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Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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There is one thing that is apparent through all that we are seeing and that is that CAPITALISM and DEMOCRACY are not exactly friendly with each other. The fact that the United States, Canada and most of Europe have capitalist democracy is due to the fact that the two have been carefully balanced against each other under the system of "guided" or regulated capitalism.
A large part of the political stability of the United States and Europe for the past 100 years has been the growing and expanding middle class. This middle class has essentially served as a "buffer" between the poor and the rich. Under guided capitalism, entry into the middle class was relatively easy to obtain. A high school diploma was about all one needed to land a job that provided a decent standard of living.
The main reason that work did provide a decent standard of living was the fact that a big percentage of the American, Canadian and European workforces were unionized. Unions provided balance between employers and employees. Things like wages, working policies and benefits were negotiated and not dictated. The employees had pay that would allow them entry into the middle class (as I would define as a house, a car and the ability to pay ones bills and take a family vacation).
For decades, this insured political stability. Politicians of course come and go but largely speaking ALL the mainstream political parties in the USA, Canada and Europe supported the capitalist economic model- whether Democrat, Republican, Labour or Conservative. And the voters, wanting to maintain and even expand the middle class lifestyle were pacified. Even the poor were pacified by the thought that they too would be able to enter the middle class in the future.
And it was not like employers (aka the rich) did not profit well off this system. Even then the top 5% had about 20% of all the income in the country.
But then Ronald Reagan and the Republicans upset the apple cart. They tilted the country away from a middle class built upon the fruits of labour to a middle class built on the fruits of speculation and credit. They destroyed the middle class with trade policies that make it virtually impossible for the middle class to compete with child labour in third world dictatorships.
They also destroyed the very movement that built the middle class which was the labour union. Before Reagan about 30 some percent of the American workers were union. Now it is probably less than 10%. This while the tax policies have put ever more burdens on the middle class while making the rich even richer. Now the top 5% has about 30% of the income!
This is a plan for political instability that could eventually mean an end to the capitalist system as we know it. And if capitalism is ended, it will certainly mean the end of the wealth class as we know it. FDR knew that which is why he took the steps he took with the New Deal. FDR did not hurt capitalism but rather he, and the labour movement SAVED capitalism!
In a democracy, the masses eventually rule and the masses know economic pain when we feel it. It is not like Hati or other dictatorships where the masses can be enslaved by a small upper class.
If the middle class decline continues, we will see one of two things happen. Either the political structure of the country will become more extreme on both ends with the Democrats moving much further left of center than they are OR new parties will rise up and take the nation in a much more socialist direction.
This is why the capitalist class should support the labour unions. Labour unions can be negotiated with. Far leftist or rightist political parties cannot be negotiated with. And that seems to be where we are going soon.
Agree 100% with the analyses.
That said, unionized workforce cannot compete with Asian imports. A clear example is the automakers industry.
If we encourage more unions, it is possible that we'll put even more industries out of business. Closing the markets to imports and prohibiting outsourcing is like putting the paste back into the tube. Virtually impossible, though some control and regulation are much needed.
If you ask me I don't think that neither Reagan nor other globalization advocates understood the far implications of their policies.
I don't know about unions (don't understand the whole issue)
But all capitalists should support Universal Health Care
because then business don't have to pay for their employees health care
Agree 100% with the analyses.
That said, unionized workforce cannot compete with Asian imports. A clear example is the automakers industry.
If we encourage more unions, it is possible that we'll put even more industries out of business. Closing the markets to imports and prohibiting outsourcing is like putting the paste back into the tube. Virtually impossible, though some control and regulation are much needed.
If you ask me I don't think that neither Reagan nor other globalization advocates understood the far implications of their policies.
If we don't start doing something to stem the tide of job losses (thru offshoring or outsourcing or downsizing), then you are going to see a permanent decrease in the standard of living of the average American....
People are really scared this recession... The job losses have reached critical mass - and no one can ignore it any longer.
I know very few people who feel secure in their jobs and future today - they are all afraid of losing their jobs - and as a result they are all seriously cutting back on spending... which in turn makes the recession steeper...
God help us if people get so scared that they stop spending enough to trigger a deflationary spiral..
We're not a democracy. We're a republic. Perhaps if public school teachers did their job and parents and students recited the Pledge more often then maybe you would know this.
Wait till the head socialist and his comrades foist carbon credits on the unsuspecting public. Businesses already burdened by big government regulation and arrogant unions are going to head offshore pronto.
Gonna do wonders for the "working man".
Workers turn to Unions when they feel they are wronged or need benefits but do not wish to use the services of an attorney. Labor Unions have been in decline since the early 1970s, and have consolidated over the years (just like corporations). The fact that Union membership drops every year should be a clear sign that their services are no longer needed by American workers.
Increasing Union prescence now, or forcing people into Unions will only cause more and more jobs to bounce overseas. In reality, it is the Unions who have made it impossible for middle class workers to compete with Asian sweatshops. However, we cannot close our borders to imports because many countries worldwide are dependent on the US purchasing their goods (Canada, for example).
The United States has never been a true Democracy, but instead a Republic. That is why we have electoral college, and representatives/senators as opposed to public forums where the people directly decide what to do.
European nations do not have Capitalistic governments. Sure, there are a few, but for the most part they practice collectivist (Socialist) economics. In the US you can go down the street and start your own business and get all of the profits, in most European countries, you cannot start a new business unless the government approves, and you only keep a fraction of the profits. That is why European economic growth is usually cumbersome and virtually non-existant. It is also the cause of job outsourcing to the US.
However, there comes a point in any nation's development where industrial jobs will gradually move overseas, and be replaced by R&D, white collar, or service industry jobs. The trend began in Europe long before the US, and will eventually happen in places such as China. Future manufacturing centers will probably be South America, Africa, and perhaps the Middle East.
You guys are just full of misinformation.
Explain to us how the youngest nation around ended up here and doing this...
I'll be waiting for an explanation how much of an utter failure it's been....
Government built infrastructure to help businesses prosper.
If you say that it's not true,
then please make a list of all hydroelectric plants, airports (national/international), highways and railroad tracks that were built 100% funded by private businesses.
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