Too few families are forming.
That is, too many young people are unemployed or underemployed. They are delaying education and marriage. They live with parents or some other housing provider.
Housing will continue to be depressed as long as we cannot put young people to work at real jobs. Some kind of benefits package will have to exist. If the companies will not be able to pay these benefits one way, history says the various cash strapped governments will have to make them pay another way because there is too much separation between the 99% and the top 1% of money makers.
The employment rate in America in pure, raw numbers is flat even for the last eleven years. As the population grows steadily the flat rate of employment and degeneration of wages depresses the economy. One would think even a Democrat or a Republican could see this. They do, we are told, but spend all their time cashing PAC checks, avoiding the Big House while running for the White House and blaming the other Party.
If you believe, as I do, that government has to regulate Capital so that it does not become Too Interlaced to Fail, but that government cannot be the largest employer in the nation without exorbitant tax rates and depression of the private sector, then a fundamental change has to come. Our policy making elite must include more people and better minds. The Tea Party and the Occupiers will not do but we should focus on their issues rather than match their extremes.
Please keep in mind there are no smart business people anymore. All of the policy making elite are the people who got us in this mess. Adoration of the policy makers at the governmental center and worship of the private sector money-grubbers is Industrial Age thinking. Look at the policy making elite in this nation. They are mostly the same people from pre-Recesssion times, only in new positions. No one who was uber-involved in the financial melt-downs is in jail because of it. Bernie Madoff does not count because he only cheated his clients, not the whole world.
A logic professor once told me, "I never actually studied logic. I read some books, watched some films, went to some seminars. I decided to give my students the essentials of logic. Then, when they started to ask questions I could not answer, I would just snow them with technical jargon."
Our ruling policy elitists have repeated the basics, the ABCs of financial policy making, traded chairs and when we ask why, they start to talk about CDO's and CDSs. They are confidence men, or con men, who have mastered the art of illusion. The pea is under that shell, isn't it? Oh, no, watch, the hand is quicker than the eye.
Meanwhile, children in America huddle with their parents far past adolescence.
Who are you going to believe? Our policy elite or your own eyes?
Now, you kids move over.
Opinions here are mine alone.