Up is Down, Down is Up

Reportedly the President will, tomorrow, attempt to convince us that economies grow from the middle ‘outward’; that the Middle Class is the nexus for economic growth and job creation.

Having just finished re-reading Atlas Shrugged this speech has to potential of being a speech any one of the ‘looters’ could have given. Up is down and down is up. Less is more and more is less. What you believe is more important that what you see! It’s justified on the basis of an undefined a ‘greater good’, that greater good being an amorphous idea devoid of actual substance and ignoring fact and consequence.

No one would argue that vibrancy in the Middle Class is an important part of the economic engine; however the simple fact is that they are the working, saving and consuming class. They are not the capital investment class.

Our liberal friends like to castigate any mention of ‘trickle down economics’. But when the question is posed; ‘point to any example in all of economic history where a Middle Class, in and of itself, generated economic growth’ the answer is platitudes absent a set of facts to support them.

The Middle Class invests; typically their life savings or an inheritance to open a small business. They create jobs along the way and hopefully have the success to expand and grow. The economics of these investments is most often impactful on the immediate area of the investment. The foundation for these Middle Class investments is the vitality of the regional or local economy. As a kid I worked in a Pizza shop, it did well, until the factory that was across the street closed down. So did the Pizza shop soon after, my boss Nick lost everything he had invested not because he did not do a good job but because the fundamental demand for his product disappeared.

In a macro economic sense it takes large investments and high levels of capital to guarantee large enterprise: mills, manufacturing facilities, oil exploration, pipelines, and mines. These investments are what create thousands of jobs both directly and indirectly. The opening of a new cigar store is a good thing, but it will not motivate anyone to open up a new Diner across the street because the traffic flow will be so greatly increased or because so many new people will locate to the market because of the presence of the cigar store. A new factory is a different story, a new pipeline is a different story a new refinery is a different story!
To deny the impact of what we see in front of us, the reality of our personal job history and what our experience tells us is true is, seemingly, the Presidential goal. Knowing both the President’s rhetorical tendencies and an ideology that demands facts be put aside, it is also likely he will once again point his finger at the ‘rich’. Success must be castigated as unfair, no matter the personal brilliance, creativity or forbearance that produced it. Success must be punished in favor of those who produce little or nothing in the Progressive view, because it’s fair. Most folks think that an economy that promotes getting a job would be the fairer alternative. We can only hope that this thought occurs to them during the Presidential speech.

The President’s will no doubt reprise his constant references to fairness. ‘Fairness’ however, has never been defined in a way that we know what is meant. It is, as are so many of the President’s pronouncements a floating point in space. The definition changing with circumstance, or the weather or …….. something! But whatever the changes in the President’s position the core of his belief system has been too long on display to ignore the implications.

The implication is more of what we have seen in immediate years past: trillions of dollars on the sidelines, anemic economic growth, high unemployment, massive increases in dependency and a demand that there be more. The relatively easy things such as allowing a holiday for American companies to bring their overseas profits back home, is ignored. The potential for a three trillion stimulus package is not a good idea in the President’s world because government is not in the middle of handing out the goodies.

Rewarding the non productive is moral in the Progressive view. Rewarding the folks who pay that freight is immoral. Up is down, Down is up.

  • Bob

    “That one may smile and smile and be a villain”…Hamlet Act1 Scene5

    In American politics today reality fades and politics becomes the art of provocation advanced by prejudice and passion which take the place of intelligent analysis.President Obama has a habit of attempting to turn a moment into a movement. Since the January inauguration he has supposedly fought for gun control, immigration, civil rights(via the Zimmerman/Martin case)and now the economy. ALL TO NO AVAIL! Something along the same results as the President constantly calling for a “National dialogue”. This knee jerk moralist believes that he is ennobled simply by posturing alone and purposefully bleaching the truth.

