Tag Archives: opportunity

America’s Bottom 50% Have Nowhere To Go But Down, by Charles Hugh Smith

Once upon a time you could support yourself and a family with a steady job that paid low wages. Those days are long gone. From Charles Hugh Smith at oftwominds.com:

One might anticipate that the bottom 50%’s meager share of the nation’s exploding wealth would have increased as smartly as the wealth of the billionaires, but alas, no.

America’s economy has changed in ways few of the winners seem to notice, as they’re too busy cheerleading their own brilliance and success. In the view of the winners, who just so happen to occupy all the seats at the media-punditry-Federal Reserve, etc. table–the rising tide of stock, bond and real estate bubbles are raising all boats. What’s left unsaid is except for the 50% of boats with gaping holes below the waterline, i.e. stagnant wages and a fast-rising cost of living.

The truth the self-satisfied winners don’t include in their self-congratulatory rah-rah is there’s no place for the bottom 50% of American households to go but down. All the winnings flow to those who already owned assets back when they were affordable– the already-wealthy–whose wealth has soared as assets have shot to the moon while the the burdens of inflation and debt service hit the bottom 50% the hardest.

Meanwhile, the Federal Reserve is whining that inflation isn’t high enough yet for their refined tastes. Boo-hoo, how sad for the Fed–inflation isn’t yet high enough. Oh wait–didn’t they each mint millions by front-running their own policies? No wonder they’re not worried about inflation.

The reality few acknowledge is that globalization and financialization have stripped the American economy of low-skilled jobs that don’t demand much of the employee. The reality is that a great many people don’t have what it takes to learn high-level skills and work at a demanding pace under constant pressure–the description of the average job in America.

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Disaster and Opportunity, by Jeff Thomas

I was a partner with a securities firm that was extraordinarily successful for most of its existence, perhaps because it got its start in 1932, the bottom of the Great Depression. From Jeff Thomas at internationalman.com:

The Mandarin word for “crisis” is weiqi. But weiqi is actually two words – the first, “wei,” meaning disaster and the second, “qi,” meaning opportunity.

For thousands of years, the Chinese people have understood that disaster and opportunity come in the same package. Whenever a period of dramatic change is unfolding, the Chinese people recognise that change, in addition to potentially bringing disaster, also presents opportunity.

To the western mind, crisis is a negative condition only, and as people wish to escape negativity as quickly as possible, westerners tend to support whatever leaders promise to make the problem go away quickly.

Of course, what this really leads to is a society in which those leaders who are the most trusted will be those who promise the easiest solution, regardless of how unrealistic it may be. So we have a culture of people who support the papering-over of problems.

The catch is that, whilst we can get away with papering-over as a temporary fix, when systemic problems have developed, papering-over only puts off the inevitable, as well as ensuring that, when the problem is finally addressed, it will be far greater.

For decades, westerners, particularly in the US, have voted for those candidates who promise “Hope and Change” and “Make America Great Again.”

Of course, these are paper-thin slogans that do not in any way bear scrutiny. In them, there is not even a suggestion of an actual plan.

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As the wealthy flee New York, poorest will be most affected, by Kristin Tate

New York City and State are becoming anti-magnets for younger people seeking opportunity. From Kristin Tate at thehillcom:

Are you a young person thinking of moving to a happening city? Chances are New York is not even on your list of potential hotspots, and if you are already living there, then you are looking for a way out. The last dividends of 20 years of leadership under Rudy Giuliani and Michael Bloomberg are being squandered by well intentioned but increasingly radical policies.

Dragging business practices, skyrocketing taxes, telecommuting, and loss of special status is a toxic mix for New York. Among young people, New York is becoming passe. During recent years, both the city and the state of New York have lost residents, as waves of educated and high earning millennials have fled. In fact, more than 46 percent of New Yorkers of all ages moving out of the state are in the bracket earning above $150,000.

The Empire State budget is in near freefall, in no small part due to lower revenue from middle class and upper class workers, while growing stateslike Texas and Florida are in surplus. Governor Andrew Cuomo noted a $2.3 billion hole in the state budget earlier this year, caused largely by oppressive policies that have gutted the local population and economy. More than 450,000 people moved out of New York in the last year alone.

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This Is Not The America My Parents Immigrated To In 1957, by Stucky

Immigration is not compatible with a welfare state. It is, however, compatible with a country where nobody excepts something for nothing. From Stucky at theburningplatform.com:

Not that I remember what America was like in 1957, as I was not yet five years old. Years later, when I was old enough to understand, they told me their story. Briefly, it goes like this.

Dad was born in Romania (Czernowitz in Northern Bulovina), but he identified (haha) as German because, well, his dad was German, his mom was German, they spoke German and kept German customs, and lived in a German community so, applying the “quacking duck” theory, that’s what he was. Mom was born in Yugoslavia (now, Slovenia), but she identified as German for the same reasons as dad did. The Nazi regime would refer to folks such as my parents as “Volksdeutsche” —- being German as a people or race, regardless of citizenship. More on that here.

