Posts Tagged ‘unemployment’

On Thursday, December 3, 2015, Minnesota government officials announced the state was facing a $1.9 billion surplus. Current Governor Mark Dayton faced a $6.2 billion deficit five years ago when he took office from Republican Trickle-downer Governor Tim Pawlenty. So what happened that such a massive change occurred? The state got the extra cash by raising taxes on the rich by 2 percent. The government also increased the minimum wage, and the jobs keep coming, which is why the state has one of the lowest unemployment rates in the nation at 3.7 percent. Demand for goods and services have increased, and so have the number of jobs, as more than 172,000 have been created in Dayton’s first term, compared to slightly more than 6,000 in the eight years when Pawlenty’s voo-doo economics ruled the state house.

The rich have gotten wealthier over the last thirty years by paying politicians to pass legislation and international income redistribution agreements (falsely marketed as free trade agreements), which have redistributed income from the 99 to the 1 percent. They’ve done this so much that the 1 percent currently steal 37 percent of the nation’s total income compared to 8 percent in 1980. That means the 99 percent earn only 63 percent of the income produced in the USA compared to 92 percent back in 1980. In 1980, the 99 percent were able to demand more goods and services, which created more jobs and rising real wages, which is the reverse of what’s going on today, except in Minnesota.

The West Central Tribune says Minnesota’s extra cash appears headed toward early childhood education and high-speed internet for Minnesota residents. “Governor Mark Dayton, of Minnesota’s Democrat-Farm Labor Party, ran for office on a call to implement broadband internet “border-to-border” and has called for a $100 million infusion of funds, in conjunction with private investment, to build the initial infrastructure. While the total estimated cost to complete the job is $3.2 billion, Gov. Dayton has plenty of money to work with — the surplus is more than double what the state legislature had on hand by the end of this year’s legislative session in June.”

Governor Dayton decided to discontinue the failed policies of tossing “subsidies at corporations and offering them more tax breaks that would further stifle growth.” Instead, the governor implemented policies to stimulate real financial growth, including  raising income taxes on top earners by 2 percent. That, combined with a scaled increase to the state minimum wage, created an instant injection of money into his state’s stagnant economy that kept local businesses from shutting their doors.”

Once the economy was stabilized, Dayton doubled down on his plan to stimulate growth from the bottom up by paying down the state’s debt and investing in Minnesota’s schools. This created an environment where people actually wanted to live and raise a family, essentially creating demand where before, people were leaving Minnesota to escape the lower quality of life that continues to plague states still clinging to trickle down policies,” which have stifled demand by redistributing income from the 99 percent to the 1 percent. Trickle down policies also gave the rich more money with which to corrupt governments across the nation, as well as both political parties.

“Minnesota’s dramatic comeback provides a sharp contrast to Wisconsin, their neighbor to the east, where Governor Scott Walker has literally driven the state into the ground. Under Walker, Wisconsin broke up labor unions, driving down the average income of working class families that are the lifeblood of any economy. That, combined with his economic strategy of subsidizing industries to set up shop in his state while offering them huge tax-breaks, has bankrupted their once thriving economy.”

Now, even though the national economy is facing uncertainty due to the continuing burden of student debt and flagging exports, Minnesota has almost $2 billion in state budget reserves and is forced to choose between increasing working family tax credits or lowering property taxes.

It is a problem most states would love to have.

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Trickle down economics was the lie that said if you made the richer more wealthier, everybody would get richer, and all boats would rise with the rising tide. The American public bought it under a massive media propaganda blitz, and Reaganomics was born.

Trickle down economics, in reality, was an income redistribution scam designed to redistribute income from the 99 to the 1 percent, and, as you can tell from the graph above, it has worked really well.

It all began with President Ronald Reagan and his tax cuts for the rich. Thus ended the most prosperous period for the middle and lower classes in US history as trickle down economics sucked more and more of their income, like a vacuum cleaner, right up into the pockets of the affluent.

The affluent used their new found purchasing power via the tax cuts to corrupt government to the maximum. They bought legislation to redistribute income into their already fat wallets. In short, that’s how we got to where we are today.

  1. The worst economic expansion in terms of job growth in US history.
  2. The worst economic expansion in terms of wage growth in US history.
  3. The best economic expansion for the rich in US history, where 95 percent of all wage growth has gone to the 1 percent since 2009.
  4. Rising poverty.
  5. Rising permanent unemployment
  6. The top 1 percent steal 37 percent of all income produced in the United States, compared to 8 percent in 1980, when Jimmy Carter was president.

There are some interesting things we can now see that have remained clouded to our eyes due to the media propaganda.

