The Human condition - How It Has Crippled Economic increase And Political thought In America Part 1
The point of American real estate values is now being witnessed as major banks nearby the world have joined the U.S Federal retain to pump cash into our banking theory in hopes of preventing a worldwide economic catastrophe. Wall Street's cave-in has resulted from declining real estate values precipitated by our foreclosure crisis.
The Human condition - How It Has Crippled Economic increase And Political thought In America Part 1
John McCain, in televised comments on Cnn September 19th placed the blame for the financial emergency squarely on the backs of the poor and minorities by claiming that Fanniemae and Freddymac, the quasi-governmental mortgage giants, are to blame for approving sub-prime mortgages to population that couldn't afford them in areas that were once red-lined. This is a thinly veiled reference to the mandate given by Congress to Fanniemae and Freddymac to growth the opportunities for home ownership in minority communities. African-American and Hispanic borrowers are represented in the subprime shop at nearly triple their rates in the approved market. Never mind that 61% of subprime borrowers would have qualified for approved loans or, according to Freddymac, minorities and the poor pay mortgage rates on the order of one to two-and-one-half percentage points higher in the subprime market.
The Wall road Journal did a study confirming what experts like Martin Eakes at the town for Responsible Lending has been saying for so long - a majority of subprime borrowers had prestige scores worthy of a prime approved mortgage. By the end of last year that percentage rose to over 61 percent. according to their study many subprime borrowers may have been tricked into unaffordable loans by unscrupulous brokers.
Real estate estimation methodology has long failed to adjust for racial discrimination, selective bias, and since George W. Bush has been in office his administrations version of provide Side economics. Does, "The human condition" explicate why current real estate estimation methodology fails to recognize and adjust for the lower values caused by the effects of Selective Bias, provide Side economics and racial discrimination on the estimation process? Can lower appraisals, for properties in minority communities, primarily be attributed to these factors and, if so, can the loss be measured in real dollars? Is the failure of appraisers to adjust for these factors responsible for the slow or non-existent growth of real estate equity in these communities? Was this failure a contributing factor in the misrepresentation of value in Wall Street's mortgage backed securities and therefore shares blame for the up-to-date meltdown?
The phrase, "The Human Condition" is well worn and refers to the ages old conflict of suitable ideals like cooperation, loving and selfless behaviors contrasted with human nature which is invariably competitive, aggressive and selfish. We are capable of massive love and sensitivity, but we have also been capable of greed, hatred, brutality, rape, murder, slavery and war. The human race demonstrates a group sense of guilt and agony from being unable to explicate our duel personality. This has been seen by many scholars as the burden of human life or, "The human condition."
A great deal of what we believe is true depends on our perceptions; the first part of my analysis begins with a brief examination of the economic theories which currently dominate our national political debate. I will later divergence the dominate theory espoused and implemented by our current President and his Party with those of his political rivals. In part two of the analysis the role of racial discrimination, selective bias and provide Side Economic theory as customary reasons for lower real estate appraisals in African American communities is discussed. In part three, I will attempt to part the economic loss to the minority community specifically and to the larger community generally, which suffers a far greater loss in societal peace, wasted talent and loss of credibility nearby the globe. It is not surprising the inability of American leaders to generate a fair and just community has dimmed the beacon of hope among the economically disenfranchised population of the world.
Since what we believe in affects our perception of reality this seminar begins with my (the author's) statement of why I believe in the realities or truthfulness of the conclusions derived from this analysis.
My personal crusade for truth in answering the question, "why current estimation methodology fails to recognize and adjust for the effects of racial discrimination, Selective Bias and provide Side Economics on the estimation process" begins with a brief examination of my beliefs, as an private in American society, and the role culture and upbringing has played in helping to formulate those beliefs.
I have been a principle, either Senior Appraiser, Chief Appraiser or owner operator in small real estate estimation clubs for the past 28 years. I was born during the management of Harry Truman a Democrat and a man my dad vilified for dropping the atomic bomb on the Japanese when, according to him, World War Ii was essentially, over. Truman was the author of the famous, "Fair Deal" a 21 point schedule he presented to Congress which expanded group Security, created a full-employment program, a permanent Fair Employment Practices Act, and provided for group housing and slum clearance. Even though Truman's "Fair Deal" helped the poor, we were poor as dirt, my father and grandfather remained devout Republicans.
