Posts Tagged ‘spending’

One in Six

September 28th, 2011

The U.S. poverty statistics came out a few weeks ago, and things haven’t been this bad since 1993. Look to your left; look to your right. About one in every six Americans is now considered to be living below the poverty level. In 1993, the average new house was $113,000, the average income was $31,230, the average car was $13K, and tuition at Harvard was at $23,500. By 2010, you could nearly double every one of those numbers except the average family income which rose only to $50,000, instead of the $62,500 it should have been.

African-American Senior Woman Wrapped in US FlagOne of my favorite comparisons has always been that of Harvard’s tuition, which hovered right around $40,000, and the cost to keep a prisoner in jan American jail for one year, by comparison: about $45,000.  Now, if you extrapolate the number of people in U.S. prisons based on the entire population of the United States, it works out to about one in every 31 adults. Between 2.3 and 2.4 million Americans are behind bars. America incarcerates nine times more people than Germany and 12 times more people than Japan. That adds up to nearly $104 billion dollars a year in U.S. prison costs alone.

The folks on Wall Street and in Washington D.C. who so cunningly helped to put us into this financial mess are, by and large, not in prison, and the percentage of inmates that are minorities is staggering. An estimated sixty-eight percent of prison inmates were members of racial or ethnic minority groups.  Are our prisons full because our minorities are bad people, or are they full because their jobless rate is 40% higher than that of Caucasians?

We’re also spending about $700 billion per year on our military. For reference, the rest of the entire world combined spends nearly that same number.  At $1.4 trillion a year, that adds up to $236 per capita worldwide on defense, and we still have 24,000 nuclear missiles lying around; enough to blow up the planet plenty of times.

According to the World Bank, over 1 billion people live in conditions of extreme poverty and 15-20 million people are starving every year.  I saw another set of figures today regarding food subsidies in the United States.  It wasn’t a figure indicating our generosity toward these one billion poor people, it was that between 1995 and 2010, our Congress voted to provide $260 billion to continue agricultural subsidies.  Okay, maybe some of that makes sense, but what about the $17 billion that is going to use the American people’s money to create artificial incentives to produce ingredients that eventually become hydrogenated fats?

We are an obese nation, yet we paradoxically continue to publicly subsidize high fructose corn syrup and hydrogenated fats, so that our obesity, diabetes and heart disease epidemics continue unabated. Sheer folly, or is this about some really big businesses, with some really good lobbyists?

Maybe it’s time to look at things a little differently. We all know that testosterone makes us physically strong, but it also makes us more aggressive and competitive. This testosterone overload has continued to result in war and violence being accepted as the normal way to settle things, and, except for the supposed economic benefits of war, we also know that war is just crazy. It kills and maims people, and diverts resources that might be otherwise be utilized elsewhere.

We’ve seen time after time that if you are brutal and retaliatory with people, they will learn to hate and fear you. However, if you give people love, compassion and respect they will eventually return the compliment. Maybe we should take a break from all of this running-the-world stuff, and focus on doing the best that we can for the human ace.  Maybe we should walk the talk of our religious leaders for a change.

We ran a hospital like that for over a decade and it prospered economically and grew. This concept is neither rocket science nor brain surgery.  It’s the most uncommon of things in our current culture, common sense.

We cannot change the human condition – but we can change the conditions under which humans live and work!

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Nine Trillion Dollars in the Hole?

August 22nd, 2009

Let me be the first to admit that I was and am all about change. Change has been the only consistent thing in my life.  Today, however, when the deficit projection was revealed to be nine trillion dollars over the next ten years, my non-economist mind began to wonder where this is all going?

My son-in-law is coming home in the next several days from a one year deployment that saw him in harms way in Iraq for the last eight months, and now we all sit with our fingers crossed that we will not be facing a similar deployment not too many months from now to Afghanistan.

How does one maintain two wars, keep soldiers stationed post-World War II in Italy, Germany, and Turkey, to name a few, and in South Korea plus continuing to remain in Iraq, and now push more and more into Afghanistan without bankrupting this country?  Is it possible that very very smart people are not capable of figuring out that in a down economy, the finances will continue to go south until we are, like the USSR in the Cold War, going broke?

When do we begin to see that the previous several administrations lead us into a mindset of borrowing against our future to the extent that we may not have a future, and when will we say, “Okay, enough, let’s stop feeding trillions into wars, and start trying to figure out the rest of this economic equation?”  It clearly is no longer a war on terror, but what is it?  If it is an economic war intended to create jobs a.k.a., the argument for or against the F-22 cuts, can’t we find a better way?

health_debate_specterThe people who seem the most upset about the health care debate are clearly the people who have healthcare, and the people who are least likely to speak out are the young women and children who have no coverage.  Not only will they not speak out, they also don’t, for the most part, vote.  If anyone believes that we are not in some way paying for the 46 or 47 million uninsured now, they are clearly delusional.  Ask a hospital CEO how much the facility charges for an aspirin or a Q-tip.  It’s not because these items cost so much more in a hospital setting, it’s because there is not enough money to go around when patient after patient presents at their doors without healthcare coverage.

We have acquiesced to AIG, to the very large banking institutions, to the automobile manufactures, and to numerous major financial houses.  We have placed billions of our tax dollars into their hands and have watched as their CEO’s, like that of AIG, continue to make millions in salaries with millions more in bonuses.  We have continued to wage wars that were clearly called “Republican Wars” during the last administration, and have no name now.  And we are watching our Social Security and Medicare accounts dwindle more quickly than anyone could ever have imagined.

Far be it from me to take a political stand on such complex economic matters, but it does seem very certain that our futures are tied inextricably together and, unless we slow down our expenditures, find ways to be more fiacally responsible, and, take care of our fellow man, we seem to be heading down a very destructive path.  Alan Greenspan’s admission of missing the economic targets of not too many years ago rings in my ears as he said, “I underestimated the greed.”  Maybe we have all underestimated the greed for too long.

As a professional giver of advice, let me conclude by saying that we can make this work. We can pull back the reins, slow the spending, and still move the economy.  It’s no different than managing our own personal economics; live below your means, save, take care of the necessities, and realize that not all belts can wrap around a 44″ waist. But all of this takes some serious discipline, something that our leaders seem to have been missing for a very long time.  We can’t continue to talk our way out of trouble;  serious, positive action is the key.

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