It makes one understand that Jimmy Carter was the last great US president. Everybody else has been a puppet of Wall Street. Under Carter, wages rose, and more jobs were created per year on average than under any other president since. He also staged a diplomatic coup when he engineered the Camp David Accords. Makes you wish for the good old days doesn’t it?

Sure, Carter had a few failings. There was relatively high inflation. You know, something like 6-8 percent per year. Carter appointed Paul Volcker to head the Federal Reserve. Volcker jacked up interest rates until the Fed crushed inflation. So Carter should be given credit for eliminating the 1970s inflation during the early 1980s, when he was already out of office. But guess what?

The federal government has changed the way it measures inflation 20 times since Reagan took office, so that unofficial inflation today is running at 6-8 percent. The government no longer counts energy and food prices, like it did back then. That’s why a can of tuna has increased in price from 3 for a dollar to 1 for a dollar over the last five years, and it isn’t among the items the government uses to determine the official inflation rate.

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A new study from the Economic Policy Institute shows that unemployment rates among new high school and college graduates remain stubbornly high five years after the end of the great recession, which many maintain hasn’t actually ended yet.

This is one of the major economic problems a nation has when income and wealth is unequally redistributed from the 99 to the 1 percent. The demand for goods and services declines, jobs are extinguished, job growth is lower than if there is a healthy income distribution, and opportunities for the young and old of the 99 percent are lost.

The money given to the rich is invested in such things as gold, mortgage backed bonds, student loan backed bonds, and purchasing politicians and legislation that makes it easier to wipe out labor unions, and that ship jobs overseas. The difference between the old higher wages in the United States and the new lower slave wages overseas is redistributed into the pockets of the rich via higher corporate profits, dividends and share prices. In other words, as the rich get richer, they destroy more jobs and the economy in the process.

As the rich got more and more tax breaks since the Reagan tax cuts, that’s precisely how they’ve spent their money; eliminating jobs. There is one of iota of evidence that tax cuts for the rich has ever created one net job. The result has been an eviscerated tax base for schools, roads, infrastructure, fire and police.

The result of tax cuts for the rich is abundant, and the regime of free trade has produced. Just look at the historically pathetic US economy.

Check out the link below for more on this issue from the Economic Policy Institute.

Economic Policy Institute

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Union Thugs on Facebook

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The Great Recession is still going strong, and college graduates are paying the price for a government corrupted by the money of the 1 percent and hell-bent on redistributing more and more income and wealth from the 99 to the 1 percent. According to a recent study by the Economic Policy Institute:

“The Great Recession and its aftermath have destroyed job opportunities for workers of all ages, but young workers have been hit particularly hard. Due to weak job opportunities, the labor force participation of people under age 25 has dropped substantially over the last five years—much more than would be expected given their long-run trend. However, these “missing” young workers are not “sheltering in school,” as is often claimed. This week’s Economic Snapshot shows college and university enrollment has continued to grow at roughly its long-run pace for both men and women. This suggests that essentially any student who has had the resources to shelter in school from the labor market effects of the Great Recession has been offset by someone who has been forced to drop out of school, or never enter, either because a lack of work meant they could not afford to attend or because their parents were unable to help them pay for school due to their own income or wealth losses stemming from the Great Recession.”

By some estimates, 50 percent of recent college graduates are unemployed or underemployed more than a year after they graduate.

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How has the economy fared under the stewardship of President Obama after he inherited the utter disaster left over by the worst president in US history, George W. Bush? People need to understand that Mitt Romney has the same economic plans for the US as had Bush. Are we ready for another mess? Another disaster? Click the link below to take a look at the charts and sets of data to see how things have become under Obama. I’m no Obama fan, but Wall Street Mitt plans to turn the US economy into a toxic wasteland for the 99 percent, all for the benefit of the 1 percent.

Ten sets of data and charts–The Guardian UK

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Luckily, we have food stamps, what with the poverty rate growing in America, the result of shipping jobs away, which is never good government policy.

In September 2012, the poverty rate was up to 16 percent of the US population. That’s because of income inequality. It has grown so much that just 1 percent take home 30 percent of all income in the US, up from 7-8 percent thirty-two years ago. That leaves just 70 percent for the rest of us, down from 92 percent in 1980.

Government legislation has brought about this income inequality and poverty growth. Free trade treaties, for example, have permitted corporations to ship or establish jobs overseas. That means there’s less opportunity for jobs for the 99 percent, but higher chances for poverty.

No matter who is elected president, expect poverty and income inequality to continue their growth.

See related story below.

Poverty and Hunger Grow in America–the Guardian UK

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