My grandfather was born a slave and my dad was born, in 1902, just 39 years after President Lincoln signed the Emancipation Proclamation, which freed slaves in the United States. Dad was a sharecropper (a free slave) on the land of the family who had owned his father when news of Henry Ford's promise of equal pay for equal work came to him; he made the decision to move to Detroit.
Through work in the automobile factories of the northern United States my parents and many thousands of the descendant children of previous slaves were able to become homeowners, buy automobiles and send their children to college. relaxation meant everything to my dad and grandfather and they felt indebted to the Republican Party for the rest of their lives. When I asked my father, during the 1961 Presidential campaign, why he favored Nixon over Kennedy, his response was, "the Republican Party is the Party of Lincoln." The example of my father and grandfather partially explains why I've only voted for one Democrat in my whole voting life. My parental examples are only a partial fancy since the political beliefs I hold now have been formulated by my perception of the larger culture and my lifelong role as a small enterprise owner.
In 1981 Ronald Regan began his presidency. He ushered in the," Reagan Revolution", which aimed to reinvigorate the American population and sacrifice their confidence upon Government. "Reagan was able to push straight through legislation to stimulate economic growth, curb inflation, growth employment, and develop national defense. He cut taxes and Government expenditures, refusing to deviate from it when the strengthening of defense soldiery led to a large deficit. In 1986 Reagan obtained an overhaul of the income tax code, which eliminated many deductions and exempted millions of population with low incomes. At the end of his administration, the Nation was enjoying its longest recorded period of peacetime prosperity without retreat or depression.Overall, the Reagan years saw a restoration of prosperity, and the goal of peace straight through compel seemed to be within America's grasp." (whitehouse.gov)
Unfortunately, many in the Republican Party ascribed Regan's success to "Supply Side" or "trickle down" economics. This economic theory is based on the confidence that reducing tax rates, especially for businesses and wealthy individuals, stimulates savings and investment for the benefit of everyone. provide Side economics only works if you have an economically strong middle class, because consumer spending by a wholesome middle class is, undeniably, the machine that drives our economy. Regan understood this fact as his overhaul of the tax code reflects.
Supply Side economic theory is the direct opposite of Keynesian Economic Theory, which appears to be a basis for the Democratic Party's economic plan. Keynesian Economic theory, which is named for economist John Maynard Keynes, advocates government intervention, or demand-side management of the economy, to perform full employment and carport prices.
The current economic platform of the Republican Party failed because it did not adjust for the lack of quality job creation, as a necessity to maintaining strong consumer spending, in the provide Side equation. Add to this their past and current tax proposals to provide billions more in tax benefits to Big Oil and Pharmaceuticals while proposing dinky relief for the middle class. Someone else good example is the fact the Republican Party has no plan for national health assurance except to offer more choices beyond employer-based health assurance coverage. Under McCain's health assurance proposal families not receiving employer-based coverage will receive a direct refundable tax prestige - effectively cash - of ,500 for individuals and ,000 for families to offset the cost of insurance. With Michigan families averaging 00 per month for secret assurance coverage (not straight through an employer) and health assurance premiums rising 4 times faster than wages, over the past 6 years, McCain's offer of ,000 a year is grossly inadequate. Source: National Coalition on health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National health Spending in 2005." health Affairs 26:1 (2006).
In contrast, the Democratic Party has proposed a health assurance plan that will provide affordable premiums, co-pays and deductibles with guaranteed eligibility. No American will be turned away from any assurance plan because of illness or pre-existing conditions. Financial subsidies will be provided to individuals and families who do not qualify for Medicaid or need financial assistance. These families will receive an income-related federal subsidy to buy into the new group health assurance plan or purchase a secret health care plan. This proposal goes much further toward helping the middle class because the fancy millions of Americans lack health assurance is cost, not availability. Source: National Coalition on health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National health Spending in 2005." health Affairs 26:1 (2006).
Additionally, employers that do not offer or make a meaningful offering to the cost of quality health coverage for their employees will be required to lead a percentage of payrolls toward the costs of the national plan. Small businesses will be exempt from this requirement, and will receive a new Small enterprise health Tax prestige that will help to sacrifice their health care costs.In 2007, manager health assurance premiums increased by 6.1 percent - two times the rate of inflation. The annual prime for an manager health plan face a family of four averaged nearly ,100. The annual prime for single coverage averaged over ,400.These costs are staggering to rise at similar levels for the next decade. Source: National Coalition on health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National health Spending in 2005." health Affairs 26:1 (2006).
