By: S. Rowan Wolf, Ph.D, Uncommon Thought Journal August 1, 2004

This work is under a fair use Creative Commons License

Do you hear that sucking sound? It 's the economy going down the toilet. I agree that national security and the wars in Afghanistan and Iraq are important (though neither candidate for prez is talking about Afghanistan). However, domestic policy really needs to be on the table as a main entrée. On the one hand we have a spiraling debt. According to Ed Hall of U.S. National Debt Clock the current debt is approximately $7,300,748,929,970.39 (7.3 trillion) and increasing by an average of $1.69 billion a day. That means that each US citizen currently owes $24,844.58 on the debt. On the other hand, the deficit is also out of control - White House Predicts 2004 Deficit Of $445 Billion -- the Biggest Ever . (The deficit is the yearly amount of spending in excess of government income, and adds directly to the debt.)

Well that's the big picture on government spending, what's happening with the economy we live in?

According to David Cay Johnston (author of "Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich - and Cheat Everybody Else") I.R.S. Says Americans' Income Shrank for 2 Consecutive Years (NYT, 7/29/04). Nell Henderson (Wa. Post, 7/30/04) reports that Economic Growth Weaker Than Expected. On July 29th, Henderson reported that the economy is Up and Down All at Once.

It seems that many act totally baffled by how the economy can be up and down at the same time. Truly, it is not complicated at all. On the whole, corporate profits are flying high but the labor market (and wages) are sinking. This is reinforced by Porter (NYT, 7/18/04) Hourly pay in U.S. not keeping pace with price rises.

The discrepancy here is not whimsical or confusing. It is about decisions and policies, and in some ways it is not new. Since the Reagan era, the shift has been to transfer wealth and power from the citizen to the "corporate citizen." The belief that "what's good for business is good for us" is not a truism, but pure propaganda. The process of transfer has dramatically accelerated under George W. Bush because he is the best friend that corporations have ever had in the US. That is clear from the drum beat of news about worker, environment, and safety policy changes that have come from his desk. It is clear from the military and Iraq war contract scandals coming to light. Take a look:

Iraq Funds Are Focus of 27 Criminal Inquiries (Miller, LA Times, 7/30/04)

Business Booming for Soldiers of Fortune (Stapp, IPS, 7/30/04)

CACI Defense Contracts Hazy on Civilian Authority (McCarthy, Wa. Post 7/29/04)

Advocates of War Now Profit From Iraq's Reconstruction (Roche & Silverstein, LA Times, 7/14/04)

The corporate handouts are epitomized by the $23.5 billion gift to Boeing to rent refueling planes for the military that don't meet specifications and won't work (Roche Opposed Review of Alternatives to Plane Deal (Smith, Wa. Post, 7/30/04)). Take a look at the following quote from Smith's article (emphases mine).

The Air Force's $23.5 billion plan to rent at least 100 Boeing 767 jets as tanker aircraft is the costliest government lease in U.S. history and was the subject of substantial debate in the Bush administration.

It was strongly opposed, at least initially, by the Office of Management and Budget. But top Air Force officials embraced the idea after a Boeing lobbying campaign that reached the White House and gained the support of key lawmakers.

Some will argue that giving a corporation big bucks for something that won't work will at least create jobs (the other side of the equation). You think so? Well, Boeing plans up to 30 hires later this year (Monroe, Florida Times, 7/29/04). This is part of the anticipated 28,000 jobs Boeing hopes to add. But don't get your hopes up about this return on our investment - Boeing outsourcing could mean layoffs (7/09/04).

Ah yes, "out sourcing," "off shoring," and those other deceptive terms. Take the money and run is more like it. Take the contracts, over bill for services, provide materials and services that don't meet the need ... and watch the profits rise. Expand operations, but not in the US. "Out Source" to sub-contractors who pay less or don't operate in the US. "Off shore" jobs under your own corporation for the cheapest labor you can find. Bill it all to the US tax payers while you downgrade pay and benefits or kick them out of a job. It's all a corporate wet dream.

Bush presents himself as a down home guy - Mr. "like us" American. Nothing could be further from the truth. This is a man who has never had to balance a checkbook, and never had to pay for his fiscal mistakes (either personal or corporate). The money disappears? No problem, someone covers his debt, and gives him more money to boot. Now we (the US tax payer) are doing the same thing. He has a blank check and we'll get the tab (as will future generations). Certainly previous presidents (Dem and Rep), and several Congresses, have all facilitated this process.

So here we sit with corporations (and their major stockholders and owners) rolling in piles of green while workers are looking for change lost in the sofa. What gripes the hell out of me is that these two sides of the equation are either not discussed in relationship to each other, or we are given the impression of the "experts" (like Greenspan and crew) scratching their heads in bafflement. We are left to believe that understanding these complexities are beyond us because "the big boys" can't figure it out. It's all hyperbole and distraction while they suck the economy (and us) dry.