As the U.S. economy suspends in a prolonged, comatose state, high joblessness and uncertainty among young Americans have incited youth discontent with the federal government’s fiscal and economic blunders. A new poll conducted by Generation Opportunity, a non-profit organization that educates young Americans on the nation’s current political and economic affairs, surveyed individuals between the ages of 18 and 29 on issues such as government spending, national security, and Washington leadership.
The latest U.S. jobs report positioned October as the 32nd consecutive month that unemployment has hovered near or above the 9 percent mark. However, the current unemployment rate does not accurately reflect the percentage of young Americans still struggling to find work. For instance, at the end of August, the U.S. Bureau of Labor Statistics reported a youth unemployment rate (ages 16 to 24) of 18.1 percent, about twice as high as the overall unemployment rate.
"Every day, at a very personal level, young adults are being negatively impacted by the poor economy," said Paul Conway, Generation Opportunity president and former Chief of Staff of the U.S. Labor Department. "The unemployment numbers are particularly concerning when you consider that 43% of young adults are not satisfied with their current level of employment."
Many Wall Street occupiers are echoing the Communist Party USA's call to "Save the nation! Tax corporations! Tax the rich!" There are other Americans, on both the left and the right — for example, President Barack Obama and House Speaker John Boehner — who call for reductions in corporate taxes. But the University of California, Berkeley's pretend economist Robert Reich disagrees, saying, "The economy needs two whopping corporate tax cuts right now as much as someone with a serious heart condition needs Botox." Let's look at corporate taxes and ask, "Who pays them?"
Virginia has a car tax. Does the car pay the tax? In most political jurisdictions, there's a property tax. Does property pay the tax? You say: "Williams, that's lunacy. Neither a car nor property pays taxes. Only flesh-and-blood people pay taxes!" What about a corporation? As it turns out, a corporation is an artificial creation of the legal system and, as such, a legal fiction. A corporation is not a person and therefore cannot pay taxes. When tax is levied on a corporation, who pays it?
There's an entire subject area in economics, known as tax incidence, that investigates who bears the burden of a tax. It turns out that the burden of a tax is not necessarily borne by the party or entity upon whom it is levied. For example, if a sales tax is levied on a cigarette retailer, the retailer does not bear the full burden of the tax. Part of it will be shifted forward to customers in the form of higher product prices. The exact amount of the shifting depends upon market supply and demand conditions.
With Greece’s Prime Minister George Papandreou agreeing to step down in order to secure more bailout funds from the ECB, attention turned immediately to Italy’s financial problems that dwarf those of Greece’s. The Greek PM’s decision now clears the way for an interim government to agree formally to the new austerity measures demanded by the European Union as a condition of receiving additional financing by the end of the month. Those funds are needed to pay Greece’s bills through January 2012.
The bond market shifted its attention to Italy on Monday, driving interest rates on its 10-year bond to a record-high 6.66 percent, the highest since the country entered the union in 1999 and perilously close to the “bailout” levels reached before Ireland and Portugal were forced to ask for help from the European Central Bank. Said David Ader, head of government bond strategy at CRT Capital Group, “We’ve seen one European bank and one U.S. brokerage fail. We know there are strains for French banks. We [were] wondering how long it [would] be before Greek default worries spread to Italy and Spain. In a situation like that, money managers are going to decide simply to take their risk down.” The resulting sell-off in the bond market flowed over to the Euro as well, as it came down from its Greek-euphoria highs of last week by nearly 3 percent, and it could lose 6 percent by the end of the year according to the CEO of Intermarket Strategy in London, Ashraf Laidi.
Rep. Darrell Issa (R.-Calif.) Chairman of the House Oversight Committee, is pushing for a federal probe of the post-ACORN group New York Communities for Change (NYCC) for engaging "in fraud through its participation in the Occupy Wall Street protests." The proposed investigation stems from a Fox News article published in late October regarding the organization’s crooked involvement in the OWS movement, where NYCC officials allegedly coordinated "guerrilla" protest events and hired ACORN-affiliated employees to attend the protests and collect donations in a deceitful manner.
