Real Economic Growth?

I'm a big believer in shorthand. Now, by that I don't mean the lost art of transcription practiced by previous generations of secretaries, notwithstanding that that position as we know it no longer exists; no, what I refer to is a means to capture large or complex subjects with only a few words or images. The benefit for me is that I can get to my points a lot faster. Same for the reader.

For today's example, we must consider the Democratic Party, not as a political party, but as a vast criminal enterprise. At a very fundamental level, there is little difference between the modern Democratic Party and Organized Crime:

- Both are devoted to the accrual of wealth by confiscating it from other people;

- Both are committed to using any means possible to achieve that end;

- Both are the historical beneficiaries of economic catastrophe and the resulting social upheaval;

- To the extent that Organized Crime has in the past century claimed any political affiliation, that affiliation has been with the Democratic Party.

In the Godfather, Don Corleone is quoted as saying that "one man with a suitcase can steal as much as ten men with guns". This neatly describes the modus operandi of Democrat politicians. For example: In the past 40 years, our "Real" economy has contracted significantly. By the Real Economy, I'm speaking of business activity that actually makes things and provides services that people really want. That short list includes food, clothing, a home, transportation, entertainment, education and other items that represent the logical choices made by rational and empowered consumers.

The trend in economic activity, though, has been in exactly the opposite direction. Aided and abetted by Democrats, businesses that represent most of the so-called "growth" in the U.S. economy over the past two generations have four things in common:

a) they aren't things that consumers voluntarily seek out.

b) they don't improve the quality of life.

c) they replace real economic activity, such as manufacturing.

d) Their purchase is mandated or abetted by the Government on behalf of their corrupt patrons.

Among them:

Insurance

Auto; home; health; Life; boat; flood; motorcycle; RV; business......the list of insurance products is never-ending. In the past century, insurance has become the foundation of America's economy, while the rest of the world gets by without any insurance, or only a fraction of what America requires. Why do we have so much? Because government mandates it. Government also sets the price, and government enforces its payment.

The average American family must ask themselves what they would do with the extra $20,000.00 per year they would have if Insurance products and pricing were subject to the same market pressures as, say, DVD Players; and businessmen must contemplate the same thing. Either way, the only thing more ironic than having government guarantee your bloated profits and the enslavement of America to your products is when you actually have to make a payout - such as for Hurricane Katrina - and promptly dump the bulk of the cost for reconstruction on the Taxpayer.

Lawyering

Wills; lawsuits; divorces; prenups; civil law; corporate law; criminal law; Life; Death. Is there an aspect of our lives where Lawyers do not impose themselves? Lawyering now represents over 5% of our GDP, or roughly $700 billion. But how much of that Lawyering would rational consumers voluntarily purchase, if given the option? Would anybody ever voluntarily seek out all this lawyering as opposed to, say, an SUV, college education or a nicer home?

The answer, of course, is no. That said, we don't have much choice in the matter. Democrats have gamed the system by mandating the involvement of lawyers in every aspect of our lives, and in so doing, they have created an entire segment in the Private Sector that is essentially an extension of government. And a damned expensive one at that. Lawyering has replaced the simple concept of Arbitration that had governed most of these activities since the inception of our Republic. Of course, nobody makes any money on arbitration.

Health Care

Now, for Health Care you do get something for your money. The Questions are: How much? Do people voluntarily seek it out? Does it contribute to your quality of life?

The answers are Not much; No; and Not much.

Still in all, Health Care now represents 18% of our GDP, when in 1970 it represented 6%. That means Health Care is sucking 12% more of the nation's wealth away, and we aren't a damn bit healthier, much less wealthier or wiser. That's almost two trillion of our GDP that is NOT real economic activity, but the mere confiscation of our national income by protected Elites. Want to know where your pay raises have been going since 1976? There's your answer.

Education

It's ironic to think that, because the United States overspends on K through 12 education by almost 650 billion dollars per year, that this amount is actually shown as part of the GDP "growth" that suggests a booming economy. Put it to the Rational Consumer smell test, though: would you voluntarily overpay 60% for something if there was an alternative? Of course not. Of course, due to the empowerment of the Education Mafia by the Democratic Party, there is no alternative, no free market, and thus, no rationally priced public education.

My Daddy taught me that there is no free lunch, but Democrat's Daddies taught them the same thing. Didn't matter. When you're devoted to a model based on Organized Crime, free lunches not only matter, they're the whole point. All in all, the so-called "services" described above represent the bulk of our economic "growth" in the past 50 years, and every damn bit of it is a facade.