Class Warfare

My first post outlined why I believe wages will rise. Little did I know at the time the agency of the change would not be supply and demand, but the redistribution of wealth through the executive branch. In the end the current policies ensure that the economic cycle will take much longer than it might have normally to reach the next peak in the earnings cycle.

The carbon tax is most insidious, permeating every thing we do which expends energy, it will fall on the poor as a percentage of income, estimates as high 6.9% for low wage earners and 1.9% for high. 135 dollars per month on a wage of $2000.00 per month, two weeks wages per year. Uhm! Looks to me like another decrease in purchasing power needed to be overcome by a future wage increase.

The increase in the debt, taxes, and maybe worse of all an increase in fees charged by local governments. In some case minor traffic tickets are over $500.00 in California, fees for a water meter over $10,000, fee for applying for a permit - through the roof, state a local bond issuance. It will come to an end. The increase in debt is a parabolic growth rate and will crash. Come to an abrupt halt, when others are tired of holding deflating dollars and stop buying our debt and we are tired of the every increasing cost of the government burden. It can't happen! It has over and over through out history.

Rome was built and rebuilt. The coin of the realm begins as pure gold, the tax collectors trim off a little piece, now the price of a loaf of bread is one whole coin or two cut coins. Cut coins made illegal, so they were shaved, again made illegal, and ridges were added to the coins. The Senate gets in on the act buy adding alloys to the gold they can make it go farther next time taxes are collect and it will be to hard to cut, shave, or melt. At the same time the workers figure out they can vote, they vote benefits to themselves and the decline continues. Rome took a thousand years to build, due to the velocity of money we could in fact replicate the whole cycle in 2 or 3 hundred.

Bottom line inflation will come and the working people need a raise. It would have been far more expedient to mandate a $5 dollar an hour wage increase for every worker in America implemented $1 per year for 5 years. Might have cost less and would have been far more beneficial in liquefying Americans and therefore big business.

Aristotle said governing should be left to the middle class, if this is true it is time to stand up and be counted.

Robin Hood