Issue Position: The Economy

Issue Position

Here's a concise summary from Alan Greenspan, former Federal Reserve Chairman (3/2/2016):

"...Asked whether he's optimistic going forward, Greenspan said this: "No. I haven't been for quite a while. And I won't be until we can resolve the entitlement programs. Nobody wants to touch it. And that is gradually crowding out capital investment, and that's crowding out productivity, and it's crowding out the standards of living... where do you want me to go from there?"...meaning, those are all the bad things economists fear besides war, and famine and disease! http://www.zerohedge.com/news/2016-03-01/were-trouble-alan-greenspan-delivers-stark-warning

Second video at 2:10. Jaw-dropping honesty.

Here's my rant:

Mr. Greenspan agrees with my warning inherent in the chart above showing the future federal deficit... (or, rather, I agree with him) and he takes it a step further, saying it is crowding out productivity and threatens our standard of living. His comment is completely consistent with my warning that "We will leave our children and grandchildren tied down with an anchor of debt!" (See "Position Paper" in this website).

In short, that means for most people, their economic status is stuck, or going backwards.

Saying such a thing in America in prior decades would have been viewed as un-patriotic, and was, generally incorrect. Most families, over-time, advance up the economic ladder. The economists tell me the economic standard of living has doubled every 23 years for most people, on average...even in many lower-income communities, the quality of life has substantially improved -- due to leaps in health care, technology and social justice. People in depressed parts of Harlem, NYC, NY are living 10 years longer than they did in 1990.

Coming back to the main issue: So it is a BIG DEAL if we are living a lot longer and Greenspan is not optomistic.

During my life (born in 1959), the story went like this: Come to American and have enough food and some basic liberty; then get some education; then a good job; then a decent apartment; then a nice car; then a nice house; then own your own business or be financially independent as an employee or executive; perhaps employ others; all the while, providing for your children, planning for them to advance; then buy a vacation home (or two), or some land; or build some homes or apartments for others to live in as they started their life journey; or if you chose to be frugal, that's fine, as you accumulate wealth and help our national economy grow by expanding savings... and on, and on, and on...or own nothing, be a monk and do yoga all day if it imposes no cost on others...all good!; if that is what you desire, in the p u r s u i t o f h a p p i n e s s -- however you define it -- with prosperity and self-reliance. And maybe, just maybe, you will find some kind of Nirvana or enlightenment and fellowship with your family and community -- to find ultimate peace within your human existence, perhaps surrounded by loving grandchildren and great-grandchildren...or just find a way to be left alone and free before your time on earth is up. That was the dream.

I grew up in an American where I was surrounded by self-reliant, successful (not really wealthy, but successful) people...I hope we can find our way back. Greenspan says, rightly, we are headed in the wrong direction.

Now, most young people cannot buy a home. Their earnings are sucked away by student loans and/or high apartment rents. They can't live in the cheaper suburbs because the commuting time has gotten too long. The highways are jamed. If you need to get to a child's school from work in a city, it is impossible.

I've talked to many young people. Frankly, unless they get some valuable stock options, or earn many $100Ks, or get a home loan from their employer, living in the Bay Area for most young people means you just can't build equity or wealth. For many-- not all -- but a growing number, the entire economic elevator is broken. There is money everywhere, just none of it is for you. Indeed, you may live in a nice apartment building with a club house, gym and pool for many thousands a month...but you own NOTHING and get no tax breaks. Many just live at home with Mom or Dad when possible, desperately trying to save. If you can't buy a home or start a business, or build an investment portfolio, the economy will further stall. Many have given up on having children in their future, because they can't afford them. What a terrible thing we are doing to our working children.

The former Chairman of the Federal Reserve Bank of the United States of America is NOT optimistic about our economic future. People tell me I'm often too dark and negative on the economy. Maybe not, Aye?

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