THE DON JONES INDEX…
LESSON for JULY 16, 2013
DOW JONES INDEX 7/16/13… 15,459.32
7/9/13… 14,725.79 7/16/12… 12,777.09
Hope
everybody enjoyed their patriotic vacation.
Now – it’s back to work.
What
is, we have asked, the true status of Don Jones, our average American? Is it wholly his economic status… after all,
the Dow Jones Index is one for
the numbers crunchers… the aggregate closing value of a couple of hundred
stocks multiplied and divided according to a formula no less secretive than
that of Hostess Twinkies (which, by chance, returned to the shelves yesterday).
Or,
since we are dealing with human beings as opposed to numbers on a sheet of
paper… more likely a computer or cellphone screen,
these days… must we take into consideration other factors beyond the mere
possession and accumulation of wealth?
Our
answer to that question must be “Yes”.
Having a lot of money… and, perhaps, the power over others that money
confers… may be a desirable thing in America these days… we are, after all (and
especially since @ct.), more of a plutocracy than a democracy. Still, there do exist
unhappy millionaires – as evidenced by their suicides, addictions and criminal
failings. And there are humble,
hardworking Americans… even those in poverty… who are happy, optimistic, and
satisfied with their situation.
Americans
are still better off… economically… than most of the rest of the world. But too many are not only failing to get
ahead, they are falling behind… and if there is anything that history and
psychology have to tell us, it is that people are less dissatisfied with the
paucity of opportunities to move ahead (despite the noisy proclamations of the
American Dream… often mouthed by those born not only with silver spoons in said
mouths, but a bug of perhaps reasonable paranoia up their behinds) than by
seeing what little they have being taken away.
The
incomes of factory workers in some of the suburbs of Beijing (not to mention
Bangladesh) are certainly rising, but if their workplaces are unsafe and the
air unfit to breathe, are they better off than they were a decade ago? Certain Colombian or Mexican druglords might enjoy high incomes, but at a cost of always
having to look over their shoulders, wondering whether and which trusted
bodyguard has ambitions of taking his (or her) own shortcut to the top.
The
homicide rates for American Presidents still stands at an unnerving nine
percent… higher than that of the most desperately poor inhabitants of Chicago
or Detroit.
So,
factors other than income or wealth have to be factored in if one wishes to
create a profile of Don (and Dawn) Jones (a pernicious practice in and of
itself, whether conducted by the spooks at NSA or vigilantes like George
Zimmerman). Is he in good health, and
able to correct the situation if not?
Will Dawn and her newborn infants survive the birthing process… and will
their children receive an education that will enable them to keep up with the
rest of the world. Is their air safe to
breathe, their water safe to drink, and do they consider themselves safe from
the predations of ordinary criminals… from home invaders to identity thieves…
not to mention the heavily-armed lunatics and terrorists among them? Or are they so frightened by everyday reality
that they have and continue to surrender their liberties to overlords whose
objectives are profit and power rather than protection?
An
index which consists of anything other than crunched numbers becomes inherently
subjective. Can’t be otherwise! We have to assign numerical values to
intangibles as well as common bank accounts, and there will be plenty of cause
for objection. Some of the police and
politicians would assign considerable weight to the probability of Mexicans
hiding under Don and Dawn’s bed, certain gentlemen of the clergy might
downgrade the satisfaction of Americans who see or hear about gays buying
curtains or silverware in anticipation of their foul (but fabulous)
nuptials. One man’s God could be the
cause of a neighbor breaking out the shooting irons, and Mayor Bloomberg and
his ilk can blame the decline in America on the availability of triple-bacon
cheeseburgers and big cups of Mountain Dew.
So
what is a poor, confused Catfish to do but imitate other politicians… make
compromises – as well as the occasional decision not to compromise (and leave
critics fuming).
And these are the categories that made the final cut
of the Index…
Money (personal) – the earnings,
accumulated wealth and expenses of Don Jones and the Jones household. Here is to
be found the traditional Misery Index (unemployment plus inflation), as well as
accountings of wages, profits, rents, private and public transfer payments
etcetera. Questions of equality are also
included. (45%)
Money (societal) – reflecting the health of the
private and… for the most part… the public sector. The national debt of the
United States and its trade balance (or imbalance). Don Jones’ confidence in government and the
economy, as measured by the necessary evil of polls. (15%)
Education – upon which the upwards or downwards
mobility of Don Jr. and generations to come may be fairly assumed to rest. Domestic and international standings in
standardized tests, as well as problem-solving in key disciplines like science
and engineering. The
dropout and college tuition rates.
(10%)
Health – primarily measured by life expectancy,
infant mortality and the prevalence of certain diseases such as strokes, heart
attacks, cancer and the such. The costs of medical treatment, and subsequent impact on the
overall status and equality of healthcare. Here, too, are included environmental factors
of a local, national and international scope… global warming, desertification,
pollution. (10%)
Security – reflecting Don Jones’ safety and
that of his family from attack by other human beings. Here are to
be found the indices on domestic crime and foreign-sponsored terror, as well as
collateral issues such as incarceration rates.
