Wages Up .. Spending Up .. Economy Up

While the [National Federation of Independent Businesses (NFIB)] warns that minimum wage increases would create serious cost problems for small businesses, few of their members list “labor costs” as their “most important problem.”  Instead, what we see from the NFIB survey results is that the percentage of small businesses listing labor costs as their most important problem has hovered consistently between 3% and 5% since the beginning of the recession in December 2007.  In the most recent data, the percentage fell to 2%, its lowest level since the start of the recession.

That was excerpted from an article from the Center for Economic Policy and Research that was reprinted in Nation of Change. The title of the article is Poor Sales, Not High Wages, Worry Small Businesses.

The message of this article is much in line with my own thinking and clearly demonstrates that the plutocrats on the right are creating a fictional and damaging wedge issue that may gain them more power and wealth but will seriously hurt the economy of the United States and more specifically, the small business owners that they pretend to support.

If the current economic crisis is dealt with by accepting more and more austerity, there will never be a recovery that reaches down to the level of the small-business owners. If you take more and more money away from the 99% and give it to the 1%, the country will not be saved by the myth of the trickle-down:  most of the wealth of the 1% is designed to maintain the wealth of the 1% and to increase the power of the 1%. The other 99%, including the small-business owners, will have less and less money to spend on the economy at their level (they aren’t expected to buy a new yacht in the next six months) and it’s not hard to see that if the majority of the people have little or no money to spend beyond necessities (and with the high costs of some of those necessities, like healthcare, even they are problematical) they will be unable to purchase the goods and services of the small-business owners. Then how long can the small-business owner last?

The equation is clear:  poverty is a downward spiral which the rich accept as the price of making themselves richer and more powerful. And the current bunch of Fascists, calling themselves Republicans or Conservatives or Tea Partiers, is aware of this position and like the proverbial lemmings are taking this country over the cliff to its death. But as we may have noted recently with the hints about Mitt Romney’s offshore finances, it’s easy to extrapolate and accept that the dumping of America is in full-swing and when the average America dreams of having a goat to herd, the 1% will be relaxing in their luxurious homes on some balmy tropical island or whatever cliché you would like to imagine.

When Martin Luther King said he had a dream, I interpreted it partially to refer to all people being eligible for the American Dream. I doubt if he even considered that the American Dream itself would be dead in fifty years.

What are your thoughts on this?

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