If the President Won't Do Something About Jobs, Who Will?

It seems our economic system is fatally flawed. It refuses to recognize the basic cycle of a consumer economy, which the United States was designed to be.



You have a business. The business hires employees domestical­ly. The employees take their pay and transmute into the consumers that dozens of other businesses rely on, who, in turn hire other employees that are the consumers of dozens of other businesses­. But hanging over that basic cycle are investors. Investors who want the business to provide more lucrative investment return. The business then looks at its operation and decides it can combine functions of three employees to one, and lays off two employs to recover cost it can then redirect to investors. This downsizing eliminates two consumers that are supporting dozens of businesses­. Causing a downward pressure on profits. Which cause the business to lay off more employees to keep investors from bolting.



As economic activity slows down businesses purchase less supplies from vendors, putting economic pressure on their business ... and they fall into the same pattern.



Multiply this process by millions of businesses and you can see it is a perpetual economic spiral downwards.



Then add the cornered businesses investing their rainy day fund in exotic securities in order to recoup the profit lost by the lack of consumer based economic activity and you are basically waiting for the house of cards to collapse.
Read the Article at HuffingtonPost