America’s Elliptical and Square-Wheel Economy

For years prior to 1980, our country’s economy limped along on elliptical wheels while our political bigwigs promoted demand-side economics. Since 1980, we have been limping along on the square wheels of supply-side economics. In a few short years, supply-side economics has more than doubled the total previous national debt. Neither lopsided economic system has served the people of our country to the best advantage. Both systems have functioned to pass the cost of their follies on down the line to our children and grandchildren, while select elements of our citizens have been living it up. Because of the dominating position of our country in the economics of our small world, the rest of the world’s citizenry has likewise been disadvantaged.

While all this fiscally irresponsible magic show has been in progress on the Big-Stage-on-the-Potomac, the audiences of the Little-Stages-Across-the-Country have had their attention diverted by “Circuses and Cake” (like Madison Avenue-type sexy advertisements, sports, what-have-you).

What is needed is less irresponsible acting, and a balanced economy in which both demand-side and supply-side economic systems are given their realistic and appropriate places. Pushing the economic system around for political advantage and tagging the unborn for the tab is for the birds.

What is needed is a General Accounting Office type of agency whose function is to keep the economic system balanced. (That is expecting no more from the government than is expected from each individual, or family unit.) Then politicians can maintain their popularity, along with “Rambo” and “Bonzo,” by performing on the Big-Stage-on-the-Potomac and the rest of the world can maintain reasonably healthy economics.

The “Misery Index” (inflation-times unemployment) was an incomplete rule of thumb. The inflation part of the equation is based on the Consumer Price Index (CPI). The CPI is in heavy need of adjustment to current conditions (i.e. medical and insurance costs, for example). A true Misery Index would reflect any and all costs and/or cost changes that do not contribute directly to short-term consumer gratification.

A country that is the most affluent the world has ever known discloses serious character defects when 14.4% or 34 million individuals in its population live in poverty; when most of those are children, senior citizens and single mothers; and when the conditions of its neighbors in this small world are worse. Most of the select few who are living it up inherited their income bases and pay no taxes, due to their lobbying ability. Tax reform to correct that detriment is seriously needed. Competition is for the lower end of the economic scale. At the upper end are cooperative cartels, monopolies and trusts.

VERNE S. MYERS

La Canada