In the Presence of Vultures

The US ato industry is reeling from the economic slowdown. The big 3 has been asking the US government for aid. But the lawmakers would prefer to teach them a lesson. Well, not exactly the CEOs alone but the unions as well. Congress thinks thworkers are getting too much. So now they stand to lose their jobs. At a time when unemployment is at its highest, congress thinks another 2.5 million jobs doesn’t matter. What about the other businesses that will be affected if the big 3 rolls over? I suppose it’s more prudent for them to safeguard(?) the taxpayers’ money. Now the bailout lies in the hands of the president.

The revenues lost if the big 3 closes down is staggering, not to mention the burden and effect it will have on an already ailing economy.  I suppose the lawmakers would like the workers to match the salaries being paid in sweatshops in Asia. The workers are willing to make conscessions but of course not to the extent they they would end up being dehumanized in the process.

If there’s anyone whose pay should be cut, it’s the overpaid lawmakers and their absurd retirement benefits. Maybe they should do the patriotic thing and cut their wages by 50% and not use their pork barrel for some stupid project that give them their kickbacks.

The auto industry is the backbone of America’s industrial might and not to help them out is like handing over the American dream to some forreign country. I suppose congress is not getting enough grease money from the atuto industry unlike the other businesses that they chose to bailout. As for those who oppose such a bailout, the market is not dictated by the industry, it is the consumer who dictates what is to be sold in the market. It is stupid to blame the industry for the condition they are in. These companies will not be churning out big gas-guzzling vehicles if no one will buy them.

At a time when the very heart of American might is under siege, the on;ly logical thing to do is come to its aid.During the las world war, the auto industry did what was asked of them by the country. They built the machines that won the war. Now they’re in dire straits, the least the country can do is to help them keep their heads above water.

I’ve always written my views based on the Philippine setting and matching it with my international views. McCain has been saying that Reaganomics works. In simpler terms, this is what the Republicans refer to as “trickle down economics”. You give the rich enough tax breaks and they will invest in the people. But has it really worked. Philippine economics is no different. Our government also share this same view. So they tax heavily the ordinary citizen while giving more breaks to big business.

Like the US, the Philippines has its share of small businesses that earn modestly but are subjected to heavy taxation. My small business alone pre-pays taxes based on projected sales for the coming year. This is collected when I renew my business license for the new year. The middle class which is comprised of the working class has their tax deducted before they receive their paychecks. Both small business and the employed is the middle class. On the average, about 38% of earnings of the middle class is taxed.

The desired trickle down never came. Big businesses shipped their manufacturing overseas. Only a handful actually expanded their operations domestically. This resulted in a huge occurence of hunger and a jump in the level poverty. At the end of the day, this brand of economics only created oligarchies and widen the social gap. Unemployment and underemployment rose dramatically as fewer jobs are available.  Job-seekers are forced to seek jobs abroad.  Our education system churns out 300,000 graduates every year, they add to the growing statistics of the jobless. They are forced to take jobs that has no connection to their educational attainments.

The sad reality on the ground is that the people ultimately suffer. This is what is happening to America right now. Those who were given tax breaks are investing abroad and not in the US. I used to look forn products made proudly by American manufacturers, that’s a thing of the past. I buy a pair of Nike shoes only to discover that they were made in China or Korea. Even car parts are being manufactured elsewhere and not in Detroit. I don’t know if American consumers are as particular as I am. Do you actually feel the trickle down the Republicans like McCain claim is forthcoming? I don’t think so. The same problems the Philippines is encountering is being experienced by Americans as well.

Republicans are fostering a class war and not the Democrats because they are nurturing a tyrannyof the few as power and wealth is corraled by a handful. And who in the end is the hardest hit, the average American just like the ordinary Filipino. McCain can never justify his connection with the average American. He doesn’t share the same experiances the ordinary folks do. I’m sure that Joe six-pack and Joe the plumber doesn’t own several houses or can even buy a plane at the snap of a finger.

Trickle down economics will never work. Taxing those who have more actually forces them to invest in the people. These taxes are not dole outs to those who have less. It is invested into programs that give them the opportunity to grow. This is not about socialism but on of social justice. McCain is a big liar and he knows it. He certainly is distorting facts. He his throwing around the scare tactics that the hardliners or should I say the oligarchs have used so effectively. What I don’t understand is how the average American cannot seem to see this. The fact of the matter is that The rich will always find a way to make more at the expense of the ordinary American.

