The Extinction of YUPPIES

I generally attempt to remain, if non-partisan, at least partisan-fair. I personally think that many Democratic policies have contributed to the economic distress that has overtaken the American monetary landscape. So too have many of the Republican policies. Both political parties have made grievous errors in policy administration and the overuse of incentivizing or de-incentivizing perceived desires from everything from encouraging consumer spending by offering tax incentives for credit card debt to college tuition credits to increase college attendance for the sake of votes.Truthfully, for all of the good that those types of programs may encourage, they generally have the opposite long-term effect. Without going into long and boring examples, I will simply say that they have rarely had a lasting effect on the economic enhancement for the majority of the country.

 

Uppermost in this realm of politically motivated economic mythology is the Republican mantra of “overregulation” kills jobs. Just as “Video”, in fact, did NOT kill the radio star, and without casting aspersions on the anthropologic acuity of The Buggles, a 1980 one-hit wonder band, neither is there verifiable evidence that overregulation is the jobs-killing monster that the conservative wing of politics would have us believe.

 

Despite the proclamations of conservative stalwarts such as Texas Governor Rick Perry or House Speaker John Boehner, and in some instances, even President Barack Obama, according to the World Bank’s October release that ranks countries based upon the “ease of doing business”, the U.S. was ranked 4th out of 183 countries. The ranking takes into account tax rates, complexity of business regulations, and average length of time that it takes to start a business regardless of success rate. The 4th place ranking for the U.S. was unchanged from the previous ranking.
Moreover, a number of lower-ranked countries, including China, Brazil, and South Africa, have had much more rapidly growing economies than has the U.S. for the past 7 years. Outside of the U.S., the consensus is that regulation may kill some jobs, but it also creates others.

 

Additionally, those jobs created appear to be more stable due to the consistency across all business categories and the perception that corruption, whether among competitors for consumers or availability of investment capital, is less of a threat.Neil Gregory, a deputy director for indicators at the World Bank, says regulations kill some jobs but create others. He says rules that promote small-business lending are essential and provides impetus for the view that upward mobility is not only available, but common.

 

Americans have always cared much more about being able to move up the socioeconomic ladder than where we currently stand on it–the reasoning being that “we may be poor today, but as long as there’s merely a chance that we can be more well off tomorrow, we’ll take it.

The Occupy Wall Street (OWS) protests that have spread across the nation seem to me to be the personification of the end of belief that the young-upwardly-mobile professionals or young urban professional–depending on whether your definition is based in the first half or second half of the 1980s–is as outmoded as the VHS.
To the contrary, the combined student-loan debt in the U.S. is now greater than consumer debt, and could very well be the next bubble to burst, which would send the U.S. into a double-dip recession at as quickly as any other economic boogey man on the near horizon.

 

Inequality in the U.S., always high compared with that in other developed countries, is rising. The 1% decried by OWS takes home 21% of the country’s income and accounts for 35% of its wealth. Wages, which have stagnated in real terms since the 1970s, have been falling for much of the past year, in part because of pervasively high unemployment. For the first time in 20 years, the percentage of the population employed in the U.S. is lower than in the U.K., Germany or the Netherlands.

 

New reports from groups such as Brookings, Pew and the Organisation for Economic Co-operation and Development show that it’s easier to climb the socioeconomic ladder in many parts of Europe than it is in the U.S. It’s hard to imagine a bigger hit to the American Dream than that. According to Pew, “The simple truth is that we have a belief system about ourselves that no longer aligns with the facts.”

 

Given the above, it strains credulity that regulations that have been in effect for the better part of a year are the true cause of the economic dilemma that has been a generation in the making.

hg

  5 comments for “The Extinction of YUPPIES

  1. John-Seraph01972
    November 23, 2011 at 12:04 pm

    One thing not noted is the reason these permits take so incredibly long to get… Its because there are so few people staffed in these departments. If the government were able to hire more people, or streamline the process by using technology (since, right now, most of these departments are very paperwork heavy — emphasis on the paper), the process would become far less onerous. Another thing that would GREATLY decrease the amount of paperwork required, and the speed of the permit process would be to have some certain functions, namely health and safety, be handled by the federal government, rather than local governments. The Federal government simply has FAR greater resources, and if those resources were handled efficiently (ie, not by Republicans, who believe that government can’t do anything efficient, thus creating a self-fulfilling prophecy), the process would be easier and far quicker.

  2. jackarm
    November 16, 2011 at 10:58 am

    COMMON SENSE REPLY. makes sense. use common sense and keep a balance.

  3. November 11, 2011 at 12:23 am

    I used to see the see the back of a lot of restaurants when I worked for a refrigeration contractor. Some of them were scary, and that was with health dept. inspections.

    Regs are supposed to serve the community. There are definitely some local regs that don’t. When I lived in Chicago the bldg. code required steel pipe, which is a lot harder to work with than pvc/abs.

    The only ones who benefitted were plumbers. I think that regs gone now, it was an example of a bad reg.

    So I know there are bad regs, but I support regs in principle. The companies that spilled the oil in the gulf should have been more tightly regulated for example.

    And you shouldn’t have industries regulating themselves.

  4. Harvey Gold
    November 10, 2011 at 10:10 pm

    Regulation-sorry about your friend, but I think you greatly underestimate the positive impact of regulation.The reason for regulations are similar to gun laws. The regulations are not about those who would comply, but those who would not. I would rather your friend get hassled over serving food than taking a risk on someone not as conscientious poisoning a child. The same goes for the safety of bridges, roads and buildings that school buses, children and the elderly, as well as all others who depend on inspectors keeping contractors from cutting corners that might cost someone the life of a loved one. I call it priorities.

  5. jackarm
    November 10, 2011 at 12:36 pm

    HG – Good article on Yuppies and their extinction. I agree with you on taxation but not on regulation.

    Taxation – currently our tax code is as much about rewarding some and punishing others as it is about raising revenue.

    Regulation – I think you severely underestimate the negative impact of regulation. Example – a small, local convenience store gas station close to me just went out of business. I had become friends with owner. I asked him why he did not start selling biscuit and eggs sandwiches in the morning? Big seller down here. He told me it was too much trouble to get health inspection permit, license and pay fees. That is on a small scale.

    On a big scale. – try to build a bridge, or a dam, or a pipeline or a nuclear facility. you will grow old and die before you get a permit.

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