Will Americans do what is necessary?

[Coexist]

Because the Stimulus Package will not work. Can we all agree on that?

Robert Kuttner, author of Squandering of America, says:

The weak dollar, the risk of rising inflation, the reality of global warming and the need to pull the economy out of the most serious credit crisis since the 1930s will take the kind of activist government not seen in 40 years. To reverse the 30-year trend of increasing inequality and insecurity, and to repair the deep damage to the financial system, Roosevelt-scale remedies and Roosevelt-style ideological clarity will be required: serious public regulation and serious public outlay.

<snip>
In a recent speech to the Congressional Progressive Caucus and in an article in The American Prospect, Kuttner makes the case that the nation’s economic woes are caused by the rise of “right-wing ideology” and the domination of our politics by a financial elite. Both factors make even more urgent the upcoming presidential elections. Says Kuttner:

<snip>
Underlying the nation’s long-term economic weakness is wage stagnation, AFL-CIO President John Sweeney said in a letter to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid:

Wage stagnation, which began in the 1970s, has led to longer working hours, higher consumer debt and increasing reliance on home equities. But today, home values are plummeting, home foreclosures are on the rise and consumer debt is reaching unsustainable levels…

That means, he says, that candidates must stand for changes that ensure Wall Street doesn’t dictate the terms of trade deals and freedom of workers to form unions is restored.

Can Americans, who have been trained for years to sit back and feel entitled, take a deep breath and get to the hard work of fixing our economy?

We did it once - lets hope we can do it again.

[LiberalEsto]

1. What can we, as individuals, do?

I wish there were concrete steps we could take.

[Coexist]

2. besides supporting those who support good plans,

I would say, pay off your debt, no matter how hard - and save.

[1corona4u]

3. Nah....

that's not going to happen...I was at Home Goods on Sunday, and I was shocked, the store was PACKED. Hundreds of shoppers, carts filled with useless decor shit. As I waited in line, to purchase the single bag of coffee I went there to get, (and paid cash for), I noted, (since I was in line for 10 fricken minutes to check out) as all but 2 of the aprox. 24 people in front of me, paid with credit cards...I thought we were in a recession, and at the very least, a shitty economy. But people still have disposable income to buy home decor...amazing.

I wonder how many of those same people will be filing a BK soon...

[unpossibles]

4. true but also keep in mind many of us use debit cards which is basically using cash

without having to carry cash. I use my debit card a lot, almost never use my credit cards other than for emergencies (like my recent truck repair), and tend to pay off things very quickly. Granted, this was a lesson I learned the hard way, but don't assume we're all living on credit either, even though many are.

I am torn sometimes, in that I feel we as citizens need to be more financially responsible, but I also blame a lot of it on predatory lending practices and other top-down problems. Studies have shown that despite what appearances show, Americans spend less (as a percentage of income) on discretionary items than they did 30 years ago adjusted for inflation, partially because of cheaper goods.


http://www.beyondmainstream.com/politics/infocus_1.php
...

At the same time, the common working person's dreams of wealth become harder to achieve. Wages for most Americans didn't improve from 1979 to 1998 and the median male wage in 2000 was below the 1979 level despite productivity increases of 44.5 percent. Despite gains made in income during the 1990s, wages are now on a downward spiral. In May, The Financial Times reported that wages are falling faster than at any time in the last 14 years. Meanwhile hidden unemployment soars as U.S. economists declare a "jobless recovery."
....
A 2000 Time/CNN poll found that 39 percent of Americans believe they are in the wealthiest one percent or soon will be. They even supported Bush's abolition of the inheritance tax, which only applies to the richest two percent of American families.

Thinking like they're rich, Americans allow their representatives to lower taxes for the wealthy and increase their share of the nation's assets. After Bush's tax cuts, the 400 top taxpayers now pay at the same rate as those making $50,000 to $75,000 and many of the largest corporations pay no tax at all. Unlike the average wage earner, these people know their interests: 72 percent of the Forbes richest 400 who contributed to the 2004 campaign gave money to Bush.

When F. Scott Fitzgerald said the very rich "are different from you and me," he was right. The rich and corporations invest heavily to convince Americans to lower taxes, abolish regulations and give them free rein to amass more wealth and create a virtual aristocracy. Meanwhile, the bottom 90 percent struggle to pay their credit card bills and only dream of getting wealthy "someday."

Also interesting:
http://www.msnbc.msn.com/id/21309318/?GT1=10450

Shopping malls are packed every weekend. Restaurants can't open fast enough. Everyone seems to be wearing designer shoes, jackets and jeans and sipping $4 lattes. Credit card commercials constantly advocate splurging and, it seems, U.S. consumers are all too ready to comply.

So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are dogged by debt, isn’t it their own fault?
...
Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.

The basics, according to Warren, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving precious little left over at the end of the month — and leaving many families with no cushion in case of a job loss or health crisis.

(more at link)

In other words, while I think we need to step up and take responsibility, I have trouble completely blaming the "victim" also, despite what things appear.

[1corona4u]

5. I don't really assume, but ...

I have an online business, and process credit cards every day. Out of 100 transactions, typically 1 is a debit. Even through my busy season, it doesn't vary much. I can only remember taking 2 orders, in 7 years, over the phone, that people have asked if I take debit.

I use my debit card mostly as well, but I heard the other day that defaults on credit card debt are on the rise again. People are living hand to mouth, but they still have disposable income to buy more crap for their homes....that was more my point.

[unpossibles]

7. no, I get that and agree that too many people buy too much useless junk

I can tell every trash day when I have to take my trash & recycling out maybe every other week, and some of my neighbors have a truckload every week it seems.

Also though, I often use my debit card as a credit card (process it that way) because then I don't get a service charge.

[Coexist]

6. I agree - and wage stagnation is addressed in the article

which is what leads to credit card and home equity spending.