Maybe a Guy like Romney is the Key?
“That is complete baloney. I can‟t believe that the Mortgage Crisis was the cause of thisrecession. It definitely contributed to it and may have been the straw that broke the camel‟s back,
but to think that something that accounts for approximately one percent of the entire economyhad that much pull is short sighted at the least. I think at the most it was a symptom of biggerproblems
. Yes, the mortgages went bad but I‟d like to know what made them go bad,” said Sue
as she walked into the apartment with her bag of groceries and Bill following with two more.
“So, what do you think was the major problem?” asked Bill as he fished out the package
of short bread cookies.
“Capital flight is the problem. In every town around
the country you will find the samechain store all fighting to grab their market share. They are all bringing in millions of dollars of revenue which is leaving the local economies. I also like how they never seemed to blame any of it on gas prices shooting through the roof right before the collapse or utilities going nuts. It isvery reminiscent of what the Fed did in 1929 when they tightened the money supply, but thistime it is the greed of the top 6%.
“Well, they add to the local economies as well,” re
“Yes they do, but very little goes to the level that drives the local economy. With mom
and pop shops, almost every cent earned was recycled through the local economy over and over.
Not to mention that in the industrial revolution‟s infancy, most corporations in the 1820‟sthrough the 1850‟s took good care of the local communities, their employees, and were small
and responsive to the towns they were in. Now with corporations, the revenue leaves the localeconomy. Most of what stays is in the form of taxes and services that the business buys fromother corporations
“So, basically what you‟re saying, taking the fact that 6% control 75% of the total
income, is that money is flowing but it is flowing in the stratosphere from one rich person to thenext with only table scraps falling to the level that drives the economy,
offered Bill while
grabbing even more groceries to put away, “And during this recession an odd thing is occurring.
Prices are constantly rising while average incomes are going down
. Now, if that isn‟t beingorchestrated by the rich and powerful, I don‟t know what is.”
“Exactly, very little is being injected into the lower levels of the economy where most of
the consumer drive is. Look at it this way. Of the top ten employers, six of them are Wal-Mart,
, Target, Kroger, Home Depot, and Sears. All of which hire mainly part timeemployees at just above minimum wage with very little benefits if any. Hell, at just over
$19,000,000.00 a year, for Mike Duke‟s salary, each store of
Mart‟s 8,500 stores is saddled
with $2,235.00 it has to earn in profit which reflects approximately $27,937.50 in sales a year