American economic dysfunction.

Editor,
Some analysts argue that the shocking dysfunction of the American economy is due to looming entitlement obligations. But the truth is that government policies geared to maximize wealthy investors' capital gains, which are not taxed, while slashing ordinary workers' wages, which are taxed, are one key factor. Another is that a huge balance of trade deficit has occurred because our "financialized" economy relies increasingly on selling equities and debt, not products. Another is that a huge budget deficit has resulted from revenue shortfalls caused by eliminating taxes on capital and staggering expenditures to support ideologically motivated military adventures abroad.

Instead of using carrots and sticks to influence corporations to make decisions that maximize American workers' disposable (and taxable) income, politicians and regulatory agencies, both of which are owned by corporate dons, facilitate mergers, offshoring, downsizing, and other "efficiencies" that are good for capital and bad for the American economy. I find it heartbreaking that ordinary Americans are so caught up in passions concerning God, abortion, homosexuality, and the like -- and so hopelessly ill-informed by TV news -- that they are oblivious to the disaster that is unfolding right in front of our noses.