Remember The Graph of Doom?

(Ed. Note: The following was sent by Mr. MacMeekin long ago, but didn’t publish until today due to my error.) It is in response to Billy Townsend’s Graph of Doom & More Graphs of Slightly Less Doom posts.

Mr. Townsend. Thank you for your comments.

For the record, I am not Rush’s puppet. But, I am (1) an elderly man who lived through the Depression, (2) a WWII and Korean veteran (active duty with the USAF), and (3) blessed to be very well cared for by the excellent staff at The James A. Haley VA Hospital in Tampa.

Additionally, my B.A., M.A., and doctoral studies were, and remain today, the study of Economics, and Finance. History and writing are my passion, as is Truth, only the truth, and nothing but. I am not a parrot for anyone, and I “call it” as I analyze it, based upon what is always a continuing education.

You admit you‘re neither an economist, nor a historian. Your response to my post proved it.

I recommend reading, “The Politically Incorrect Notebook,” which can be purchased by calling 863-289-1191. At $14.95 it will provide a broader look at many subjects of national interest.

Following are some cogent thoughts about your positions. I did read your entire missile, my friend. (Maybe the only person on this planet to do so.)

First, I have never said “No!” to public works spending. Quite the contrary. We can most certainly use road repairs, bridges, and similar projects, particularly at times like today. What I did say was public projects are not classic examples of immediate and long lasting stimuli. Do them! Yes! But, don’t rely upon them to haul the economy from its present condition.

Perhaps you failed to recognize that my main point, re: WWII, wasn’t the war itself, but the economic conditions, which developed from 1930-1946. (If it’s war that’s required, I guess Iraq failed in your expectations.) Twenty-million people were added during that 16-year period, and when all able-bodied people were finally employed, and had little to buy, they saved! With the end of hostilities, they spent! And the economy blossomed.

It is truly a matter of supply and demand. Today, there is a glut of houses, cars, etc., which you have already recognized. You like to “read” graphs. Try to “read” a recent statistic: Savings. Since the initial “stimulus” payouts, and bank “bail-out,” U.S. savings rates have moved from 0% to over 3%. Why? How would you “read” this? Why didn’t consumers buy another house. Or car. Or, remodel the kitchen? What did you do with your $600?

Do my comments mean there shouldn’t be a stimulus bill? Good Grief, Charlie Brown! No! But, “spending” and “stimulus” are not synonyms! It’s all about HOW you spend the dollars. Dollars to Philippians? Dollars to Pelosi’s mouse project? Dollars to ACORN?

Is there “pork” in the present bill? Nobody really knows how much, because we were not allowed to read all 1,100 pages. Remember Obama’s “transparency pledge?” That we would have 5-days to analyze all bills? That didn’t happen. Why? Pelosi had a plane to catch. Italy was more important to her, than Obama’s pledge of transparency.

You also see interest rates as a better stimuli than tax reductions. You’re wrong. Where are interest rates now? Case closed.

What, and who will provide employment? And why would they? Over 75% of our economy is driven by “small business.” When their sales go down, they’re required to lay off employees. That’s bad. How to help? Improve unemployment benefits. That’s incorporated in the current bill, and that’s good. But, I ask again, what’s going to jump-start the small businessman? Interest rates mean nothing to him/her if no one is buying.

Now, let’s assume that there is a significant reduction in his/her taxes. Personal income taxes. Corporate taxes. Sales taxes. Surtaxes. License fees. An overabundance of bureaucratic paperwork, requiring time, lawyers, and accountants. Rising fuel costs. Al Gore’s carbon tax. Rising unemployment compensation taxes. Rising benefit obligations. The list is long, and burdensome. If lifted, a little, even temporarily, to the point where he/she can see the way to a profitable return to improving sales, HE HIRES!

Unless you promote that all unemployed become government employees, or true wards of the state, the U.S. must seek those “carrots” that encourage and promote the rehiring of those laid off. I hope, I truly hope you understand these simple economic lessons.

You also believe that “other countries” are eager and willing to buy our Treasury bonds. WOW! Uh…where have you been lately? Secretary of State Clinton just left China, the only major buyer of our debt paper, where she was officially told, and I quote, “We hate you! We don’t want your paper. We hate you, and can’t do anything about it!” This, from the country that already owns over $2 trillion of our paper! That’s a “T,” not a “B.”

Your early comment that it was a good achievement when 1933 unemployment rates of 25.2%, were reduced to 1940’s 13.9%, is like saying the Titanic only lost 1,503 lives.

But, sir, it was one of your closing comments that identifies everything about you. I’m not a profane man, but if anyone, or anything could prompt an outburst of sheer disgust, it is the following. And I quote:

“The Great Depression brought on Nazism, Fascism, Communism, nuclear weapons, and the (holocaust). What will be the (end result) of this looming Depression?”