Sunday, January 19, 2014

Who Stole the American Dream?

Hedrick Smith

Banks put prime candidates into subprimes because it made them money and took $6 trillion of housing value and reduced individual equity by over 40% from 1988 to 2008.

401k's will leave the baby boomers in poverty retirement.

During the 50s & 60s nearly all of the growth in efficiency went into wages, 97% productive growth and 95% wage growth.

What changed?  The Powell memo started a rush of business into government with congress of 1978 becoming the "most pivotal" Congress of recent years - 401k's, change in corporate bankruptcy laws from independent control to management control, credit law changes, and many more, and we moved from stakeholder capitalism to shareholder capitalism (thanks Milton Friedman).

Productivity since the 1970s rose 87% and wages rose 10%.  84% of economic gains went to the top 1%.

Have to go back to the citizen activism of the 60s.  "We the people must take action."

Q:  occupy, public benefit corps?
Occupy Wall Street changes the dialogue but no definite demands.
Q: why Americans don't fight now as yesterday?
Boomers are me first. And we've been sold the idea that it's all beyond our control.
Q: entitlement mentality?
Rhetoric but not so much in reality.
Q:  obama's grade?
A- for the first 2 years for his actions but a C for communicating and a pass for the last two years.
Q: media not covering actions?
Maybe but keep at it

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