Thursday, November 18, 2010

The beauty of the American Economy is The Middle Class.

The American Economy is like a pyramid.  It is best 'stabilized' by a strong and broad 'base' of support from its Middle Class.

If the top two percent of the nation was the only survivor to the American economy rather than a pyramid, the economy would be a pillar.  The Middle Class would be virtually non-existant as the competition for labor would create dirt cheap income similar to the Louisiana ? Independent Contractors ? to BP.

What is occurring at GM is a re-invigoration of the work force.  By calling back laid off workers the unemployment rolls are being reduced and a real income with benefits of all kinds is being returned to the work force.


What does that mean on a broader scope since this is only 600 workers?


It means those workers are no longer 'subsisting,' but, will be out purchasing higher end gifts for the holidays and CREATING jobs when demand for services and products are increases.  It is a small amount with 600 workers returning, but, the PROPORTION of burden on the USA government in its deficit spending is also relieved. 


There are a lot of perks for each worker that is re-engaging the economy.  This SMALL increment grows exponentially.


The tax breaks afforded GM to establish its presence in that city will be returned to the city in taxes from other venues.  


It is all good and it should continue in every sector of the economy.