some basic facts

For those of you who think the crisis is over here are some basic facts. Basic facts that make it highly likely that this crisis will not resolve itself quickly. Facts that are not a matter of opinion or partisan politics.

And just for the record, these facts clearly demonstrate that our current economy is not sustainable in the long run. So, whether you are a fan of American style capitalism or not, it will have to change. Maybe not now, or maybe not yet, but eventually it will.

1. 2/3 of our present economy depends on consumer spending.

2. more than half of the American households have zero net worth.

3. true unemployment (not just the people standing in line for benefits) is close to 15% and rising.

4. half of the aging population do not have enough money to make it through their retirement years.

5. more than three quarters of the country is in a state of denial or ignorance.

Now you tell me how this crisis will end.

Or you can just stick your head in the sand and make optimistic statements based on wishful thinking.

What we need is a complete overhaul of our economic system. Nothing short of that will do.

what the consumer wants

Yesterday I heard that California wants to outlaw some energy-wasting big screen TVs. It seems like a no brainer to me. It appears that the race is on to impress one's neighbors with ever expanding screen sizes that do nothing more than waste huge amounts of energy to beam advertising into your life. TV's have become second only to heating and cooling in their energy consumption and the state wants to do something about it.

That does not sit well with the plasma TV association, or some such trade group whose goal it is to sell as many plasma TVs as possible regardless of the environmental impact. The organization readily decried California's stance as one that denies to give the consumer what the consumer wants. Honest TV installers were worried that they would be labeled criminals for attending to "people's needs." Oh how I do feel sorry for them!

Surely it is hard to think of something more un-American than to deny the consumer his or her every whim? Therein lies a battle cry more shrill than any other. The State of California is going to limit the choices we as consumers have! Surely they must be communists!

We are a long way from the famous Rolling Stones song, "you can't always get what you want." In this case it behooves us as society to pause for a moment and reflect upon this dismal state of affairs. Have we really regressed to the point of becoming temper-tantrum throwing toddlers? Do we always have to get what we want -to say nothing of how these "wants" and "needs" are artificially created through clever advertising?

Is it really so bad if the state provides some adult supervision? Is not adult supervision what we really need? Wouldn't a bit of adult supervision have gone a long way to prevent our current housing crisis? What if someone had told these "poor innocent victims of foreclosure" that it was a stupid idea to buy a house they could not afford? Would that have been so evil?

It is precisely the Reagan idea of laissez faire that has gotten us into our present trouble. You can always get what you want. "This is America," says none other than 24's Jack Bauer in the new Bank of America ad. An America that is as bankrupt as Bank of America.

You can get whatever you like, even if it damages the environment. The world after all, is here to please your every foible and fancy. Don't worry about anyone else. When you buy a stereo the goal is to drive your neighbors crazy. That is the message of conveyed by many car stereo ads. And not surprisingly, many teens and would-be-teens are eager to follow such smart advice.

You can have whatever you want, even if you can' t afford it. That is the Reagan message of hope. Don't worry America, there is always credit. No wonder half of the American households have negative net worth. Isn't it time for some adult supervision?

zero net worth

Half of the American population has a net worth of zero. You read that right, zero. They are worth nothing. They own nothing of value and they are deeply in debt. They are also about to lose their jobs if that has not already happened. Nevertheless those 150 million citizens and residents still need to eat, find shelter, get medical care, get retirement, and get an education for their kids.

Meanwhile the Bush administration is trying to free up offshore drilling. You have to give it to Bush, he is persistent until the very end. He will run into a wall at a hundred miles an hour and keep going until he makes contact. On Friday, effectively the last day of his administration, he managed to open the door for some more environmental damage. Fortunately, it won't matter much.

How about those fancy white shirts, designer suits and ties? Guess who are the major contributors to Mr. Obama's inauguration party? How about the Wall Street crowd? How about those dressed up in the costumes of deceit? Mr. Obama already "owes" more in favors than several of his predecessors combined, so why worry? Living on credit is our way of life.

There are Americans whose net worth, while collapsing all around them, is still astronomically high. These fortunate souls -or should we say greedy?- will do all that is in their power to safeguard whatever they have left, while trying to get some additional handouts and favors. Only it is hard to see who will pay them now.

For almost three quarters of a century now, the American economy has consisted of wizards shuffling wealth from the masses into the hands of a few. Starting after world war two, and employing the latest discoveries in psychology, marketing, and rip-off technology, these "architects of fake prosperity" have managed to suck the world dry.

At first they provided some marginal value, but soon enough they learned that selling hot air was both more profitable and a faster way to riches. They favored an economy based on senseless spending. Spending for the sake of spending. They convinced the American public that such spending was happiness or better than happiness. They lured people into exchanging their life's work and their life's savings for ever bigger cars, bigger homes, more stainless steel, and more useless gadgets.

Now the party is about to end. And maybe that is a good thing, although it will surely be a very painful end for most.