FROM AN ECONOMICS ILLITERATE

While I make no great claim to understanding the economics of our time, I saw this article on the front page of the BBC news today and it really made me think.  Click here to view the article on this man's purchase.  From it:  "An anonymous buyer has bid $506,500 for a first edition copy of the "Star-Spangled Banner" poem, whose words were adopted for the US national anthem."

With my limited understanding of national economics, I wondered about this man having a large enough pile of money that he could afford to blow so much of it on a whim to own the 'first' anything.  Where in our economy does that large sale raise money that will reward the middle class?  A half million dollars of extended unemployment benefits would likely go much further to alleviate the threat to unhealthy existence for many families.

That piece of paper will probably live in a vault somewhere, too valuable to see the light of day and rarely seen except by  very few.  Whereas, as an unemployment benefit, money will most likely go to necessities, groceries, paying service people and credit cards for those things that we all need to live, especially if we have children.  The money would circulate, and if I understand correctly, keep retail money circulating making lots of people add something to their income.

When I hear politicians say that extending the tax cut to the rich is a good thing and demand it by holding unemployment insurance hostage,  I know there will be much replication such as buying first editions in books, and gifts like the diamond dog collar for a totally spoiled canine as was the rage a few Christmases ago.  The shops for these are not run by 'middle class' merchants.  The mark up in these 'shops' is such that the owners are not poor.  The likelihood of Christie's auction house spreading the wealth is less likely the unemployed buying first edition books rather than to the local grocer, dentist, gas station, family doctor, and all the usual places poor people must keep giving money to in order to survive.

I urge Obama to call the bluff of the Republicans on this one if he wishes to command respect from Americans.  He cannot continue to capitulate to McConnell and Boehner and allow the American people to be held in hostage by these ruthless and greedy politicians. President Obama, honor your campaign promises; 80% of Americans are begging you and the other 20% wish you would..