The Great Economic Disconnect
It was another exciting day on Wall Street. The Dow gained just under 400 points on beliefs that the United States economy had already hit rock bottom.
If you look at today’s headlines, you will notice that the news was far from encouraging. Some of the headlines include:
Automakers see Sales Fall in March
Truckers Protest High Fuel Prices
European Banks See $23 Billion Sub-Prime Hit
Construction Spending Falls Again in February
Congress Questions Big Oil’s Profits
Food Price Hikes Changing Eating Habits
Manufacturing Activity Contracted in March
Does all this negative news really suggest the economy has hit bottom and is ready to rebound? Absolutely not. It only suggests that there is a large disconnect between Wall Street and the average American citizen.
Over the years the gap between the rich and poor has grown ever wider. And companies have been rushing to ship jobs overseas to boost not only company profits, but reap their own personal rewards for selling out America. Politicians, keen to who has the money to keep them in power, seem to open up even wider loopholes to allow these companies to sell out America.
Wall Street can and is profiting at a time when Americans are losing their jobs, homes, and hopes for their futures. Why? The reason is that the average American citizen no longer is participating in company’s wealth. As long as more jobs move overseas, this trend will continue.
The number of pensions offered by large corporations today is very disappointing. Many American workers find their company funded retirements plans filled with only their company’s stock. While this may provide some incentive for workers to work harder, the reality is that these retirement plans are as solid as the paper they were written on. Corporate Executives can run companies into the ground, destroying the dreams of their employees, while the Executives get huge bonuses for staying.
Until some politicians that have some guts step up to the plate, I’m afraid what we are seeing now is simply the beginning of the elimination of the middle class. The only way to fix the American economy is to rip up those lopsided trade agreements and allow Americans to work their way out of this mess.