(5%)
Freedom – as measures the inroads of the
National Surveillance State worldwide and as a consequence of governmental
decisions. Also included here are indices of the
integrity (or corruptability) of authorities in the
private or public sector. (5%)
Miscellaneous – as encompasses everything else under
the sun (and even a few things not so, such as meteor strikes or dispatches
from distant satellites). This is
clearly the most volatile sub-index, changing week to week, as it does, and the
vast morass of social issues are found here – although many will not be
tabulated due to the divisions already existing in the world that Don Jones
inhabits. (Examples include the likes of
the Zimmerman trial and Texas abortion restrictions which benefit… if only
vicariously… certain segments of the population while inflaming others.) Instead, we focus on local and world
developments upon which most people of sound mind agree… the highly-publicized
abduction of small children from their homes will depress Don’s status (if only
briefly) while their safe return and the capture of their pedophile captors
will make America’s day. Here is to be
found similar “small stuff” as, unfortunately, tends to dominate far too much
of our declining media… transitory events that are here today, gone next week,
but do have effects on Don’s momentary content or discontent. (10%)
Money
(or its lack) doesn’t comprise one hundred percent of Don’s well-being…
although if he has none, it might deserve a more exalted state. After some reflection, we didn’t decide that
personal monetary standards deserved even half of the weight of the Index…
given that wealth inhabits, to one degree or another, all of the other
standards – from the national debt to criminal activity and official
corruption, both of which usually have the Almighty Dollar as root causes.
And,
in order to trace the progress (or lack of it) through the past and future, the
initial value of the Index has been set at 15,000, which is the approximate
value of the Dow Jones Index as of July 16, 2013. Thus, monetary factors affecting the lives of
the Joneses are assigned a value of 6,750 points, broken down into lesser
values representing the performance of sub-indices such as inflation,
unemployment and incomes. American
issues, worth 15%, have been assigned a value of 2,250… equally divided between
issues of the national debt as it impacts global and locally fiscal health and
the private sector’s balance of trade.
Health
and education have each been assigned 10%, or 5000 points – again, with smaller
amounts attributable to sub-indices. Security
and liberty are worth 5%, or 2500 points and the miscellaneous issues that
arise from day to day or week to week also have a value of 5000 points. While some volatility can be expected here…
which will enable the Don to vary with the Dow (if not exactly in sync!),
adjustments will be conservatively managed and fleeting – except in rare
instances of portentous developments such as an all-out war between Israel and
its enemies as might plunge the Miscellaneous Index down to 4000, 3000 or even
(if it goes nuclear) to zero… besides having an impact on most other
categories. Alternately, announcement of
a cure for cancer might raise the Index by a thousand or more points, in
addition to its impact on fiscal or health-related indices.
Many
of the national and international databases are updated monthly, quarterly or
even yearly. So, the founding of a
company based on new technology that provides a lot of jobs and improves the
per-capita incomes and gross national product may not be fully tabulated until
weeks or months later, long after the initial event. A measure of the improvement (or decline)
might be proffered in Miscellaneous, but the hard data will, as tends to
happen, significantly lag behind the developments.
Today
is, statistically, the hottest day of the year.
So keep cool – by next week, the Don Jones Index (which reflects the
status of those who own no stock, as well as those who do) will begin ticking,
and a broad new world will unfold before your eyes… one you might bless or
curse, but cannot ignore.
HERE’S THE
FORMULA. NEXT WEEK, WE ISSUE OUR FIRST
RESULTS…
DON JONES INDEX – CHART of CATEGORIES
w/ VALUE ADDED to EQUAL BASELINE of 15,000
(REFLECTS…
approximately… DOW JONES INDEX of July, 2011)
DON JONES ECONOMIC. INDEX (45% of total Index points)
INCOME (24%)
Wages
(p/c) 10%, or… 1500 points
Equality 5 750
Unemploy. 9 1350
WEALTH (6%)
The
Dow 2 300
Home
Valuations 2 300
Debt
(Personal) 2 300
OUTGO (15%)
Inflation 9 1350
Food 2 300
Gas 2 300
Taxes 2 300
UNITED STATES ECONOMIC INDEX (15%)
NATIONAL (5%)
Income 1 150
Expenditures 1 150
Debt (Cumulative) 3 450
GOVERNMENT (5%)
Income 1 150
Expends. 1 150
Debt (Annual.) 3 450
BUSINESS (5%)
Exports 1 150
Imports 1 150
Trade
bal. 3 450
EDUCATION INDEX (10%)
By World Standard 5 750
By Test Scores 2 300
Dropout Rate 2 300
Tuition 1 300
HEALTH INDEX (10%)
Life Expectancy 4 600
Costs 2 300
Environmental 3 450
Natural Disasters 1 150
SECURITY INDEX (5%)
Crime Rates 3 450
Prison
Populations 1 150
Terrorism 1 150
FREEDOM INDEX (5%)
Freedom 3 450
Corruption 1 150
World
Peace 1 150
TRANSIENT ISSUES (10%)