In the Philippines, the middle class is almost extinct. Many have either sought life abroad or have joined the ranks of the underprivileged. If Americans would like to avoid this, rethink your economics and ask yourself who really ends up with the fatter wallet.

Since the collapse of the subprime mortgage, economies around the world await the actions to be taken by the U.S. In an attempt to meet the basic right to shelter, the US tried to deregulate some institutions to make housing accessible to all. In hindsight, this brought along with it gamblers of all sorts that eventually toppled the industry. My humble suggestion to avoid such a fiasco again and to give each American a place to call their own, here is a system that has actually worked in the Philippines.

1. Create an agency that will oversee the housing and development sector. This agency will also be responsible of collecting contributions of members. These members are the employed and self-employed. Contributions will depend on the income they make per month. After 30 months of contributions, the member may now avail of a housing loan. The size of the loan will be based on their monthly income. In cases wherein both husband and wife are members, their loan will be based on the combined monthly income. Their 30-month contribution will be used for emergency payments should they suddenly lose their job.

2. This agency will also ask real estate developers to bid on housing developments. They should have different categories of housing that will meet the demands of the members. This would ensure that members will not be getting homes that they could not pay.

3. Bank and other financial institutions can be tapped for financing but interests must be regulated to control the prices. This will stop runaway interests rates that could end up in foreclosures.

This may sound tedious but the mortgage industry will be shielded from unscrupulous practices. Homeowners will also be secured and would not default in their payments. If only the right form of capitalism was employed, America would not be in this mess now. The dark side of capitalism is that when unchecked, greed sets in and the entire system breaks down. Now, it is the ordinary taxpayer who must step up and be patriotic(?) to save a sinking economy. The bailout bill is good in some ways but it must be transparent. Oversight is paramount to ensure that the people will not be duped again by the government.

Now that Wall Street is reeling from a succession of failures, the greedy are running away with their loot. The sad part is the average investor is getting the short end of the stick. America maybe the most powerful country in the world but its economy is one of the most vulnerable. Now at least, the presidential campagn will now shift to issues instead personalities.

The greedy speculators and big business’s old boys club must be laughing at the poor retirees and ordinary folks who gave them their hard-earned money. But the stock market has always been the biggest casino in the world. Deregulation has allowed the greedy vultures to steal money from ordinary folks like you and me. We may not be players in the market but we are all consumers. When inflation wreaks havocs, those with deeper pockets have more bullets than us.

When oil and utilities were deregulated in the Philippines, we witnessed the birth of cartels. Neccesities like medicine and food became more inaccessible to ordinary people which brought poverty levels to new height. We were left to the mercy of big corporations who’s greed was simply insatiable. Our government gave tax breaks and holidays to big corporations to spur(?) investment. What happened was these companies shifted their expansion abroad. Oh I can see where America is heading, it will end up like the Philippines. Unemplyment is caused by big corporations investing abroad where labor is cheaper.

To arrest the rising rate of poverty, the middle class in the Philippines is now given tax cuts and even exemptions. If the people have more money in their hands, their spending will give the economy a big push. I suppose this is what Sen. Obama had in mind when he said that he will raise taxes on the rich and give tax cuts to 95% of the taxpayers. The American economists should focus more on the small entrepreneurs who invest locally and employ locals. Factories are closing down because sweat shops abroad offer lower production costs and give businesses a bigger profit.

The rich Americans should bear some of the responsibilties by paying a “little” extra. This is the patriotic thing to do. I know some of you will surely think this is absurd, but the Thais did not hesitate to give the Thai government their jewely just to prevent Thaindland from sinking during the Asian crisis of the ’90s. We have a saying in the Philippines that whenever America sneezes, the world gets the flu. No wonder that the European Union was created, this is to shield poor economies of Europe survive.

Everyone is now waiting with bated breath which company will crash. Somehow someone must be made accountable for this economi debacle. But NO, executives are walking away with fat wallets because the government sold the small investors out. So now the lowly taxpayer will have to prop up these companies so their CEOs and COOs can retire comfortably while the poor retirees who invested in these companies are facing a bleek future. When big businesses fall, it’s the little people who suffer. The domino effect of America’s financial woes has yet to reach its peak. When they fall, America falls. When regulation is nonexistent, the greedy always have a field day.

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