This is just a random philosophical pondering of mine. I don't necessarily even know if I will even agree with what I write tomorrow, so keep this in mind.
...
Looking at the state of some of America's largest companies today--the near-bankrupt state of the American airlines, movie studios, television, radio, <insert industry here>--is quite shocking really.
Truthfully, where do we go from here? It is difficult to imagine that any of these industries will ever emerge from their debt, just as we cannot imagine K-Mart ever emerging, except perhaps acquired in a merger. Mergers, in themselves, though, are hitting their logical end as well. The merger of AOL and Time Warner, the merger of Vivendi and Seagram / Universal...tough times hit and we see its wounds. Hollywood is as teetering towards destruction itself, as cinema ticket sales no longer cover the costs, and the DVD industry is the only thing propping it up.
Media, of course, has been quick to blame it on illegal internet downloads, but such an excuse is just that--an excuse. DVDs, which are in a similar slump as music sales, are downloaded at only a minute fraction of music downloads, due to the prohibitive download size (often > 500 MB) that even tax broadband connections (which, as found, are even a small fraction compared to modem users in America). Television networks are seeing a similar slump--ratings are at their lowest ever and have no signs of going up.
Airline industries...CDs...DVDs...what, indeed, do they all have in common? In fact, what do all these near-bankrupt industries have in common? They state that the public just isn't buying anymore...but can you blame the public? Statistics according to the Congressional Budget Office, between 1977 and 1989, the after-tax income of the top 1% of families rose 102.2%, the middle 20% of families fell 5.2%, and the bottom 20% fell 10.4%. Average earnings for workers, in 1982 dollars, fell from $8.55 in 1973 to $7.39 in 1993. And, while the official line claims that inflation hasn't gone up much, just think about the prices of things as they were 10-15 years ago and think about prices of things now--if you can't remember, think about "Now and Then" on "The Price Is Right."
Think about automobiles. Think about everything that we are *supposed* to buy. And ask yourself where the hell this money is supposed to come from. Of course, you may be saying to yourself, "Hey...I made quite a bit more over the past few years." Well, bravo...but, sorry to burst your bubble, walk around most urban areas, look at most of the people walking around you, and ask yourself: do these people look like they can afford to jump on an airplane at a whim's notice, purchase a new automobile outright, and buy a lot of CDs and DVDs?
Herein lies the logical problem that is always avoided: how can you expect the public to continually spend *more,* but, at the same time, compete to keep wages *low*? Karl Marx theorized about the logical end of capitalism--that it would eventually destroy itself in enough time. Regardless, it is apparent that something has to change. For the economy to correct itself, there must be some stimulus for the average person to buy. Tax cuts have hit their logical end as well. Bush's tax cut proved to be ineffectual in doing anything--except to drive individual states into fiscal crises, forcing many of them to equally raise taxes.
To sit back and expect the economy to "correct itself" is a misnomer. What stimulated the economy in the 1990s was venture capitalism in the internet--in essence, a new market that never really existed (just look at the state of the internet today--swindlers, hackers, and pop-up ads). Our only hopes are currently hinged on far-fetched future technology--hydrogen fuel cell processes and nanotechnology--that are likely decades away. The last logical end is to get money to the working class and have them spend--and since the private sector is unwilling and/or incapable to do such a thing, the system itself is on the verge of self-destruction.
Your thoughts?
Melon
...
Looking at the state of some of America's largest companies today--the near-bankrupt state of the American airlines, movie studios, television, radio, <insert industry here>--is quite shocking really.
Truthfully, where do we go from here? It is difficult to imagine that any of these industries will ever emerge from their debt, just as we cannot imagine K-Mart ever emerging, except perhaps acquired in a merger. Mergers, in themselves, though, are hitting their logical end as well. The merger of AOL and Time Warner, the merger of Vivendi and Seagram / Universal...tough times hit and we see its wounds. Hollywood is as teetering towards destruction itself, as cinema ticket sales no longer cover the costs, and the DVD industry is the only thing propping it up.
Media, of course, has been quick to blame it on illegal internet downloads, but such an excuse is just that--an excuse. DVDs, which are in a similar slump as music sales, are downloaded at only a minute fraction of music downloads, due to the prohibitive download size (often > 500 MB) that even tax broadband connections (which, as found, are even a small fraction compared to modem users in America). Television networks are seeing a similar slump--ratings are at their lowest ever and have no signs of going up.
Airline industries...CDs...DVDs...what, indeed, do they all have in common? In fact, what do all these near-bankrupt industries have in common? They state that the public just isn't buying anymore...but can you blame the public? Statistics according to the Congressional Budget Office, between 1977 and 1989, the after-tax income of the top 1% of families rose 102.2%, the middle 20% of families fell 5.2%, and the bottom 20% fell 10.4%. Average earnings for workers, in 1982 dollars, fell from $8.55 in 1973 to $7.39 in 1993. And, while the official line claims that inflation hasn't gone up much, just think about the prices of things as they were 10-15 years ago and think about prices of things now--if you can't remember, think about "Now and Then" on "The Price Is Right."
Think about automobiles. Think about everything that we are *supposed* to buy. And ask yourself where the hell this money is supposed to come from. Of course, you may be saying to yourself, "Hey...I made quite a bit more over the past few years." Well, bravo...but, sorry to burst your bubble, walk around most urban areas, look at most of the people walking around you, and ask yourself: do these people look like they can afford to jump on an airplane at a whim's notice, purchase a new automobile outright, and buy a lot of CDs and DVDs?Herein lies the logical problem that is always avoided: how can you expect the public to continually spend *more,* but, at the same time, compete to keep wages *low*? Karl Marx theorized about the logical end of capitalism--that it would eventually destroy itself in enough time. Regardless, it is apparent that something has to change. For the economy to correct itself, there must be some stimulus for the average person to buy. Tax cuts have hit their logical end as well. Bush's tax cut proved to be ineffectual in doing anything--except to drive individual states into fiscal crises, forcing many of them to equally raise taxes.
To sit back and expect the economy to "correct itself" is a misnomer. What stimulated the economy in the 1990s was venture capitalism in the internet--in essence, a new market that never really existed (just look at the state of the internet today--swindlers, hackers, and pop-up ads). Our only hopes are currently hinged on far-fetched future technology--hydrogen fuel cell processes and nanotechnology--that are likely decades away. The last logical end is to get money to the working class and have them spend--and since the private sector is unwilling and/or incapable to do such a thing, the system itself is on the verge of self-destruction.
Your thoughts?
Melon
