Straight Talk About...: Part 11 - A Review of Popular Current Economic Proposals

The debate as to what it takes to recuperate from the three year, no end in sight, economic crisis is slowly warming up in intellectual circles. This crisis has engulfed the U.S. and to a lesser extent its trade partner Canada. For a while now, the public has been bombarded with a number of conflicting, if not altogether confusing tenets, presented by some of the North American Illuminati.

In this article, we'll scrutinize four of the most noticeable ones, to see if these were followed through and what could be expected as a result:

The first tenet advocates implementing drastic public spending cuts, combined with deep tax reduction for corporations, in order to reduce governmental deficits and create a conducive environment for business investment. In other words, stay on course and hope for the best that everything eventually will pan out. So far it doesn't seem to work. In the meantime, the millions of unemployed, — including those whose Employment Insurance account had run dry — should just hunker down, tighten their belts a notch or two, and line up at a food bank, if that's what it takes. Because, buddy — in accordance with that Darwinian notion, characterized by ruthless competition for survival — you are on your own.
The second tenet pushes for more fiscal stimulus to entice the private sector — ‘the job-creators' — to hire more workers. The trouble is, although as a rule, businesses respond to consumer demand only. No demand, no supply! Furthermore, since increased automation is all the rage, there is no need for extra personnel. If anything, most employers are exploring ways and means to reduce labour cost and increase the profit margin. They don't realize that they are directly or indirectly decimating their own and others‘ consumer base in the process.
The third tenet heralds a new awakening among a few powerful American business executives. These realists are recognizing the need for governments to prepare macroeconomic plans, in order to effectively deal with the current social-economic disaster, and avoid future ones. Apparently, some major international corporations — drawing from their three decades of experience with the Chinese economy — are in favour of shared governmental participation in running the economy.

They say, such a rapport creates certainty and reduces the risks of getting involved in major projects. These projects have the capacity to resolve the economic stagnation, and thus the current unemployment crisis in North America. At this point, it remains to be seen if the majority of U.S. and Canadian businesses are ready to buy into an idea that has been erroneously branded on this continent. An concept that interferes with their right to self-determination and the principles of the free market economy.
The fourth tenet has to do with a hint from a high level U.S. official who, just days ago, suggested that some corporations have expressed their willingness to repatriate, ‘if the price is right‘. But the offer appears to hinge on labour's acceptance of a general wage range between $15 to $20 per hour.

The reason behind the latter proposal is based on ‘newly discovered‘ statistical data that ranks North American workers three times more productive than their offshore counterparts. Add to this the cost of transportation of these imported products, these repentant companies presently produce elsewhere, plus a few other factors, then it becomes clear that repatriation makes a lot of sense.

Inasmuch as the offer looks tempting — especially if one considers that half a loaf is better then none — it does not seem to address a major issue. The issue is: how are those lucky, future employees able to cope with their financial responsibilities, such as mortgage, car payments, and the huge cost of higher education for their offspring, without cutting back on essential purchases that keeps the neighbourhood businesses operating?

From these few classic examples alone, it's easy to size up the huge divide between intellectuals, as to what to do about the three years old social-economic crisis. A crisis that unnecessarily wrecks the lives of millions and drains the public purse. This divide, of course, paralyzes members of the decision making class who entirely rely on the latter group of masterminds to manage the "people's business".

The task does not involve the deciphering of some kind of an unknowable esoteric subject, requiring supernatural knowledge. Every part of the problem can be identified, measured, calculated, analyzed and using age-old problem-solving techniques to alleviate, and even eliminate the same. Admittedly though, it requires a few experienced, multidisciplinary, out-of-the-box realistic thinkers to do the work.

All the establishment needs to do is: change its current exclusionary protocol and open up the channel of communication and invite the few and far in between no-ax-to-grind, creative elements of society, and the entire country shall equitably harvest the benefits.

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