The Cascade Effect,
The Economic Destruction of the US by Bush and The Republican Party.
Since before the Iraq war I have been writing a series of articles, posts and blog entries about the ruinous economic policies of the Bush Administration and Republican Controlled Congress.
Most if not all of my predictions have come true, and
unfortunately we are now entering the end game of America's
Preeminence. The Cascade Effect has begun, and the longer
the momentum continues the harder it will become to stop and reverse.
Jobs are the economic engine of the US. Without well
paying jobs the economy will slow and eventually fall
The number of well paying jobs in the US for the middle class
have been on the decline and accelerating. The jobs have
been exported to foreign countries with low wage workers.
In the past this was not an issue because the jobs exported
were the low wage labor intensive jobs.
Now, the previously high paying jobs involving high tech
assisted production have been exported. This increases the
profit margin of the US Corporations but at a long term cost
to Americans and America.
Let me explain.
For every High Tech job exported 7 Americans are effected
in a ripple effect. If enough Americans in a community lose
their jobs the following occurs.
The food vendors and restaurants in the community suffer
The suppliers to the closed industry suffer or close.
Service Retail Stores suffer and close.
Foreclosures of homes occur.
The Banking system becomes illiquid or reluctant to make
The community becomes a distressed blighted district
if no other commerce replaces the lost jobs.
This is the NEW micro economic situation.
Throw into the mix, the Doubling of the US National Debt,
The rising Annual Deficit, the Increasing Debt Interest payments,
the collapsing housing market, the crumbling financial industry,
the impending commercial real estate collapse, the retiring baby
boomers with the unfunded liabilities of Social Security, Medicare
and Medicaid attached to their retirement, core inflation increases
of food and fuel, the high personal debt, the coming credit collapse,
and the parts are in place from economic collapse.
This can be fixed, but because of irresponsible fiscal policies by
the Bush and Republican Party it will be painful to reverse.
Sunset the tax cuts, the US government needs the cash.
Cut ALL US Budgets by 1/4 of the deficit.
(example if the deficit (on and off budget) is 10% cut all budgets
by 2.5% for 4 years. Based this on the previous years deficit
not projected deficit. If the Deficit is higher than 25% do it
for 1/8 or eight years.
Extend the date individuals can begin to receive these benefits by
one month per year beginning 2012.
Give significant tax breaks to US corporations that bring back
exported jobs to the US that increase the net jobs within the US
for that Corporation.
Raise the Alternative Minimum Tax to exclude tax payers making
less than $75,000 and step ladder it to $125,000.
This is a quick and dirty explanation, but if this is not done the
economic slowdown will accelerate.