The Joplin Globe, Joplin, MO


April 1, 2013

Your View: Not a good choice

JOPLIN, Mo. — In 1936, Franklin Roosevelt asked the voters if they were better off than they were four years earlier.

Unemployment had been cut almost in half. Roosevelt won every state except two in 1936.

In 1937, Roosevelt became fearful of inflation and slashed government spending, the country fell into a second recession. Republicans called it the “Roosevelt Recession” to distinguish it from the “Hoover Depression.”

What causes inflation? It can be caused when government pumps more money into the economy than it needs. When Lyndon Johnson introduced the “guns and butter” policy during the Vietnam War, he slowed inflation.

Inflation can be caused when demand exceeds supply, During the Jimmy Carter years, OPEC held oil off the market to raise the price. Gas prices soared, and inflation rippled throughout the entire economy.

Inflation can be caused when wages rise faster than productivity.

When prices rise faster than wages, inflation can be caused by corporate executives receiving oversized salaries, supersized bonuses and stock options. When the value of company stock is higher than it was a year ago, the executives have the option to borrow money from the company, buy the stock at the lower price and then sell it back to the company at the higher price. The executives are profiting at the stockholders’ expense. When the value of the stock goes down, they don’t buy at last year’s price. They aren’t losing money, but the stockholders are. When a lot of stockholders sell at once to cut their losses, they can bankrupt the company.

Corporate executives can then use their golden parachutes.

I hope this explanation isn’t as clear as mud, but executives hope it is.

No Billionaire Left Behind is a separate subject that should not be confused with executive compensation. If I were as smart as these guys, I would be dangerous if I were crooked. They can rob you blind and never spend a night in jail. They don’t cause inflation; they create recession. They make their money the old-fashioned way: They steal it from the investors and put the money in offshore banks.

In 2008, they cost the economy $11 trillion. None of them went to prison. They make Bernie Madoff look like an amateur.

Some politicians don’t know how to fix the problem, so they pump money into the economy. Other politicians are paid to see the problem isn’t fixed.

It’s “a real choice,” but it isn’t a good choice.

Steve Goebel


Text Only
  • Our View.jpg Our View: Lone holdout

    Missouri continues to be the only state in the United States that won’t allow a prescription drug database to be established.

    July 22, 2014 1 Photo

  • Anson Burlingame, guest columnist: Much has changed in U.S. over 14 years

    Does anyone recall the major economic argument during the 2000 presidential campaign between George Bush and Al Gore?

    July 22, 2014

  • Our View: Vote no on Amendment 1

    Proponents of Amendment 1 — the Right to Farm Act — have not made their case. We’ve met with advocates of this amendment to the Missouri constitution and listened to their arguments, but we don’t believe they have adequately answered the central question: Who is it protecting, and from what?

    July 13, 2014

  • Your View: Amendment 5 is deception of the highest order

    Amendment 5, sponsored by Missouri Sen. Kurt Schaefer, R-Columbia, “relating to the right of Missouri citizens to keep and bear arms” provides that “any restriction on these rights shall be subject to strict scrutiny.”

    July 21, 2014

  • Other Views Other Views: No time to turn away

    With the shooting down of a commercial airliner over Ukraine and fighting that has now escalated to a ground war between Israel and Hamas in Gaza, it would be easy for most U.S. citizens to throw up their hands and turn their backs.

    July 21, 2014 1 Photo

  • Your View: Power to defend

    The Globe’s editorial ‘More guns not the answer’ (July 15) was saturated with classic progressive blather.

    July 21, 2014

  • Your View: Thanks for the generosity

    Generally, all we hear about is the bad news, and obviously, there is plenty available. Our church felt this event worthy of public knowledge.

    July 21, 2014

  • Your View: How to upgrade your business

    Let’s see now. When some folks wish to improve the exterior of their properties and have other taxpayers pay for the improvements, they create a community improvement district.

    July 21, 2014

  • Our View.jpg Our view: Street smarts

    If your daily commute has been shortened because you no longer have to wait at 26th Street and Connecticut Avenue for a train to pass, thank your own tax dollars.

    July 21, 2014 1 Photo

  • Other Views Other Views: Decision fails test

    With the announcement that the State Board of Education has decided not to release individual school test results because of cyberattacks and other problems this spring, educators are scratching their heads, as are taxpayers who footed the bill.

    July 21, 2014 1 Photo

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