Saturday, August 23, 2008

I Love the Free Market

Here we are in the middle class being pressed by high gas prices. Anyone else ever have a problem with gas prices that in CA reached a high of about $4.75? Or organic-free range eggs at $4.59/dozen? Yes, we are being pressed by increasing costs and salaries don't keep up. So explain this one to me. Gas prices need to come down so we need offshore drilling to increase supply so we can export more oil, because Lord knows we don't need any more on the supply side to lower prices. The next time anyone ever mentions the blessings of free market economy, please kick them in the privates for me and say thanks, but no. We have a glut of oil on the supply side. The problem is that company's are making record profits at your expense. And then still get massive tax breaks and want more tax breaks. Anyone ever hear of Exxon/Mobil needing massive tax breaks to make money? Didn't think so.

Does anyone have the time to compare raw oil prices to gas prices? Oil prices are coming down to levels of February 2008, and gas prices then were $3.00/gallon. Have our prices dropped to that level yet, or is there profiteering going on now? Naomi Kline is probably correct, a crisis was created and costs went up, crisis may be lessened but price control was achieved. This is free market economy at its worst.

Speaking of free market economy, the Big Three automakers need a $50,000,000 bail out. I am really torn on this. It would be good to keep the auto industry in America. But, we're talking Ford (our business plan is to make money on gas-guzzling pickups and SUVs), GM (we proudly bring you the Nova and the Cadillac Cimarron and Hummers) and Chrysler (even Mercedes couldn't help us). These are companies so bloated and poorly run, so out of touch with labor and ways to make niche cars for profit it is amazing. It was easy when they were the only game in town. Now they have competition from others that make good products. that have better health care plans in their home countries that lower the cost of their product. You think the Big Three would be all over single-payer or socialized medicine, but they have sold their souls to Republicans. (How many progressive MBAs and business leaders do you know?) We need the jobs, but in America we need new business leaders!!! We need less Chainsaw Als, we need people who can make money, but not maximize profits by gutting the workforce, benefits and by outsourcing everything. This just drives away jobs and lowers the quality of life, the average salary, etc. This in turn lowers the purchasing power, people buy less and the spiral continues. In order to keep the standard of living close, more, cheaper products from overseas have to be bought and the spiral continues.

I can remember when Buy American was the conservative by-word. Who can afford to anymore? When was the last time you purchased an American TV? Nowadays, it is hard to find American products as American companies manufacture less here, do it overseas and then bring them back here to make money. and the American workforce gets screwed. In the long run, this cuts American purchasing power, too. And companies now need bailouts. Maybe they should be nationalized!!!!!! all I know is there are no easy solutions and bailouts prolong the process of necessary change by propping up a business system that cannot work as they exist now.


No comments: