CRACKERNOMICS: THE ‘PARTICIPATION’ ECONOMY

The earliest print cite to the phrase was 19 March 1876 in a short story about Mexico, an American being held up by a Mexican bandit, and the outcome. “Go-!” said he sternly then. “We will call it a stand-off, a Mexican stand-off, you lose you(sic) money, but you save your life!”

Wikipedia

In my short film The Great Money Train Hi-jack I describe how the QE program has turned into a financial Mexican standoff between the Monetarists and the public at large. In the aftermath of the crash, the workforce in the Germanic territories have been ‘invited’ to go back to work on the post Credit Crunch economic reconstruction on new terms.

On Wednesday Ben Bernanke decided to keep riders on the Democratised Money train supplied with a blizzard of free tickets, (much to the surprise of everybody), specifically citing as one justification the participation rate of employment in USA. Bernanke cited falling participation rates as evidence that the employment figures were not as rosy as first seemed. Since Bernanke expressly targets unemployment in his QE program it is just as well to consider this concept of ‘participation’.

As I said in Money Train Hi-jack, in 1945 the Anglo Saxon elite were forced to encourage a much larger than ever before participation in the post war economy by means of offering limited access to the money train in the form of credit – a form of economy saver ticket on the Money Train if you like. Access to washing machines, cars, houses etc funded by credit got the people working for the system again. Perhaps more importantly, state spending on health and welfare meant that the nature of the economy was changed. Welfare spending underpinned what we came to understand as the ‘consumer economy’.

Seventy years later the Anglo Saxon elite is no longer under the intense political  pressure of the post war years at home and abroad so now the message is : take it or leave it. Now the free tickets go to the bankers, not the people. This means that the recipients of QE can happily sit in the money train buffet car for as long as it takes until finally the people realise its clear the track under the new regime or starve.

And this in the end is what the labour participation rate is now all about. Its not about someone leaving the labour market because they are discouraged, it’s about too many people finding a way to slip through the net. So its keep the money train in a siding until the livestock can be rounded up and put back on the cattle truck

Participation has changed from something that was voluntary into something that is forced. In you want further proof of this new form of pleb participation in the economy try this

King Willem-Alexander delivered a message to the Dutch people from the government in a nationally televised address: the welfare state of the 20th century is gone.

In its place a “participation society” is emerging, in which people must take responsibility for their own future and create their own social and financial safety nets, with less help from the national government.

The classic welfare state of the second half of the 20th century in these areas in particular brought forth arrangements that are unsustainable in their current form.”

After several consecutive years of government spending cuts, the Dutch economy is expected to have shrunk by more than 1 percent in 2013, and the agency is forecasting growth of just 0.5 percent next year.

Willem-Alexander said that nowadays, people expect and “want to make their own choices, to arrange their own lives, and take care of each other.”

The ‘participation society’ has been on its way for some time: benefits such as unemployment compensation and subsidies on health care have been regularly pruned for the past decade. The retirement age has been raised to 67.

costs for the care of the elderly, for youth services, and for job retraining after layoffs will now be pushed back to the local level, in order to make them better tailored to local circumstances.

Eurozone rules specify that countries must keep their deficit below 3 percent, and Rutte has been among the most prominent of European leaders, along with Germany’s Angela Merkel, in insisting that Southern European countries attempt to meet that target.

However, the government said Tuesday it has decided once and for all not to abandon the U.S.-led “Joint Strike Fighter” program to develop new military aircraft. The program has suffered cost overruns and created divisions within Rutte’s governing coalition.

it must seek help from opposition parties to have the budget approved.

Rutte insisted in an interview with national broadcaster NOS on Tuesday that he ultimately will find support for the budget.

“At crucial moments, the opposition is willing to do its share,” he said.

Geert Wilders, whose far right Freedom Party currently tops popularity polls, called Rutte’s budget the equivalent of “kicking the country while it’s down.”

Dutch King Willem-Alexander declares the end of the welfare state

Tuesday 17 September 2013 Independent

http://www.independent.co.uk/news/world/europe/dutch-king-willemalexander-declares-the-end-of-the-welfare-state-8822421.html

Lets run the main points:

No more welfare

Look out for yourself; health care, education, old age

Local provision of services don’t bother the government it’s not our problem

Money for weapons

An opening for the far right as the post war consensus ends.

After the reconstruction everyone must be forced to participate in the economy on the new terms. Non-participation will not be an option.

Advertisements

One thought on “CRACKERNOMICS: THE ‘PARTICIPATION’ ECONOMY

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s