The One Percent Gets More Good News

The Dallas newspaper carried good tidings for rich people on December 27th. The lead article, "Growth to pick up, but not jobs," says that top corporate and academic economists expect the economy to grow 2.4% in 2012, instead of the less than 2% registered in 2011. Jobs, as predicted over and over again since the Great Recession began in 2007, are not expected to keep pace.

The reason that slow job growth is good news for rich people becomes evident in another article on the front of the Business Section, "Pros take stock of 2012." They say that stocks are likely to rise "more than 10 percent next year." Stock market speculators are expected to do so well primarily because of record corporate profits. The glut of corporate profits primarily reflects the capitalist class' recent success at lowering their overall labor costs (us). Lots of unemployment equals lower labor costs equals more corporate profits.

Why Aren't They Creating Jobs?

The American capitalist class isn't creating jobs because there isn't enough profit in it for them. The very same days' newspaper explains a more profitable way they have found to invest their trillions of extra cash: they are buying up really low-priced real estate and other assets from their sickly brother capitalists in Europe, where banks are facing bankruptcy. Among other things, they bought the tallest building in Ireland. This export of American capital fits perfectly into Lenin's definition of modern imperialism.

Why Isn't Congress Doing Something?

But this is a democracy, so why isn't the government doing something about the jobs crisis? Some of that answer comes from page 9A, "Mr. Smith is a millionaire. Analysis: Lawmakers' net worth rising; most others see theirs falling." It says, "...the wealth gap between lawmakers and their constituents appears to be growing quickly, even as Congress debates unemployment benefits, cuts to food stamps, and a 'millionaire's tax.;" The median net worth of Congresspersons is $913,000, while the average in America is $100,000. At least 10 Congressmen have more than $100 million.

Choking on money

 

 

 

Democracy in the United States generally doesn't extend to the economy.

--Jim Lane