to make ends meet. Most families go under if: (a) they lose a job or (b) they have a health emergency crisis.

An attorney friend of mine sums up the legislation's impact: "It's designed to make life miserable for anybody who owes money. It's a help-the-banks, squish-the-little-guy law."

One of the lessons of history is that we don’t learn anything from history. If the powers that be would read just one book I suggest that if they value their interests they might want to read Das Kapital and the section about what I call the “Popeye Point”. That point occurs when the squishees declare, “I’ve stands all I can stand, I can’t stands no more.” At that point there will be a place along the wall for the ‘haves and the have mores.” It might make a good reality show.

Dog Out