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July 27, 2011
DOOM to Nation: Drop Dead!
Are we boned? Yes. But the thing is: everyone else is boned too. That doesn't really ease the burn, though. When the word "malaise" once again enters the nation's argot, you know we're back in Carter Country. Help us, Ben Bernanke! You're our only hope! I've been saying it for a long time: Tax the poor! A lot of people are coming around to that view. Even people on the bottom end of the income ladder must have some skin in the government game. They have to know that government has a cost, and that if they want more government, the cost (to them!) is going to go up. The WSJ has more to say about America's broken jobs engine. The problem is a complex one, and is not solely attributable to the current downturn. Our workforce's skills are badly-aligned with the needs of businesses (jobs are going begging during a period of 10% unemployment because there are no qualified applicants), technology and automation have removed many jobs entirely, and foreign competition is heating up, making our labor costs uncompetitive. This is a complicated problem that will take (probably) many years to solve, and will require a much more able political class than the one we have now. (That bit about the "just-in-time worker" from the article strikes me as very prescient about what your future jobs are going to look like.) New orders for durable goods in June fell -- everybody together now! -- "unexpectedly"! Via Insty: Is the Euro an idea whose time is gone? Actually, it was a shitty idea right from the get-go. It never really had a "time". Hold on tight, now, my children: a 500-day retail recession is on the way. Instead of "Summer of Change" we can call it "Summer of Chump"? California has found a new way to screw both itself and the citizens who live there by making it hard to build and buy single-family homes. I'm sure you'll be as shocked as I am to find that the geniuses behind this one are the global-warming alarmists and their fellow social-planners on the Left. My message to Californians: you're getting what you voted for. Good and hard. UPDATE 1: Many casual observers wonder -- if American debt is so bad, why are investors still flocking to it? The reason is simple: there aren't many alternatives. But it's also vital to note that this may not always be the case; if investors ever find a viable altnernative to US Treasury debt before we get our fiscal house in order, we are well and truly boned beyond redemption. Our reprieve is due to luck, not skill.
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