Saturday, 28. February 2009, 19:40:29
The title should cover it, but I realize there are people who actually listen to what the liars on TV say. Thus, it becomes necessary to explain some things in detail -- small, bite-sized pieces.
For humans to exist, they have to get food. They have to get several kinds of food or suffer horrible deficiencies and die young. You have to be good at getting all those different kinds of food. If you have a neighbor, and he's better at something than you, and you than he, you can specialize and trade. That's called "having an economy." If enough of you live close together and can exchange all the different kinds of food each of you specialize in getting, you can all live better with less work. It's called "economic efficiency." Enough of that, and some of the folks can consider doing something besides fetching food, some other useful thing which folks need.
Maybe one can work on clothing, and someone else on housing. All good things we need. Then someone can make tools which make all of those tasks even more efficient. Pretty soon, some folks can specialize in services which don't actually make anything, but takes a load off others. Eventually, there is this thing called "leisure time," where everyone does not have to work from dawn to dark every day. There is enough stuff exchanged, and services exchanged, folks have time to think, dream, worship, etc.
Then we can have some artistry in production, or even plain old art: music, stories, pretty toys, etc. As the situation gets more complex and more efficient, we can talk about technology advances and even greater efficiency. Then we start needing folks who do nothing more than coordinate all this stuff, guys who buy and sell and hold stuff for those who have no time to barter. They can come up with a means of exchange, and maybe even loan it out. Maybe go farther afield and collect stuff not available locally.
But, if there is no underlying production of stuff everyone uses, the economy becomes exceedingly fragile. Without that solid base of food, clothing and housing, there's nothing to keep the top part of the economy from falling down. We Americans hardly know how to make basic clothes. We aren't that good at growing our own food any more. We do okay with housing, but we don't make much of the tools and equipment an advanced technological society needs. We got the banking and hustling and managing part worked out, but we don't make much of anything compared to the size of our economy.
All we have is loans and using the technology built elsewhere. We haven't protected the basis of life. Now that the loans and management business isn't working too well, we have nothing to fall back on, nothing to keep us alive. Nobody knows how to do the stuff everyone has to do just to live, and nothing in our economic system has room for reviving that sort of production.
We have no economy to recover. Until we stop all the stupid, non-productive stuff we are doing, all those banking type services, loan management, etc., and start making stuff again, we will have massive unemployment. Let me explain what the President and all his brilliant advisers are saying in just a few words:
You need to get back to the lending agencies, borrow some more money, and start buying all that cheap crap again so we can all have jobs.
In other words, the problem, as they see it, is we just aren't willing enough to borrow and buy. Never mind we don't even have a job that will buy basic food, clothing and housing. We are all having trouble in this nation because we don't buy enough luxury junk and services. Somehow, it's all our fault. So if we would just go back to the banks and borrow money we can't possibly secure with collateral, backed by jobs which we may not have, or won't very long, and pay huge interest rates without those jobs and income. That's what Obama is proposing. Oh, I suppose it would be okay if business on the verge of closing can go borrow up that money on expansion for a non-existent market.
So there you have it. We don't have no economy to revive. We have to start over.