Does Financial Crisis Threaten America's Central Role in Global Economy?
Reader Comments
What the history offers?
I come from China and it is hard not to compare the mess that we have now with the conclusion of each Chinese dynasty. A Chinese dynasty usually ended with the following:
1) Tremendous polarization of the society where a small group of ruling class got absurdly rich. The wealth of the country rapidly concentrated in the hands of a very small percentage of the population.
2) The increased insulation and segregation of the majority of the population and a small group of “super rich” who became increasingly indifferent to the needs and opinions of the people.
3) Long years of expensive wars followed by wide spread civil unrests
4) Intensified “marriage” or “merge” between political elites and powerful property and business owners
The United States of today seems having all of these symptoms. However, the substantial difference is that we are a democratic society where we can get our voice heard to a certain extent through the political system and a free media. Maybe we can fix this mess and continue the American story of success and prosperity. Ancient China had a different political system of feudalism where violent revolutions erupted every three to five hundred years and wiped the old dynasty away and replaced it a new one that treated its people better at the beginning, but gradually was corrupted again by the immense power that it had and started digging its own grave by repeating the same mistakes.
It is worthy trying the democratic process, for example, express our opinion here and participate in the soon coming elections. Revolutions are violent and ugly. For example, there have been many dynasties in China, but why only one Forbidden City in Beijing, the home of the last emperor of Ching dynasty, has survived? ALL the other extraordinarily luxurious and splendid royal palaces had been burned by the people with intense hatred and the emperors and their families along with their cadres, as a rule, died violently.
Consumer debt is a pittance
Stop placing the blame on the American People! Our government continues to operate without regard for the people or what they want. We indeed have a ruling class in this country and they continue to pass legislation that is aimed to keep the money and power in their own hands. We need to do away with the federal reserve, do away with the unconstitutional income tax and stop spending! No more foreign aid, no more policing of the world. Unfortunately there will be no belt tightening going on in Congress - only among the ranks of the middle class. This cries of REVOLUTION!
Consumer Debt
I don't know of any credit card company who held a gun to any of those idiots who carry a credit card balance. My generation was brought up to fear debt worse than a social disease. It seems to old farts like me that me that the problem is not usurious interest rates but the addiction to instant gratification that society has developed. If restrictions on credit card companies are called for, then place them on the card holder and the card company both. Limit allowable debt to demonstrated past credit reliability as USED TO BE DONE WITH MORTGES.
Consumer Debt
When are we going to start addressing the issue of enormous consumer debt and the usurious credit card interest rates (18 to 32%). How is the consumer expected to purchase goods and services when his monthly payments are composed mainly of interest. We need some controls to protect the consumer from thee outlandish interest rates that are playing a roll in crippling our economy.
Misleading presidency
In comarison with other eras of US presidents, this era has been one of the worst based on reality; much more wars, much more expenses under the mask of "war on terrorism". No one can accept exhausting American resources. It is time for American administration to create a positive tone in terms of Arab-American relationship. It is radiculous that one calls what is happening at the American Congress "democracy", rather it is one-side decision.
Can you answer my questions?
1) Will the government regulate business at all, considering there are no laws prohibiting senior government officials become senior executives and vice versa?
2) Do we really have “private companies” or companies such as AIG that actually is a company owned by the general public in its true nature?
3) With all the incentive structures for managers, is there still a nasty divorce of managerial power and the ownership of a large company so that, as a result, the managers do not really care about the future of the company that they manage at all?
4) Considering these large public companies are really very public rather than private, is it to the best interest to the nation, the people, and the company concerned to pay the senior executives the kind of money that they are paid today?
some questions about our problems
1) Will the government regulate business at all, considering there are no laws prohibiting senior government officials become senior executives and vice versa?
2) Do we really have “private companies” or companies such as AIG actually is company owned by the general public in its true essence?
3) With all the incentive structures for managers, Is there still a nasty divorce of managerial power and the ownership of a large company so that as a result, the managers do not really care about the future of the company at all?
4) Considering these large public companies are really very public rather than private, is it to the best interest to the nation, the people, and the company concerned to pay the senior executives the kind of money that they are paid today?
Taxes most unfair for hardworking upper middle class
My wife and I are both pharmacists, in our 60's. I work 12 hour days and she works 16 hour days (average 42hr/week). I retired from a University 7 years ago and draw retirement. "Sounds good ", but every year we have had to increase our equity loan to pay extra taxes, We can't deduct anything (we aren't rich enough),but our mortgage, not ever our daughter's college tuition. Then of course, we now get hit with the minimun alternative tax. We don't on a vacation home, or even a small boat, and we certainly don't live extravagantly.
Now we are the target that Mr Obama seems to want to add the new tax burden to.
There is a dramatic shortage of pharmacists and we are both good at our jobs, but why work 12 and 16 hours days
only to increase our equity loan to pay more taxes.
To add insult Gov. Perdue of Georgia,now wants to remove the mandatory bi annual 1&1/2 % raises for retired teachers.
Enough is enough.
If we had the income tax policy that we ought to have with 50% rate over a million and 75% over ten million, we would not have deficits---you dodobird economists.
This notion we have of letting a tenth of one percent of people take massive amounts out of the economy and not put it back is insane. Where do you think the billion came from for the founder of Red Bull? How about billions for hedge fund managers? From thin air? How many jobs do you think these guys are "creating"?
Get some spheres, Congress. Re-tax, and either collect or PREVENT excesses of confiscatory capitalism in the first place.
