An economist on the radio this morning was talking about how deflation is the concern now, instead of inflation. I am glad he is finally making it to the conversation. But then he made a comment about how deflation is going to drive wages down because people will be willing to work for lower wages just to get back to work. But I disagree. If Barry, Nancy, and Harry keep extending the unemployment payments (now at 99 weeks) what is the incentive for a lot of society's.....dregs?....to come off the public dole, get out of bed, off the park basketball court, off the corner, out of the bar, off the beach, or just stay home with your kids, and go back to work. Is it worth giving up 30+ hours of your week to actually earn your "living" when the government is GIVING you up to two-thirds of your pay...and when you can work for cash on the side? I am not condemning everyone who chooses against going back to work (just most of them), but you have to consider what the government is incentivising...and why?
Why are taxes (income and corporate, etc.) staying high - and soon going higher - and unemployment benefits being extended, and the useless (as far as safety) Gulf drilling moratoriom continuing, and auto bailouts, teacher bailouts, financial regulation reform, etc. etc etc. all happening / being passed? I think I know the answer. It is all tied together. What do you think?
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