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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

2009 - the year of papering over cracks

By | December 24, 2009, 7:34am PST

Summary: Like everything else in this world, we always wait until its too late before taking drastic action, and 2009 epitomized this reactionary mindset that dominates so much of our society.

Most people I speak to can’t wait for 2009 to be put to bed.  People suddenly awoke to the realization that everything they have grafted so hard to achieve in their lives could be seized from them, because their economy had failed them. 

Like everything else in this world, we always wait until its too late before taking drastic action, and 2009 epitomized this reactionary mindset that dominates so much of our society.

However, I did want to sign off from 2009 with a dose of realism… fancy phrases such as “New Normal”, or “Preparing for the Recovery” only wash when they attempt to address the question: “How the blimming heck can we radically change our attitudes and actions to save our children from economic and environmental disaster”.

But what really gets my goat is that we keep on making the same mistakes over, and over, and over again.  One can only hope that the lessons of this year will have broader ramifications than simply learning how to bail out banks and save our stock market from total collapse.  Somehow I doubt it; 2009 was just the beginning of the realization that our short-term mentality has to change, but we will - alas - likely need to endure another bout of pain and hardship before we’ll eventually do something about it.  We got off too easy this time and somehow managed to paper over some pretty cavernous cracks.

For example, the same “boom/bust” cycle seems to be kicking back in.  Wall St. realized it was too important to fail, and the taxpayer footed the bill.  Now it’s starting all over again… the stock market is rising despite uncertain economic conditions and continual rising unemployment.  The environment continues to be destroyed and our governments can only (again) paper over the cracks.  We’ve never seen a global response to saving our wealth like this, so why can’t we do something to save our world for our children?  It seems that as soon as we stabilize our stock market and our house valuations, all is well in the world again.

Many of you will recall the emotional rhetoric from earlier in the year when there were calls for fundamental change.  There was a sudden realization that this time it was too late… the cracks were too wide to cover… they were becoming as wide as the growing distances polar bears need to swim to find food.  Like the polar bear, many of us thought that this time we would start drowning without sight of dry land. 

However, our children’s’ tax burden has saved the day - they have paid for the excesses of today, while we can go on doing things as we were before. All this talk of a New Economy.  All sounds good, but without a real change in attitude and a focus on curing long-term ills, we won’t really change.  We just keep papering over the cracks.

However, some good did come out of all this.  For the first time, world leaders came together and acted quickly to salvage a potential disaster.  They now know our collective fates, both economically and environmentally, are intertwined.  And they should now have worked out better ways to get things done in the future. 

While it’s likely going to entail more pain, at least we’ve made some progress at dealing with global issues.  Our businesses are now global, our economies international, so now at least our problems are global too… let’s cling to the hope that 2009 marked a turning-point in how we stop papering over cracks and start rebuilding a more robust infrastructure where cracks won’t keep appearing and getting wider and wider…

The picture above represents an ice sculpture from the Ice Bear Project - a polar bear sculpted out of ice, with a bronze skeleton inside.  This was created in Kongens Nytorv Square, Copenhagen, Denmark, close to where nearly 20,000 people attended the United Nations Framework Convention on Climate Change (UNFCCC) during December.

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RE: 2009 - the year of papering over cracks
homeioy4901-24353685151921060474470391678351 5th Nov
jrmvqb,good post!
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Pablum
D T Schmitz Updated - 24th Dec 2009
Very nice. But there are issues, particularly of the global kind which have effectively sucked jobs out of our country.

I don't believe in FREE Trade. It comes at a cost.

What you see in the U.S. is the shell of a once powerful manufacturing-based economy--where all things were 'Made in America' and that kept money in our economy and jobs were plenty.

I remember how things were in the 60's and 70's.

There is NO reason that America can't return to having a strong economy with jobs in all sectors.

How?

Break ties with the World Trade Organization
Rescind NAFTA, CAFTA.

Forbid and Fine and Jail Corporate Executives who outsource[1] U.S. Jobs. Make it Law to stop Outsourcing.

Mandate as a matter of National Security that we become self-sufficient, meaning that we produce all goods for life-supporting sustainable needs.

Balance the Trade Deficit by levying Tariffs (or Export Licenses) targeted at select SICs, Countries, products.

Monies brought in from Tariffs should be redirected to forming incubators and/or applied as subsidies for specific industry sectors in need of financial, entrepreneurial assistance.

There is NO other way to recover jobs in America.

Until everyone comes to terms with that fact, we will see a continued decline.

Bring the jobs back to America and end Free Trade agreements.

God Bless America
Dietrich T. Schmitz

================================
[1] Outsourcing jobs specifically offshore
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Have you tried switching to ubuntu?
jdbukis@... 24th Dec 2009
it will solve your problems!
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A typical thoughtless response.
D T Schmitz Updated - 24th Dec 2009
But, it's nothing new.

If you are an IT specialist of any kind, it would behove you to broaden your awareness of 'alternative' IT solutions, especially ones which reduce total cost of ownership, and make that a priority to embrace and learn as much as you can about such technologies.

Because, if you don't, living on your laurels might leave you less marketable 'skill-wise' and possibly result in your layoff.

Wise up.
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I agree with you, Dietrich, but everything that you mentioned has been part of the plan to create a New World Order. Those who want a World Government recognize that it will never happen as long as there are strong individual governments, and, specifically, the US as a world super power. The US economy and government must be brought down for the NWO to prevail. For decades that plan has been pursued by out sourcing our jobs and manufacturing and redistributing our wealth.

