Yes, I Hear You


I think I may have finally realized why I am not making any progress in explaining how I think the  economic mess needs to be corrected.

Here is my letter addressed to a middle-class proponent of austerity.

It is my fault for failing to acknowledge the point you are making.

You are right in blaming some of the problems of the faltering economy on the excessive borrowing of the middle-class.

It is a mistake for me to argue my side, without first agreeing to the part the middle-class played.

When I do that, I lose the audience for hearing that the ultra-wealthy played an equal or even larger part in the debacle.  My real point is that I do not want the discussion to focus on the price the middle-class has to pay for past excesses without having a discussion of the part that the other party to the excesses has to pay.

My problem with Germany is that they played a large part in encouraging the excesses of the other countries to borrow money to buy goods and make profits for Germany.

Now Germany wants to keep everything they gained by their taking advantage of the naivete of the other countries, and they want the other countries to pay for it with resources they just do not have.  This formula cannot work, and nobody is going to come out a winner if this is the way that the solution is sought.

Both sides have to come together and admit they both played a part in the mess.  It will take both sides to give up some of the gains they made during the bubble, to create a non-bubble, stable economy.  So far, only the middle-class is weak enough to be forced to give up their gains.  But economic reality will force the lower rungs of the ultra-wealthy to give up their gains, too.

Only when society wakes up to the fact that there is no solution until we get together to solve the problem will this nightmare end.

In trying to make a strong case for Keynesian solutions, I have failed to emphasize that I do understand that both sides of the economic struggle for gain have made huge mistakes.  This leads me to make strong arguments only against the one side that refuses to take responsibility for their mistakes.  I assume that it is a foregone conclusion that the side that is taking all the hits right now does deserve some of it.  I see that I have to pay more attention to making clear the part that I am assuming.

 

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