Writing Monday to U.S. Attorney General Loretta Lynch of the Eastern District of New York, Rep. Issa called for an investigation into allegations that the group "solicited donations from union members under false pretenses and misappropriated those funds to support the protesters." As The New American reported last week:
NYCC Executive Director Jon Kest and his top aides have been working at OWS protests and generating money for the NYCC for various expenses related to the movement, including supplies, staff wages, and travel expenses for ex-ACORN employees. "All the money collected from canvasses is pooled together back at the office, and everything we’ve been working on for the last year is going to the protests, against big banks and to pay people’s salaries — and those people on salary are, of course, being paid to go to the protests every day," a NYCC staff member told Fox.
One of the things that has struck me, when I have gone on luxury cruise ships, is that most of the passengers look like they are older than the captain — and luxury cruise ships don't have juveniles as captains. The reason for the elderly clientele is fairly simple: Most people don't reach the point when they can afford to travel on luxury cruise ships until they have worked their way up the income ladder over a long period of years.
The relationship between age and income is not hard to understand. It usually takes years to acquire the skills and experience that high-paying jobs require, or to build up a clientele for those in business or the professions.
But those in the media and in politics who are currently up in arms, denouncing income inequalities, seldom mention age as a factor in those inequalities.
The shrill rhetoric about differences in income proceeds as if they are talking about income inequalities between different classes of people. It would be hard to get the public all worked up over the fact that young people just starting out in their careers are not making nearly as much money as their parents or grandparents make.
The inherent political and economic instability of our present time has been the subject of many books, some of which are marketed as fiction, while others are presented as nonfiction. As is often the case in times of civilizational crisis, the authors of fiction may actually have a more realistic understanding of the actual "facts on the ground" — and the substantial causes of a civilization’s woes — than is presented by the self-described political elite in their purportedly factual writings. Thus, for example, historians may wear themselves out debating the historical accuracy of speeches recorded by Herodotus or Thucydides — what actually matters the most, to the modern reader, is that such speeches present him with an opportunity to reflect upon the Permanent Things.
Economist Gary Shilling’s claim that the U.S. economy is on the edge of deflation defies the Bureau of Labor Statistics’ recent announcement that inflation is high and increasing.
The one form of deflation that the Federal Reserve is most concerned about, according to Shilling, is that the general price level will experience sharp declines which will turn into a self-perpetuating downward spiral as buyers delay making purchases in the hopes of paying even lower prices in the future. But there are six other forms of deflation, and five of them “are already in place in the United States,” say Shilling.
An elementary school field trip to the Wisconsin State Capitol got out hand when the teacher allowed his fourth-grade students to participate in a protest against embattled Governor Scott Walker, the current target of the state’s public school teachers’ unions. A video of the incident, obtained by a Milwaukee Fox News affiliate, shows students clapping along while protesters sing a modified version of the Woody Guthrie folk song, “This Land Is Your Land,” with a verse that includes the incendiary line, “Scott Walker will never push us out, this house was made for you and me.”
Thanks to a wonderfully patriotic French couple, Jean-Pierre and Cecile Mouraux, Uncle Sam has been saved from multicultural oblivion and is now living and thriving in the very farm house in Mason, New Hampshire, where the original Uncle Sam spent his boyhood. When Cecile and Jean-Pierre, who had been collecting Uncle Sam posters, found out that the house was for sale, they bought it and turned it into the Uncle Sam Museum.
It seems odd that a French couple, who settled in California in 1979, would adopt Uncle Sam, America’s unique icon, representing the spirit and pride of America, and make Americans once again aware of this great symbol’s significance. But they didn’t start out with this idea. They came to America to create their own American dream, which had its incredible ups and downs.
Their first enterprise, in which they invested their savings, was a tour guide company, specializing in providing French and French speaking visitors with a complete tour service. Their goal was to have them discover and love America, especially California and the Bay Area. They did a thriving business until a new Socialist government in France limited what French tourists could spend abroad: $200 a year per person. That killed their business. In a short time they were flat broke.
But they found an immediate solution to the problem of survival: baby-sitting. At first they earned $2.00 an hour. But soon Cecile found a customer who also needed house-cleaning. That enabled Jean-Pierre to contribute his special talents.
Critics of the banking system in the United States declared Saturday, November 5, National Bank Transfer Day — a grassroots movement that encouraged bank customers to switch to credit unions. The notion behind the event was to teach banks a critical lesson. The effort reportedly has had some positive impact on the credit unions; however, overall it proved to have the opposite effect on banks from what the protesters intended.