Over the next few years (very few, in my mind) we will either see the success of that movement (the collapse of our Republic), or the failure as people of common sense and conservative economic principals retake power. I have hope in the positive signs that I see in the Tea Party movement, but fear that it is already too late.
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Not too late.
D T Schmitz 24th Dec 2009
We just need to have some hard decisions made for the betterment of society as a whole, as opposed to the betterment of just a few.
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Maybe
itpro_z 24th Dec 2009
The death of a democracy comes when the people realize that they can vote themselves free money, or "bread and circuses" as it was once called. From that point on, people vote for their own self interest rather than the interests of society as a whole.

We are firmly entrenched in our Bread and Circuses phase. Over half the people in the US now pay no taxes, and believe that they are entitled to a free ride at the expense of those of us who do. Since they are a majority, and vote for the Party who promises them a free ride, it will be difficult to stop what is happening.
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Well said.
Dorkyman 25th Dec 2009
My hope is that a majority of the voting population gets so angry at Congress for intercoursing them once again that there will be a massive shift back to conservatism and a MAJOR reduction in the federal bureaucracy. Messiah speaks about new jobs; he conveniently forgets to mention that nearly all those "new" jobs are working for the government. Without a revolution, we are so screwed in the USA.
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Too much eggnog
paul2011 25th Dec 2009
You just published the recipe for depression. Congrats happy
You are welcome!
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"Mandate as a matter of National Security that we become self-sufficient, meaning that we produce all goods for life-supporting sustainable needs."

And you plan to do this without lowering your standard of living... how?

The US keeps its high standard of living primarily by buying cheap labour. Unless you're prepared to turn 2/3s of your population into essentially slave labour to make the goods for the rich 1/3, everyone will end up living with less - probably a lot less.

And then there are the products that create a lot of pollution or consume a lot of secondary resources like water - right now, the US manages to avoid that 'externality' by moving a lot of that out of the US - but you'd have to bring it all back in - and start paying the real price for it.

In the end, you'd create a system that has to consume all of its own product, and product everything needed by its consumers. The capitalist system simply isn't that efficient - in fact, quite the opposite, it's very wasteful.

Also, since every product has to include profit, it's a simple mathematical fact that in a closed system, you can't buy back everything you produce. You either need external markets, credit or massive inflation to make that work - and your plan eliminates the first of those.

The latter two would require either have to control/monitor consumption to a degree even communist countries could only aspire to, or you'd end up with the exact same boom/collapse cycles you're trying to avoid.
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No. It would work.
D T Schmitz Updated - 26th Dec 2009
The economy is weak. Purchases at Wal-mart send money out of the country--not through the economy and back down to the wage earners to produce goods in the U.S.A.

When domestic manufacturers can justify the cost to produce goods at prevailing market prices (taking into account a new Tariff system) then consumers will buy American.

A National campaign to incentivize buying American made product combined with the reintroduction of good paying jobs will allow consumers to have increased purchasing discretionary income.

Gradually, with phased target Tariffs (not across the board on all imports, but select goods and Free Trade abusing Countries, e.g., China), such Tariff cash inflows should be redistributed in the form of subsidies to specific industry sectors to further assist in start up incubators, tax abatements, and other financial offsets to encourage investment in job creation and manufacturing of key strategic goods that will ensure that the U.S. returns to being 100% self-sufficient.

It wouldn't happen overnight but during at least a five-to-ten year period with a graduated Tariff system that if put in place to balance the Trade Deficit would succeed in bringing back jobs to America.
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*sigh*, I think I agree with you (For once)
Cylon Centurion Updated - 28th Dec 2009
Outsourcing is a great way to cut costs. Why pay me $10/hr to do the job, when Zing Yao Ping will do it for $0.05 an hour?

Or, better yet, those Cylon Centurions over there will work for free!

Sad, isn't it?
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Solution to this American economy problem.
walter521@... 25th Dec 2009
There is an easy answer which would solve this American problem with
no downside risk.?
?
No hits to the unemployed American taxpayers.??
No stock market crashes.??
No foreign diplomatic issues.??
No bailouts from the federal government vaults.??
No bank runs.??
No riots.??
No bureaucracies.

See LINK to Information Technology Business Edge Magazine.?
HOPE for solution of our national economic problem is in the
READER?S COMMENT which follows. . .
http://www.itbusinessedge.com/cm/blogs/all/no-easy-answers-on-
offshoring/?cs=30511
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When massive sums of money are borrowed, the borrowers
HAVE to hire other people or buy their products. There's no
other way to spend the funds.

Try it yourself. Borrowing a million dollars. see if you can
spend it without giving other people plenty of work. it
cannot be done.

Its our borrowing, not free trade, that lead to all of the
exported jobs, the imported workers and that moved
Americans into service jobs like writing mortgages.

Unfortunately, this borrowing continues, so people oversees
will have to continue to work to earn the money we
borrowed from them.

And we get deeper and deeper into debt. Until the world
realizes that we cannot pay the money back and stops
lending to us.

Then we'll all be working very hard, even your grandmother,
to be able to buy any foreign product because our currency
will have collapsed.
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Blu-ray Copy | Blu-ray Converter
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RE: 2009 - the year of papering over cracks
homeioy4901-24353685151921060474470391678351 5th Nov
jrmvqb,good post!

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