The Republican Party has been prosperous in defeating the Democratic Party, in the past, by labeling them as the tax and spend Party. However, under the current Democratic tax proposal only those with annual incomes over 0,000 will palpate a tax increase. They will pay at the same rate they paid during the Clinton Presidency of the 1990's, a period of economic prosperity for most Americans.
Based on the Republican Party's current version of provide Side economics, from a purely self-interest standpoint, no one earning under 0,000 a year should be voting Republican in the coming election. according to the U.S Census Bureau 2006 Economic peruse income Data narrative only 19.26% of American households had incomes exceeding 0,000. That means over 80% of American families earn less than 0,000 annually. The Census Bureau peruse was completed in 2006 and whole incomes have declined since then. according to the Treasury branch and Congress' Joint Committee on Taxation, joint returns with more than 0,000 adjusted gross income and single returns with more than 5,000 adjusted gross income together are estimated to make up only 3.1 percent of households in 2009. Let that sink in... More than eighty percent of American families earn less than 0,000 a year and only 3.1 percent of American families earn more than 0,000.This means that almost 97% of Americans are earning less than 0,000 and will receive a tax prestige under the Democratic tax proposal.
The spreading failure of our largest banks and Wall road brokerages suggests that the financial hardships of the middle class are trickling up to the wealthiest Americans. The goose that laid the golden egg in America was its strong middle class not it's wealthy. The supervene of Republican provide Side economics has not only destroyed our middle class but eroded international confidence in the dollar. This is a fact that will make the road back more difficult.
Despite eight years of failed, Republican Party, provide Side economics the Presidential choice in November is seen as a toss-up by most political pundits. Why? What pre-conditioning convinces Americans to vote against their own economic self interest? For my father and grandfather it was their sense of being indebted to the Republican Party for their freedom. But why would Americans in the year 2008 vote against their own economic self interest? Put simply, its race.
I am aware that political observers with far more palpate and scholarly study will argue that race is not the phenomenal fancy the contest for the White House is a dead heat. These pundits and observers cite the fact that population have not warmed to Obama because he is unknown and comes off as an elitist. Whatever who was editor of the Harvard Law describe has to be an elitist, right? Obama's detractors also point out that he lacks experience, that he is a Marxist, a Muslim and the most liberal member of Congress. Most thoughtful, unbiased, voters don't believe any of these statements is true or can be given greater weight than his plan or Platform for America, safe bet classic intellect, strong family values and pragmatism. He seems to understand, that in the vaporing markets of today, all options must remain open.
I was bred to be a Republican but when I ask myself do I want four more years of the same failed economic policies, the reply is a resounding "No". How could I vote for someone who offers more of the same economic and foreign policies that have brought us to this place in our history?
People do not knowingly pick to sow the seeds of their own destruction. Unless they are among the 3.1% of Americans who earn more than 0,000 a year, there must be Someone else schedule that is more foremost to them.
Since many of the polls, as of September 16th, had McCain with a lead, or the mathematical equivalent of a dead heat, most of his supporters, from a numerical standpoint, have to be Americans who earn less than 0,000 a year. This means that population who over the last eight years have lost all of their economic security, as a supervene of McCain backed economic policies, (he voted with Bush 90% of the time), are supporting a continuation of those policies. Many Americans revealed during customary exit polling they could not vote for Obama, a man of color, regardless of his apparent intellect, moral integrity and quality to lead. "About one in seven Pennsylvania voters said race was an issue and that group voted overwhelmingly against Obama." (David Wiessler, reuters.com) Based on Census voter registration figures the one in seven extrapolation, if applied to the electorate as a whole, could translate to more than seventeen million votes. In a tight choice that would ensure four more years of the same or similar policies that now define America's national economic landscape.
Based on my analysis of this choice cycle and the clear choices presented to Americans it appears the Republican lead in the polls is a prime example of, "The human condition." The possibility that millions of American voters will pick to allow a continuation of policies that have robbed them of their homes, savings, jobs and the quality to provide a college education for their children as a supervene of hatred, fear and distrust of a worthy individual, because of his skin color, is numbing.
Americans are demonstrating a group sense of guilt and agony from being unable to explicate the power of racial hatred and distrust in our politics and in every aspect of our day to day lives. The resultant emotional anxiety has created a duel personality in our national identity at home and to the rest of the world. The racial divide in America has been seen by many scholars as the burden of life in the United States or as discussed here, "The human condition."
No comments:
Post a Comment