Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Thursday, July 28, 2011

the Nicaraguan Model

Many moons ago, back in the day, I spent a couple weeks in Nicaragua. It was a nation at war. Actually my country was the opponent. Back when Reagan was funding the contras against the Sandanista government.

But the point here is not that Americans will help out, whatever the heck their government is doing, though that was definitely part of that mission. It's more about subsistence.

The capitalist society we live in here has a safety net, and some people qualify to get uninsurance benefits, or food stamps. And those same eligible claimants or clients get the money, few restrictions apply. You could spend your entire unemployment check on your cable bill if you wanted. Food stamps have a few more strings, no prepared foods for instance. So no cooked chicken from Fred Meyer for you. But you could squander it all on Doritos.

In Nicaragua the little government office I worked in distributed food. Enabas. The drivers would come through, get their shipment, be sure they were armed to defend themselves, and hit the road. Probably I will never meet braver people than someone like Reynaldo in my life. He took the time to talk to me, though I spoke no Spanish, just my little guidebook in an attempt to communicate.

Delivering food. Do we need a different sort of safety net in this country? One that meets people's basic needs - food and housing come to mind. But without the complete freedom model of capitalism. Instead of food stamps, give them rice and beans. Maybe some cooking oil to fry up a few tasty onions with that.

For housing (instead of unemployment checks), give each person a housing voucher worth $600. If that is not enough to make their rent or mortgage payment, see if their bank or landlord can take a haircut (accept only the $600).

Meeting people's needs, can we try something new?

Monday, July 11, 2011

the Collective Wisdom of Cspan

A Walmart economy can't afford Cadillac services.

Basically, once upon a time there were workers in this country of ours who made $70K. Auto workers who actually made things for a living. Imagine those same workers now trying to scrape by, perhaps a job at Walmart for $25K per year.

Yes and suppose they pay an average effective tax rate of 7%. For their old salary that would amount to $4,900. Now with their new salary, tax would amount to $1,750. But, they probably make so little that they may not be liable for any federal tax. Or state tax.

This is conjecture and not scientifically or economically accurate. But, it paints a picture - does anyone wonder why our post-industrial Walmart economy brings in less federal tax dollars?

And yet, we still expect the same level of service from our government, as when we each had a V-8 truck in the driveway, and a boat in the garage, and could grill up steaks every weekend. Now the Walmart worker gets by, perhaps with help from friends, or from the Food Bank.

Our government needs to scale accordingly.

Step #1 on the road to recovery: boycott Walmart. Keep jobs here. The truth is, we are a lot closer to Greece than we think.