March 15, 2014

Fighting Inequality in the Long Term

No one is really attacking the problem including liberals. The focus is on increasing social programs like food stamps, minimum wage, unemployment insurance, aide for dependent children, etc. These are short term solutions that become long term costs if nothing else changes.

If we want sustainable equality we must fix our capitalistic system and we must do a better job of improving education levels of the impoverished. These are long term objectives and the above short term programs are needed in order to buy time to fix the real problem. Fixing capitalism helps the 99% because competition will lower prices to consumers and create more competition for workers and thus raise wages.

Capitalism is broken. Many markets are no longer free. They are controlled by oligarchs who shut out competition. Simultaneously our government no longer performs one of its most critical roles concerning our economy; being a referee to assure there is fair competition in every industry. The regulators are not regulating. They have been bought off by oligarchs. These regulators are bought off by lucrative jobs in the future in those industries they are regulating.

Four months after the FCC approved a merger of Comcast and NBC Universal, one of the commissioners who voted for the deal joined Comcast’s Washington lobbying office and Tom Wheeler, who is the current head of the Federal Communication Commission, was the chief lobbyist for the cable industry. These two gentlemen are now playing a major roll in deciding whether to allow the merger of the two largest cable companies in the country.
By the way, The CEO of Comcast, Brian L. Roberts, is golfing partners with President Obama. This goes on at the regulatory level our politicians are bought of by big campaign contributions as a result of Citizens United.

We also must do a better job of educating the poor. Free education in today's society must include two years of college. A high school diploma no longer is enough for an individual to compete in today's high tech world. In the past education was less of a necessity. Here in the Midwest you could work in an auto plant without graduating from high school and earn a solid middle class living with health insurance and a pension. Things have changed.

Today you not only need a high school diploma but some additional technical training to qualify for that same line job. Further, we are all competing in a global economy and as a result the domestic auto industry can no longer go along with raising the wages of union members and pass that increased cost onto the consumer. The consumer will go elsewhere.

It is not just the auto industry. The world is more competitive and will become more so as developing countries, such as the BRIC nations, the South African countries and developing countries in South America advance further. The good news is as these countries advance so will the demand for American made products. In the meantime these countries are catching up with us economically.... http://lstrn.us/1cgguJU

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