When dad was about seventeen the Deutsche Wehrmacht (army) made a pit stop in his neck of the woods, and forcibly yanked his ass off the farm, and within a few weeks turned him into a bonafide Mortarman (dudes who launch grenades). He might have destroyed or damaged a Russkie tank or two, but was eventually captured by the Russians, and spent the rest of the war, and some time thereafter, in one of their luxurious prison camps. When mom was a pre-teen the Russian army made a pit stop in her neck of the woods, killed most of her family, but spared her life and put her to work as a slave laborer and sex-toy (cuz she was very pretty), in one of their gulags.

Obviously they both survived this ordeal (otherwise I probably wouldn’t be writing this). However, after the war ended, neither parent was allowed back to their ancestral homes. In order to keep Germans from becoming a “problem” again, Eastern Europe (with approval of all the Western powers) decided to enact a program of ethnic cleansing by expelling as many as 14 million Germans. This German Diaspora comprised the largest migration of any European people in modern history. More here. Many died, estimates range from 500,000 to 2,000,000. My parents survived that as well, obviously.

They arrived as Flüchtlinge (refugees) in an Austrian camp for such people … two Germans as refugees in a German country, how weird is that … found each other, did the nasty posthaste, and produced me, at the time a bastard child mostly unwelcome anywhere. (I’m just glad my dad wasn’t some anonymous Russian soldier!). They gave it their best shot living this way. But, even as late as 1957, there wasn’t enough work in Austria. They felt their future would be better elsewhere. So, they came to America … for work.

———

You do understand the meaning of that last sentence? It means my parents came to America for a selfish reason, as all immigrants do. Sure, the stated reason for most immigrants may be for economic betterment, to escape political repression, or flee religious persecution, and such. But, the ultimate motivating factor is always for the betterment of one’s self, and/or family. In other words, no immigrant has ever arrived at these shores in order to make America great. On the contrary, they came because they believed America was already great, and a land of opportunity.

This quest for “opportunity” is one of the key distinguishing characteristics of the “old world” immigrants. Not all, but a great many of the current horde invading this country come not because America is great and offers opportunities, but because America has become the Land Of Entitlements — a concept unknown to old world immigrants. In fact, my dad needed a “sponsor” to guarantee that my father would have a job the moment he arrived. No job? No skills? Stay home! And don’t even think of gaining entry if you, or your loved ones, have some kind of disease. There were zero social backstops. No food-stamps. No free medical visits. No free transportation. No free-housing via Section 8, or some other thieving giveaway.

To continue reading: This Is Not The America My Parents Immigrated To In 1957

Cruelly Unrequited Love, by Robert Gore

George loves Cruella, the bad girl who torments him, and spurns Constance, the good girl who loves him. Finally, Cruella goes too far; George sees her for what she is. He recognizes long-suffering Constance’s devotion and they live happily ever after. This trite story line, a romantic comedy staple, is also an apt description of the long-running, cruelly unrequited ideological love for government of much of the black establishment and its unfortunate followers, and their disdain for the ladder that has enabled so many to climb to success in America.

When Ferguson becomes a memory; after all the public figures and their media cronies have “felt their pain”—ritualistically denouncing violence and rioting, but excusing it as an understandable response to racism and oppression, then moving on to whatever grabs the headlines next—perhaps some blacks will see the charade for what it is. Individualism, entrepreneurialism, and capitalism are more demanding and less forgiving than Constance, but unlike Cruella government, they offer a real chance to climb the ladder, with rewards commensurate with effort and ability. The private economy has its imperfections, including racism, but it, not government, has been the American ticket out of poverty and powerlessness for over two centuries.

The federal government was responsible for ending slavery and the Thirteenth, Fourteenth, and Fifteenth Amendments. These were steps towards legal equality for blacks, although racism still existed de jure, most notably with “separate but equal” Jim Crow laws and barriers to voting. That legal edifice began to crumble with the Supreme Court’s 1954 decision in Brown v. Board of Education of Topeka, which overturned Plessy v. Ferguson, the 1896 Supreme Court decision that had allowed state-sponsored segregation—“separate but equal”—in public education. It took time and force of arms before integrated education became a reality. It took marches, demonstrations, and passage of the Civil Rights Act of 1964 before integration became the legal requirement for the rest of government and in private workplaces and private facilities that served the general public. The Voting Rights Act of 1965 and subsequent amendments went a long way towards ending the disenfranchisement of blacks and other minorities.

No law can end racism in people’s hearts and minds, just as no law can end stupidity. However, if you ask government for more than a fair shot—equality before the law—you’re bound to be disappointed. One of the most unlikely historical transformations is that of the party of the ”Solid South”—solid in its opposition to desegregation and civil rights legislation during the 1940s, 50s, and early 60s—to blacks’ new best friends. It began with Lyndon Johnson, who had been a Democratic stalwart in opposition to, but ultimately signed, the Civil Rights Act. As the old saying goes: “With friends like that, who needs enemies?”

