The President might as well be trying to pump up the stock market on CNBC by claiming that the economy is improving.
A few days ago, Obama said that the world has avoided an economic disaster.
I’m very glad for the citizens of whatever world Obama has been living on over the last year, but here on Earth, we are still very much in the midst of a cataclysmic economic meltdown.
The most worrisome indicator has been the rising unemployment levels. In June, we lost another 467,000 jobs, but because the actual percentage went from 9.4% to just 9.5%, more and more people will say that we have reached the bottom, and that things can only go up from here.
They’re either lying or have no real idea how the US government actually tabulates the unemployment numbers.
For some odd reason, the official tally does not include the number of Americans who have given up looking for work, or the number of Americans who stopped receiving unemployment benefits.
The reason that the overall percentage only bumped up a tenth of a percentage point is that hundreds of thousands of Americans have already used up all 32 allotted weeks of their benefits. This means that people who lost their jobs back in November (when the numbers really started to go south) can’t collect anymore, and chances are it’s not because they just found a great new job.
If only 9.5 percent of us were unemployed, we would have reason to rejoice. But the fact is that this number falls drastically short of reality.
The first step towards overcoming alcoholism is to admit that you have a problem. The way that we tabulate unemployment is meant to sweep the ugly truth under the rug; to hide the fact that we have a very serious labor problem in America.
What we need to do to address the skyrocketing unemployment numbers is to first acknowledge their existence. My guess is that the real figure is closer to 25 percent, and it will continue to rise, despite what the President or anybody else tells you, until we address it.
The problem is that unlike during the campaign, the Obama administration has tackled the financial crisis using a top-down approach. Instead of directly bailing out homeowners who fell behind on their mortgages, they chose to bail out Fannie Mae, Freddie Mac, and a host of other lenders. This may have saved some balance sheets but it did absolutely nothing to help the people who were going into foreclosure.
Instead of infusing cash-strapped Americans who have no choice but to go out and spend it on necessities, the Obama administration chose to hand out trillions of dollars to banks and corporations, who in turn have horded the money and refused to ease credit restrictions, which was supposedly the whole idea in the first place.
You know what the really sad thing is? One of the more progressive acts to combat this financial crisis was actually issued by one George W. Bush.
Remember those tax refund checks that we all got last fall? They didn’t go very far, did they? My 300 went out the door immediately to pay a cell phone bill, a medical bill, and a credit card bill, and I imagine many other Americans had to use it in a similar way.
Some economists, at least the ones that I respect, are suggesting that another stimulus bill is needed in order to avert further economic disaster.
I agree.
What we need is another enormous tax refund to put money directly into the hands of Americans who have lost their jobs, their medical insurance, and their unemployment benefits. And this one needs to be much, much, much, much, larger than the first.
Here’s my wildly implausible scenario:
Thus far we have staked around 12 Trillion dollars in propping up enormous financial institutions. I’m not going to ask for a 12 Trillion dollar stimulus check, because I’m just not that greedy. I’m going to ask for a mere pittance compared to what we handed out to Wall Street:
3 Trillion dollars in tax rebate checks, to be evenly distributed among every single American citizen.
That comes out to $10,000 dollars each.
What could you do with a check for ten thousand dollars in your pocket right now? My guess is that you could do a lot of things, and unlike handing out golden parachutes at an Aspen ski slope, it would actually do a lot to help revive the economy.
Many delinquent bills for health care, mortgages, credit cards, student loans, phone, cable and internet service would all be paid off. This would be an enormous boost for companies and insurance providers who have had to cut payroll.
The ailing auto industry would receive an overnight injection of adrenaline right to the heart- can you imagine how many Americans would go out and buy a new car if they were given 10 grand?
Engines would be filled with gasoline, Starbucks would have lines around the block, and a new generation of college students would already have a huge jump-start on financing their educations.
But it won’t happen, and here’s why: because we our priorities are more twisted than a crotch rocket wrapped around a telephone poll after a 90 mph collision.
What would it take to finance a 3 trillion dollar rebate check? (which, mind you, is only one quarter of what we have already invested in Wall Street over the last year.) Re-adjusting our priorities.
This means a combination of spending cuts and new taxes, such as:
- Pulling out 75,000 combat troops from Germany, because I’m pretty sure that Hitler isn’t coming back any time soon.
- Pulling out 40,000 combat troops from Japan, because they damn sure learned their lesson the last time they tried to mess with us.
- Closing dozens and dozens of the nearly 800 permanent military bases that we have all over the world, many of them in regions and countries of little or absolutely no strategic value.
- Initiating new capital gains taxes, estate taxes, and income taxes on the top 1 percent of the wealthiest Americans.
- A MFWOT- Massife Fucking Windfall Oil Tax
- Legalizing and taxing marijuana (this also turns Taco Bell and 7-11 into fortune 500 companies overnight.)
I have a few other cleverly titled tax ideas, but you get the point. Tomorrow you could have 10 grand in your pocket to spend on whatever you see fit, or to invest in your or your family’s future. It would do wonders for our economy at a fraction of the cost of bailing out Wall Street.
But if you were to suggest this to a prominent member of the Obama administration, they would laugh in your face.
Is it too much to ask the unlikeliest President in our history to go boldly where no President has gone before?