The Economy, Riding on the Breakdown of the Social Contract
‘Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.’ Lincoln’s First Annual Message to Congress, December 3, 1861.
While macro economic cycles are the overriding force in longterm market movement the extent to which the moves are exaggerated both up and down are the result of political agendas.Â We are now going to pay the price of the flawed expansionist underpinning of the priorÂ economic cycle which started in 1982 and ended in 2000 and was extended for 7 more years by a combination of four factors, deregulation, exploitation of workers both domestically and globally, deficit spending / Irag War, and Federal Reserve policies.
You might want toÂ read aÂ new book that talks to the exploitation of workers issue, ” The Big Squeeze: Tough Times for the American Worker” by Steven Greenhouse.