Wednesday, February 18, 2009

Elected Idiots

It really butters my biscuits to see GM & Chrysler asking the US taxpayer for "another" $25 Billion, that's right, BILLION, with a B B B B B B B. I hear ads on the radio lately, encouraging small business. "Small business is the backbone of our economy, you're not the problem, you're the solution." So, why do the big businesses get bailouts? Not only does my father own, and operate a small business, but so do I. I can't speak for him, but I know that my business could sure use some bail out money.
When I was in high school, ( not gettin any younger either,) economics was a required course. I'm not talking about using a measuring cup. Economics - how the economy works, ok! What we have is called the "trickle down effect." Let me explain, cause apparently, our elected officials don't get it.
I'm an electrical contractor. I'm an electrician, you call me when a light won't turn on, or you want to put in that hot tub. So, you call me, I look at the work involved, give you a proposal. You accept my proposal, then WE, sign a contract. That contract basically says, I do the work, you pay me.
In order for me to do the work, I have to hire other men, cause I have more hot tubs and lights to fix. I also have to buy materials to do the job. Copper wire, and light bulbs don't grow on trees either.
Generally, in a service based industry, I do the work to your satisfaction, then you pay me. Then I in turn pay my help, put more gas in my truck, pay my contractors general liability insurance, worker's compensation insurance, state withholding tax, federal withholding tax, state unemployment insurance tax, federal unemployment insurance tax, are you getting tired yet? Pay for the phone that you called me on, the paper I printed the proposal and invoice on, the bookkeeper who keeps uncle sam off my ass, the electricity that runs the computers, the phonebook ads, the radio ads, the speeding ticket I got, cause you had to have your hot tub working for tomorrow nights 3 some in the spa. You get my picture?
Ok, I do have a point in all of this. So, most service based companies work on credit. Mostly, because those wholesale supply distributors know, that we don't get paid till the work is done. Still follow me here? Good. So, the work is done, I have bills to pay. You whine about the price you previously agreed to. I don't get paid without a big legal pain in my ass. In that big legal pain in the ass, I lose out on 35% - 45% of what the original bill was. Now, how the fuck am I supposed to pay my bills? Oh, I forgot, I like to work for free, cause I need the practice right? In the words of Jay Z - "Fuck you, Pay me!"
Now that you understand that scenario, back to "trickle down economics." So here, I did work, put out money, to do you a service, then you don't pay me. I then, can't get the few nickels that I would have gotten from your work. Then I can't pay my bills. Then the people I owe money too, say the same thing. "Fuck you, Pay me!" The cycle continues. The people I owe money to, owe money to someone else, they in turn owe money to someone else, each of those people have to pay their employees. They can't, cause you didn't pay me. So, some poor secretary gets the ax, managers have to answer their own phones. So, now someone else can't pay their bills either.
It's called the "trickle down effect," cause that's what it does. The same way heads roll down hill at work. Your boss gets mad, who's gonna catch the shit? You! Wanna hear it again? "Fuck you, Pay me"
Now, this will also work the other way. No one ever really hears the phrase "Trickle up." Cause the idiots that we have elected, choose to be just that, idiots. So, lets work on this "Trickle up" theory, shall we. Yeah, we will. Cause this is my blog. You can change the channel if you like, this is America!
The government has pumped way too much money in after bad. Lets start with the first 'bail out.' This was supposed to be $750 Billion, turns out more to the tune of $800 Billion, ( that's 9 more zeros). Then, the auto makers want some. So we add $50 Billion ( again, another 9 zeros) for the big auto makers. Now, Obama wants to bail out 9 million (only 6 zero's on that one) homeowners. Again, another $700 Billion or so. In total, nearly $2 Trillion, (way bigger now, 12 zeros!!!) Holy shit! What the hell are they thinking!
So lets go back to 3rd grade. When you first learned that Billion and Trillion really are numbers, not just thoughts in your head for astronomical numbers that didn't really exist. They do. Lets assume there are some 220 Million, tax paying, American citizens. Key words here are, taxpaying, and citizens.
Let's give each taxpaying family $1 million dollars, you pay taxes, cause it ain't free! So my house would get, about $500,000. Not bad. I think we can get our asses out of debt with that. Shit, I don't know anyone who couldn't. Not only could we get out of debt, but we could probably buy a starter home with cash. See, cause we don't really live beyond our means. Not terribly anyway. Total household debt is estimated at about $35,000. Now, subtract our assets, and hell we come out on top of that one. So that leaves us with about $465,000. Hey, fuck the starter home. I'll just build my dream home. With cash.
Now, if everyone did just that. Got a million bucks, paid their bills and squandered the rest, then where would our economy be. Not in a whole lot better shape. What? Let's face it, if we all had a million dollars, a loaf of bread would cost $12. Inflation baby! Gotta love it.
Then again, maybe it wouldn't be that bad. If we all paid our debt. The credit cards, the auto loans, the mortgages, and what have you. Then who would be in trouble still? Well, half of the people. Cause half would use it wisely, the other half would squander it thoughtlessly.
What a great idea. A great way to solve this problem, cause everyone could pay their bills, get caught up, and start spending again. That's what it's all about right? Consumer confidence. Make us believe that everything is gonna be ok, and we spend money instead of saving it. With that whole plan in mind, how about just a small piece of that pie. Let's say $25,000. Tax free! That really should stimulate the economy. People with debt pay it, people without, spend it! Stimulates me just thinking about it!

Home of the free, land of the poor!

1 comment:

Unknown said...

"Trickle down" is often referred to as "Reaganomics." And it's a republican thing. Sadly, the dumbass dems have begun to adopt it as well. Too damn many rich guys in politics. on both sides of the aisle. They have forgotten ( or have never known) what it's like at the bottom of the pile. Shit rolls downhill. Those of us at the bottom are well versed in dealing with the shit. If you have read my blog you know how I feel about this pile of new doodoo.

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