The President Speaks: Labor Day

As we in Washington observe the Labor Day holiday, I cannot emphasize enough the contributions labor has made to the well-being of our nation. It is labor that pushed for a forty hour work week, time and a half for overtime and holiday pay.

It is labor that increased the standard of living for such a large percentage of Americans. It was members of labor unions who got killed, beaten and were not allowed to work so that business would share its profits and future workers would have a comfortable income.

These are turbulent times in America. But the turbulence is comfortable. Even without health insurance, Americans live well. Most people have plenty of food. Most people spend a lot of money on goods that are not necessary.

During the rise of organized labor in America, life was not comfortable. There was seldom plenty. There were no credit cards. If people wanted to buy something they had to pay cash. That means they had to save.

Saving was not only essential to a household. It was considered a religious obligation as taught in the Old Testament.

As those working people scrimped, struggled, hoped, feared, dreamed and planned they were angry that their employer made so much money, but paid poorly. The workers noticed that their employers were proponents of religion, but did not exemplify the generosity of the founder of their religion.

It wasn’t just toughness that allowed these labor leaders and their followers to organize, risk and strike. They were savers. They, if they could, had money in the bank so they could strike. If they all saved they could help each other. It was not only an obligation to save, but a religious duty to help each other, even if you get killed.

These workers followed their religion by sticking up for what’s right and by opposing greed. This religious sense of justice is gone from America. There is a sense of justice within various churches, but the American people do not have this sense of justice, this sense that their religion and the courage of its founders be taken into the workplace.

Why is this? One reason is because people generally, do not save. By refusing to save people are putting their desires before their future needs.

This means that they take themselves too seriously. It means that the bond they have with each other is one that emphasizes getting.

Getting is an unhealthy competition. It creates envy and resentment. People do not look upon each other as friends or neighbors, someone to ally oneself with, fight for justice with, get beat up for with.

If Americans expect to share in the increasing profits of America’s business, they will have to struggle for it. Americans must face the fact wealthy people are happier to the extent working people are poorer.

The nation needs to realize that all the comforts we have would have been created with or without labor unions, but that the sharing of these comforts to such a large extent is a result of the sacrifices of the people working between 1870 and 1930, not a result of generosity on the part of business.

There is an advantage business has today it did not have 100 years ago. People spend foolishly. This foolish spending combined with decreasing compensation has business sitting pretty.

Business knows Americans are selfish. Business knows that Americans only sacrifice to obtain a job that allows them to squander a lot of money every weekend.

Business knows Americans do not like or trust one another. Business knows Americans will jump up and down about a war, but are afraid to risk themselves for their family or each other. Business knows Americans today are soft and afraid and have only superficial religious beliefs.

My countrymen, America’s businesses are not being fair to you. 2/3 of our economy is what working people spend.

Your employers do not return 2/3 of their profits to you either through cash, improved health plans or safer and more relaxing work places. This should drive you absolutely wild. But it doesn’t.

Tomorrow I will meet with business leaders of our nation. They will frown at me for what I said today.

I will laugh. I will tell them that they have nothing to worry about.

I sincerely hope you, my fellow Americans, prove me wrong.

The President Speaks: The economy

This evening I would like to talk about our economy. As most of you know, whether our economy has been booming, stable or on a downturn, we Americans have been spending too much money. Our spending has become so acute, we have gone into debt.

Basically, our debt is in two parts: the deficit the federal govcernment creates by selling bills and bonds and notes, and the balance of trade deficit American consumers and businesses create by spending more than they save and buying more than they produce.

The federal government has a choice to not spend more than the amount of taxes it receives. If a shortfall is expected, three things can be done: taxes can be raised, programs cut or money borrowed by selling treasures.

The least desireable way to raise money is to sell treasuries. This is true even if the dollar is used as the world’s main currency and interest rates are low.

There was a time when selling treasuries was good for America because mainly Americans bought them. But today most Americans have no savings.

Too many of our securities have been purchased by foreigners. Selling securities makes it easier for the government, usually upon the whim of a president, to start a war taxpayers do not want to fund, always against a weak opponent posing no threat to America.

It is no coincidence that as we have been selling securities to fight unnecessary wars, the infrastructure of the country has deteriorated. What is really necessary, the improvement of our infrastructre, has been denied funding. What is really unnecessary, wars against weak opponents, has received lavish funding.

Upon taking office, my administration has ended our childish wars. You the taxpayers are paying off these bills. This is the first step toward improving the economy. The second step toward improving the economy is to sell securities to repair and build roads, sea ports, airports, railroads, bridges, schools and hospitals. At first, the securities will be bought mainly by foreigners. But as our infrastructure and economy improves more American will have the money to buy securities and also the money to pay taxes to finance our infrastructure.

Because we need new infrastructure does not mean we should look forward to shipping frivilous products on our highways or to hurrying down a faster road to the mall. Our improvements are intended to encourage new industry so we have more to export and need to import less.

Improved schools provide talent industry needs. Improved roads decrease the cost of shipping and the amount of time in storage. Faster communication means mistakes are less costly and new ideas can bring profit faster.

With this efficiency and the enthusiasm that goes with it, I hope we will produce more than we consume and as individuals save more than we spend. It is also my hope that within ten years we will have a trade suplus. That means that if an emergency occurs we will be able to afford a tax to pay for it. It also means that if we need to issue treasuries, the treasuries will be purchased by Americans.

I have not mentioned what to do with our savings besides using them for a national emergency. There are also personal emergencies.

And too, there are people who are eager to buy homes and to start businesses who need to draw upon the savings of others. The more we have saved, the more we can loan each other and the lower interest rates will be.

But personal savings alone will not be enough. When companies profit, it is better to give raises to employees and pay dividends to stockholders than to needlessly expand the company, invest outside of a company’s expertise or to speculate on foolish investments, for consumer purchases account for 2/3 of our economy.

I want to end saying that we are making great progress in eliminating the federal deficit and that the government has responsible plans for the future. I sincerely hope that businesses and consumers pay off their own frivilous debt while practicing a similar restraint and concern for the future that we in Washington are seeking to do.

The philosopher

Recognizing America’s greed
Chadwick demanded players not gamble
Play without pay
Be a new breed.