Historically, one of the more racist private sector institutions has been labor unions, a bulwark of the Democratic party. Unions raison d’etre is to raise their members wages above what would prevail in a competitive market. Starting with Franklin Roosevelt, Democrats have endeavored to tilt the field towards unions, most notably with closed shop laws. Attracted by higher-than-market wages, more workers want to join unions than the unions can admit. Protected monopoly unions, like protected monopoly businesses, are freer to discriminate and engage in other irrational practices that would put them at a competitive disadvantage in an open and free market. Numerous studies have confirmed that is indeed what those monopolistic entities have done, admitting and hiring a disproportionately low number of blacks and other minorities.

Labor unions have long championed laws and regulations governing pay, hours, and working conditions, not just for union members, but for the entire workforce. Undoubtedly some of that has been motivated by a sincere desire to improve the lot of all workers. However, it also shifts the relative cost calculation between union members and cheaper nonmembers. If a union member costs $20 an hour and a non-member costs $10 before a regulation, the non-member wage is 50 percent of the union wage. If the government imposes regulations costing $5 an hour, the union wage to an employer becomes $25 an hour. The non-union wage becomes $15 an hour, or 60 percent of the union wage, reducing the relative disparity, favoring union workers at the expense of non-union workers.

You can’t climb the ladder of opportunity if the bottom rungs have been knocked out, and that’s what unions and labor legislation have done to blacks. Jobs and workplace experience, not fancy government training programs, are how workers with little or no skills become higher-skilled, more valuable employees. The unemployment rate for blacks from sixteen- to nineteen-years-old is 32.7 percent. Economist Thomas Sowell notes that the rate for sixteen- and seventeen-year-old black males was just under 10 percent in 1948, lower than for white males of the same age. The reason for the difference? Minimum wage laws: in 1948 the minimum wage was so low it was irrelevant; in 2014 it prices unskilled black youth out of the labor market. Sowell writes that the minimum wage has been “a major social disaster…for the young, the poor and especially young and poor blacks.” (Thomas Sowell, “A Defining Moment,” http://townhall.com/columnists/thomassowell/2012/02/07/a_defining_moment/page/full) Those groups are supposedly of special concern to Democrats, but a substantial majority of the party is currently pressing for a large, job-destroying increase in the minimum wage.

Education is the first rung on the opportunity ladder, but here Democrats are captive to their largest base of support, public education unions. For poor blacks, unable to afford alternatives, education is a government monopoly, and its quality is typical of most monopolies. Many blacks and other minorities have embraced charter schools and voucher plans, anything that represents a step up from dead-end public schools. However, every innovation that might compete with public schools has been fought by the education unions. When it comes to better education for poor blacks or the unions, guess who Democrats throw under the bus? President Obama, our first black president, successful in part because of his gold-plated education, runs true to form, kowtowing to the unions.

Perhaps out of guilty consciences, Democrats push hard for minority preferences in university admissions, government contracting, and private economic activity. Such preferences and largess unfortunately, but inevitably, fuel the belief (held by both beneficiaries and non-beneficiaries) that the beneficiaries advancement stems from the law, not competitive merit. They create a minority subset of the privileged class that owes its good fortune to the government, to the detriment of everyone trying to make it in the private sector who pay for that privilege with their taxes and diminished opportunities. And we all know the way Washington works: some of the largess is returned to the politicians and bureaucrats dispensing it, giving them a vested interest in perpetuating the cycle.

It remains as true today as when supposedly heartless cynics argued against New Deal relief measures: giving people money they haven’t earned creates dependency on the government and destroys work incentives. Stymied at every turn trying to improve their situation, for many blacks the welfare state administers the coup de grâce of perpetual poverty. Money without effort is for the asking. Only the stubbornly auto-blinkered believe that self-respect-destructive formula doesn’t have something to do with the social pathologies—crime, drugs, illegitimacy, and prostitution, et al.—rampant in the slums and ghettos.

While government falls all over itself “helping” blacks, many of them fervently wish that it would perform its first duty and protect them from violence and crime. This is the rage we didn’t hear much about during the Ferguson riots: the rage of those who do not rampage; who want to go to their jobs and live their lives peaceably; whose routines are upended, whose businesses and homes are vandalized and burned, who have friends or family wounded or killed in the mayhem, and who are stuck cleaning up the mess and picking up the pieces.

Take all the blacks unjustly killed by white policemen (even assuming it is all such blacks, which it is not) and it would amount to a tiny fraction of the blacks unjustly killed by other blacks in the pathological hell-holes for which government policies bear a large measure of responsibility for consigning them. The success of so many blacks in all fields of private endeavor; the analyses by black intellectuals like Thomas Sowell of governmental ineptitude and destructiveness, and the failure of government, now headed by a black president, to measurably improve the lives of most blacks, has many of the previously enamored casting a more skeptical eye on the insincere blandishments of the Cruella state. Someday, completely disillusioned, they may reject its phony promises altogether.

THE PERFECT CHRISTMAS GIFT FOR LOVERS OF HISTORY, LIBERTY, FAMILY SAGAS, OR THE INDUSTRIAL REVOLUTION!!!

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