    When he first ran for president he promised the dreamy rhetoric of “Fundamentally Change America”. Just what is standing in his way of this “Progressivism Long March”? Well since the inauguration he has also had a number of scandals. Scandals that seem to be evaporating with the summer heat. Unless republicans step up on the investigations we must ask ourselves at what point does naïve become cowardice?

    http://www.politico.com/story/2013/07/benghazi-investigation-libya-issa-94386.html?hp=l1

  • Bob

    “A country where everything is free but the people”…Rep.Paul Ryan

    “NSA Renewed Phone Snooping Rubber Stamped By Court”

    This past Friday the 19th of July the FISA court order allowing the NSA to collect billions of our phone records expired. Although at first no one wanted to say anything it was confirmed later in the day that the FISA court order was renewed. The Department of Justice is asking that the ACLU lawsuit be thrown out on the grounds that the data collecting meets the relevant criteria and that the ACLU doesn’t have standing. This means that it doesn’t count until someone in the government actually looks at the data and the ACLU has no proof this was done. Yeah it struck me also as childish logic but since 9/11 the government can pull this sleight of hand and get away with it.

    http://www.techdirt.com/articles/20130719/14573523869/fisa-court-rubber-stamps-continued-collection-all-phone-records-while-doj-insists-no-one-can-challenge-this.shtml

  • Bob

    Well the president has had his first(of three)speeches on the economy.

    Overall he didn’t say much but then again he never does. He blamed the republicans for budget cuts, the sequester, gridlock in Washington…..oh yeah and THE PHONY SCANDALS.

    Basic he was peddling his snake oil of shared prosperity through collectivism over individual liberty with a hint of raising the minimum wage aimed at the young college kids attending. Just a re-hash of his “You didn’t build it speech”…..YADDA,YADDA,YADDA,

  • Bob

    When the Washington Com-Post Dana Milbank says about the Presidents speech he’s “fresh out of ideas” and it’s the same one he gave in 2005 and 2011 it isn’t just Clint Eastwood who sees an empty chair.

    http://www.washingtonpost.com/opinions/dana-milbank-on-jobs-obamas-fresh-out-of-ideas/2013/07/23/cc0fcd2c-f3d4-11e2-a2f1-a7acf9bd5d3a_story.html

  • Landreaux

    I would opine that the President is out of ideas in the context of inflexable ideology. There is nothing new under the sun in the Progressive world except the ever frantic search for tactics. Strategically Progressive economic ideas have failed, time after time, it may take some time but failure is always the ultimate destination.

    There are plenty of ideas out there. It’s not the lack of ideas it’s the lack of a willingness to abandon failure or to even recognize it.

  • Bob

    Landreaux:
    Just this morning I read on one of my favorite websites for studying the history and thought of Progressivism called progressingamerica.com

    “They always preach that they want “new ideas” but if these new ideas were ever properly examined,you would find that Progressivism relies upon ideas which are all much older than any ideas of liberty.”

    “Hence as all history informs us,there has been in every State and Kingdom a constant kind of warfare between the governing and the governed: the one striving to obtain more for it’s support, and the other to pay less. And this has alone occasioned great convulsions, actual civil war ending either in dethroning of the princes, or enslaving the people. Generally indeed the ruling power carries it’s point, the revenues of princes constantly increasing, and we see that they are never satisfied, but always in want of more. The more the people are discontented with the oppression of taxes, THE GREATER NEED THE PRINCE HAS OF MONEY TO DISTRIBUTE AMONG HIS PARTISANS AND PAY THE TROOPS THAT ARE TO SUPPRESS ALL RESISTANCE,AND ENABLE HIM TO PLUNDER AT PLEASURE.THERE IS SCARCE A KING IN A HUNDRED WHO WOULD NOT,IF HE COULD FOLLOW THE EXAMPLE OF PHAROAH,GET FIRST ALL THE PEOPLES MONEY,THEN ALL THEIR LANDS,AND THEN MAKE THEM AND THEIR CHILDREN SERVANTS FOR EVER.”
    Benjamin Franklin

    You are correct “there isn’t a lack of ideas out there” but the shape the countries in doesn’t have anything to do with a “lack of willingness to abandon failure”. Progressives are winning elections and are quite content to continue on the course they have set of simply posturing. The cause of the nations problem is through their promissory notes of entitlements, modern societies virus of rampant envy, and the salutary neglect of the government to enforce the Constitution. Big government is a symptom of an apathetic people. “There are only two was to govern, by rule of law or by ruler.” …….G.K. Chesterton

  • Bob