Our Constipated Economy – The Economic Scoop about Poop

From Grandma

Poop is not generally discussed in our daily conversation except (as now) when applied metaphorically to harsh and hard economic realities in a constipated economy. Dustin Hoffman once quipped that we know we are growing older when our conversation shifts from sex to our bowel movements.

A prosperous economy relies on a proper rate of distribution of goods and services; not too fast and not too slow. Being gassy, bloated, and generally uncomfortable is an indication of constipation. With all the hot air of the last election, all about the economy, with all that political pushing and straining, we find ourselves today no better off than before. We are left after the election with a whole lot of nothin’ – just hot smelly air.

get the runs

Could it be the FED?

Medicine has advanced to where it is possible to give a body a endoscopy to find out what is causing the blockage and the irregular bowel movements.  Sadly we do not enjoy the same transparency, the same facility to seek out the spiders in our economy. The house has passed a bill “Audit the Fed” which is being stopped/blocked in a Senate filled with old guard career politicians.

IIs it not the FED’s job to set the speed of the Economy?

One can compare the ideal flow of goods and services through a healthy economy to the optimum rate of food going through a body where nutrients are absorbed and the waste eliminated. The process is pretty much the same. We use the term “stopped up” when we get constipated. When we talk about the economy we prefer the term “the economy is sluggish” but in fact both words mean the same; both words mean a natural flow has been slowed or arrested.

Constipation can be caused by foreign elements like cancer, where growth has gone unchecked. The result is big, ugly, hard, blue-black stools that smell.

We find the equivalent in the economy where foreign spider-entities are going unchecked (as in too big to fail). When intervention is called for either in a colon, or in an economy, without establishing true facts, all that we can know is that there is a situation.

For a natural prosperity there should be a natural, regular flow of goods and services through the economy. Economic speed is slowed down by arbitrary decision points and by too many regulations. With a body or with the economy where there is arbitrary effort to hold back or hold on, or reward one sector at the cost of another, the system tends to break.

Kid on Pot with newspaper

Waiting out the bad situation

Our bowel movements are easier to solve than the American economy. Eliminator One (from Picture Lady Health and Beauty) is a fail-safe laxative. It rehabilitates your colon, and puts the muscles of your bowels back into proper action, and it works every time.

With regards the economy we simple folk, too small to succeed, dig in and figure out how to wait out what may in fact be a long, but contrived recession.

Quote of the Week
Tough times never last, but tough people do. – Robert H Schuller

old woman walking on water.

From Grandma 4/24/13

Will Raising the Minimum Wage Create Jobs?

grandpa

Grandpa suggests ways to reduce unemployment and get us out of an end of endless economic slump

President Obama has expressed his support for creating more jobs for Americans. We all know that’s what he stands for.

At the same time he is committed to raising the minimum wage. A noble concept, one that seeks to keep pace with the rising costs from inflation, but will it create more jobs?

showing the relationship between minimum wage increases and unemployment

Rising Unemployment – a consequence of the Increase of the Minimum Wage? 

If the President really wants to help the economy he should keep the cost of living down for poorer Americans; he would make it easier for employers to hire new workers and he would make it easier for America to compete in the global economy.

He should also look at the printing of all the bail-out money that makes for inflation, for it is rising costs that will undo not only the minimum wage workers, but all small business owners.

Raising the minimum wage may increase the President’s popularity among the earners of low wages (those who get to keep their jobs, that is), but few people realize how much employees actually cost employers. Employers don’t have to pay only the wages, but they also have to contribute to the employee’s Social Security, Medicare, Worker’s Comp and Unemployment insurance, not to mention mandated ObamaCare costs. In self defense small business owners may have no choice but to keep their work enterprise small (and keep it all) or they will go under.

While small businesses are the mainstay of the American economy, most are struggling and the net result of raising the minimum wage is that employees who aren’t essential to the survival of the business will be let go, while some businesses may have to permanently close their doors. All of this means more unemployment.

Here is an approach that should reduce unemployment and get us out of the economic slump:

  1. Level the global playing field
  2. Stabilize the dollar
  3. Balance imports and exports
  4. Downsize the government

Level the global playing field – More and more of the things we buy are imported, especially from the People’s Republic of China. It is nice of the U.S. government to help raise the living standard of the people in this communist nation’s worker’s paradise, but a government’s primary responsibility is toward its own people.

Leveling the playing field should improve our nation’s prosperity, as ultimately wealth is the result of productivity and innovation. With a struggling economy and a debt-ridden government, the wrong thing to do is raise wages and increase benefits. Employment is encouraged by reducing burdens on employers – fewer rules and regulations will also help.

Another way to reduce unemployment is to impose (temporary and modest) tariffs on imports. That will make it more possible for American manufacturing businesses to compete with other countries, as well as raise revenue for the U.S. government.

Stabilize the dollar – It will also be helpful to stop inflating the money supply, because the more dollars are created out of thin air (think bail-outs), the more expensive our goods and services will become and the less we will be able to compete with the rest of the world. Besides, by inflating the money supply, the government is stealing from everybody.

A requirement for a stable dollar is for all government (federal, state and local) to live within its means and not to spend more money than it has coming in. Not an easy task, I know, but a necessary one. This means that in hard times it has to tighten the belt by getting rid of all waste. For our current federal government, that means ceasing all bail-outs and reducing subsidies, foreign aid and foreign military presence. And, of course, not starting any new wars.

Balance imports and exports – This is also part of stabilizing the dollar, because if we as a nation spend more than we have coming in, we will get into trouble, just as we as individuals will when we live beyond our means. As mentioned earlier, when imports exceed exports, raise tariffs on imports. While that may be unpopular with other countries, our own nation’s welfare should be paramount.

Downsize the government – Government has in recent decades grown into a monster that meddles in all our lives. Besides being a threat to our liberty, the cost to taxpayers is huge. Our government employees are ultimately financed by the productive population.

The primary purpose of a government is to maintain order within is borders. The police and the court system are there to isolate the criminal element from the rest of society. Most other government departments are unnecessary and could be disbanded with few ill effects. Their functions could be carried out better and more economically by private enterprise. The talents of the government employees can then be used to raise productivity in the private sector, which would be to everyone’s benefit.

As you can see from the above, it is possible to increase employment and raise prosperity. While these ideas are unlikely to be implemented in the near future, I am putting these thoughts out there as, after all, the pen is more powerful than the sword.

Ideas are senior to force

The Pen is Mightier than the Sword

Quote for the Week

 “The real minimum wage is zero.” ~ Thomas Sowell

 “Griping Grandpa” is a pen name for Peter Verhoeff. His website, www.eTekHelp.com, provides writing and Web assistance to businesses and individuals.